He comes to an old lady all dressed in red, evidently intending to play Santa Claus. There are a tree and stockings by the chimney which Santa Claus comes down, and a sign: “For my long lost son.” She is alone and weeping. Santa comforts her and then invites her to go on his trip to act as Mrs. Santa Claus, as he needs help. She goes, and both she and Santa think this great fun. Elf Gossip declares Santa Claus has kissed the old lady.

Meanwhile the Queen and Prince enter Santa’s home. The Queen says:

“I would get a divorce, but I just can’t think of breaking dear old Santa’s heart. He is such a darling.”

Santa, who (with the old lady) has returned for more toys, enters the door at this point, looking playfully severe; there is a twinkle in his eye.

The Prince falls on his knees:

“Ah, forgive me for being here,” he says, “I have done the little Queen no harm.”

Thomas Page enters, blowing a horn. He announces: “The Supreme Court has ordered me to pronounce the Queen’s marriage null and void, because any marriage is illegal which takes place between a human being and a fairy. In the Court’s judgment, Santa Claus is human.”

Billy Bundy steps forward and the Prince says to the Queen: “Here is the minister ready to marry us.”

The Queen says she feels she ought to transform Santa into a fairy and marry him over again. The Prince is disconsolate.

Santa says: “Cheer up, Prince. I don’t want to be transformed into a fairy. I would rather be human. I am going to give you to each other as my Christmas gift to you.”