The Fat Controller is very cross with James for tricking Thomas into giving him the express. He sends James to his shed until he learns his lesson. The other engines tease James for what happened but James grows cross and becomes more determined to show how useful he can be.
Once James is allowed out of the shed, he meets Thomas in the yard and apologises for what had happened. Thomas accepts James' apology and brings him his trucks. James quickly takes the trucks to the harbour and spends the rest of the day shunting there.
Later, a man approaches James' driver. He states that he is a railway inspector from the mainland who has a meeting with The Fat Controller but missed his train due to his boat being delayed. James' driver allows the inspector to ride in the cab and James hurries off to the main station. Once there, the inspector praises James and even The Fat Controller has to admit James is Really Useful.