Upon the disappearance of wealthy Penny Sanderson, stage driver Jack Mahoney is arrested by Sheriff Jeff Clinton for her kidnapping. When Penny cannot be found, Jack is then accused of murder and sentenced to hang. A longtime acquaintance of Penny's, Steve Rollins, whose alter ego is The Durango Kid, comes to Jack's aid. Steve reveals that when Penny was a child, The Durango Kid united her feuding grandfathers and secured the young girl's right to a rich gold mine. In the present, upon further investigation, The Durango Kid learns that Penny's guardians, Emmet and Ella Sanderson, who seem heartbroken by Penny's disappearance have, in reality, made Penny's life with them a misery. The Durango Kid then locates Penny in time to prevent Jack's hanging and learns that she has hidden in fear for her life. Steve and his friend, Smiley Burnette, unravel the Sandersons' plot to kill Penny for her inheritance and Jack is ultimately freed.