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In 1759, Jim Smith and his friends, MacDougall and the Professor, return from fighting the Indian wars in Quebec to their home in Pennsylvania's Allegheny Valley. There they are welcomed by MacDougall's fiery daughter Janie. That night, Indians attack a nearby settlement, and Jim leads a contingent of settlers disguised as Indians to rout the marauders. Realizing that the Indians are acquiring their weapons from local traders, Jim rides to Philadelphia to request that the British governor order a trade ban with the Indians. General Gage consents to Jim's request, thus infuriating Callendar, a crooked trader who circumvents the ban by persuading an army clerk to issue permits to him. When Captain Swanson, the smug British officer in charge of the territory, refuses to believe Jim's accusation that Callendar is continuing to supply the Indians with rum and munitions, Jim and his men, once again disguised as Indians, attack the wagon and destroy the contraband. The wily Callendar, however, outsmarts Jim by destroying the army wagons and accusing the settlers of treason. When Swanson believes Callendar's accusations, Jim decides that the only way to prove the trader's treachery is to allow the contraband laden wagons safe passage to the fort, then seize the fort and send a wagon of trade goods to General Gage as proof. To eliminate Jim, Callendar frames him for murder, but his trial comes to an abrupt halt when General Gage arrives, orders Callendar's arrest and sends Swanson back to England.