When the Lemon Drop Kid accidentally cheats gangster Moose Moran (Fred Clark) out of his track winnings, the Kid promises to repay Moose the money by Christmas. Creating a fake charity for “Apple Annie” Nellie Thursday, the Kid tricks his gang into donning Santa suits and “collecting dough for old dolls” like Nellie who have nowhere to live. Radio personality Marilyn Maxwell assists as the Kid’s girlfriend, while William Frawley and Jay C. Flippen play the lovable, gruff crooks that fall for the Kid’s Santa scam.

Construction workers in World War II in the Pacific are needed to build military sites, but the work is dangerous and they doubt the ability of the Navy to protect them. After a series of attacks by the Japanese, something new is tried, Construction Battalions (CBs=Seabees). The new CBs have to both build and be ready to fight.