After breaking out of jail, a group of convicts finds a ghost town they can take possession of. They send word out along the grapevine that criminals and marginal people can make a home there... and as the population grows, their self-policing efforts turn the whole town into a model community.
A member of the Bunco squad introduces the Case of the Gullible Woodpecker. It seems that Woody wins a pot full of dough that con man Buzz Buzzard notices and sets his sights on stealing.
Lady, a golden cocker spaniel, meets up with a mongrel dog who calls himself the Tramp. He is obviously from the wrong side of town, but happenings at Lady's home make her decide to travel with him for a while.
Since the capable landlady Maria bears a striking resemblance to the ruler of a miniature state, she is tasked with playing the role of princess during her absence.