When Billy the Kid and his friends, Jeff Blanchard and Fuzzy, are ambushed by bounty hunters in pursuit of the $5,000 reward on Billy’s head, Jeff suggests that they hide out at his uncle Jim’s ranch in Little Bend Valley. En route, they meet homesteader Ann Roberts when they rescue her from cattlemen Buck Mason and Ed Baker, who are trying to overturn her wagon in order to convince her to leave the territory. After Mason and Baker ride off, Fuzzy, Billy and Jeff accompany Ann home, and when they arrive at the Roberts’ ranch, Jeff realizes that it is the same property owned by his uncle Jim. Ann’s father, Mr. Roberts, explains that they bought the land from Cobb Allen. When Jeff questions him about Jim Blanchard, Roberts tells him that his uncle has disappeared. Upon learning that Allen has diverted the stream that ran through the Roberts’ ranch and is now selling water to the homesteaders, Billy becomes suspicious of Allen and decides to investigate. Following Roberts’ suggestion, they visit Mr. Martin, an attorney in town, who tells them that he believes Allen killed Blanchard. Billy confronts Allen and orders him to return the money to the ranchers, but Allen recognizes Billy. A fight ensues, but Billy escapes with Allen’s men in pursuit. After this failure, Fuzzy tricks Allen by showing him a map indicating that there is $50,000 buried on an unidentified ranch. Recognizing that the map is a diagram of the Roberts’ ranch, Allen decides to buy the land. Baker and Mason overhear the discussion and attempt to steal the gold, but are driven away by the homesteaders. Deciding to buy the ranch for themselves, Baker and Mason ride to the cabin, where their bankroll is stashed. Jeff follows them and overhears Baker tell Mason that Allen killed Blanchard and buried his body under the floorboards of the cabin. Baker and Mason then ride to the Roberts’ ranch, where they engage in a bidding war with Allen and Billy to buy the place. Allen, Baker and Mason join forces to outbid Billy and purchase the land for $25,000. After the Roberts leave their property, Billy takes the money and redistributes it to the homesteaders. Meanwhile, Jeff takes his information to the sheriff and they ride in pursuit of Allen. Learning that he has been duped, Allen gallops after Billy, but his chase is cut short when the sheriff, realizing that Billy is on the side of law and order, overtakes Allen and arrests him for Blanchard’s murder. More on Wikipedia or Mubi
Watch Billy the Kid’s Gun Justice (1940)