As a small child, Margaret was found by a pastor in a church on a Thursday. Until now, two old women have taken care of her and regularly received money from an unknown benefactor. Now there is no more money so Margaret has to go to the orphanage.
Lavinia has found a job as a scullery maid at Sedgecombe Place. She entrusts Margaret Thursday with her brothers, who have to stay at the orphanage. Lady Corkberry allows Lavinia to visit the boys on Sunday and lets her take a large picnic basket. The head of the orphanage does not like this visit at all, because firstly Margaret will go along and secondly the two of them could tell some unpleasant truths about the orphanage.
Lord and Lady Corkberry are interested in the conditions at the orphanage. Lady Corkberry was very upset when Margaret Thursday mentioned that the head of the orphanage sells the orphans' belongings. Lord Corkberry is surprised when he notices that their new scullery maid reminds him of a friend's daughter.
Margaret escapes from the orphanage with the Beresford boys. They find shelter on a barge.
Finally free! Peter, Margaret and Horatio have never felt so comfortable as on Captain Smith's barge. Only Lavina knows where the runaways are - and she won't tell in the orphanage.
Peter is selected to play the role of "Little Lord Fauntleroy" in a play at the Wroxham theatre. He is convinced that he has no talent and proves it during the rehearsals. Margaret wants to help him, to show him how it's done - and ends up getting the role.
