Exactly one year later, Jim returns to New York slightly disenchanted with farm life, which is harder than he thought it would be. He's come up with a new plan to make a living on the farm: he wants to turn it into an inn which is only open on major holidays. He will put on a show built around the theme of the holiday in question. That way he will only have to open fifteen times a year but will make enough money to support the farm for the rest of the year. Jim hires Linda Mason, an aspiring singer/actress to help out with these shows and they open for the first time on New Year's Eve.
Meanwhile, back in New York Lila has told Ted that she's fallen for an oil magnate and is leaving the act. He gets completely plastered and drunkenly decides to visit his old pal Jim. He arrives at Holiday Inn during the show and ends up reeling through a dance with Linda before Jim hustles him off to sober up. Afterwards, Ted hazily remembers dancing with a superb partner but can't remember who she was. He's determined to find her, however, because he thinks she'll be a perfect replacement for Lila. Jim is falling in love with Linda and doesn't want Ted anywhere near her, so pretends that he doesn't know with whom he was dancing.
Jim manages to keep Ted away from Linda through the Lincoln's Birthday show, but Ted finds her at the Valentine's Day show. He demands that Jim write a number for the two of them to dance to in the next show- Washington's birthday. This is what is occurring in the above picture. Jealous and angry, Jim tries to sabotage their performance by changing the tempo of the dance numerous times.