Who offers to purchase a necklace from a woman who runs a diner frequented by U.S. sailors on leave?
Looloo runs a diner which is frequented with U.S. Navy sailors on shore leave, including officers.  Two officers, Admiral Smith and Lieutenant Allen accompany a wealthy socialite, Mrs. Payne, to the establishment.
Mrs. Payne is an heiress, and when she engages in conversation with Looloo, she expresses admiration for the necklace Looloo is wearing.  She offers to purchase it for a substantial sum, but it is a family heirloom and Looloo refuses.  Later, two sailors arrive at the diner, Bilge and Clarence, looking for Lavinia, Clarence's sweetheart who has run away.  Bilge, is smitten with Looloo, and begins to romance her. Opening up to her, he reveals his desire to become the captain of his own ship after he leaves the navy.  Before things go too far, Bilge's shipmates drag him back to his ship, which is scheduled to set sail.
Based on her conversation with Bilge, Looloo decides to sell her necklace to Mrs. Payne, in order to get the funds necessary to buy a ship for Bilge.  When Bilge's ship docks once again, the two lovers are re-united, and Bilge proposes to Looloo, who happily accepts.  However, when she tells him about the money, and the plans she's made to help him buy his own ship, his pride makes him indignant and he storms off.  However, he later returns and the two agree to marry.
Mrs. Payne