Texas Rangers Tex and Jim head to New Mexico to bring in Yeager and his men who are fighting the new railroad. The real crooks however are Calloway and his lawyer Conlon who have been forging deeds and rustling cattle. When Tex sets a trap to bring in Yeager, Jim refuses and the two Rangers find themselves on opposite sides.
Texas Rangers Jim Steele and Tex Wyatt are sent to Gabe's Crossing, New Mexico, to organize the first branch of the New Mexico Rangers, and capture Bent Yaeger, a rancher who is reportedly sabotaging the progress of the railroad. After the Rangers save Bent's daughter Ellen from an attack by three men, they meet Bent, who claims that railroad representative Bart Calloway and his attorney, Steve Conlon, have rigged land surveys so that it appears that Bent's property is on government land, and must therefore be forfeited to the railroad. Shortly after, Bart's thug Blackie murders Conlon, who was attempting to leave the corrupt gang. Tex, meanwhile, organizes a group of local men to enlist as the new Rangers, and swears in Gabe Jones as the captain. Conlon's body is then brought to town bearing a note in which Bent claims responsibility, but no one but Tex believes he is guilty. Bart's girl friend, Marie Monette, overhears the meeting and warns Bart, who has just locked up the third Texas Ranger, Panhandle Perkins, who was working undercover in his gang. Panhandle is freed by Gabe, and reports that Bart's gang is planning to ambush Bent and the Rangers. Determined to carry out his orders to arrest Bent, Tex tells the rancher that he can recoup his losses by robbing a stagecoach carrying $30,000 in railroad money. Although Jim privately protests that Tex is taking unfair advantage of Bent, who has treated them like family, Tex insists on entrapping Bent, and knocks Jim out. Jim and Ellen foil Tex's plan, however, by lighting a signal fire which calls Bent back to his cabin. Although Jim intended to resign from the Rangers, he renews his loyalty when Bent reveals he intends to kill Tex for betraying him. They are then distracted by the arrival of Bart's gang, who fire at the cabin. Bent and the Texas Rangers are soon aided by the arrival of Panhandle and the New Mexico Rangers. The Rangers are victorious and arrest Bart and his gang. Bent and the other ranchers are pardoned by the governor and promised restitution for their losses.
