Gene is the foremen of the Jingle Bell ranch that was recently inherited by Torrey Palmer, who is wanting to turn a profit using modern methods of selling livestock. Seeing how Champion is Gene's horse, she decides to sell Little Champ to the highest bidder. Gene doesn't want to separate the two relative horses, he decides to scare Torrey away by spooking the place up a bit, and making her believe the ranch is haunted. She catches them in the act, and Gene and the hired hands are fired. After Gene leaves, Torrey is caught in a burning stable and rescue because of Champion's love for Little Champ. In the end, Gene and the hands are back, and Torrey decides to do things Gene's way.
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