Mabel leaves soon after Babe arrives, and Sid asks Babe for a date. Babe refuses him because he represents management and she represents labor. Everyone enters ready for the picnic. Prez introduces Hasler, who speaks about the dangers of rising production costs. Sid flirts with Babe as some of the couples participate in the race.
Hines throws a few times.
Sid, nervous about Babe, breaks up the knife-throwing exhibition. He and Babe agree to take a walk together. Sid visits Babe and her father, Pop, at their house. When Pop leaves for his railroad job, he gives Sid his stamp collection to examine. Babe offers to cook a western omelet for them.