The old Atwell home is said to be haunted, and Jeremy Foster, the gardener, who is actually the head of a band of thieves that use the house for a hideout, does his best to keep the superstition alive. Despite the rumors, impoverished sisters Lois and Alice Atwell decide to move into the empty family house. They take possession the same night that Ted Rawson is ordered to explore the place as an initiation rite by his fraternity. That same night, Spud Foster, a member of his uncle's gang hides there with his stolen loot. In the middle of the night, Lois apprehends Ted and, believing him to be a burglar, takes him captive. The noise awakens Spud who, mistaking Lois for a ghost, flees the house. After much confusion, Lois' fears about Ted's character are allayed when he helps fight off the thieves, and relieved, she confesses her love to the fraternity boy.