Charley and Floyd derail the Cannonball going around Deadman's Curve. They believe the reason for the derailment was that Floyd had removed too many of the railroad ties to stoke the engine. Uncle Joe calls the C&FW Railroad, who agree to pay the necessary $300 insurance deductible for the repairs. Homer Bedloe shows up and finds out that a railroad employee's negligence caused the accident which in turns means the insurance company will not pay. Kate comes up with a plan where she gets some valley residents to put up the money and become stockholders of the train. But the Hooterville residents, taking over operation of the Cannonball, demand so many changes that the train's crew decides to quit. Kate finds a way for everyone to get their money back and to have Charlie and Floyd back at their jobs.
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