Government agent Tex Whitedeer and his sidekick Slim are sent to investigate some supposed Indian raids on the freighting outfit owned by Joe Lane, as well as to pick out the location for the junction of a new railway. The raids continue and Tex begins to suspect Lieutenant James, head of the Army battalion stationed nearby, since he is certain the Indians had nothing to do with the attacks. Tex sets a trap for James and the other suspects, who in turn fear Tex and determine to get him out of the way. The capture Honey Lane, Lane's daughter, so that Tex will take the trail and can be ambushed. Tex is captured, but he and Honey escape in time to prevent another raid and, with the aid of Chief Grey Cloud, his adopted father, Tex captures James and his gang.