JANUARY
Sara learned that she's pregnant, while Jack continued to lament being unable to provide nice things for Betty Jean and Bud.

Max romanced Mildred to get his hands on her money, but when she refused to make a donation to the foundation, Terry convinced him that the only way out of their financial problems was for Max to propose marriage.

Hugh and Gail's romance moved quickly. Gail was commissioned to paint a portrait of wealthy Mrs. Kingston Houghton. Gail rejected the advances of Mrs. Houghton's playboy son Francis.

FEBRUARY
Seeking revenge for Gail's rejection, Francis stole an emerald broach from his mother and planted it in Gail's apartment. Later, Gail was arrested for grand larcency when the police found the jewel hidden in her apartment.

Mike agreed to defend Gail against the charges, but the case grew dim when police discovered that she had previously been arrested for theft in Chicago. Gail admitted to Mike and Hugh that she had once been forced to steal money for her mother's operation, but she repaid the debt.

Max conned Mildred into marriage, though his problems only multiplied when she assumed total control of the Bryer Foundation and insisted upon examining his financial records. Gail's arrest prompted Mildred to insist that Hugh cut all ties to her, as they couldn't afford to have such a scandal attached to their name.

MARCH
Mildred flatly refused to give Hugh access to his fortune in order to defend Gail, but Winston came to the rescue with a loan. Mike suspected that Francis X. Houghton was the true culprit and proved it.

Max secretly considered murder when Mildred threatened to dispose of the Bryer Foundation, and tricked Peggy Collins into stealing the undetectable poison from Hugh's lab.

APRIL
Gail and Hugh's relationship deteriorated when Mildred refused to give Hugh access to his fortune. Hugh moved out of the house and hired Mike, who urged Hugh to legally break the trustee agreement he has with Mildred, giving her complete control of his finances.

A guilt-ridden Peggy insisted to Max that she would confess to stealing the poison from Hugh's lab. Max tricked Terry into luring Peggy up to the roof of her apartment house, where he pushed Peggy to her death.

MAY
Hugh flew into a rage when he discovered that Mildred had actually been responsible for the fire that killed their parents. Meanwhile, Max laced Mildred's asthma medication, mixed by Hugh, with the laboratory poison then stuffed horsehairs into her pillows. While having an asthmatic attack brought on by an allergic reaction to the pillows, Mildred took her medicine and died.

Max implicated Hugh when autopsy results indicated that Mildred had been mudered by medication concocted by Hugh, who was later arrested for the crime.

JUNE/JULY
As the grand jury indicted him for Mildred's murder and placed him on trial, Hugh enlisted Mike to defend him. Although Hugh's future looked bleak, Mike suspected Max of masterminding the plot and set out to prove it before Hugh could be convicted.

To pay for their increasing debts, Jack borrowed money but lied to Betty Jean that he obtained their sudden windfall through a raise at Golick Trucking. Later, Jack accidentally wrecked a car, but allowed another mechanic at the shop to take the blame.

AUGUST
Jack was fired from Golick Trucking when Jake realized that Jack had wrecked the car. Jack and Betty Jean's marriage endured further strain as Betty Jean was appalled by Jack's dishonest behavior and took a part-time job against Jack's wishes.

After Mike uncovered proof that Max murdered Peggy Collins and Mildred, a desperate Max forced his way into the Karr home and held a pregnant Sara hostage. The police captured Max, but the ordeal sent Sara into premature labor.

SEPTEMBER
Sara gave birth to a daughter that she and Mike name Laurie Ann. Laurie Ann's condition was initially grave, but she survived.

Hugh and Gail married after their ordeal concluded.

As a favor to Mattie, Winston offered Jack a junior position at his factory. Betty Jean pleaded with Jack to tell Winston that he had been fired from Golick Trucking, but Jack refused and allowed Winston to think that he left voluntarily.

The mysterious Mr. Moore plotted to frame inventor Dick Appleman for hit and run in order to obtain rare minerals buried on the Appleman farm.

OCTOBER
Mike successfully defended Dick Appleman against the hit and run. Later, Mike and Winston invested money in a revolutionary new motor that Dick designed.

Jack was intrigued by seductive office secretary Ruth Hakim. Ruth, who was in cahoots with Mr. Moore, encouraged Jack to steal the ideas of coworker Alan Johnson and pass them off as his own. Jack, who took the bait and was rewarded with a quick promotion, was unaware that Ruth spied on Grimsley's operation for Mr. Moore. Mr. Moore applauded Ruth for helping them ensnare Jack Lane in their plot to steal the Appleman Motor designs.

NOVEMBER
Mr. Moore's hulking partner Frank Dubeck hired smalltime hood Mickey Kutka to steal the Appleman motor designs. Mike hired security guards to ensure Dick's safety, but manipulated by Ruth, Jack unwittingly led Kutka straight to Dick. Kutka stole the motor plans and then violently assaulted Dick, who was rushed to the hospital with a severe head injury.

Betty Jean found Ruth's lipstick on Jack's handkerchief and later realized that he acquired his promotion by cheating Alan Johnson. After Jack refused to confess his sins to Winston, Betty Jean took Bud and moved out of their apartment.

DECEMBER
Kutka's beating left Dick blind. With wife Mary at his side, Dick underwent delicate neurosurgery to regain his sight. Mike and Willy followed clues that would lead them to Kutka, whom Mike was certain could reveal the identity of the person behind the plot to kill Dick and steal the motor designs.

Sara insisted that Betty Jean and Bud move into the Karr home, since Mattie will be there to look after Bud while Betty Jean works.

Mr. Moore was enraged to learn that the plans Kutka stole were not designs for the new Appleman motor, while Winston was thankful that Mike had convinced Dick to secure the real designs at the factory. Berated by Moore over the failed plan, Big Frank reminded him of their criminal past and threatened to kill him. Moore fled in terror when Frank attempted to strangle him.

Realizing that the botched robbery will only tighten security, Big Frank forced Ruth to convince Betty Jean that she and Jack were having an affair, so that they can get Jack under their control. Ruth made an anonymous phone call to Betty Jean, just as she and Jack were close to a Christmas reco