 The Genie tells Winterbolt that Rudolph is still protected by the Northern Lights in their presence, and advises him to wait for Rudolph to leave the North Pole.Soon, Milton the ice cream man, who travels by balloon to pick up his ice cream to take to the seashore for the Fourth of July celebration, arrives heartbroken because he wishes to marry Laine Loraine, a tightrope walker and daughter of Lily Loraine, who runs the Circus by the Sea.However, the circus is going bankrupt as a crook named Sam Spangles wants to take over the show.