Penrod and his gang don't want to let neighborhood "goodie-goodie" Georgie Bassett into their club, but Penrod's father pressures him to allow the boy in, because Georgie's parents are wealthy and prominent members of the town. Finally the boys agree to let Georgie join, but first they demand that he undergo an "initiation", and they're determined to make it one that Georgie won't soon forget.