Ed enters the wall of their alley, on which Chico has painted a mural, into an art contest. Trouble is, Chico never asked Ed to do that, and now he's upset about it.
Chico notices Ed sneaking out one night wearing a nice suit. When he figures out where Ed is going, he becomes concerned that Ed is living too much in the past.
Violette Baines brings her car into Ed's garage for repair. Ed idolized her when she was a silent film star, but her star faded and now she is a waitress, a fact that dismays and disillusions Ed.
Chico finds himself empaneled on a jury that will decide a case whose defendant is a friend of Ed's. Naturally, Ed and Chico have a difference of opinion about what Chico should do.
Chico delivers a "guest" sermon for Reverend Bemis. Then the congregation decides they liked Chico's sermon so much, they want him to give all the sermons...
Chico's rich Aunt Connie, with whom Ed once fell in love, returns for another visit. As the visit progresses, Ed and Chico realize her new boyfriend is a confidence operator. They have to figure out how to persuade her this is true, or at least unhook her before the scoundrel cleans her out.
An act of kindness backfires. Ed gives a man an handout, not realizing he's a small time grifter. That earns Ed a reputation as a soft touch among the community of petty crooks and lowlifes in the neighborhood, most of whom descend on the garage with their own sad tales, looking for handouts of their own.