Upon the urgent invitation of Mrs. Knickerbocker and Margaret, Dunbar arrives at the Knickerbocker home and accompanies aunt and niece to the Waldorf-Astoria Roof Garden, where they have dinner far above the humming motors of Fifth Avenue. Upon their return to Mrs. Knickerbocker’s house they find Ada and “Kid” Joseph awaiting them. “Kid” Joseph notices Margaret’s increasing interest in Dunbar and Mrs. Knickerbocker’s apparent approval of the intimate friendship between the two. The “Kid” is not much pleased with the turn in affairs and visits Madge Travers to tell her he has information which will prove that Margaret’s professed friend, Dunbar, is a crook. Visiting Mrs. Knickerbocker soon after her talk with “Kid” Joseph, Madge tells Margaret’s aunt what she has learned. Mrs. Knickerbocker, however, is incredulous and displeased. When he learns that Madge Travers has failed to convince Mrs. Knickerbocker of Dunbar’s duplicity, “Kid” Joseph personally visits Dunbar and warns him to cease visiting Margaret. Dunbar sneers at the young gangster’s threats. Unconscious of the tension surrounding her, Margaret visits the studio of Penrhyn Stanlaws, the famous illustrator, who sketches her in colors. She spends a delightful afternoon in Mr. Stanlaws’ place. Shortly after Margaret and her aunt return home, they have two visitors. Dunbar and “Kid” Joseph. The “Kid” again demands, in a whispered conversation, that Dunbar cease his attentions to Margaret, but when Dunbar smilingly shakes his head in negation, the “Kid” steps before Margaret and Mrs. Knickerbocker and denounces Dunbar as a dangerous crook. Both Margaret and her aunt are shocked at the accusation and reiterate their confidence in Dunbar.