The specter of Eddy's stardom raises dissension among his gang, who wish either to accompany him unquestionably on his ascent, or to hold him back in their ranks. Iris is also jealous of Helen, with whom Eddy has been carrying on an affair. Helen eventually professes her love for Eddy. But one of Eddy's gang members, Moon, kills a fat barkeep, threatening to drag Eddy down by association. Moon runs from the police, but is tracked down by Eddy, who delivers him for arrest. With this he also definitively separates himself from the rest of his gang and from Iris, but also destroys his prospects for a career as a singer with his own arrest.
