The story opens in Cape Town, where Steve’s dog, Mike, gets him into trouble, costing him his last ten dollars. Shortly after, Steve encounters Shifty Kerren, the manager of Kid Delrano, a boxer and Steve’s rival. Despite past bad blood, Shifty convinces Steve that Kid Delrano is in jail and needs money to pay a fine. Moved by a sense of patriotism and camaraderie, Steve agrees to help, despite his current penniless state.

Steve goes to the South African Sports Arena to earn the money by fighting. He negotiates a quick bout with Bucko Brent, an old nemesis from his sailing days on the Elinor. After a gritty and grueling fight marred by foul play from Brent, Steve emerges victorious and wins the prize money.

Returning to the bar to meet Shifty and give him the money, Steve discovers the deceit: Kid Delrano was never in jail. It was all a ruse for a bet between Shifty and Delrano, who mock Steve’s gullibility. In a fury, Steve administers a beating to Delrano and his cohorts.

As Steve leaves, heart heavy from being duped, he encounters a crying woman being evicted from her boarding house. Moved by compassion, Steve pays her overdue rent with his hard-earned prize money, only to later learn from the barkeep that he’s fallen victim to yet another scam led by a con artist known as Boarding-house Kate.