

Hi-Hat is so afraid of Morgan, that he rears in fright whenever he hears his voice. He hopes the horse, which he purchased from Morgan, will win and the money will allow Judy to save the Sanitarium. Meanwhile, Judy's beau, singer Gil Stewart, who performs at Morgan's nightclub, has just spent his savings on a racehorse named Hi-Hat. Whitmore, being Morgan's stooge, is suspicious of Hackenbush's medical background.

Tony contacts Hackenbush by telegram and when the Doctor arrives he immediately insults the Sanitarium's business manager Mr. Upjohn that Hackenbush has been hired to run the Sanitarium, she is elated and informs Judy she will consider helping her financially. Tony overhears her praise of Hackenbush, who is, unknown to her, a horse doctor. She threatens to leave the Sanitarium for treatment by Dr. Judy's employee Tony, suggests asking financial help from the wealthy patient Mrs. Morgan, who owns a nearby race track and nightclub, holds the mortgage on the sanitarium and is attempting to purchase it in order to convert it into a casino. The Standish Sanitarium, owned by Judy Standish, has fallen on hard times.
