"Here I have a list of Zorro's offences. One very interesting fact has occurred to me about this list, de la Vega. Whenever Zorro struck, you were always close at hand. Yet whenever Zorro actually appeared, you were never seen. How do you account for that?" Monastario pronounces that Diego de la Vega is under arrest for being the outlaw known as Zorro!
"Exactly!" Monastario agrees. He points out that Diego's pose as an idle rich man interested only in music, wine, and poety has been a perfect guise. "Too perfect," Monastario pronounces.
A soldier bursts into the Commandante's office to announce that the Viceroy is on his was to Los Angeles from Monterey. Capitan Monastario springs into action. He orders Diego confined under guard in the Commandante's quarters. Then he orders the jails emptied and a "spontaneous" reception made ready for the Viceroy. He orders a joyous crowd ready to meet the Viceroy "even if you have to shoot them!"
Everything is prepared before the Viceroy arrives in Los Angeles. Capitan Monastario, elegant in his full, dress uniform, greets the Viceroy and his lovely daughter. Monastario is immediately smittem by the young woman and compliments her lavishly. He answers the Viceroy's concerns about reports of trouble in Los Angeles as mere rumor or fact belonging to his predecessor's rule. He assures the Viceroy that all is well in Los Angeles, and the empty jail and cheering crowd seem evidence of his statements.
Capitan Monastario plans a formal dinner for the Viceroy and his daughter later in the day.
His secret plan is to unmask Zorro and pronounce that Diego de la Vega is the criminal who had been sought for so long.
Zorro is brought into the inn under heavy guard. With pride and a flourish, Capitan Monastario unmasks his prisoner to reveal Diego de la Vega.
Monastario is dismayed to learn that the Vicery's son and Diego once knew each other in Spain. The Viceroy demands to know if this is a joke.
Monastario asks others in the inn if this man before them is Zorro. The alcalde admits that he could be since he is dressed as Zorro. Finally, Licenciado Pina pronounces that without a doubt, the man standing before them is Zorro.
Diego asks the Viceroy to send the Commandante from the room so that they may speak privately. The Viceroy agrees to be responsible for Diego, and Monastario and Garcia go outside. Monastario is very confident and talks with Garcia about a possible future with the Viceroy's daughter. He is certain that he has captured Zorro, and he expects to be rewarded for his efforts and diligence.
A moment later Monastario is asked to return inside the inn. The Viceroy asks him again if the Commandante is certain the masked man standing before them is Zorro. He observes that with most of the facial features covered, it would be easy to mistake the man beneath the mask.