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Jim Lester (Tom Tyler) easily captures the Phantom, who turns out to someone completely above suspicion. The Night Riders are revealed to have been founded by Sheriff Ryan (Frank Hagney) in order to combat The Phantom. The gathering now learns how the six prominent men of Rawdon had conspired with Martin Blair (William Desmond) to kill Jim's father when he discovered a conspiracy to drive Francisco Cortez off his valuable land. Cortez was drugged and false evidence placed to convict him of the murder. The sheriff grants Cortez (Frank Lanning) a parole until the courts can revert his conviction and Jim is reunited with Mona Cortez (Dorothy Gulliver), with whom he has fallen in love.