After losing his wife, Danny thinks that he is unable to provide and give the attention that his children need, so he sends them away to boarding school.
Danny's booking agent, Phil Brokaw, and his press agent, Liz O'Neill pressure Danny to go back to work, but Danny refuses to acknowledge he no longer needs crutches for his still-heeling broken leg.
Danny is surprised to find Wilma, a young girl from Iowa, in his home. She wants to make it in show business and finding no one will give her an opportunity decides Danny is her last chance. He tries to give her a helping hand.
Danny gets a call to perform at the Sands, but it means he has to back out on a promise to play at Rusty's school. Rusty cries "you don't love me, I might as well be an orphan", and promptly runs away - to an orphanage. SONG: It All Depends on You
Rusty has the measles, and Kathy is introduced as his visiting nurse. She won't allow Danny to enter his room because he doesn't remember if he had the measles or not. Terry is staying with friends to avoid exposure, and does not appear.
Kathy is over the measles, which she had caught from Rusty. Danny tries to get her to go on their first date, but she plays hard-to-get. Danny's chauvinism comes into play, while Rusty also has trouble with his girlfriend Ruthie.