He says that she's old enough to make her own decisions - for example, the decision to come to the bar herself instead of her mother. Sana wants to know if Sensei also thinks of her as a child. Kaori eventually lets them order, but says that she cannot "provide dizzy drinks" to someone Sana's age. At the other bar, their waitress turns out to be Kaori, whose weirdness is beyond Sana's "current skill level" to deal with. Sana's mother had originally planned to accompany Sensei, but Sana didn't like the idea of them being alone together, and will instead accompany him herself. Old Merton's heart is touched when he sees the home Meg has left, and slowly opens his arms to receive the little waif who has proved herself so worthy.Sana and her mother are arguing about something when Sensei arrives at the bar, and Sensei is informed that he'll be participating in a mission to scout out a competing bar. As he goes down the battered old stairway, he meets the aristocratic old Merton, and the two men glower at each other as they both realize the great gulf between them. Dugan's heart softens as he hears Meg's heartbroken farewell to Tom, because her "father can't associate with high-brows" and she refuses to leave him alone, and he slips the check on which he has written his promise not to bother her again under the door. Hal confesses that he is "English," and is arrested. To save Alice from the fake "Lord," Meg tells his story to Merton and Tom. The two men plot to "work" Tom for the price of their silence, and when Tom is approached, he gives Dugan a ten thousand dollar check, the birthday present from his grandfather. Much to Hal's and Meg's discomfiture, a slumming party is suggested, and they accidentally find Dugan, who recognizes Hal. "English" Hal nearly faints when he recognizes Meg. At his suggestion, old Merton takes Meg on probation with the idea of adopting her. Tom assures the little waif he has indeed come to rescue her. Tom, disgusted with trying to "turkey-trot" in the suit of armor he is wearing, goes into the garden to "cool off." Meg, believing him to be her real knight who has come to rescue her, nestles confidingly on his breast. The occasion is a fancy dress ball which Alice is giving in honor of her brother Tom's birthday. That night, Meg, reading her beloved book, is attracted by the music next door and again climbs the wall. Unable to stay in her cramped position under the table any longer, Meg crawls out and tells the astonished Merton her story. "Lord Hal," seeking out Merton to ask for his granddaughter Alice's hand, discovers the volume of "King Arthur" lying on the table, and is much disturbed when he recognizes it as Meg's. Tempted by Merton's beautiful flower garden next door, she climbs the wall and is feasting on the fruits and flowers when old Merton appears. Meg again takes refuge in her ash barrel where she is found by a policeman and hustled off to the Detention Home. The club is raided, but Hal and Dugan manage to get enough money together to carry out their plan of posing Hal as "Lord Henry Trevor." Hal kisses Meg against her will, and in the fight which results between him and Meg's father, the latter is shot and left for dead. Dugan and "English" Hal, a "black sheep" of an old English family, run a "Social Club," where liquor is unlawfully sold. Fleeing from her father, Meg takes refuge in an old ash barrel and there discovers a dilapidated volume of "King Artnur and His Knights of the Round Table." Deeply interested in the pictures in this book, Sir Galahad at once becomes the hero of her dreams. Despite her rough environments, there has developed in little Meg's soul an intense love of things beautiful, and a great taste for dancing. Meg Dugan, a waif of the slums, whose mother is dead, lives with her drunken father in San Francisco.