On August 5, 1878, Billy the Kid and the Regulators, riding 19 strong, come down through the canyon leading to the Mescalero Apache Agency in Southeastern New Mexico. The gang splits with Billy and his boys heading for a spring on the south side of the canyon. The rest of the group, all Hispanos, stay on the main road and run into an Apache hunting party. Firing breaks out on both sides and when Agent Morris Bernstein hears the shooting he and several others from the agency ride out to investigate. Bernstein is shot out of the saddle. The Regulators escape but Billy the Kid gets the blame.