Tommy Blake, a tough student at the Garfield Reform School, is given a chance to straighten his life when a friend of his father's, John Frazier, offers to enroll him at the State Naval Academy. Tommy accepts the offer and soon befriends new recruits Steve Kendall, the son of a high-ranking naval officer, and Dick Brewster, a spoiled snob who complains about the academy's paltry two-dollar-a-week allowance. Though Steve works hard to excel at the academy, he falls behind in his chemistry exams and is threatened with expulsion. At the same time, Dick, growing increasingly impatient with the strictness of the naval academy, insults a cashier and is sent to the "coventry" for discipline. On visitor's day, the young recruits spend time with their families, except for Tommy, who is visited only by Frazier. Tommy eventually realizes that Frazier's real reason for visiting is to investigate the disappearance of one of Tommy's pals, Joey Martin, from Garfield. Soon after Frazier leaves the academy, Joey visits Tommy and tries unsuccessfully to interest him in a money-making scheme. While Tommy secretly meets with Joey, Dick, who gave Steve the answers to an important exam, threatens to expose him unless he gives him money. Desperate to keep the incident quiet, Steve steals money from the cashier's office to pay Dick. Tommy and Joey's rendezvous ends in a fistfight, which results in Tommy being found outside his barracks after hours. Tommy refuses to explain his reasons for leaving the barracks, and is ordered to stand trial for his silence. When the money from the cashier's office is discovered missing, Tommy, who plans to escape from the academy, tells Steve to blame the theft on him. Tommy is later captured during his escape, and though he claims he is fleeing because of the theft, Steve confesses the truth. The academy board does not know whether to believe Steve or Tommy, until Dick steps forward and explains his role in the incident. All three cadets are reprimanded for their actions, and promise to reform.
