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The show begins with Tom Malloy being released from State prison. The warden warns him it won't be easy starting over. The warden gives him a letter of recommendation and tells him to go see his friend, the sheriff of Diablo.
The next scene has Tagg practicing his quick draw against a scarecrow out-back of the sheriff's office. Annie tells him guns are only for defense not just to kill people. A buckboard comes horridly into town and a man jumps out hollering for the sheriff. Annie calls him Mr. Willis and asks him what's wrong. She and Deputy Lofty find out that Mr. Ed Willis has been robbed again. He had been hauling gold from the mines to the railroad station. He can't identify the men because they wore masks. He shot one man's horse and shot off another bandit's hat, which he couldn't retrieve because still another bandit had him pinned down with gunfire. Ed Willis, Lofty and a posse ride out to see if they can find the bandits.
The next scene shows us two bandits riding double. They spot Tom riding in the desert. One bandit shoots Tom in the hat and steals his horse. The bandit thinks Tom looks awful familiar.
The posse find Tom walking in the desert. The see the bullet hole in his hat and believe him to be one of the bandits. They take him into custody.
The next scene takes us back to Diablo where Annie is trying to calm an angry mob. They want the robberies to stop. The bandits have stolen 30,000 dollars worth of gold in the last month. Annie and Tagg ride out to the train station and talk to Phil, the railroad man. He tells them Dan and Jim Bolton have been shipping out gold although many people believe their mine had been played out. Annie and Tagg ride out to the Bolton Mine. Tagg stays outside the mine and Annie goes into the mine to investigate.
The next scene shows the two bandits riding up to their mine. The one bandit finally remembers where he had seen the man he stole the horse from before. He is Tom Malloy and they had been in prison together. He decides to get rid of the horse because he wants nothing to tie him to Tom Malloy.
Tagg sees them ride up and hides in the brush. The bandits spot Annie and Tagg's horses. Then they see Tagg in the brush and pull their guns. Annie comes out of the mine just in time to shoot the guns out of their hands. She tells them she was just looking for the two bandits. Tagg retrieves their horses. When one of the brothers threatens to shoot them for trespassing Annie shoots at them and makes them dance.
Annie and Tagg ride back into town and tell Lofty what they know. Lofty believes Tom is the bandit because he can't produce the letter from the warden which was in his stolen saddlebags. Annie convinces Lofty to telegraph the warden. Tom Malloy tells Annie that it was Dan Bolton that stole his horse. Annie asks Tom to help prove his innocence.
Annie goes to Burt the newspaper editor and tells him the man being held on robbery charges is Tom Malloy, an escaped convict. She wants it printed in tomorrow's edition.
The next morning, Tagg goes to feed the prisoner his breakfast but finds him gone. Lofty goes after him. Annie goes to the stable and gives Tom a horse and he rides out to get his letter.
The next scene shows the Bolton brothers reading the article about Tom busting out of prison. Just then Tom rides up and asks the brothers for breakfast. He finally admits to being Tom Malloy and says he needs a hideout. They agree. The brothers take him into their scheme of robbing the gold shipments. They plan a holdup for the next morning.
Annie tells Lofty she planned the escape to help catch the Boltons. Tom rides back to Annie and tells her and Lofty he can't find his horse or saddlebags. But tells them the robbery plan the Boltons have for the next morning. But at the same time the Boltons find the letter from the warden and realize Tom is a plant.
The next morning Tom and the Bolton brothers ride out to the planned robbery spot but the brothers inform Tom they changed their plans and are going to rob the Diablo bank instead. Lofty and his posse are waiting at the planned robbery spot.
The next scene has Tagg running in to tell Annie that he just spotted the Bolton brothers and Tom riding into town. Annie sends Tagg to get Lofty.
The Boltons enter the back and knock out Tom. The dynamite is set to blow the safe in the bank. Annie enters the bank shoots the gun out of one of the brothers hands. She pulls Tom away from the dynamite. Lofty rides into town and shoots at the other brother. Tom and Annie capture one brother and Lofty captures the other and finds the letter from the warden on him. The telegram arrives and says that Tom Malloy is a man to be trusted and would make a great deputy.