Willard has invited the Ackermann girls to his apartment for Christmas dinner. Doris and Mabel are there with their father, and Willard's employer, Mr. Arrow. A workmate of Willard's named Sidney joins them, being one of those bachelors who has nowhere to go on Christmas Day. He seems a pleasant sort of man who arrives with a jolly "Ho, ho, ho!" and parks himself on the sofa with a glass of punch.
Gifts are exchanged. Willard receives an interesting novel from the Arrows and an unusual lamp from Minerva. Its base is constructed from the horns of some African animal. I think I need to build a hunting lodge, thinks Willard. He has given Minerva a glittery brooch, which delights the sisters. Iffy is thrilled with her new Flexible Flyer sled! This thing needs to be tried out immediately and she badgers Mr. Arrow to take her to Central Park. Mr. Arrow, a keen sledder himself, promises her a full afternoon in the park tomorrow.
As the day ends, Dolly, Minerva, and Iffy spend a little time reminiscing about Christmases of old, and missing their loved ones in Ackermann's Repository.