[3] In 1865, Captain Mark Smith of the Confederate Army leads a band of deserters to conquer Texas and rule it as a dictator.

In one of his first actions, he captures and assumes the identity of Texas's new Finance Commissioner, Colonel Marcus Jeffries, after having the real man murdered.

The survivor, nursed back to health by Tonto, swears to avenge the massacre and defeat "Colonel Jeffries" and his men.

A contract between Republic and George W. Trendle for a Lone Ranger serial, and the right to release a condensed version, was signed in June 1937.

Republic planned that the Lone Ranger would unmask in the last chapter, revealing himself to Joan Blanchard (Lynn Roberts) as Allen King (Lee Powell).

Prior to this the issue was confused by two voices for the Lone Ranger (mainly Billy Bletcher but with Earle Graser from the radio series providing the signature cry of "Hi-Yo Silver"[6]) and his stunt double (Dave Sharpe).

[6] Republic was notorious for making changes in its adaptations, the worst case of which was Captain America (1944),[7] Prior to the reveal, the audience had been presented with several candidates who may have been the Lone Ranger but only one survived to the end.

After the second Lone Ranger serial, which featured Robert Livingston as the title character, who appeared in a mostly unmasked state, George Trendle decided to dissolve his relationship with Republic and offer the property to another studio.

Another development occurs in chapter ten when Jeffries tries to force Joan to marry him, which was an unusual plot element for a sound serial.

[6] The Lone Ranger was superior in terms of plot and execution when compared to the average western serial, although it contained many features standard to the genre such as explosions, runaway stagecoaches and falls from a great height.