In 1928 Chicago, two gangsters kill a store owner, and the mobster Big Ed, [Paul Douglas], sends his top henchman Bugsy Welch, [Keenan Wynn], to plant a white carnation—his trademark—on the corpses, a taunt that suggests his guilt. The police surge to arrest Big Ed, only to discover he has a solid alibi: he has been in the park. It is there that he meets Ruth Manning, [Jean Peters], a country girl who came to the city hoping to be a singer but now works as a children’s governess. Big Ed falls for her, convinced she has class, and resolves to court her despite the danger. He poses as a widowed father and asks Ruth to care for his “child,” offering to triple her salary. When she agrees, he has Bugsy audition a son to pass as his maturing heir. Bugsy introduces Harry the Kid Jr., [Peter Price], the foul-mouthed offspring of a gangster, to play the role. Ruth grows close to Big Ed, but she is offended when he gives her an expensive fur coat on Christmas Eve, interpreting it as a ploy to buy her affection. She accepts, yet decides to stay only long enough to enroll Harry in a military academy.
The mansion soon becomes ringed by Pretty Willie Wetzchahofsky, [Cesar Romero] and his men, Big Ed’s arch-rival. Ruth contemplates warning the authorities, but is talked out of it by Mamie Sage, [Joan Davis], a friend of Big Ed who is posing as a maid and who eventually reveals who Big Ed really is. Ruth is appalled, yet agrees to remain until Harry is enrolled at the academy. Meanwhile, Big Ed and Pretty Willie reach a tacit truce, agreeing to refrain from directly interfering with each other’s mob activities.
Months pass, and Ruth has become a singer in a nightclub once run by Big Ed. She attends the opening night to gauge his intentions, while Pretty Willie, who also eyes Ruth, convinces her that Big Ed is a ruthless killer. She soon learns that Harry has vanished from military school. After Ruth locates him, Bugsy reveals to her that Big Ed has never harmed anyone and that all the alleged victims—including Mamie’s husband—are alive in his basement. The narrative takes a drastic turn as those prisoners escape and crash a party, casting doubt on Big Ed’s supposed cruelty. Pretty Willie’s men decide to kill Big Ed, but they respond to his surprising kindness and help him escape, even faking his death. Bugsy identifies a body as Big Ed, and during the funeral, Ed emerges alive and reunites with Ruth. She confesses how crushed she was at the thought of his death, and they share a kiss. Big Ed then has Pretty Willie arrested and, joined by Ruth, Harry, and Bugsy, sets sail on a ship where they plan to begin a new life together.
