McHale and the Crew are having some fun at Mayor Lugatto's restaurant, with some wine, women, song, and dance, when Binghamton happens along. The Captain is quite angry that they're partying in his 'Occupied village', and is giving the guys a good dressing down, when Parker comes out of the restaurant, with a plate of spaghetti. Parker trips, splattering the spaghetti all over Binghamton's uniform, angering the Captain even more.
Later, in his office, Binghamton is reading the list of charges he's leveled against the Ensign, and, as he orders Parker held in the brig without Court Martial, Mayor Lugatto comes in, to present Binghamton with a list of damages to his restaurant, for which he expects payment. Binghamton not only refuses to pay, but also makes the town of Voltafiore off limits to Naval personnel, including Lugatto's restaurant.
Later, in Lugatto's office, McHale and the guys discuss with the Mayor, not only how to get Mr. Parker out of the clink, but the Mayor's problem of how he's going to survive, with all of his businesses now off limits.
McHale soon spies a bust of a German Officer, in Lugatto's office, and questions the Mayor about it. The Mayor reluctantly admits that the bust was fashioned by his Cousin, who happens to be a Sculptor. When Lugatto goes on to tell that the Kraut was a former Military Governor of Voltafiore, who had been on an ego trip, McHale comes up with a great idea.
Later, in the town square, McHale and Lugatto happen to run in to Binghamton, and put the idea into action. McHale, with Lugatto's help, explains that The Mayor's Sculptor Cousin has been commissioned to create a statue of Voltafiore's Great American Liberator, and goes on to say that the Town Council had voted him as the one to pose for the statue. Lugatto then adds that they had even been considering re-naming the town square 'Piazzo Binghamtoni', which really grabs the Captain's attention.
"But forget it, Captain." Says McHale. "After what you did to these poor people… You couldn't even be elected Dog Catcher."
"Besides…" adds Lugatto, "My Cousin, Pasquale, he's-a de Dog Catcher".
Almost immediately, Binghamton embarks on a campaign to become the town's beloved Military hero, beginning with the removal of all the off-limits signs, in the town. He even spreads a little cash around, to help the Soldiers and Sailors to enjoy themselves. He even meets with the Mayor, at his restaurant, and coughs up the money for damages to Lugatto had asked for, earlier.
During that meeting, Binghamton asks that Lugatto set up an appointment for a sitting with Cousin Angelo, The Sculptor, and Lugatto agrees.
Later, as Binghamton stands on a pedestal, while Angelo creates, McHale, Lugatto, and Parker pay a visit. Binghamton immediately wants to know why Parker is out of the brig, and McHale explains that The Great Military Governor wouldn't be so great, if he continued to hold Parker in jail. But Binghamton won't budge, and angrily orders The Ensign back to the brig, immediately.
The next day, McHale pays a visit to Binghamton, in his office, as Angelo is putting the finishing touches on the statue. Again, McHale tries to get The Captain to change his mind, but Binghamton still won't give in. Parker is due to board the detention ship, that afternoon at 1600 hours (4 p.m.).
Carpenter soon rushes in with the news that he's finally gotten hold of Admiral Lawrence, the Area Commander. Binghamton is still posing for the statue, so Carpenter holds the phone up to Binghamton's ear, so that he can tell the Admiral the news of the situation. The Admiral is thrilled with the news, especially with the fact that they can be one up on the Army, and tells Binghamton that he and his Press Corps will be in attendance at the unveiling, the next afternoon.
The next day, as Angelo wheels the veiled statue into the town square, Parker stares sadly out of his barred window, as McHale and The Boys listen to Lugatto grousing over his problems. Gruber angrily offers to go and knock the head off the statue, but McHale adds that Binghamton would only order Angelo to fashion another head. But that idea quickly gives McHale an idea, and he and Lugatto go to Cousin Angelo, to talk to him about it.
Later, after Admiral Lawrence arrives, with his entourage of Photographers and Reporters, Mayor Lugatto takes the stage, and, after a brief speech, tells Cousin Angelo to unveil the statue. But, when the canvas comes down, Binghamton is very unpleasantly surprised to see not a likeness of himself, but Parker's smiling face, and bald head, for it seems that McHale and Lugatto had gone to Angelo, to have him whip up a quick statue of Ensign Parker, to replace the one of Binghamton.
Binghamton is, of course, furious, but McHale takes the Captain aside, to whisper that he'd better let Parker out of the pokey, for the negative publicity would make Binghamton look even worse. After the Admiral asks that Parker take the stage, to speak, Binghamton must tell him that The Ensign isn't available. Then, after Carpenter spills that Parker is in the brig, McHale covers by adding that – As Officer Of The Day – Mr. Parker is inspecting the brig.
Meanwhile, Christy and Willy approach, with Parker, to a big round of cheers and applause for the town's 'Liberator'. As Parker mounts the stage, the Admiral salutes, and as Parker says a few words to the townsfolk, McHale smiles with the thought of having beaten Binghamton, again.