After the lost boxing match, and signing over his ownership in the Jot ‘Em Down store to Abner, Lum is destitute and selling pencils on the street. Grandpap and Abner discuss the plight of the starving Lum. The plot thickens when Squire wants to hold Abner to the bet they made over the boxing match. A bet that Squire tried to back down on when early newss of the fight came to the store.
Lum enters, hat in hand, and has to face up to Abner. Will the two partners make up? Will Lum be destined to life in an orphan home? Will Abner have compassion on his friend?