On a train trip cross-country, Danny tries to get the attention of movie starlet Jean Adair, while Rex drools over Fifi, her dog. Rex knocks down train robbers, stops a runaway horse, saves Danny from getting run over, but nothing impresses the snooty Fifi. Until at the very end, Danny carries Jean over a puddle, and Rex helps Fifi. Then they're heroes!
The Sheriff is looking for two crooks hiding in town. But Bobo is caught up in the "Oscaloosa Clean-Up Week!" urging people to pick up litter, so he grabs a bag and starts stuffing. The crooks sneak around to get a letter of credit to a bank to cash in. The letter blows away and - yup - Bobo bags it. The crooks chase him, try to grab him, get their hats stove in - and are arrested. Bobo wins first prize as the "Official Paper-Picker of Oscaloosa!"
Rex keeps a scientist, John Rayburn, company as he mixes a formula to restore eyesight. But a squirrel contaminates the formula so Rayburn shrinks to bug-size. Rex drinks it to rescue him. They dodge an owl and fox until they can return to the lab and mix an antidote. The animals deserves the award, "the squirrel for making the discovery - and you, Rex, for saving my life!"
The story is probably inspired by the 1957 movie, "The Incredible Shrinking Man".