Kevin and Albert enjoy listening to the tales of Corporal Donovan, who claims to have been in the Light Brigade but Albert has his doubts. When men claiming to be the squire's employees evict Donovan, the boys come to his aid and with Beauty's help uncover stolen goods.

Dr. Gordon and Amy head to the city, leaving the youngsters on their own and arguing about who will ride Black Beauty. Albert sneaks off with Beauty to a carnival and loses the horse to shyster Teapot over a shill game debt. Kevin, Jenny, Ned, and Beauty must aid Albert in dealing with his blunder.