O'Hara it trying to teach Rusty how to hunt rabbits, but Rusty can't shoot the rabbit. Neither can O'Hara, so Rinty captures the rabbit. This way Rusty can say "he brought a rabbit home for dinner." But a herd of horses stampede toward Rusty and O'Hara. Rusty falls and can't get up because he won't let go of the rabbit. Two men are driving the herd. Rinty pulls Rusty to safety. O'Hara and Rusty have to walk back.
Lt. Sharp, Army intelligence, is there investigating the illegal sale of horses to Mexican revolutionaries. When Masters offers to look for the men driving the herd, Sharp reminds Masters that he's in charge. It is obvious there is friction between Masters and Sharp. Before leaving to look for rustlers, Masters tells Rusty to remember, no matter what, remember they are friends and always will be.
On patrol, Masters and the troopers come across a group of men running hoses. Masters refuses to attack the rustlers, and as a result, Masters is given a dishonorable discharge. Six weeks later, Masters is spotted in Salt River. He is now friendly with the men stealing horses. O'Hara and Boone take Rusty to Salt River to try and convince Rip to stop stealing horses.
Rip is moving up the ladder with the rustlers. In a secret meeting with Sharp, we learn Masters is working undercover to discover who is the head of the rustlers. But Sharp is taken when he leaves Masters. Rinty takes Rusty to Rip. Rusty tells Rip he has to stop working with the horse rustlers. Rip tells Rusty and that ugly hound to stay away from him period. Rusty's feelings are hurt.
Lanniagan, one of the rustlers, tells Rip he picked up Shark; and that the boss wants to see Rip. Rip is brought into a room where Sharp is being held. To prove himself, Rip has to shoot Rinty. They will watch through the window. Rip goes over to Rinty and pulls his gun. He tells Rinty to attack. Rip fires during the attack but Rinty escapes. Unfortunately, Rip was heard talking to Rinty by the rustler's leader (Harry Lauter plays him but has no character name). Masters is brought back to the room and is to be shot; but Rinty jumps through the window and attacks the leader. O'Hara and Boone open fire on the other rustlers who decide to surrender. Rip and Sharp are freed, and Rusty is told the whole story.
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