Dutch Adams is captured in a shootout with police, and his lawyer, public defender Gary Franklin, has him plead guilty. Franklin tries unsuccessfully to have Dutch's death sentence reduced to life imprisonment by claiming that society is the accomplice to Dutch's crimes. Dutch grew up in the slums as an orphan while trying to support his sister Marcia and younger brother Fred, who is known as "Stubby." Later, Stubby and his gang are involved in a stone-throwing incident with the police, and Daniel Olsen, known as Pighead, a member of the gang, is arrested. Franklin, who also grew up in the slums, meets with the boys and, after Marcia arrives, explains his plan to begin an organization called the Police Athletic League, or "P.A.L.", which would foster a friendship between the police and the young boys who live in the slums. The mayor refuses to subsidize the endeavor, so Franklin persuades the local people to petition the governor. The governor agrees to fund the program initially, with the understanding that P.A.L. become self-supporting. During the group's first meeting, as Franklin explains that they are to cooperate with the police, Stubby rudely interrupts and later, Franklin makes him explain to the others that he believes it is smart to join P.A.L. Then, Franklin has Pighead released so that he may set an example to other members of the gang. Franklin arranges a boxing competition, to be held at the governor's mansion, to raise money for P.A.L. Stubby, who works as an usher, is angered when he is forced to turn over a five dollar tip, which he intended to use to treat his gang. Stubby then steals the money from the box office and, with several friends at his side, races off in a stolen car. Franklin and the police pursue the group, while Pighead becomes unnerved and jumps from the speeding car, badly injuring himself. The boys return to help Pighead, and as Stubby takes off to obtain medical supplies, he hears Franklin on the radio defending P.A.L. in spite of his and the others' actions. Stubby informs the police where to find Pighead and then turns himself in. The members of P.A.L. decide to give the reformed Stubby another chance, leading Marcia and Franklin to foresee a bright future for the slum kids as well as themselves.