Naomi Iverson learns that her father has assumed the blame for engaging in an illegal stock pool and is to be sentenced by the Federal Government to 5 years in prison. In return, Iverson will receive a check for $1 million from John Hardin, his former partner and now his bitterest enemy. She appropriates the check and goes to Hardin's yacht hoping to recover the written "confession." There she meets and falls in love with Hardin's son, Ernest. Complications set in when Iverson arrives and is set adrift by Tony, leader of a gang of rumrunners. Tony, who covets Naomi, gets involved in a fight with Ernest; Tony corners her, but she is rescued by Ernest. The revenue officers seize the rum boat and arrest the two old men as bootleggers. When Naomi and Ernest confront their fathers with their love, the fathers bow to necessity and once again become friends.
Fancy Baggage is now considered a lost film. Only the soundtrack disc for reel 2 survives. (It is unknown if the sound disc has a talking sequence.) The film used the Vitaphone sound-on-disc system.