After freeing Segura from prison on Chihuahua, Billy catches up with the 7 Rivers Gang in Lincoln County, New Mexico. Frank Baker tells Billy that Major Murphy and his lieutenant Dolan and Riley, all Irishmen like Billy, want to meet him. Murphy tells the gang they'll be working to protect his business interests against newcomers such as Englishman John Tunstall. Pat and Jesse attempt to intimidate Tunstall's associate but Billy pulls them out. A Mexican farmer tells Jesse and Billy that he signed an agreement to sell his grain to Tunstall because Murphy cheats farmers. Murphy is deeply in debt. Tunstall has hired McSween, Murphy's former lawyer. Billy prevents a gunfight between the gang and some gunmen hired by Tunstall. Murphy's associate Riley tells Jesse they have to get more violent against the Mexican farmers. Murphy bribes Billy with a new gun to get him to give his party guests a shooting demonstration. They end up scared rather than delighted. Pat shoots Manuel, a reluctant farmer who defends himself against a violent Jesse. Tunstall's men start recruiting farmers to fight in the upcoming war. The sheriff's deputies come for Pat. The sheriff jails Pat to placate the Mexican community. Billy comes to Manuel's funeral to pay his respects despite a hostile crowd. George Coe tries to convince Billy to meet with Tunstall. Murphy suggests that the sheriff send Pat to a distant, higher court then send a wagonload of whiskey to the gang. Billy agrees to a secret meeting with McSween. After rebuffing advances by Dolan's wife Irene, Billy is smitten by Dulcinea, a member of the local Mexican gentry. Billy meets with McSween. His impassioned speech convinces Billy it's time that he switch sides in the upcoming war.