Young Joseph Chatham and his parents are bound on a swift cargo sailing ship from their American colonial plantation for England to settle some business affairs. Joseph strikes up a friendship with Zakka, a simple-minded Pacific Islander giant who is devoted to the Captain. Mrs. Chatham fears Zakka. Mister Hawkins and Zolus incite the crew to mutiny for the sake of the chest of gold pieces, tax revenue in the Captain's cabin. They assault Zakka, who defends himself, is framed as running amock, and put below in chains. The Chathams believe the charge and forbid their son to see Zakka, but Joseph trusts his large friend and sneaks him food. Before the men can mutiny, a storm breaks out. The mast breaks and falls on the Captain, killing him. The cowardly crew abandon ship. The storn subsides, but the ship is tilted by the fallen mast, which easily weighs a ton. The Chathams fail to move the mast. Joseph persuades his father to see to Zakka, below. They unchain him; he lifts the mast and tosses it overboard. He can sail the ship, and Mr. Chatham can navigate. Mrs. Chatham overcomes her fear of Zakka. Zakka joins the Chathams as they return home.; Padmah the cow elephant goes berserk while in Babu's care. She runs off and joins a wild herd. Gunga sets out to capture her alone.; Christmas eve. The gang is in bed as Smilin' Ed decorates the tree and puts presents under it. He is pooped, and collapses in the easy chair. Froggy gives him candy that shrinks them all. They fly the toy airplane to Santa Claus Land, where everything is candy and goodies. Santa shows them around the place, his work-shop factory, and the gang lends a hand. Froggy trips the train switch, the engine hoists Ed, and crashes him into the caramel vat. Santa transfers the gang to polishing the sleigh, but Froggy incites a reindeer, who butts Ed into the snow. Ed flees to the airplane, which careens out of control, and Ed wakes from his nightmare in his tumbled-over easy chair.