Elizabeth and Margaret walk to school together on their first day of sixth grade. Margaret has a new dress but is unhappy with her plain brown shoes, while Elizabeth looks beautiful in a blue dress and coveted brown and white saddle shoes. Their friends Polly, Judy, and Linda join them, and the girls discuss their new teacher, Mrs. Wagner, who is infamous for her strict discipline and heavy loads of homework.

As the girls approach the school, Gordy frightens Margaret by acting deranged and saying the “crazy” man is coming for her. Elizabeth shoves Gordy, but he grabs her hands and pretends she is grabbing him. Elizabeth declares her hatred for Gordy.

Mrs. Wagner lives up to her reputation. She unsmilingly announces that she sees everything, cannot be fooled, and cannot abide “tale-telling.” She calls out those she suspects may violate her rules: Elizabeth, Gordy, Polly, and a stuck-up trio of girls. After school, Elizabeth mockingly mimics Mrs. Wagner. Margaret laughs but privately vows to stay out of trouble and keep her mouth shut about anything she sees.