We look in on the office of a man named Hedley Lamarr, the Assistant to the Governor. Taggart (with a bandaged head, naturally) is in his office explaining how the railroad will have to plow through a town called Rock Ridge in order to avoid the quicksand it's run into.
Hedley Lamarr takes a moment to stick his head out the window because of some noise outside. But it's just the town hangman hanging a long line of people. Hedley tells him to try and keep it down.
Hedley decides that the best thing to do is to scare all the inhabitants of Rock Ridge away. Then there'll be nothing standing in the way of his railroad.
Because plans like that always work.
Taggart suggests that they scare the people by terrorizing and killing the people of Rock Ridge.
Hedley notices Taggart's bandage and asked what happened. Taggart answers that one of his black workers (Bart) hit him on the head with a shovel and that Taggart would like to see him hanged for the crime.
Hedley agrees and asks his hangman to squeeze in another booking. But the hangman says he's booked solid until Monday; so it'll have to wait.