Olga and Morton, who were ceptured by the bandits, are taken to their den. There Olga discovers Burke's copy of Robinson's Philosophy, which one of the bandits found in the mountains. This copy contains a notation on the fly-leak as follows: "To obtain the secret of my invention, read every seventh word on page 61, my copy of Metallurgy." Olga realizes that she has but to get a copy of Metallurgy to discover the secret. She and Morton escape from the bandit's den. Their escape being discovered, the bandits follow. Olga and Morton discover one horse. Morton snatches the book from Olga, mounts the horse and escapes. The bandits follow. Olga hides and works her way back to the city. Hope is suffering untold misery as the day for his approaching marriage nears. Hook is put to desperate straits to support Cleo. Mahlin and Satsuma search the mountains for the lost copy of Robinson's Philosophy. They are captured by the bandits. Mahlin discovers that the chief of the bandits belongs to his secret society. In a conversation, the chief tells him that Olga and Morton had escaped with the copy of Robinson's Philosophy. Morton, in fear of Olga, seeks obscure quarters while he is searching for Burke's copy of Metallurgy. Olga is warned that her employees are still waiting for her to obtain "The Secret of the Submarine." Cleo, driven desperate by the sacrifice Hook is making, leaves him. They day before Hope is to be married, he overhears Inez Mahlin telling a friend that the news of her having spent the night alone with Hope in the mountain cabin has never become public, but, hearing he has been left a fortune, she has used it as her lever to lure him into marriage. Hope denounces her, breaks off the engagement and makes preparations to return to Cleo. He receives the following from the Naval Defense Board: "The United States is facing a critical situation. A foreign government has defied us. The President has asked the length of time it will take to mobilize our Army and Navy. The government agents have reported that the search of the mountains for the lost Philosophy is unavailing. The Chairman states that the U.S. is not in a position to fight and that without the secret of the submarine is not sufficiently prepared even to defend the honor of its beloved flag. Hope, filled with renewed zeal, states that he will leave at once to devote his life and fortune to its recovery. - Moving Picture World, August 19, 1916
See Episode One for cast listing.