Vicious Allie and laid-back Johnny G. are a couple of rival New York City gangsters who have known each other since childhood. After mob capo Lou Caddy gets busted by the authorities for tax evasion, Allie and Johnny G. find themselves caught up in a fierce territorial dispute over who will have exclusive control of the mob racket.

A tramp steals a girl's handbag, but when he tries to pick Charlie's pocket loses his cigarettes and matches. He rescues a hot dog man from a thug, but takes a few with his walking stick. When the thief tries to take some of Charlie's sausages, Charlie gets the handbag. The handbag makes its way from person to person to its owner, who is angry with her boyfriend who didn't protect her in the first place. The boyfriend decides to throw himself in the lake in despair, so Charlie helps him out.