State Commissioner Walton is uncertain about making Rainbow's End the new county seat after the Drago brothers, Matt and Slip, hold up his tage and beat up Sheriff Sam Oldring. Jimmy Wakely rides into town unaware that his pal Cannonball has been telling fictitious tales about him as being an outlaw known as the Melody Kid. Jimmy knocks out Slip Drago when he becomes unruly in the restaurant run by Judy Joyce, who refuses to feed Jimmy because she thinks he is the Melody Kid. Untertaker Beasley is the secret head of the outlaw band that terrorizes the territory, so that Yuba will be made the county seat and make him a rich man. Judge Emerson persuades Jimmy to become a deputy after he gets three of the Drago outfit after they wound his friend Sheriff Oldring. About to take the town money to Capital City for a new courthouse, Jimmy is arrested by Beasley's henchman Gabe, posing as a lawman, for an alleged killing in Silver City.