Gene Autry's horse "Champion" (Champion) is stolen by escaped convicts Jake Fargon (Walter Sande), Pete Reagon (Jock Mahoney) and Charlie Lewis (Francis McDonald). Twenty years earlier Fargo and Lewis had been captured by City Marshal Steve Autry (Gene Autry)and sent to prison after the theft of $30,000 from "Big Tim" Hanlon (Thurston Hall), a bonanza king. Gene (Gene Autry)traces the convicts to the ghost town in which the loot had been hidden way, where he also finds Hanlon and school teacher Ruth Lambert (Nan Leslie). Loco John (Clem Bevans)warns Gene the killers are around. The convicts pursue Gene and his friends through the spooky buildings.
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