Fred gets a new next door neighbor and is shocked to learn that he is Puerto Rican and planning on opening a junk business of his own. Fred gets upset about the competition and contrives a plan to get the city to condemn his property especially since, Julio has a pet goat.

Lamont is fed up working with Fred and quits the partnership. He soon finds a job down the street at a rival junk collector's business. Meanwhile, Fred looks for another partner and finds one in Norman, whose first contribution is a stuffed bear.