Ruth, Helen, and Tom watch a moving picture company film scenes near the Red Mill. As they watch, the starring actress, Hazel Gray, falls into the river and is swept downstream. Ruth and her friends rescue Miss Gray and take her to the Red Mill to recover. The next day, Ruth meets the producer, Mr. Hammond, who promises to read Ruth's scenario when she impulsively confides that she is planning to write one.

Soon after the friends return to school, the East Dormitory burns and is a complete loss. All of the girls housed in that building, including Ruth and her friends, lose all of their possessions. It is soon learned that Dr. Tellingham allowed the insurance to lapse, and there is no money to rebuild the dormitory. In the meantime, Ruth submits her scenario to Mr. Hammond and is thrilled when he accepts it. After her scenario is accepted, Ruth gets a wonderful idea about how she can help the school raise money to rebuild the dormitory.

Ruth calls a meeting of all of the students and suggests her idea of writing a moving picture scenario that will be filmed on the campus. The proceeds from the film would go towards rebuilding the dormitory. In this way, all of the girls would contribute to the fund, since they would be the extras in the film. This idea is met with enthusiasm, and Ruth soon gains Mr. Hammond's approval.