Both Smitty and Mr. Bailey wish Smitty was back at his old job as office boy.; The police find the stolen pearls in Mr. Bailey's office and accuse him of being the thief.; Mr. Bailey learns ventriloquism. Later he and Smitty go to the North Woods on a fishing trip.; Mr. Bailey spends his vacation trying to catch the huge fish "Old Fighter."; Mr. Bailey finally hooks "Old Fighter," but it's a question of who's caught who.; Mr. Bailey is troubled by some business concerns and decides to go south to the beaches and sunshine to clear his mind. He takes Smitty with him.; Mr. Bailey hires Captain Stiletto for a week's worth of sea fishing, not knowing that Stiletto is smuggling ammunition for a rebel.; The ship and its cargo of ammunition reach General Pedro's island. A storm comes up and the crew deserts the ship, leaving Mr. Bailey and Smitty aboard.; The ship is washed over the rocks and is grounded on a sand bar. Mr. Bailey and Smitty get off the ship right before it blows up, courtesy of one of Mr. Bailey's discarded cigars. The two write Smitty's parents that they are coming home. Meanwhile Smitty's mother is ill and Herby takes over the housework.; Herby takes over the housework while his mother is ill. Smitty asks Mr. Bailey for a promotion to a job in the sales department.; Smitty goes to work in the sales department. Mr. Bailey misses him and Smitty misses Mr. Bailey.; An old friend of Mr. Bailey hides some stolen pearls in a vase in Mr. Bailey's office; Herby delivers parcels for a "penny-a-package."; Mr. Bailey and the police set a trap for Steve Smart.