After many unsuccessful attempts and failures, to gain access to the Magic Horseshoe, the Devil realizes that he cannot carry out his plan alone. He learns from his magic book of spells that ugly gnomes live in caves in the Transylvanian Mountains. There, they are waiting to emerge and rule the world when the human race becomes extinct. With a half-successful spell, the Devil manages to create Totty and Dotty, two ugly gnomes, who also prove to not be too smart.