Bluto muscles out Popeye to take Olive to the fair. Popeye rushes ahead and poses as a fortune teller, luring Olive in. He shows Olive her future (actually, her past) in the crystal ball.
Popeye takes Olive to the carnival; while he's busy winning candy at the "ring the bell" stand, strongman Bluto muscles in on her. There follows the inevitable contest, invevitably rigged.