T. Otis Waygood and Dolly arrive in the village and Dolly, over Jenny's objections, borrows Beauty for a fast gallop. The squire is intrigued and sets up a match race between Jenny and Dolly. Ned recognizes the shady Waygood from his days in London and wonders what he's up to.

There are new inhabitants in the Eglinton manor with Kevin and Albert coming upon a young Cecily running away from her uncle. Joshua Eglinton claims to Dr. Gordon his niece has a nervous disposition and needs to be kept alone, but Kevin disobeys his father to rescue her. Albert dresses as Cecily allowing Kevin and Black Beauty time to save the young lady from her relative's nefarious intentions.