Sherwood realizes Baroque's companion, the alleged Grand Duchess Alix (Verree Teasdale), is really Mabel McGuire, his old friend from Hoboken, New Jersey, and threatens to reveal her identity unless she convinces Baroque to design the costumes of a musical revue in which she will star. Baroque buys a supply of ostrich feathers from Sherwood's crony Joe Ward (Hugh Herbert) and starts a fashion rage.
