The gangsters come to Daphne and Josephine's hotel and recognise them. They escape by hiding under a table in a banqueting room, where, coincidentally, gangsters from around the US are gathering. Spats and his stooges get killed by a sniper hidden in a birthday cake. Josephine kisses Sugar, she realises he is Junior and chases after him. Daphne, Josephine and Sugar all get away in Osgood's motorboat. Daphne reveals to Osgood that she in fact is a man, but Osgood still wants to marry her anyway.
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