[2] After Wally fills little Marianne's favorite doll with sawdust and gives it to her, neighborhood bully Leonard lassos it with a rope and swings it out in the street, where a passing truck crushes it.

The gang then promises to purchase a new doll for the brokenhearted girl, as her big sister Jane comforts her.

They window shop for a doll at the local toy store, where Leonard's equally obnoxious father, who coincidentally owns the store, agrees to give the kids a doll if they will trade their beloved Pete the Pup for it.

Balking at this proposition, the kids concoct a variety of moneymaking schemes, all of them doomed to failure.

But Pete's continued destruction convinces him to give the doll and the dog back to the gang.