James Peyton, a young Internal Revenue Officer of unusual resources, is sent to investigate the operations of a band of daring liquor smugglers and bring about their apprehension. In order that he may not arouse suspicion. Peyton secures employment at a village store, and while engaged in his duties as clerk he gains the friendship of Marcella. the storekeeper's daughter. But in forming the acquaintance, Peyton makes an enemy in Poole, a rough character, who has been endeavoring to win Marcella's hand. Poole is the leader of the smugglers and his association soon becomes known to the vigilant officer. One day, while delivering a basket of groceries, Peyton encounters the smugglers and is made prisoner. He is bound and led to an attic room. Struggling desperately with his bonds, Peyton manages to secure a small mirror from his pocket and flashes a heliograph message to the revenue cutter down the bay. Meanwhile, Marcella, who has been expecting Peyton to call, becomes alarmed at his absence, knowing that he has recently had an altercation with Poole. She warns her cousin, Ben, and by making inquiry, they learn where the officer was seen last. Peyton is discovered in the attic window by Ben, who climbs the porch and assists the officer to escape. Hearing the disturbance the smugglers take to flight and when the cutter comes steaming up the river in response to Peyton's message, the officer, together with Marcella and Ben, is taken aboard. There is an exciting pursuit in which the smugglers in a tugboat cast out a net and entangle the propeller of the cutter, but the lawbreakers are finally captured and Peyton receives two rewards.