Lester Crope, who has a penchant for inventing imaginative stories, alarms his village by reporting that the dam above the mayor's house has burst; incidentally he "saves" the life of Catherine Willis, the mayor's niece. The town council sends Lester to Dr. Mills of Boston to be treated for his condition. Now cured, his propensity for telling the truth on all occasions upsets village life: he works in a grocery store and informs customers of stale products; he also ruins a real-estate deal that would have meant prosperity for the town. Dr. Mills states that the only way to return Lester to his former safe tricks will be to arrange that he fall in love.

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