The arrival offshore of the ghost ship "Sea Vulture" causes a temporary loss of the Captain's powers. Carolyn takes advantage of his diminished capacities to hold a PTA meeting, and Claymore tries to take similar advantage.
Claymore donates the Captain's silver tea service as a prize in the Centennial celebration, and the Captain is determined that Claymore will win it back in the athletic contest.
Carolyn decides to run against Claymore and an old-timer for local office, only to find out that Gull Cottage might not be in the city, invalidating her candidacy.
The Keystone Cops meet the Schooner Bay Fire Department via Claymore's misspending of civic funds. Carolyn does her due diligence to bring the department into the 20th Century.
Because the local handymen hired to repair the kitchen are scared of the "Gull Cottage Ghost", Mrs. Muir persuades the Captain to leave temporarily so...a situation Claymore does not enjoy when the Captain moves in with him.
Each of those living at Gull Cottage has their own special Christmas dream thanks to the Captain. In Mrs. Muir's dream the Captain and her confess their love to each other and exchange a kiss.
Jonathan tries out for baseball but does not do well. The Captain tries to help, but his help backfires. Of course, all is fine by the end of the 24 minutes.
Candy finds out (from Captain Gregg, of course) that her teacher is wrong about when their school was founded, and gets in trouble for sharing the correct date with her teacher and class.
Thinking that the stuff in the basement is the Captain's unwanted junk, Claymore takes it and donates it to charity for a tax deduction. Needless to say, this starts another war between Claymore and the Captain.
Carolyn's cousin Harriet comes for a visit and somehow jumps to the conclusion that Carolyn and the Captain are an item, not knowing that the Captain has been dead a hundred years.
Thanks to Cousin Harriet's gossip, Carolyn's parents get the idea that the Captain is a real man that their daughter is seeing and come for a visit wanting to meet him.