Oliver Blackwood schemes to take over Matt's land. Frank Blackwood is jealous of his father's business dealings with Luke. Herbert arrives home with some local dignitaries to find Anita and Luke in a passionate embrace. The next day their liaison is all over town, and Anita arrives at the Mountain Ball on Luke's arm. Oliver Blackwood asks Anita to share his life at Balmoral, but before she can answer, a shot rings out and he falls to the floor.

Oliver Blackwood becomes part owner of the bank and is delighted to learn that Langara's deeds are security against Matt's loan. Luke proposes to Victoria Blackwood to the dismay of her father who refuses to support the union. When Luke and Victoria persist, Oliver tells his daughter she will be completely disinherited if she marries a McGregor. Matt wins the election.