Bill Anderson, known as 'Carstor Hoil' because of his habit of drinking machine oil in return for tobacco, is a fourteen or fifteen-year-old larrikin employed at Grinder Bros' Railway Coach Factory. He and his mates torment 'Balmy Arvie', Arvie Aspinall, a lonely boy working with the subcontractor Collins, whose child workers are known as 'Collins's Babies'. When Bill discovers Arvie lives in Bill's old home in Jones's Alley, and that they have a number of other things in common, he becomes Arvie's protector, but his change of heart comes too late.