Riding in his private car on Christmas day, railroad tycoon Hatcher prefers work to celebrating, while his son Joe prefers having a good time. In the coach car, Joe sees pretty Clarabelle Brooks and is sincerely concerned when she faints. A doctor, who is also in the car, helps to revive Clarabelle, says that she is suffering from severe hunger and, with fellow passenger Blackie Swanson, passes the hat for her. Later, Clarabelle, who is secretly working with con-men Doc and Blackie, goes to their compartment to discuss plans to set Joe up for a breach of promise suit. When the train arrives in Los Angeles, Joe continues to see Clarabelle and gets her a job as a model in a swank dress shop. Mr. Hatcher is suspicious and wants Joe to spend time working instead of wining and dining Clarabelle, but Joe is in love and continues to see her. Meanwhile, Blackie starts to get jealous because he suspects that Clarabelle is falling for Joe. When Joe proposes, Clarabelle realizes she is in love and the two elope to Palm Springs. When Blackie finds out where she has gone, he and Doc follow her and, while Joe is out of their room, she tells them that she truly loves Joe and doesn't want him to know about her past. Though Blackie is hurt, he and Doc wish her well. When Joe and Clarabelle go to Hatcher, he is sweet to Clarabelle, but he says that he is cutting them off without a penny. Though Joe is upset, Clarabelle says she doesn't mind because she loves him. After Joe sells his polo ponies to finance their honeymoon, the two change their last name to "Smith" to avoid being bothered by reporters, and move to a rundown farm in Pennsylvania. They have difficulty with the farm, though, and Joe is unable to find work elsewhere. One day, the house burns down and they are forced to move into the barn. Their landlord, Mr. Baumgarden, is so delighted that the destroyed house will enable him to collect the insurance that he gets Joe a job in his factory, working under Lawrence Ambersham. Meanwhile, in New York, Doc and Blackie see a magazine article about Pennsylvania businessmen and Doc recognizes Ambersham as a former conman named Anderson. Doc and Blackie then go to Ambersham, and threaten him with exposure unless he gives them $20,000. Ambersham agrees, but, unknown to Doc and Blackie, arranges for Joe to work late that night and take the blame for his planned robbery. While Joe is alone at the office, thieves break in and rob the safe, then kidnap Joe, but when a guard starts to shoot, Joe is dropped from the car. When the police find Joe, they think he is one of the robbers and Ambersham gives false evidence to incriminate him. Three months later, on Christmas Eve, Doc, who has been working as a sidewalk Santa Claus, stops for a drink with Blackie and runs into Yegg, one of the hold-up men. Yegg has been in the hospital the whole time and tells Blackie that he buried the robbery money in a barn back in Pennsylvania. The three men then drive to the barn, where they find a very ill Clarabelle lying alone inside the barn. Doc tells Yegg and Blackie to wait outside while he attends to Clarabelle and then helps her give birth to a baby. Later, Blackie, who still loves her, helps take her to the hospital and tells her not to worry about Joe. He then goes to Mr. Baumgarden, gives him the money and tells him that Joe is innocent. He also reveals that Joe is Hatcher's son. As Doc, Blackie and Yegg leave town, Doc wonders what the name of the town is, not knowing that it is "Bethlehem." Next Christmas, the entire Hatcher family is riding in a private train compartment and as Joe happily works, his father and Clarabelle play with the baby.
