On route to Mesa City, the stage driven by Cannonball is held up by a gang of ruthless hooded outlaws known as The Phantoms. Jim Stewart, a passenger on the stage, has come to Mesa City to buy a cattle ranch from Matt Edwards, the crippled editor of the Mesa City News . After the robbers ride off, Cannonball continues on to Mesa City, and at the local saloon, Stewart meets Sheriff Kincaid; Hank Watson, the head of the ranchers' association; Tex Harding, a sullen rancher and Tex's sister, Kitty. Tex's ranch has never been victimized by The Phantoms, and consequently, he is suspected of being their leader. When the outlaws raid Stewart's newly purchased ranch and kill one of his cowhands, Stewart swears revenge. Clad in the guise of The Durango Kid, a masked fighter for justice, Stewart trails the gang and discovers that they are using the advertising columns in the Mesa City News to contact each other. After another vicious raid, the sheriff arrests Tex and accuses him of being the outlaws' leader. Convinced of Tex's innocence, The Durango Kid breaks him out of jail, and the two ride back to the Harding ranch. Soon after, The Phantoms appear at the ranch, and as Tex and The Durango Kid hold off the gang, Kitty rides into town to summon the sheriff. The sheriff and his posse finally arrive to apprehend the gang, but their leader eludes the grasp of the law. Galloping back into town, The Durango Kid enters Edwards' office and finds the editor seated in his wheelchair. The Durango Kid lights a match and flips it onto the blanket covering Edwards' legs. After leaping to his feet, Edwards grapples with The Durango Kid. Tex arrives just in time to overpower Edwards and expose him as The Phantoms' leader. With the criminals brought to justice, The Durango Kid bids Kitty, Cannonball and Tex goodbye and rides off to his next adventure.