In New York City, Slip Mahoney, Sach and their Bowery pals are employed at the New York Daily Chronicle , some working as newsboys, barking out the day's headlines from every street corner, others as copyboys and photographers. At the busy offices of the newspaper, Slip, a copyboy who dreams of becoming a sports writer, gets a scoop about a sports-fixing scandal and writes it up for the city editor. The paper's seasoned sports reporter, Mark Morgan, tells Slip that his story lacks some necessary details and names, but praises it for being "colorful." When Slip learns that a big gambling bust is underway in another part of the city, he and his pals go the hotel where the arrests are being made, hoping to get the story, but are forced aside by the adult reporters. Later, Gabe, a gambler and a friend of Slip, gives Slip a tip on Dutch Miller's fixed sports scheme, and the "news hounds" get to work on the story. Dressed as thugs, and pretending to represent Dutch, Slip and Sach visit gangster "Dapper Dan" Greco and try to get him to place a bet on the upcoming Jim Gale fight. Greco promises them $50,000 for the bet, but Dutch soon finds out that they have been duped. The next day, when Slip and Sach return to get the money, they find Dutch there waiting for them. Slip and Sach try to flee, but are stopped by Dutch's thugs and are given a beating. Afterward, Slip uncovers the fact that Big Tim Donlin is the head of the syndicate, but before the story goes to press, Morgan steals it and sends it to the editor with his name on it. When the story hits the streets, the racketeers threaten to sue the newspaper for $4,000,000 unless it can furnish evidence to support its accusations. The editor is angered when Morgan is unable to supply the photographs to prove that the story is true. Slip, however, is confident that he can verify the story with pictures taken by Sach, not realizing that Sach has lost his camera. Things look bad for the newspaper at the subsequent trial until the pictures are found at the last minute and the suit is thrown out. With Greco, Miller and Donlin charged in the sports scandal, the "news hounds's" future in the newspaper business appears secure.