Scrappy tells his little brother a ghost story by the fire as the two of them make popcorn. The scene is the forest. A white sheet-covered ghost chases Scrappy, who is so frightened that he runs through the trees like a buzz saw. It turns out the ghost is only Scrappy's brother on a pair of stilts. The scares aren't over, though. A real ghost chases the boys into a hollow tree where they are met by an elevator-operating ghost, who takes them down far beneath the tree to an underground cave populated by dancing ghosts, some of them jazz players in black sheets. There is even a cigar store Indian ghost. The story, however, proves too scary for either boy.