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In the small shipbuilding town of Danforth, Albert Walker realizes, to his distress, that German sympathizers, spies and draft evaders, by voicing doubts about the United States' involvement in the war, are having a disastrous effect on the patriotic spirit of the townspeople. In order to silence these "yellow dogs," Albert organizes the boys of Danforth into a club, to be headed by a young patriot called "Nosey" White. The boys pledge to challenge unpatriotic remarks by handling the speaker a card labeled "yellow dog." While Nosey is in the home of his sweetheart, Kate Cummings, one day, he overhears her father, Alexander Cummings, in conversation with a group of German spies. Learning that the agents plan to set fire to the shipyard, he informs his father, who rushes to the scene and engages one of the spies in a fight. The spy is shot, and when Albert and Nosey expose Cummings, the German is sent to prison.