Six Texas Rangers, led by Captain Dan Reid, are ambushed in a canyon by the outlaw, Butch Cavendish and his gang. One ranger, Reid's brother John, survives the attack. He is found and nursed back to health by an old friend from his childhood, an Indian scout named Tonto. The younger Reid fashions a mask from his slain brother's vest and becomes the Lone Ranger.
The Lone Ranger utilizes a group of old ranch hands to help out an Easterner who's being cheated out of his property by some scoundrels.
The Lone Ranger infiltrates a gang who are holding hostage the son of one of a group of ranchers who captured the gang's leader.
Biff Baker and Cactus Gleason escape from jail using the old stomach ache gag. They go to Joe Peter's cabin and Biff kils both Joe and Cactus. Biff takes over Peters identity. Joe Peters has a sister coming to live with him after not seeing him for 30 years. The Lone Ranger finds Peters still barely alive in a canyon with fresh paint on his hands and realizing that he was the man getting ready for his sister's visit
Cannonball McKay has taken on Clem Jones as an assistant stage driver. Clem is recently out of prison and no one can figure out why Cannonball is helping Clem. Doc Tate gives Clem $10 to deliver a letter to the next town. Meanwhile, Doc Tate and his henchmen rob the Well Fargo office and manage to pin it on Clem. A posse catches up with Clem and takes him back to jail. Doc Tate is going to blow up the jail to rid of Clem but the Sheriff and the Lone Ranger con Doc into staying at the jail until after the jail was going to explode. Doc Tate, fearing for his life, tells all. At the end we find out why Cannonball is helping Clem