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The Princess is a fairy-tale-loving workhouse child, who pretends an aged pauper and a boy inmate of her home are individuals like those she reads of. Ill-treated by the female superintendent, the three run away, and are sheltered by the childless wife of a mill-owner, who takes a fancy to the girl and adopts her, against her tyrant husband's wishes. The girl wins the tyrant's heart, and lives in the hope of meeting the runaway workhouse boy, her Prince Charming. Later on he turns up as the inventor of plans for a loom which will revolutionize the mill industry. Carruthers, a refined rogue, comes courting the " Princess," and overhears the inventor offering his loom for a huge sum of money and complete control of the works to his tyrant employer, which the latter refuses. Carruthers steals and hides the plans, which are unearthed by the workhouse dog, and find their way back the tyrant. A strike is declared, and the tyrant defies his men. The "Princess " intervenes, saves her adopted father's life, meets her "Prince," and Carruthers is "shown up" in all his villainy. A workhouse banquet, attended by the inmates, the adopted parents and the sweethearts, all in "ermined robes," to keep up the fairy tale, leads to mutual admiration, and happiness and wealth to all.