The kids are playing baseball when a man dressed in Middle-Eastern clothing comes out and tells them to be quiet. They join Mary, Farina, and Scooter in the gang's hide-out while Mary is reading ghost stories. While on the other side of the wall, the Arab-looking man is cheating people out of their money by staging a fake séance using state-of-the-art special effects. The cave entrance for the gang's hide-out collapses, so they light candles and dig into the wall, entering into the house. The "suckers" find out they are being cheated and run to get the cops to book the guys. The guys find out that the kids are in the house, and one dresses up in a ghost costume and chases the kids throughout the house.
| Directing | Robert F. McGowan | Director |
| Writing | Hal Roach | Story |