Hoping to recoup the family fortune, the Bedfords stake their hopes on Big Boy, a horse trained for the Kentucky Derby by the ever-singing Gus, their faithful black jockey. Shortly before the race, Jack and Annabel return from eastern schools, bringing with them Coley Reid, his confidant Doc Wilbur, and Steve Leslie, an English jockey. Reid persuades Jack to urge Mrs. Bedford to entrust the race to Steve, but she declines, saying Gus has served the family for generations and telling them a story (incorporated in the film and providing the opportunity for the singing of Negro spirituals) of how Gus's grandfather saved Annabel's grandmother from kidnappers in 1870. Threatening Jack with a forged check, Reid forces him to have Gus break training rules, and the trainer is dismissed. Joe becomes suspicious and learns that Dolly, Reid's wife, is plotting against Annabel, of whom she is jealous, and that Steve plans to "throw" the race. Gus then appears, outsmarts the crooks, and wins the race. Jolson appears without blackface at the end of the film to sing "Tomorrow Is Another Day."