Popeye and Bluto own adjacent shipyards. They are given the plans for a battleship; whichever finishes first gets the contract for the fleet. Bluto does his patriotic duty by refraining from his usual sabotage; his own incompetence provides much of the entertainment, until the end, when Popeye finishes first. Bluto, invited to help launch the ship, provides a bottle of champagne filled with nitroglycerine. Popeye's ship is destroyed, but after his spinach, he manages to turn out a ship every 5 seconds or so, launching an entire fleet for the war effort.

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