Sylvia Smith and Dick Winters share a romantic kiss at a dance, but Sylvia is called away before Dick can learn her full name. Sylvia's father is about to lose his California hotel, the Casa Del Mar, thanks to the financial blundering of his new business partner J. Davis Bowster. The mortgage is held by eccentric heiress Carola P. Gaye, whose current fascination is with the ancient Greek-style eugenics championed by Professor Hercules Dove. Carola plans to use the hotel as the center of her "Body Beauteous" selective mating program. Looking to raise funds with a collegiate musical show, Bowster gathers talent under the pretense of recruiting good-looking young people for Carola's eugenics experiment. Among the group are Dick Winters (still searching for his mystery girl) and Daisy Schloggenheimer (taught to resist male attention with physical force). Under strict orders to prevent any romance between the "guinea pigs", Bowster has great difficulty keeping the boys and the girls away from each other on the train ride back. Dick and Sylvia are reunited at Casa Del Mar, where Professor Dove's daffy daughter Gracie (called "Calliope") selects the male and female pairs for the experiment. The mismatched lovers are none too pleased to learn about the eugenics program, but they rally together to put on a minstrel show in time to save the hotel for Sylvia and her father.