The tragic story of Don Jose, a Spanish cavalryman, who falls under the spell of a gypsy girl, Carmen, who treats him with both love and contempt and leads him into temptation and thus damnation.

"The Bear Joseph", so named because of a fight with a bear, is rescued by Wally, a farmer's daughter, from a dangerous situation in a vulture's nest. He then calls her "Geierwally". They fall in love. Wally's father disapproves of this romance. He has other plans for Wally.

Gaston finally succeeds as a dramatist and decides to leave his wife and child for another woman. When the child dies, the finger is pointed at him and he winds up as a destitute before all is revealed. This film is considered lost.

A bored princess' flights of fancy cause troubles for the entire household, especially her husband.