The city is sponsoring a big water parade with entrants having to dress up like nursery rhyme characters. Elmer is operating a shoe-repair business and has a large wooden shoe for a sign. Bugs, Elmer, and Yosemite Sam transform it into a boat and take it for a disastrous test cruise. The trio ends up in a hidden valley that is the hideout of "Illegal Segal," one of the country's most wanted criminals.