75 years later, in 1938, Peter (Walter Brennan), now a crotchety old man, still resides on Elmtree Farm and raises horses with his niece Sally (Loretta Young). Dillon's grandson Jack (Richard Greene) and Sally meet, her not knowing that he was a Dillon. Sally's father, Thad Goodwin Jr., dies when his speculation on cotton drops. The Goodwins are forced to auction off nearly all their horses and Jack offers his services to Sally, as a trainer of their last prize horse, "Bessie's Boy", who is later injured.