Mr. Muggs Steps Out

Margaret Morgan hires Masie O'Donnell and Butch Grogan, two former criminals, to serve as house staff for the Morgan household. Their presence signals a risky new direction for the wealthy socialite, and the men quickly settle into their roles as part of the household.

Muggs accompanies the East Side Kids to the Morgan estate and puts them to work polishing cars. The boys adjust to their new duties and practice basic etiquette under Masie's supervision. The arrangement signals the start of a tricky partnership between the city kids and the refined household.

An engagement party for Brenda and her fiancé Virgil is held at the Morgan residence. Muggs and the East Side Kids serve the food and help run the event, presenting a polished facade. The successful party masks the undercurrents of tension and the looming trouble.

A guest discovers her diamond necklace is missing during the party. John Morgan immediately accuses the East Side Kids, but the guests recall seeing a stranger at the gathering. Maisie remembers meeting that stranger at Danceland earlier, shifting the focus of the investigation.

Muggs convinces John not to call the police yet, proposing that he and the gang conduct their own preliminary investigation. They work to gather clues and test theories without alarming the household. The plan relies on their street-smarts to pin down the thief.

Maisie and Brenda go downtown to Danceland, with Brenda dressing as a gangster's moll to blend in. They hope to uncover more about the necklace thief and the anonymous party stranger. The night at the dance hall sets in motion a deeper look into the criminal plot.

At Danceland they meet gangster Dips Nolan and learn that he plotted the jewelry theft with Diamonds, who was the stranger at the party. The revelation ties the party theft to a local gang operation and raises the stakes for Brenda and Virgil. The information also confirms Maisie's memory of the Danceland encounter.

Nolan grows suspicious when Virgil, who followed Brenda, uses her real name and asks him to stage a fake fight to prove his manhood. Nolan instead knocks Virgil out and kidnaps Brenda, escalating the danger for the couple. The kidnapping also tests Muggs's commitment to protecting the host's family.

Muggs and Glimpy see Diamonds leave for the dance hall and search Diamonds' apartment, but find nothing of value. The failed search forces them to track other leads and prepare for a confrontation with the criminals. The tension between the residents and the gang intensifies as the clock runs on the rising threat.

Diamonds and Nolan return with Brenda, and the East Side Kids spring into action to capture the criminals and recover the diamonds. A chaotic pursuit ends with the criminals detained and the jewelry safely retrieved. The incident strengthens the gang's loyalty and reaffirms they can protect the household.

Brenda is pleased to see Virgil's East Side adventure transform him into a more confident and adventurous person. She looks forward to their future together as his new attitude steadies their relationship. The experience marks a turning point in their engagement.