Richard arrives at Petersham to claim his inheritance papers from his guardian and uncle, J.B. Coke, Petersham's leading citizen. He meets Emily Burnay and learns that her father, the editor of the local paper, has many enemies on account of declaring that some of Petersham's prominent residents run an illicit still in the hills. Coke has confiscated Richard's securities and plans to conceal the fact. Richard and Burnay become friends and when the editor is warned to beware of the "Night Riders," Richard decides to stand by his friend. One night Coke steals a box supposed to contain Richard's securities. Richard stabs at him, misses him and cuts off a piece of Coke's sleeve. Coke escapes and Richard goes downstairs, awakens his uncle, who is feigning asleep, and tells him of the occurrence. Burnay is again warned by the "Night Riders.