When the stage reaches Rainbow's End, Walton tells Judge Emerson that, due to the holdup and general lawlessness, he no longer considers the town suitable for the county seat although the townspeople have raised over $40,000 to build a courthouse.

Unknown to Oldring, Beasley, the local undertaker, is the leader of the gang and is attempting to have Yuba Junction, where he owns a lot of land, named the county seat.

Walton states that Rainbow's End could still be in the running if it can eliminate the lawlessness, and Judge Emerson suggests hiring The Melody Kid to clean up the town.

Later, when Jimmy is about to take the town's funds to Capital City to turn them over to the commissioner, Beasley has him arrested on murder and robbery charges by a phony sheriff.

However, with Cannonball's help, Jimmy escapes and later, because he feels he can trust no one, takes the money at gunpoint from Beasley and Emerson just before Drago and his brother ride up to stage a holdup.