Several guests arrive during high season at the Weissen Rössl (White Horse) Inn, a picturesque Austrian inn by a lake. Josefa, the landlady, is particularly pleased to see one of them again, lawyer Dr. Siedler. Her chief waiter Leopold is unhappy about this because he has unrequited love for her. Dr. Siedler is more interested in businessman Giesecke's daughter Ottilie, but one of Siedler's 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.