I think Hank saw a blimp.
2 seconds sound clip from the Rudolph the Red-Nosed Reindeer and the Island of Misfit Toys movie soundboard.
You can hear this line at 00:40:07.645 in the DVD version of the movie.
Quote context
[...]
- Well, what if we catch the Toy Taker and get the toys back by Christmas?
- But by golly, how does one catch such a slippery scoundrel?
- Oh, someone must've seen something last night.
- I did.
- That's how he absconded with our toys.
- Papa, why don't we look for clues?
[...]