In the first part of the 20th century, women Salvation Army members wore blue bonnets, hence the title to this drama. Before joining the Salvation Army, Ruth Drake (Billie Rhodes) went through a hellish life. She was abandoned by a heartless and ambitious mother (Irene Rich), who took her away from a loving father (Ben Wilson). The mother has gone on to a vaudeville career under the name of Aurora Varney, while the father searches for his lost child. Ruth, now a Salvation Army member, saves her father from complete degradation without realizing who he is. While working abroad as a nurse among American soldiers, she helps Sidney Haviland (her father), who is a theatrical manager back home. Ruth has no idea that he knows her mother -- in fact, she does not even realize that Aurora is her mother. Back in the States, Ruth and Haviland keep in touch, and they are together the day that Aurora tries to reconcile with him. He rejects her, and Aurora decides to take it out on Ruth. She has Ruth framed for a crime and put on trial. This only serves to reveal their identity as Ruth's mother and father. Aurora is soundly punished, while Ruth and her father are happily reunited.
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