Raoul, dressed as Hernando, proposes to Allegra and gives her an engagement ring.
On the first warm spring day in the mountains, Olaf, a rich farmer, proposes to Runa, a poor farmer, only to discover that she is in love with the bandit Davith. Angered by this, Olaf burns down Runa's farm, and Runa escapes up the mountain searching for Davith.
Raoul (as himself) sits on a bench. Allegra arrives and wonders if she'll ever find love. She leaves for mass to ask for forgiveness.
Raoul attacks and kills The Shadow.
Raoul, as Hernando, arrives at Allegra's balcony but sees her with The Shadow.
The Shadow arrives and tells Allegra the truth about Hernando/Raoul.
Raoul (as Hernando) confronts Allegra about the missing ring. She tells him it's being polished.
The Shadow arrives to haunt Raoul.
Raoul still hasn't paid off his debt. Allegra arrives and tells him she has lost the ring, not knowing that he is also Hernando.
Raoul goes to see Don Paulo for a loan. Before he approves, Don Paulo warns Raoul about a shadow that haunts people who have not paid their debts.
Raoul and Allegra go out on their date and order a feast. The bill arrives and Raoul cannot pay it. He tries to escape, but in the process stabs the waiter in the neck with a fork. Raoul and Allegra leave the restaurant, Allegra is unaware of what has just happened.
Disguised as Hernando, Raoul asks out Allegra.
Raoul the mailman is in love with Allegra. He arrives at her house and they flirt, but are interrupted by Allegra's father. Raoul vows that he will win over Allegra by disgusing himself as a wealthy merchant named Hernando.
The Chinese workers decide to strike, led by Lai Gwan, after another death with no proper funeral. The strike is put down and Nichol stops Lai Gwan from being hung by Manli. She discovers Manli is her father.
While she is bathing in a stream, Nichol disovers Lai Gwan is a woman - she asks for his help to find her father and to keep her secret. Manli interrupts them before Nichol decides what to do.
The Chinese workers are led in and a disguised Lai Gwan challenges Manli the Bookman’s authority. He seeks revenge by assigning Lai Gwan to the most dangerous work in the camp: planting dynamite on the mountain face while suspended in a basket.
Aboard a ship taking Chinese workers to British Columbia - they are hungry & thirsty. Ah Lum starts a fight with Lai Gwan, who is disguised as a young man, but they stop as the coast comes into view.