During Charles and Caroline's visit to Walnut Grove, in 1901, the residents of Walnut Grove learn that a railroad tycoon, Nathan Lassiter, actually holds deed to Hero Township.

Apparently, when they claimed the land, it had not been legal since it was not deemed as homesteading land. Meanwhile, Mrs. Oleson is seriously ill and is in a hospital in Minneapolis. The residents ask Charles to contact an attorney, but despite their best efforts, the residents are unable to drive Mr. Lassiter away.

When they attempt to resist with force, Mr. Lassiter comes back with a detachment of Union troops who order everyone to leave. Though Mr. Lassiter demands the residents instant evacuation, the soldiers allow the residents to remain until Easter Sunday.

In a fit of anger about the situation, Laura smashes out the windows of her boarding house. At the town meeting about the problem, Laura tells about breaking the windows and encourages others to do similar damage to their buildings, so Mr. Lassiter does not have it easy taking over their homes and businesses. Another resident takes this plan a step further by offering a wagon full of dynamite meant for the mines. So, angered at the injustice done to them, the residents decide that they should send a (literally) explosive message to Mr. Lassiter that he can have the land, but not the town. They invite the leaders of nearby towns to see how they dealt with the problem, so Mr. Lassiter would not try to strong arm them as well.