The third of nine Torchy Blane movies. Angry that police detective Steve McBride (Barton MacLane) is giving preferential treatment to his reporter-fiancée, Torchy Blane (Glenda Farrell), reporters from a rival newspaper plan a fake murder with the idea that Torchy's paper will print the story and look foolish. The tables are turned when the fake murder turns out to be the genuine article.

When a banker is found shot dead with a gun in his hand, his daughter refuses to believe it is a suicide. With the help of a detective, she hopes to get to the bottom of the case.

A gang of criminals, which includes a piano player and an imposing former convict known as 'Gruesome', has found out about a scientist's secret formula for a gas that temporarily paralyzes anyone who breathes it. When Gruesome accidentally inhales some of the gas and passes out, the police think he is dead and take him to the morgue, where he later revives and escapes. This puzzling incident attracts the interest of Dick Tracy, and when the criminals later use the gas to rob a bank, Tracy realizes that he must devote his entire attention to stopping them.