After the story, he tells them he sometimes spends the night in his switch house. The kids ask Stacy if they can sleep at the station, to which responds that only if it is okay with their parents. Just then, a lady named Wendy comes in. Wendy makes things out of paper and the kids want scary masks. When she is finished, she catches her train and leaves. Late that night, the kids are on the station floor in their sleeping bags. They cannot get to sleep, so Mr. Conductor tells them a "hairy" story about Percy's antics as a caterpillar.