Craig McCoy (John Wayne) and Jean Gregory (Dorothy Gulliver) survive the attack from the avenging skywriting pilot known as The Eagle and who may or may not be Jean's father Nathan Gregory (Edward Hearn). But Craig instead suspects The Eagle to be one of the directors of the Evans Aero Corp. and that Gregory has been kidnapped. Investigating the factory, Craig discovers that Clark (Edmund Burns), the board member thought to have been killed by The Eagle, is still alive but unconscious. Jean, meanwhile, reports to a building on Water St. after receiving a coded letter from her missing father. Locating the captured carnival operator, the girl manages to get words to Craig who races to the rescue with The Eagle's henchmen in hot pursuit. As chapter two concludes, Craig's automobile crashes into the Water St. scaffolding carrying the snooping Jean.
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