Don Diego and Felipe were puzzling which ancient creature's bones are preserved in natural tar when don Alejandro reports the heir to the Portillo hacienda is none other then- sergeant Jaime Mendoza, an orphan but distantly related. Inliving houseman Torres tells Mendoza the legend of the builder, conquistador Portillo, who hanged himself for a fatal love and according to legend haunts the estate; the pueblo's other gentlemen tell the new don not to worry and accept invitations to his first banquet.

Don Diego and Victoria suspect that the female medium Miyarana, who claims to speaks to deceased loved ones of people in the pueblo, mainly of the rich, and her travel companion Ricardo Quintano, who sells the poor 'magic' stones, are frauds. Zorro finds out they pay the alcalde 20% for insight in his official records, so they can dazzle their dupes with private facts. After don Alejandro finds them fakes, he is threatened; don Diego comes to his defense and is made to duel Ricardo