[1] Lazy fisherman Bill Johansen docks his small (and sinking) fishing boat in San Pedro harbor, aggravating ship chandler Pop Cavendish and Pop's spinster daughter Marge, who would like to marry Bill even though he has welched on paying his debts for years.

Bill likes Virginia, but doesn't want the responsibility of raising a child, so he convinces Marge to let her live ashore with her.

Virginia tells Bill about the death of "Gramps," her maternal grandfather, who was a well-known Gloucester fishing schooner captain.

Virginia takes his wages for safekeeping, but Bill gets drunk anyway to celebrate his new status as a hero, and Kelly scuttles his boat after he passes out.

Bill wants to sail the We're Here to the South Sea Islands and charms Marge into giving him the money to pay the balance, hinting that they might get married.

Bill pretends to accept the offer, but uses it to leverage another bribe from Kelly, needing cash to buy goods for trade in the South Seas.

Bill's makeshift crew capture the gang and put them to work to successfully weather a bad storm.