A cowboy captures two rustlers and collects a $5000 reward. Using the money to take a vacation, he winds up getting accused of a murder he didn't commit.

The son of Sheriff Clay Hartley, of the frontier town Elder, has gotten into bad company and hangs out with an outlaw gang in which, Collins, owner of the Golden Rule Saloon, is the secret head. Sheriff Hartley suspects him, but has been unable to gather the needed evidence. Collins instructs his gang, including young Hartley, to hold up the stagecoach on its return trip from Missionary Flats and take the cargo of gold dust it is carrying. Sheriff Hartley is notified of the planned holdup by one of his deputies who has been spying on Collins, and organizes a posse. A deputy-sheriff is killed in the ensuing gunfight between the lawmen and the outlaws, but Deputy Joe Larkin, pursues and captures Clay Hartley Jr. The latter is quickly tried and convicted of the killing of the deputy, and sentenced to be hung. Sheriff Hartley has only a few hours to prove his son was not the killer. He enlists the aid of Collins' step-daughter, Joan, who is in love with Hartley's son.

Anne Shirley, an orphan, is fostered by farmer Matthew Cuthbert and his sister Marilla, who were expecting a boy to be sent them to help with their farm work. They accept Anne, who quickly endears herself to them and to the local villagers.

On the train trip home from school, all the kids except Dave talk about taking a vacation trip to Lake Arrowhead; Dave wants a summer job. Alabam suggests that his uncle might hire Dave at a department store. The uncle likes Dave's attitude and tells Alabam and Mickey they should work there too. Reluctantly, Alabam takes a sales assignment in ladies' accessories, where he's charming but clueless. Mickey, lazy and on the take, sees the store detective helping himself to a chocolate bar, so he wants that job. Dave learns the hard way that the customer is always right, Mickey puts the cuffs on the wrong customer, and Lake Arrowhead looks very far away.