- Carlos Murietta hides his box of stolen jewels in Jose Mordante's blacksmith shop, but Bernardo discovers them. Mordante attempts to kill Bernardo and keep the jewels, but Zorro arrives to save Bernardo. The jewels are missing however.
- Carlos Murietta and Jose Mordante prepare to receive a delivery from South America at the tannery. They tell an elderly peon named Pasqual to leave. Pasqual refuses because he does not want to be homeless, so Carlos whips him until he flees. Pasqual runs to Don Diego for help and tells the story. Diego decides to investigate. He visits the tannery and confronts Carlos about his poor treatment of Pasqual. Carlos threatens Diego with a whip, so Diego leaves. Meanwhile, Delores and her little brother Paco arrive in Los Angeles to buy shoes imported from South America. Garcia questions her and learns she is wealthy due to owning a ranch, which is an unusual occupation for an unmarried woman. Garcia is enchanted and tries to court her by acting like a gentleman. Cpl Reyes interrupts to demand repayment of 5 pesos. They argue, and Delores loses interest in Garcia. Garcia works on a plan to win her favor. That night, Zorro searches Carlos' room at the inn while Bernardo searches the tannery. Zorro discovers the Cross of the Andes, steals it and leaves to aide Bernardo. Bernardo discovers jewels in a shipment of boots from South America, but is interrupted by Jose. Jose knocks Bernardo unconscious, hides the jewels at the bottom of the well and nearly kills Bernardo. Zorro arrives in time to save Bernardo, and Jose is killed during the fight. Bernardo and Zorro are unable to find the jewels, so they decide to investigate further in the next episode.
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