It's 1873 and the disbanded Texas Rangers have been replaced by the corrupt Texas State Police. Steve Lanning arrives posing as a wanted outlaw to get in with them in his attempt to have them replaced. His inside work helps the Durango Kid break up the State Police raids but he is in trouble when his secret identity as Durango becomes known to them.

Rancher Rusty Williams is away at agricultural college and leaves his spread in the hands of his older cousin Shorty. Shorty wants to do more than run a ranch, however -- he wants to prospect for gold, but he has no money. He recruits a pair of partners in the guise of two runaway vagrants and a pair of backers in two stranded singers. But then Rusty shows up, and his four somewhat bumbling hired hands manage to compound Larry and Curly's deep ineptitude, and Rusty wants them all out of his hair.