Boxer Kid Dynamite is offering $100 to anyone who can stay in the ring with him for three rounds without going down. Uncle Joe is trying to find a fighter who he can train, while keeping the majority of the prize money as a training fee. He thinks he's found that person in Herman Crawley, the strong as an ox but not too bright plumber Kate hires. Joe sets up a makeshift boxing ring at the hotel to train Herman, which doesn't sit too well with Kate. When Joe meets Kid Dynamite and his brazen manager mother Mrs. Hogan, Joe thinks there's no way Herman can lose. So Joe makes a $500 versus the hotel side wager with Mrs. Hogan on the outcome. What Uncle Joe doesn't realize is that Herman has a particular weakness. Uncle Joe has to protect Herman's weakness and find out and exploit the Kid's weakness. Even though Herman prevails, the fight is not as profitable as it should have been.

Homer Bedloe, arch-enemy of the Hooterville Cannonball, returns in abject disgrace and poverty to Hooterville Valley. He has been replaced by Wilbur Goodfellow, who supposedly is the exact opposite of Bedloe in every way. Bedloe is looking for somewhere to stay, at least for a little while. Goodfellow arrives to inspect the spur line and the Cannonball. After his inspection, Goodfellow plans to make major investments into the line. He plans to send the Cannonball in for a refit and to loan a new locomotive as a temporary replacement. Everyone is excited by all this news. After Kate goes to the cinema in Pixley, she discovers the whole thing is a scam and that Bedloe and Goodfellow are working together.

One of Kate Bradley's old swains named Ralph Denton sends a telegram stating that he is coming by the hotel for a few days. Uncle Joe thinks Kate is acting just a little too nonchalantly, which means she still has feelings for him. Ralph shows up with his overbearing and busybody spinster sister, Mabel. The girls and Uncle Joe do whatever they can to preoccupy Mabel so that Ralph and Kate can have some romantic alone time together. But Joe's spending so much time with Mabel leads to an unintended marriage announcement.

Joe insults Sam about the way he runs the post office, so Sam lets Joe take over. Joe decides to set up the post office at the hotel's reception desk. Kate tries to persuade Joe to give the post office back to Sam and for Sam to take it back. Joe tries to gather the equipment he needs to run the post office, even if it means confiscating what he needs in the name of the federal government. Customers treat the new post office like it was still in Drucker's Store, wanting to buy groceries. Things start falling apart around Joe and after the Government steps in, the post office is moved back to Sam's store.

It's been a month since there have been any guests at the hotel. But then a Mr. Reynolds checks in. To Kate and the girls, Mr. Reynolds seems like a nice, friendly man, but Uncle Joe doesn't trust him. Mr. Reynolds pays in cash and reserves the entire hotel so he won't be disturbed. Joe hears that the Benton Bank was recently robbed of $3,000 and he's certain Reynolds is the robber. Uncle Joe handcuffs Reynolds to the elevator. Betty Jo hears that the robber has been captured. But before Joe can apologize to Reynolds, he has mysteriously left.

Uncle Joe advertises to hotel guests Billie Jo's services as a stenographer. Mr. Norton, a salesman who wants to write a business letter to Frank Mortimer, hires her. Norton dictates a letter that is harsh and scathing as Mortimer reneged on an order. But Norton decides not to send the letter until he returns to the office. He learns when he returns to the office that Mortimer has come through with his large order and a promise for a future order. Norton can't find the letter. He returns to the Shady Rest to see if he left the letter there. They all learn that Uncle Joe found the letter and mailed it. To get the letter back, Kate has to battle Sam, an absent minded Floyd, Pixley postmaster Foley, and locksmith Tad Fiskee. Kate still can't get it back. But a good hearted Floyd may ultimately come to the rescue.