Two sailors (William Haines and Cliff Edwards) are leaving the US Navy after 10 years. In their spare time, one of them (Haines) invents a carburetor that should increase the speed that powered boats will run, but all they succeed in doing is sinking the Admiral's barge. After discharge, broke and out of work, they find work with a boat builder who wants the fastest race boat in the world. They design the boat, carburetor and the engine but lack of money and the foreclosure of the business hinders their efforts to prove the new design.

Commander Stevenson, suffering from unrequited love drives to the coast while very drunk and interrupts some smugglers and informs Scotland Yard.

Paul Vanderkill is extraordinarily wealthy because his grandfather happened to buy farmland in what was to become Midtown Manhattan. The Loveland Dance Hall is one of the tenants of the Vanderkill estates. To reassure his aunt Sophie, Vanderkill visits Loveland to determine whether it is as disreputable as Sophie suspects. There he meets a dime-a-dance girl, Madeleine MacGonagal, who charms him with her quaint proletarian accent. They begin a secret affair, which turns into a secret marriage when pregnancy ensues. When the baby fails to survive, Madeleine decides that since he had married her only for the baby's sake, she should make haste to Mexico to secure a divorce. There she meets Panama Canal Kelly, a former suitor who now owns a silver mine. Her plans for divorce and quick remarriage are complicated when Vanderkill arrives to confront her.