The Winslows are out West to visit a ghost town and Phil decides to do a little prospecting while they are there. Marmaduke digs up a chunk of gold and Phil and Dottie take it to town to have it checked while Marmaduke and the kids watch over the claim.
An old prospector has seen what they got and he wants the claim and tries to take the flag from Marmaduke and the kids. He tries several attempts and they are able to foil him each time. They have to chase him one time to get the flag back and on the way through the ghost town with the flag back in their possession, the claim jumper tries one more time and it backfires again and he gets knocked down the well. He leaves and Phil and Dottie return and tell the kids that the gold was just fool's gold.