Wholesome Films Corp.

Peggy sells newspapers on the streets of Chicago, saving her money until she can afford to open a small newsstand called the "News Emporium". Although she has to support her younger brother and sister, Peggy manages to give a penny away every day to help the less fortunate. Millionaire Andrew Kimbalton, one of Peggy's customers, offers her a dollar a day to give away for him, but she declines, telling him that the pleasure of giving lies in giving yourself. He then asks Peggy to teach his only daughter Ann the art of philanthropy, and she agrees.

While lost in the woods, the prince of Drowse Castle is shown an image of his bride-to-be, Cinderella, by Titania, the queen of the fairies. Cinderella, who is virtually a servant in the home of her father, the Baron Balderdash, and her stepmother, is not permitted to accompany her two stepsisters to the royal ball at which the prince must choose a bride. After the rest of the family leaves for the ball, however, Cinderella's fairy godmother appears and creates for Cinderella the clothes and livery necessary for her to attend the ball.