Granpa begins teaching Little Tree the art of distilling whiskey by teaching him the difference between types of whiskeys. He explains the qualities of aged and unaged whiskey and relates his own opinions on how others have complicated the process to raise prices. Despite the challenges that Little Tree’s age and height present in the process, he quickly learns what to do, and soon Granpa recognizes him as a partner in the whiskey-making business. Little Tree soon owns half of Granpa’s whiskey trademark.

During a workday, one of Granpa’s hounds comes to the still; this is a warning to them that people are moving on the mountain in the direction of the still. Granpa starts hiding the still while Little Tree goes down the mountain path and distracts the men by drawing them away from Granpa. The men eventually give up, and Little Tree waits at the top of the mountain until his grandparents find him.

The next morning, one of the dogs is missing; they go looking for him and find him injured by a tree. Granpa tries to clean him up, but the dog passes away before they can get him home.