Violet, Klaus, and Sunny Baudelaire go by train to Paltryville to meet their new guardian at the Lucky Smells Lumbermill. When they arrive there, they find that it's a very boring place and that rather than being cared for by their new guardian, Sir, they must work in his sawmill. Klaus is hypnotized by Dr. Orwell, and he causes an "accident". Sir therefore threatens that if they cause any more they will be sent to live with Shirley, who is really Count Olaf in disguise. Eventually Olaf's plan fails, and the Baudelaire orphans must go to a boarding school.