- A rival salvage company's attempt to tow an iceberg results in disaster.
- John Cameron, Mayor of Santa Lea, an island about eighteen miles off the coast of California, televises a plea for a dependable source of drinking water. He is offering $50,000 cash subsidy to research and develop a system that will result in a solution to the island's water shortage. To this end, he holds a meeting inviting all engineers and technologists with potential solutions. Harry, Skip and Mel offer a plan to bring an immense iceberg to provide the needed water, a concept that they have been dabbling with for some time. Harry no sooner makes his presentation than a competitor, Sam Bishop of Fine Arts Salvage, makes a similar proposal except that they don't need the subsidy up front and are willing to carry out the required testing at their own expense. After a short deliberation, it is decided that Jettison Salvage will get the subsidy while Fine Arts can continue experimenting at their own cost. However, in exactly three weeks, both companies will have the opportunity to submit bids for the actual working delivery. Leaving the meeting, Harry confronts Bishop because he knows absolutely nothing about the capture and usage of icebergs. In the meantime, Mel meets Michelle, an orphan who happens to be a dedicated fan; and a close friendship evolves.—Harry Tumilson
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