Reese and Cotton run off two outlaws intent on forcing the inhabitants of San Diablo to divulge where the fabled treasure is hidden. Dandy Davis is wanted and Cotton heads back to Laredo with him but Dandy fills Cotton's head with stories of the treasure and how Reese will beat him to it. Reese has stayed behind as he knows the other outlaw Ben Slick will be back to raid the town and the San Diablo citizenry has asked him to teach them to defend themselves. Reese becomes general of their "army" and is even given a uniform. When the outlaws return Reese and the citizens defeat them and Reese and Cotton are able to return to Laredo.