At night, royal troops bring a jeweled sword, believed to have belonged to Charlemagne which the alcalde must secretly hide a while. Next the theater troop of don Alfonso Bautista Alvarado de Figueroa, a dwarf, arrives in L.A. When the alcalde insists on an excessive amusement tax of 50 pesos, Alfonso inquires about the premium of 600 on Zorro's head and learns that money is in his office, so he sneaks, steals it and pretends to find it where he buried it. Felipe lip-reads he's after the sword. Alfonso hypnotizes the alcalde, but Zorro also attends the performance in ...