Tex arrives on the Parker ranch on Christman eve and is given the job of being Santa Claus. Also dressed as Santa Claus, Blackie robs Parker and kills a man. When Tex is arrested for the murder, he escapes and joins up with outlaw Becker and his gang. He finds Blackie's Santa Claus suit but is soon made a prisoner.

Kalmus is after the freight contract held by Summers. When his gang kill Summers, Tex and Duke step in to help Madge keep the freight line going. When they foil the gang's further attempts, Kalmus gets the Judge to jail the two.