The Kid and Muley come across a railroad holdup by criminals who are wrecking the engine. As he investigates, the Kid discovers the reason behind these destructive episodes: the cattle ranchers are afraid that the railroads will break up grazing lands and bring in competitors.; Dan and Tipi have been acting as guides for a group of pioneers pushing their way through the Appalachian Mountains, and they stop for the night when a wild cat threatens the life of Ann Cartwright. Saving her, he is asked to give up the way of the Indian and settle down, which prompts Tipi to leave and return to his own people. Meanwhile, Ann and her father are captured and held for ransom by a group of forest bandits.