While coasting down Kelly's Hill a number of boys snowball Mr. Kelly, who seeks revenge by throwing ashes on the hill. Chip and Cassi run Kelly down with their sled. In a rage Kelly pursues them. In the course of the chase the boys cross an ice pond. When Kelly tries to follow he stumbles and falls through the ice. Kelly frees himself from the ice and starts home, while Chip and Cassi end their chase in front of Little Nell's home. Little Nell invites Chip and Cassi to come to her. Tiny tell Nell of their adventure with Kelly. Meanwhile Kelly goes home and hangs his overalls on the line to dry. While Nell chats with Chip and Cassi, Joe dressed in a new Boy Scout uniform appears upon the scene and attracts Nell's attention. Kenneth attired in the costume of a cowboy enters and conquers the affection of Nell. Cassi gets an idea and departs. Chip is very much peeved at Nell's inattention to him, He demands that Nell give him back the chewing gum which he gave to her. Nell gives him the gum and chip leaves. In the meantime Cassi has donned an elaborate Indian suit. When he makes his appearance in front of Nell she succumbs to the "finest feathers," and adores Cassi. "Cowboy Kenneth" and "Scout Joe" plot to win back Nell's love. Kenneth tells Joe he has a penny and proposes that they buy Nell some candy. While Chip passes Kelly's home he sees Kelly's overalls on the line. He figures that all is fair in love and war and takes advantage of the fact to "borrow" Kelly's overalls. He also succeeds in obtaining an old coat, shoes, and other clothes and dons them. Upon arriving at the candy store Kenneth and Joe acquire the confession to win back Nell's heart. Stopping on the steps of the store Kenneth gives Joe a minute fraction of the candy and says, "You give her this much and I'll give her this much." Joe becomes peeved, but being forced into contentment he gives up the argument and starts off with Kenneth for Nell's home. In the meanwhile Chip places stolen doll hair upon his upper lip with his "precious" gum and has attired himself as a miniature Charlie Chaplin. Back in Kelly's yard Mr. Kelly misses his overalls and suspects the thief. Vowing vengeance he starts out to search for the culprit. Upon arriving at Little Nell's home Chip proves to be in Nell's estimation "most finest feathers." When Cassi objects to Chip's intrusion, Chip kicks Cassi into the doll carriage which starts to roll down the street. Simultaneously Kelly, Kenneth and Joe appear at the gate and are run down by Cassi. When Kelly grasps Cassi he (Cassi) points to Chip and says, "He's to blame; he pushed me." Kelly makes a dash for Chip, but Chip dodges him and escapes. Kelly follows. When Percival sallies forth for his morning walk a negro baby asks the time. Percival, who carries a wristwatch on his ankle, willingly obliges the little colored boy and places his foot upon a wall and looks at the watch upon his ankle. At the same time Chip enters, followed by Kelly, in an effort to catch Chip, who ducks under Percival's leg. Kelly upsets Percy, and they both fall to the ground. They are trodden upon by Cassi, Kenneth and Joe, who continue to pursue Chip. Regaining his feet, Kelly continues the chase. When Percival recovers, the little colored boy, who has looked on an interested observer, goes up to him and asks, "What time did you say it am?" Percy, thoroughly peeved, pushes the little darky into the street and begins to skip away. Meanwhile the boys have caught Chip; they hold him until Kelly arrives and begins to spank him. Little Nell appears in the background and looks sadly on while Kelly punishes Chip to the enjoyment of the other "kids." Wiping a tear from her eye, Nell journeys up to Chip just as Kelly brutally throws him into the snow and walks off with the other boys. As Chip lies in the snow and cries, Little Nell bends over to him, taps him upon the shoulder and says, "Don't cry, Chip, I like you." Chip's sad face brightens into a smile and as the story ends they cuddle close to each other.