The East Side Kids return to their neighborhood, but Muggs is hiding a secret: he's been honorably discharged with a physical defect. Meanwhile, Danny is in jail for stealing medical supplies, and Muggs becomes suspicious of Spider, a new gang member, who's flashing a large amount of money. Muggs pretends to be tough and gets Spider to confess that he's been stealing supplies from the warehouse, where Danny works. The operation is run by Larry, who pays Spider for the loot and is connected to Muggs' sister, Milly, who performs at his nightclub. When Spider is killed by Larry's henchman, Fingers, the police suspect Muggs of the crime.
Follow the Leader
The East Side Kids, Muggs and Glimpy, come back to their neighborhood after their army stint, with Muggs hiding a secret: his honorable discharge due to a physical defect.