One of the boarders is a very private person. His name is Mr. Smith and hardly anyone ever sees him. Unlike the other boarders he has his own bathroom, lives in a maisonette and he gets his meal sent to his room by Arnold via a dumbwaiter. Since he avoids the boarders so much, they all become very suspicious of him.
One day, a package for Mr. Smith arrives but since he is not at home, Arnold takes it. Being curious about what's inside, the other boarders try to persuade him to open it. So Arnold flees with the package to his room. In the afternoon Gerald comes by. When the two boys watch Ernie attempting to climb over the roof into Arnold's room, they decide to go and search for Mr. Smith.
Since the only piece of information they have about him is that he is always wearing a bowler derby hat, they start looking for him at Toller's Bowlers. While Arnold is distracting the vendor, Gerald is looking for Mr. Smith in the rolodex. After Gerald has found it and copied the address to a piece of paper, both of them run out of the store. The address leads them to 234 Smith Avenue, the Satellite Industries skyscraper. At the front desk, the rude receptionist tells Arnold and Gerald learn that there are many "Smiths" working in the company. Gerald wants to give up, but Arnold convinces him to keep on searching. Just at that moment the boys see Mr. Smith getting into a taxi. So they jump into the next bus and follow him. When they see Mr. Smith enter a helicopter and fly away, even Arnold gives up and they go back to the boarding house.
When they enter the kitchen, they find Grandma and Grandpa hogtied to chairs. Suddenly the boarders charge into the kitchen to take the package from Arnold. Arnold and Gerald run off to Arnold's room, but on the last step of the stairs Gerald loses the package and the boarders tear it open. After everybody has calmed down again, they see what was in the package — a picture of all the boarders with the inscription "My Family" — which they had just torn apart.
While the boarders are thinking about what they just did, the door bell rings. At the door is another man with a package for Mr. Smith. To this Arnold screams at the top of his lungs.
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