Beatlemania has hit Hooterville by storm. Uncle Joe recruits Billy, Bobbie, and Betty Joe along with their friend Sally Ragsdale to form their own band called the Ladybugs. Colonel Partridge, a booking agent, comes to the Shady Rest to see the girls in action. Partridge likes what he hears and wants to book the girls. Sally's father, Sheriff Ragsdale, comes by and says he wants his daughter to finish school and not tour the country. Uncle Joe thinks he has a way to save the group and dresses up as a Ladybug.

Norman Curtis, President of the C&FW Railroad, is currently on vacation in Europe. He left instructions not to do anything to the Cannonball while he's gone. However, Homer Bedloe has a scheme to shut down the Cannonball for good. He hopes to do it without disobeying Curtis' orders. The plan entails Bedloe being appointed Superintendent of the Cannonball. He would then enforce an efficiency program with an impossible to meet new schedule. He expects Charley and Floyd will eventually just give up. Kate and the gang go to the stockholders meeting where she believes they've got a secret weapon to ruin Bedloe's plans.