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Although both Collins (Al Hill) and Cates (Paul Newlan) were killed when the suspension bridge collapsed, The Phantom, aka "The Ghost Who Walks" (Tom Tyler), survived unscathed. The wagonload of ammunition, commandeered by Count Silento (Anthony Caruso), is forced to take a more circuitous route and is blown to Kingdom Come by The Phantom. Meanwhile, back in Sai Pana, Rusty Fenton (Ernie Adams) manages to kill the attacking Silento and send Devil (Ace the Wonder Dog) out in search of his master before being felled by Andy Kriss (Sol Gorss). Worried for Rusty's safety, The Phantom rushes to his friend's shack, only to find it booby-trapped by Kriss.