In his master's eyes, "good old Shep" is the perfect dog, but the cat knows he's really a two-faced mutt who can be bought off with a bone by a burglar, and then take credit for it when the cat chases the crook off. But then Shep becomes obsessed with a newspaper story proclaiming a real canine hero the nation's "No. 1 Dog." He wakes up and travels a long distance to the hero's house, with the cat right behind him. Before Shep can attack the terrier, the cat pulls out a giant club and knocks him into the water. The terrier rescues Shep, who quickly scoops the terrier up in his mouth, claiming that he drowned. Shep is celebrated, much to the anger of the cat.
According to the DVD commentary, this cartoon was originally called "For He's A Jolly Good Fala", about a dog who tries to kidnap President Franklin Delano Roosevelt's dog. However, President Roosevelt died at the time the cartoon was made, so all the references that the dog belonged to the former President were changed to the dog being a national hero.