Once upon a time, in a certain village, there lived two men with the same name, Klaus. One owned four horses and was called Big Klaus; the other owned only one horse and was called Little Klaus.
Little Klaus had to plough for Big Klaus all week and lend him his horse. In return, Big Klaus lent his four horses to Little Klaus only on Sundays. One Sunday, Little Klaus was so happy ploughing with all five horses that he kept shouting, "Gee-up, my five horses!" Big Klaus warned him to stop, but Little Klaus couldn't resist. Enraged, Big Klaus killed Little Klaus's only horse with an iron bar.
Heartbroken, Little Klaus skinned the horse, dried the hide, and set off to town to sell it. Lost in a stormy forest at night, he sought shelter at a farmhouse but was turned away by the farmer's wife. He slept in a shed and, peeking inside, saw the wife and the sexton enjoying a feast. Hearing the farmer return, the wife hid the food and the sexton in a chest.
Invited in by the farmer, Little Klaus was given porridge. He stepped on his sack containing the horsehide, making it squeak. He claimed it was a wizard who said they shouldn't eat porridge but the feast hidden in the oven. The amazed farmer found the food and wine. Little Klaus further "consulted" the wizard, who said the Devil was in the chest. The farmer peeked, saw the sexton, and was terrified, believing it was the Devil.
The farmer bought the "wizard" (the dry hide) for a bushel of money. Little Klaus left with the money and the chest containing the sexton. At a bridge over a river, he pretended to throw the chest in. The terrified sexton offered a bushel of money to be freed. Little Klaus agreed, becoming even richer.
Back home, Little Klaus sent for Big Klaus's bushel measure. Big Klaus, finding coins stuck to it, demanded to know how Little Klaus got so rich. "I sold my horsehide," said Little Klaus. Greedy Big Klaus killed his own four horses, skinned them, and went to town demanding a bushel of money per skin. He was mocked and beaten by the townspeople.
Furious, Big Klaus vowed to kill Little Klaus. That night, he broke into Little Klaus's house and struck what he thought was Little Klaus in bed. It was actually Little Klaus's recently deceased grandmother. The next day, Little Klaus dressed his grandmother, propped her in a cart, and told an innkeeper she was hard of hearing. When the innkeeper threw a glass at her for not responding, Little Klaus accused him of murder. The frightened innkeeper paid a bushel of money to keep it quiet.
Big Klaus, learning of this new wealth, was told Little Klaus "sold his grandmother." He immediately killed his own grandmother and tried to sell her body to an apothecary, who drove him away in horror.
Blinded by rage, Big Klaus stuffed Little Klaus into a sack to drown him. Stopping at a church, he left the sack outside. An old shepherd passed by, wishing for death. Little Klaus convinced him to take his place in the sack. Big Klaus, returning, threw the sack into the river, believing he had drowned Little Klaus.
On his way home, Big Klaus met Little Klaus driving a fine herd of cattle. Little Klaus spun a tale about being taken to a beautiful underwater world by a sea-maiden who gave him "sea-cattle." He claimed he came ashore to take a shortcut to another herd.
Consumed by greed, Big Klaus begged to be thrown into the river too. Little Klaus helped him into a sack, added a large stone, and pushed him in. Big Klaus sank immediately, and Little Klaus drove his cattle home, finally free of his tormentor.