Nancy, Bess and George, returning from a country carnival, witness the malicious burning of a stately home. Fearing its occupants might be trapped in the fire, they rush to the rescue. Other motorists including handsome, Ned Nickerson, are also at the scene. Nancy notices a mysterious man running from the fire and finds a lost diary. Nancy learns the homeowner and the man who kept the diary are involved in a business transaction in which the latter was cheated. Despite strong evidence to the contrary, Nancy is convinced of this prime suspect’s innocence. While working to exonerate the troubled man, Nancy is delighted by her new friendship with Ned.