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Neither a small town nor a large city, Pencilville is the home of the Pencil Company which makes fine pencils. Every Christmas, the residents of Pencilville look forward to having a tree brought in from the countryside to sit prominently in the town square. But the workers run into some problems with the tree supply. They are forced to drive around town to look for a treeany treethat would be appropriate for the upcoming tree lighting festival. They find a 50-foot Norwegian Spruce. Its branches are a bit spindly and droopy and sparse. Its a puny pine. Many Pencilville residents are upset and call for the removal of this ugly Christmas tree. The mayor finally makes a decision about the tree and the lighting ceremony. In the end, the ugly Christmas tree helps an entire town to re-examine the real reason for the season.