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The outlaw gangs are robbing the railroads and the Rangers cannot follow them when they move to New Mexico. So Kip decides to take a vacation to New Mexico and, as the Durango Kid, bring Cass and his gang back to justice. But Cass and his gang are killed at the bank in a double cross and Kip must still find the loot. For this, he enlists the help of Tex and Grubstake, although Grubstake does not know it.