The King's tax collector and his nephew are stopped by conspirators, while on their way to Los Angeles. The conspirators threaten the men unless they cooperate, then they seize Morales' official documents. The outlaws then tell him to return to the capital or they will kill his nephew, Domingo, whom they hold hostage and after he leaves, Domingo is seen to be a member of the criminal conspiracy. Once Azuela has established himself as an agent of the King, he begins to levy a series of high and cruel taxes. A reluctant Sergeant Garcia has no alternative but to follow Azuela's orders, and soon many of the villagers are in jail. Azuela has decided that Diego must suffer for his interference, so a special tax is imposed on the de la Vegas. Only when Diego idly toys with an eagle feather as he discusses the tax is it canceled. Diego now nows the phony tax collector is another member of a conspiracy. The prisoners are lead out of town and escape with the help of Zorro. Determined not to lose
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