In Louie's Sweet Shop, in New York's Bowery, Sach, a member of the Bowery Boys gang, is reading a comic book called "Western Yarns" when Sheriff Luke Barlow, of Hangman's Hollow, New Mexico, enters the shop on his horse. Barlow has traveled 3,000 miles to arrest Louie for the twenty-year-old murder of Pete Briggs, his partner in a gold mine. After Barlow leaves, Louie explains to the boys and to their leader, Slip Mahoney, that he was framed by saloon owner Blackjack, who killed Pete for the gold, but never found it. The map to the treasure, which he hopes to restore to Pete's daughter Kathryn, is painted on Louie's back. Slip sends his friend Gabe, a cardsharp, to Hangman's Hollow to acquaint himself with Blackjack, and Slip and the boys--Whitey, Chuck, Bobby and Sach--follow Gabe after painting a copy of the map on Sach's back. As they near Hangman's Hollow, they are met by a band of Indians, who are dressed in war regalia for their annual heritage celebration. Sach shows the map to Joe, one of the Indians, and Indian Joe reports to Blackjack, who in turn orders his men to shoot at the boys when they arrive in town. The local marshal is Kate T. Barlow, Luke's wife, who lives with Carolyn Briggs, a performing sharpshooter at Blackjack's saloon. Slip and the boys tell Kate they are looking for a baby named Kathryn Briggs, and show her a photograph of an infant that Louie had given them, which matches one in her scrapbook. While sleeping outdoors, Sach is taken hostage by Indian Joe and brought to Blackjack. Enroute, however, they go through a pond, and the map is washed off. In Blackjack's Plugged Dollar Saloon, Gabe introduces Slip to Blackjack as sharpshooting outlaw "Dead Eye" Dan McGurke, and Slip fools Blackjack into believing he is a perfect shot by apparently hitting the center of an ace of spades, which Carolyn has actually shot. After Carolyn performs in the saloon, she matches her childhood photo with Slip's, and he realizes she is Pete's grown daughter. Sach, meanwhile, has told Blackjack that there is another map, and, thinking it is on the back of one of the boys, Blackjack's men stage a hoedown in which they try to pull off the boys's shirts. Slip holds up Blackjack and brings him to the Barlow ranch. By stringing him up in a bull pen, Slip and the boys force Blackjack to confess to murdering Pete and framing Louie. Louie arrives with Luke for his hanging, but is exonerated, and Sach follows with Blackjack's men as his captives. Back in Louie's Sweet Shop, Sach tells Louie, Slip and the boys about his Western dream.