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Henry Egbert Xerxes' big chance as a cub reporter comes when he is assigned to track down a gang of counterfeiters which gathers regularly at the Red Dog Inn. As he leaves the office, Henry witnesses a girl being dragged into a cab -- the same girl he had seen that morning passing counterfeit money. Henry follows, but on overtaking the cab, he finds it empty. At the Red Dog Inn, he discovers that the girl is being held captive. After a series of rough and tumble adventures with the resident thugs, he and the girl escape, after which he rushes home to write up the story. When it fails to appear in print, Henry storms into the city room only to discover that the entire business was a hoax, intended to test his reporter's instincts.