Flotsam (Thomas) is the daughter and helper of crusty old lighthouse keeper Joe Clark (Edward Ellis, in fine form). The reason why Clark lives 'out yonder' is because he's a fugitive from justice: years ago, he killed a man under complicated circumstances. Clark's official assistant is Amos Bart, but Flotsam does much of the work of maintaining the lighthouse.

At a reception for Mr. and Mrs. Vance Leighton, three men are discussing the effects of heredity in shaping the careers of children. To prove his contention that the theory of heredity is often demonstrated to be false, John Strong, a secret service agent, tells a true story: Two orphan sisters are adopted, one by society leaders, the other by a couple of crooks. The latter, known as "The Angel," becomes an expert pickpocket, while the other, Evelyn, becomes a reigning belle.