An elegant ball takes place on Christmas Eve. John cannot take Esther as his date because he was too late to pick up his tuxedo at the tailor's. Initially disappointed, she is soon relieved when her grandfather (Harry Davenport) offers to take her to the ball instead. At the ball, Esther and Rose plot to ruin the evening of Warren's date, Lucille Ballard (June Lockhart) by filling up her dance card with losers. They are surprised when Lucille turns out to be warm and friendly and not "an eastern snob." She suggests that Warren should really be with Rose, allowing her to pair up with Lon. Esther switches her dance card with Lucille's and dances in Lucille's place with the clumsy and awkward partners. After being rescued by Grandpa, Esther is overjoyed when John appears in a tuxedo, and the pair dance together for the rest of the evening. Later on, John proposes to Esther and she accepts, but their future is uncertain because she must still move to New York.