John Middleton is investigating cattle rustling when he is captured and tossed into a cave with Emmett, a rancher who disappeared earlier. They help each other escape and learn that a local banker is trying to scare everyone away to grab up some secret gold mines.

A pre-World War II saber-rattler that finds a munitions inventor kidnapped, a federal agent killed and a beautiful refugee mysteriously missing as Washington's deadly game of espionage and intrigue thunders on...as the FBI hunts the nation's invisble foes! They may have been invisible but their accents and billing names von Morhart, William Vaughn (William von Brincken already hiding under another name before hostilities were formally declared), Frederick Gierman and Walter Bonn---provide clues aplenty as to their country of origin and paymaster.

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.