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James and Edward is a read and colour magazine story.
The Fat Controller sends James to the harbour to help Edward with double-heading a goods train. But, as James sets off for the harbour, it begins to rain. Also, he is not keen on working with Edward, thinking him as an old, slow engine. At the harbour, Edward tries to convince James that it is all right to work in the rain, but James does not think so.
As they head their goods train, Edward reminds James of what happened to Henry when he refused to come out of the tunnel. However, he explains that children can have some fun in the rain too. Then, as they continue their journey, a rainbow appears, which brightens up James' mood. Also, he admits that Edward is not an old, slow engine; he is a clever, old engine!
- A reference to The Sad Story of Henry is made in this story.
- In the flash-back illustration of "The Sad Story Henry", Henry is illustrated in his new shape.