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Steve Trent, head of New York's Red Circle taxicab company, tries to buy John Cassidy's independent taxi business. When Cassidy turns him down, Trent then orders one of his cabbies to drive Cassidy off the road. Cassidy is injured, and his cab is wrecked. Because Cassidy has a young daughter Nora and is caring for his mother, Father Donovan asks Slip Mahoney to take over Cassidy's route until he has recovered. Slip turns him down, but Father Donovan encourages Tony, a grocer, to start a brawl with Slip and then suggests to the policeman who is called to the scene that Slip should drive the cab rather than go to jail. After Slip is forced to break his date with Mabel Dumbrowski, a waitress at Louis' Café, in order to drive Cassidy's cab, two Red Circle cabbies torment him. Angered, Slip calls the other Bowery Boys to his aid. Together, they disable the Red Circle cabs and do good business for the rest of the night. The next day, Father Donovan takes Slip to give Cassidy his share of the money. At Father Donovan's urging, Slip gives all the money to Cassidy. Mrs. Cassidy then insists that he eat dinner with them, and Slip learns that Nora would like a new doll for her approaching birthday. The following night, Slip and the boys again take on the Red Circle cabbies. When Slip cancels a second date with Mabel, she becomes convinced that he is seeing another woman. Later, Trent offers Slip a job as supervisor for Red Circle, but Slip turns him down. Then a beautiful woman hires Slip to drive to a town twenty miles away and diverts him to a side street, where Red Circle employees beat him up. Slip returns to Cassidy's garage and tells the boys that they will stay in the taxi business until Cassidy recovers. When Chuck, one of the Bowery Boys, is attacked by Red Circle, Slip declares all out war. Learning that Patrick McCormick is Red Circle's owner, they descend on his house, but he is on his way to the airport and does not listen to their complaints. Slip then offers to drive him to the airport, but hits a police car and is taken to jail. Marian, McCormick's daughter, bails Slip out of jail after Father Donovan tells her the whole story. Later, Marian asks Slip to pick up her father at the airport. In the meantime, Trent orders his drivers to destroy permanently the Cassidy cabs and Slip. While returning from the airport, Marian tells her father what she has learned, but he does not believe her. Then a Red Circle taxi tries to run Slip off the road, convincing McCormick that Slip has been telling the truth. Sure that Slip has been taken care of, Trent heads for Cassidy's garage, and there, McCormick vows to put him in jail. After a fight between Trent's men and the Bowery Boys, the police take Trent and his cronies to jail and McCormick offers Cassidy a job as general manager. Slip then sets out to deliver a doll to Nora, but crashes his taxi in front of the Embassy Club, and Mabel, who was hiding in the back of the cab to keep an eye on Slip, learns that her jealousy was unfounded. With everything settled, they go into the club for dinner.