Radical journalist Diwakar runs a printing press and edits a newspaper, much to the disapproval of his authoritarian middle-class father who believes that all respectable youths should get a job and settle down. Diwakar's scheming politician friend Vithalrao incites a strike and acquires the press and the paper with the help of Diwakar's father, causing Diwakar to leave home in disgust.
Herr Werther, a new magistrate to the Grand Duchy of Walheim who is a violinist and poet, seems to have fate on his side as he meets and pursues a beautiful local woman, Charlotte.
The mangiest pup at Pete's Pooch Palace catches the Captain's eye. He takes it home, but Mama is less than thrilled; she forbids it to stay in the house.