After Count John Karpathy, belovedly known as the Nabob, falls ill while entertaining the peasants of his estate, his dissolute nephew and sole heir, Count Bela, comes home from Paris to acquire his inheritance. The Nabob recovers and, after hearing Bela's plan to squander the money, resolves not to give Bela anything while he lives.

The art students invite the girl across the way to their party. She comes and they make much of her, not knowing that she is queen of Barsonia, living incognito.