Red Ryder (Bill Elliott) and Little Beaver (Robert Blake) arrive on the scene too late to prevent the hold-up of the freight coach and the theft of a big bank shipment. Red's aunt, the Duchess (Alice Fleming), operates the freight line and is unaware that banker Luther Jennings (LeRoy Mason) wants to scare her into selling him the freight line at a low figure. Jennings has Red's herd of horses stampeded, and makes it appear that Red staged a fake stampede in order to defraud the government. Captain Glover (Steve Barclay (I)') arrests Red, who maintains his innocence and persuades General Wingate (Stanley Andrews) to allow him to go after the real crook. Little Beaver accidentally finds the gang's cave-hideout and Red and Captain Glover find evidence proving Red's innocence and incriminating Jennings.
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