Act I: George Peyton returns to the United States from a trip to France to find that the plantation he has inherited is in dire financial straits as a result of his late uncle's beneficence. Jacob McClosky, the man who ruined Judge Peyton, has come to inform George and his aunt (who was bequeathed a life interest in the estate) that their land will be sold and their slaves auctioned off separately. Salem Scudder, a kind Yankee, was Judge Peyton's business partner; though he wishes he could save Terrebonne, he has no money.
George is courted by the rich Southern belle heiress Dora Sunnyside, but he finds himself falling in love with Zoe, the daughter of his uncle through one of the slaves. Dora, oblivious to George's lack of affection for her, enlists Zoe's help to win him over. McClosky desires Zoe for himself, and when she rejects his proposition, he plots to have her sold with the rest of the slaves, for he knows that she is an octoroon and is legally part of the Terrebonne property. He plans to buy her and make her his mistress.
Act II: McClosky intercepts a young slave boy, Paul, who is bringing a mailbag to the house which contains a letter from one of Judge Peyton's old debtors. Since this letter would allow Mrs. Peyton to avoid selling Terrebonne, McClosky kills Paul and takes the letter. The murder is captured on Scudder's photographic apparatus. Paul's best friend, the Indian Wahnotee, discovers Paul's body; he can speak only poor English, however, and is unable to communicate the tragedy to anyone else.
