Jeff Decker, with the help of Indian leader Red Dog, orchestrates a series of raids on the town of Coldwater, planning to drive the residents out of town and buy up all of their horses, while also starting false rumors of a gold strike outside of town so he can sell phony claims to prospective miners. He hires Fred Coulter, a struggling miner, to buy the horses. Decker also decides that he wants pretty Ruth Browning, whose aunt owns the local eating establishment. Fred learns of Decker's duplicity, and tries to get the miners and townspeople together to fight off an impending Indian attack orchestrated by Decker.
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