Gracie is having friends over for Thanksgiving dinner, including Harry Morton's business partner and his wife, Linda Lee. As it happens, a horse that Harry is betting on is also named Linda Lee, and Gracie gets the two "Linda Lees" confused. 

Mamie Kelly and her children join the Burnses for the holidays. George dresses up like Santa for the children and Gracie tells the children the story of "A Christmas Carol."