Although Jackie Coogan is dressed up (or rather, down) for this comedy in much the same way he was for Charles Chaplin's The Kid, there are two big differences -- he's four years older than when he made the Chaplin film and starting to lose his childish charm. A fire breaks out at an orphanage in New York's Lower East Side, and young Tim Kelly (Coogan) escapes in his nightshirt. He hides from the cops by ducking into a junk wagon belonging to Max Ginsberg (Max Davidson). Ginsberg takes him in, and when Tim proves himself to be an excellent "rag man," the two become partners. Years before, Ginsberg had invented a type of sewing machine, but Bernard (Robert Edeson), a crooked lawyer, cheated him out of the patent. Tim tracks down the devious Bernard and makes him square things with Ginsberg. The two rag men, now incredibly wealthy, become New York's most exclusive antiques dealers.