Mr. Bunce with the bank is doing an inspection of the hotel and is not planning on extending Kate's financing. Wealthy socialite Clara Watkins checks into the hotel with her son Sonny. Bunce will only extend Kate's financing if Mrs. Watkins recommends the hotel to her friends. Meanwhile, annoying Sonny is constantly chasing after Billie Jo. Mrs. Watkins wants the two of them to get married. While Kate has done whatever she can to please Mrs. Watkins, she has to say no to that. Uncle Joe decides to romance Mrs. Watkins instead and she soon accepts his marriage proposal. Kate comes up with a plan to save Joe and the hotel.

Homer Bedloe arrives at the Shady Rest with his son, Homer Bedloe Jr., who is as hateful and devious as his father. He even looks like his father down to the horn-rimmed glasses. Bedloe Sr.'s plan is that he wants to appear the loving and caring father, bringing his son up right. Then he will leave Jr. alone at the Shady Rest to snoop around and find a way to shut down the Shady Rest and the Cannonball for good. But Jr. comes to like everyone because he is treated with kindness and goodwill for no apparent reason.