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Jacob Strauss, the head of the milk trust, signs a secret agreement with three other milk producers to keep milk prices unnaturally high. Eventually, the collaborators disagree on tactics, causing each to fear disclosure of their illegal acts by Strauss, who holds the incriminating agreement. When Strauss is found murdered, the blame is traced to those last seen with him, but Tex, ever the skeptic, traces the crime to a resident of Chinatown. After flushing his prey from an opium den, Tex finds that he is in possession of a scrap of paper, part of Strauss's original document, thus incriminating him as the murderer and justifying Tex's suspicions.