Several guests arrive during high season at the Weissen Rössl (White Horse) Inn, a picturesque Austrian inn by a lake. Josefa, the landlady, is willing to meet again one of them, lawyer Dr. Siedler. This is most unhappily lived by her chief waiter Leopold, whose love advances towards her are always turned down. Yet Dr. Siedler is more interested in businessman Giesecke's daughter Ottilie, but he has it hard since one of his clients has a legal fight with Giesecke. On top of all this a telegram arrives announcing the arrival of Fürst, which is a nobility title in Germany, and the entire village prepares to give him a proper reception.