When the noise from the freight elevator beside his office becomes intolerable, John decides to try working at home, only to be confronted by Lydia, who is unhappy with her seat at school. She decides to run away into Manhattan to stay with her bohemian Aunt Kate--accompanied by her worried father.

After Greeley once again fails to understand the humor in one of John's cartoons, John quits his job with The Manhattanite and returns home, where he begins to wonder what he'll do for money now. He settles on playing the stock market and fantasizes about a meeting with J.P. Morgan.

Lydia is supposed to go to a dance with a boy named Elbert, but when a bully beats him up and insists that Lydia go to the dance with him, John takes the side of the underdog and tries to talk Elbert into retaliating.

When Ellen and Lydia go on an overnight trip, leaving John home alone, he finds himself interrupted in his work by a pair of movers and goes into a fantasy concerning him and his beautiful new neighbor.