In the hotel, Lum phones his gratitude to the gang members who made his bail, and got him out of jail. Dick Huddleston enters to listen to Lum complain about not knowing who his real friends are. Lum seems to know about the jewel thieves, but resents people trying to tell him how to run his life. Dick has an uphill battle to talk sense to him.
Cedric joins in with word on how well the hotel business is doing. It’s a shame that Lum wants to get out the rope, and divide the hotel between him and Abner,
As Lum goes to meet with the cheif of the gang, Abner arrives in a catcher’s mask and padding. He’s afraid to face Lum, and risk being beat up. Lum and Abner argue, and break partnership. Dick tries to talk them into sharing the duties and profits of the hotel, but the old gents won’t hear it. Is therre any hope to make up, or will they divide up the rooms to run two hotels in one?