Scandal Street (1938)

Joe McKnight temporarily leaves his fiance, Nora Langdon, for an expedition in a South American jungle. Nora gets a position as librarian in the small town of Midberg, where she boards with the Smith family. Nora is befriended by her next-door neighbor Austin Brown, who, unknown to his wife, is engaged in a moneymaking scheme with James Wilson. Ada Smith and her friends spread gossip about the innocent relationship between Brown and Nora. One of Nora's staunch defenders is neighboring schoolgirl Wilma "Willie" Murphy, who tells tall tales and, because of her curly hair and clumsiness, is mercilessly teased by her schoolmates. One night, Nora warns Brown that, according to information that she found at the library, the business he is starting is against a postal law. Later, Brown receives a telegram from the post office informing him that Wilson's plan is a fraud. Brown demands his $2,500 investment back from Wilson. When Nora goes to Brown's house to retrieve her glasses, she finds him dead on the floor. Brown's wife Birdie finds her by the body and accuses her of murder. Joe returns to find Nora in jail, and because of the cruel gossip surrounding her, the district attorney promises he will do his best to prove her guilt. Willie, who hates Wilson because he has been courting her mother Maybelle, digs up a pair of Wilson's gloves she was using, and gives them to Joe as evidence. During the trial, Wilson incriminates himself by saying that he killed Brown because Brown threatened to call the police if he did not return his money. Nora is released, the gossip-mongers are proven wrong and Willie gets back at her friends when Nora and Joe help straighten her hair.