Fitzhugh is captured by a wax sculptor named Deenar who is partner to a jewel thief named Jolo. When Jolo orders the artist to cut up a large diamond into ten small pieces, he refuses believing three pieces would be worth ten times more, and Jolo angrily ends their partnership. When Steve and Dan come to rescue Fitzhugh, they offer Deenar a deal to sneak the diamond away from Jolo in exchange for the release of their friend. Deenar agrees but Steve sends Mark and Valerie to fetch the diamond while he and Dan try to release Fitzhugh. The rescue becomes more difficult when they learn Fitzhugh is being guarded by a fierce dog.