The staff contract a strange tropical illness, Marine's Disease, from Mr. Humphries. They are quarantined in the basement until the disease is past.

Captain Peacock's wife works at Grace Brothers, as Mr. Rumbold's secretary. He is intensely jealous and is absolutely convinced that the two of them are having an affair.

Mr. Humphries is made editor of the new staff magazine. The 1st Floor staff is not pleased with the stories he writes about them causing friction in the relations between floors.

The staff go on strike after being threatened with a pay cut or being moved to the bargain basement. They stage a protest on the roof which is interrupted by a fire which destroys the basement.