Skarloey's School Picnic is a rebus magazine story.
One day, Skarloey meets a class of schoolchildren and their teacher. The children are learning all about engines and railways and Skarloey is going to help them. The teacher explains how Skarloey works and the children take notes. The children then climb aboard Skarloey and he drops them off at a picnic spot so they can eat their lunch.
One child offers Skarloey one of her apples, but the teacher tells her that engines don't eat them and then she asks them if they remember what engines use as fuel. The children all know the answer is coal. The driver asks if they would like to see Skarloey have his lunch. The children gather round and watch as the driver shovels coal into Skarloey's fire. His boiler is warm and full of coal as he takes the children back to school.
- Skarloey (does not speak)
- In one illustration, Skarloey is missing his number 1.