It's the Christmas season, and everyone's in a rush to decorate the Cannonball in preparation for their annual caroling and gift delivery runs. Their plans are placed into jeopardy with the arrival of Homer Bedloe. He says that what they are doing is against railroad policy and he won't allow it. Kate hopes that Bedloe will have some heart, and she tries to use her best Christmas spirit in treating Bedloe with kindness to change his mind. Only Norman Curtis, the President of the Railroad, may be able to make Bedloe change his mind.