The plot line in this short strikes me as though it got snipped and reconnected in a different order at a late stage. If B. O. Davis is really Lone Wolf Louie, "the biggest bond swindler in America," why on earth would he send the Stooges on a mission to find an honest man, and even let them take a wad of cash for the purpose? Why would he be so clumsy as to drop his bonds in a park? If they are stolen or counterfeit bonds, why would he write his name on them? If Percy Pomeroy really is an honest man, why does Eddie Laughton play him with the air of a sneaky, thieving low-life? What honest man would unhesitatingly accept a plot to break out of prison? The whole set-up with Pomeroy makes no sense. As a plot line, it leads nowhere: once the Stooges have painted their way out of the interior of the jail, Pomeroy simply disappears.
I suspect that the script was originally written with Pomeroy turning out to be the crook and then for some reason, perhaps to fit the short into a time limit, was changed--perhaps even changed after much of the short, including the scenes with Pomeroy, had already been shot. This seems to me to make sense of the oddities that I have listed.