While patrolling the snowy trails, Sgt Preston and King come across Jim and his little girl, Sally. The small band are on their way to Dawson for a well deserved break, and to celebrate Christmas. Soon, Jim’s wife Mary screams for help as she runs down the trail to report the cabin is on fire. Has all been lost? In trying to fight the fire, Jim is injured, but safe once King pulls him from the blaze.
In town, a creditor wonders if Jim purposely set the fire, and is hiding the money he owes. Mr Kraemer shares about his rough upbringing, and why he hates Christmas, and has little sympathy for the plight of family man, Jim.
Though Jim is in weakened condition, the creditor goes to confront the destitute family. Will his heart be softened by Sally’s pleas? All was burned up in the fire, but Sally finds it in her heart to give the creditor the only thing that was saved, her new puppy.