Act II, Scene i
Two days onward, David and Owen sift through the remnants salvaged from the charred ruins of the Klan's stronghold in Atlanta. With villainous intent, they depart, making way for Ellard and Charlie, who stride in, wrapped in their ongoing English lessons. Soon, Catherine and Betty join the gathering, and Ellard animatedly recounts their time in Tilghman, watching workers erect the new courthouse. Ellard, eager to learn, shares his bricklaying endeavors.
Froggie makes a spirited return to check on Charlie, astonished to discover Charlie thriving in his foreigner facade.

For amusement, Froggie cajoles Charlie into narrating an adventure in his fictitious tongue. Rising to the challenge, Charlie spins a tale akin to a fairy-tale, mesmerizing all with his storytelling prowess. Charlie basks in the limelight, especially under the affectionate gaze of Catherine. Alone with Froggie, Charlie revels in his 'adventure,' speculating that he might be developing a 'personality.'

Once Froggie departs and Owen strides in, Charlie seizes the moment to unsettle the prejudiced Owen with enigmatic threats, prompting Owen to summon Betty and David. In their presence, Charlie deftly embarrasses David, leaving him incredulous as Catherine enters, announcing her decision to share the family fortune with her brother, inspired by Ellard's triumphs in bricklaying and tutoring Charlie in English.

Charlie, enthralled in his role, begins enlightening the group on his fictive language and culture, thereby exposing David and Owen's ignorance. Owen, consumed by rage, brandishes a knife, hurling threats of Klan retribution before storming out. David trails after him, attempting to pacify his fury. Those left behind are consumed with worry over Owen's ominous threats. Meanwhile, Catherine hurriedly records a message for Froggie, just as Owen severs the lodge's power. All eyes turn to Charlie, seeking a plan.

Act II, Scene ii
That evening, a plan is set in motion under Charlie's direction to withstand the looming Klan assault, though confidence is scarce. As the Klan ascends the hill towards the shrouded lodge, Charlie rallies Betty, Catherine, and Ellard to their tactical positions. The door bursts open as hooded men, led by Owen, flood in, declaring the Klan's brand of vigilante justice.
With power restored, they send Klansmen upstairs to locate Catherine and Ellard. A captured Klansman returns, restraining Catherine, who claims Ellard has also been seized.

Owen demands Charlie to dance upon the table, but Charlie adopts a threatening stance, turning the tables on Owen. Pointing to a Klansman, Charlie appears to cause the figure to vanish, leaving naught but the robe. Terrified, Owen and his crew flee the lodge. The ruse is then unveiled: upstairs, Ellard had subdued a Klansman with a croquet mallet, donned his robe, and theatrically 'disappeared' through a trap door.

David stumbles in, clutching his aching head, while Catherine uncovers her fiancé's betrayal. As David makes his retreat, Froggy enters, identifying David's ownership of a van outside and promptly detonates it. Catherine declares her intention to assist Betty in rejuvenating the lodge, and suggests Ellard handle the brickwork.

As farewells are exchanged with Charlie, Froggy presents a telegram that casts a shadow over Charlie's spirit. Catherine draws close, offering solace and urging him to stay. In character, Charlie consents. Froggy later divulges the true contents of the telegram to Betty: Charlie's spouse has not passed, but has instead eloped with a proctologist.