Peter stows away on a ship from Italy, and arrives in New York, pursued by the ship's captain. He is advised that he will find other Italians in Little Italy, so he goes there, where Gepetto takes him in, after he attempts to steal some food. He tries to be good, but gets in trouble for stealing, so Jimmy the pizza man has to show him the way and get him to school. He thinks he isn't important, so he tells tall tales, scratching his nose each time. He tells people that Gepetto is a big important politician, so people automatically want to support him, though Gepetto is not running for anything.
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