As the Civil War comes to a close, the state of Texas is overrun with gangs of marauders, who take the law into their own hands to terrorize the honest ranchers and cattlemen. The leader of the most powerful of these gangs is an outlaw named Smith, who kills a special investigator from Washington named Jeffries and then assumes his identity in order to extort illegally high taxes from the helpless ranchers. Organizing a large, lawless band, Smith rules the territory until President Abraham Lincoln hears of the situation and appoints Blanchard as administrator of Texas. Blanchard and his daughter Joan soon arrive in Pecos, but after Joan's life is threatened, Blanchard signs his authority over to Smith. The Lone Ranger, the sole survivor of the disbanded Texas Rangers, whose real name is Allen King, learns of this injustice and reorganizes the Rangers with a nucleus of four trustworthy men and Tonto, his Indian friend. During their first skirmish with Smith's band, one of the Rangers is killed and buried in their cave hideout. Blanchard and Joan, now prisoners of Smith send word through the mission priest, Father McKim, that Smith is planning to steal a shipment of silver that has been collected as taxes. The Rangers, however, steal the silver before Smith can act and secret it in their mountain hideout. For their deed, the Rangers are captured and imprisoned at Fort Bentley, where they are to be tried. Knowing that the silver is not safe in the mountains, the Lone Ranger, with the assistance of Tonto, escapes from prison, returns the silver to the authorities and then helps the other Rangers to escape. Meanwhile, Smith learns that Joan and her father have discovered his true identity and plans to send them away. Joan sends word to the Lone Ranger of their danger, who rescues them and takes them to the cave, where they are attacked by Smith and his men. Riding for help, the Lone Ranger gathers the ranchers together and after a bloody battle, captures the entire band of outlaws. After the fight, only one Ranger is left alive, the Lone Ranger, who reluctantly declines the honor of reorganizing the Rangers so that he may ride alone to aid those that need assistance.
