From my class blog at Sex in American Cinema
Right after the wedding, Billie discovers Kentucky in tears, and puts it all together: Kentucky is pregnant by Gil! She resolves to free Gil by pretending that she herself is a fallen woman.
Note the gay friend who comes forward, offering to stand by Billie when everyone else spurns her (at the end of this clip). As Vito Russo shows in The Celluloid Closet, such clearly gay characters--especially sympathetically portrayed, as here--virtually disappeared from Hollywood movies under the Code. Now, of course, they're a recognized convention.
Heiress Billie Brown, (Crawford), is engaged to marry her long-time sweetheart, budding diplomat, Gil Jordan, (Fairbanks). When Billie goes to see senior diplomat, Glenn Abbott, (La Rocque), about ensuring that Gil get a favorable assignment, Billie and Glenn are undeniably attracted to one another. Gil is likewise attracted to Kentucky Strafford, (Page), Billie's houseguest, who becomes pregnant by Gil. Gil finds that he loves Kentucky, but marries Billie instead. Once Gil finds that Billie really loves Glenn and Billie finds that Gil loves Kentucky, their marriage is annulled and both are paired up with the people they truly love.