Duke Deadheader, the most rotten rascal on the railroad, plots to relieve the simple but honest stationmaster, Ralph Roundhouse, of the company's construction funds. Aided by his beautiful, but nasty, accomplice, Flora Flagstop, he burns down the lumber mill of our hero, Stanley Studmill, cons Ralph into signing a worthless contract for ties (Ralph thought they were railroad ties), and kidnaps our heroine Rebecca Roundhouse. All appears lost, but Duke has not reckoned with the mysterious Chinese foreman, Gan Dee, nor the ever-reliable Boxcar Betsy and her cousin, Bullhorn Beulah. Just when they think they have everyone tied up, Duke and Flora find themselves caught in one of the most hilarious chase scenes ever staged.