[1] After she files for divorce from nightclub owner Tom Wilson, former Broadway star Gypsy Carmen demands that he return the securities that she owned before their marriage.
At the time of the murder, Jim Lindsey, the star reporter of the American Express paper, is busily bidding on oriental rugs at an auction and consequently misses the story.
The houseboy then reveals that right after the murder, he saw a woman wearing a "fuzzy coat and funny hat" hail a yellow cab with a dented fender.
Meanwhile, Muggs, Glimpy and the other East Side Kids go to the taxi stand and learn from the driver hat he delivered a woman wearing a fuzzy coat to the Stephens apartment building, where Gypsy lives.
As Muggs and the boys drive to the apartment building, the police arrive at the taxi stand, question the driver and dispatch a car to arrest Gypsy.
As Jim exhibits his clue, the police arrive to question Cartwright about the strange woman driving the Express's car.
After Diane leaves the office to perform her act, Gypsy enters, pulls out her gun and demands that Duncan return the securities.