While Tom and Ned Newton are reviewing financial records, a fire breaks out at the fireworks factory in town. Assisting the firemen, they rescue Josephus Baxter, Mr. Baxter is developing a new dye formula, and has hired out laboratory space at the factory. During the mayhem created by the fire and the rescue, Mr. Baxter loses the formula, but he is positive that the owners of the factory have stolen it. Tom feels pity on the man, and allows him use of the labs at the Swift Construction Company.