Argentina, 1915. Accompanied by a doctor and his beautiful daughter, Köhner, a ruthless foreman who rules a yerba mate plantation with an iron fist, arrives in the city of Posadas with the purpose of hiring workers.
In an attempt to drive out settlers of the Los Trancos valley, through which the railroad proposes to run a line, railroad representative Clyde Barton conspires with Dirk to cause a range war between the two largest ranchers, Tom Gray and Harvey Allen.
After being criticized by the Citizens' League for his inability to cope with a crime wave, Police Captain Haines orders his men in the Homicide Bureau to clean up all their cases, but without violating the constitutional rights of any suspect.
Tex arrives on the Parker ranch on Christman eve and is given the job of being Santa Claus. Also dressed as Santa Claus, Blackie robs Parker and kills a man.
The feisty boss of a chain of cafes wants to push the youngest of her daughters off on a husband, who would be well-suited to take over the business one day.