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Dick Manning and Andy McCoy pay twenty-five dollars to stow away on a ship they think is going to California, but they soon learn that they have been tricked aboard a ship to Arabia. Along the way they meet passenger Alice Evans, who is going to work for an American philanthropist named Jones. In port, Dick and Andy sneak off the ship, hoping to meet up with Alice in the city of Liberthd, a modern community developed by Jones in the middle of the desert. Sheik Talifah, the powerful chieftain of the outlying area, threatens violence if Jones does not give Liberthd over to his rule. Hassen Mohammed, Jones's assistant, is actually a spy for Talifah, and he suggests that Jones's death would restore Liberthd to Talifah's rule. Later, fortune-teller Suliman tells Alice of impending romance and Jones of great danger, but neither gives the predictions much credence until Dick and Andy foil an assassination attempt on the philanthropist by Talifah's men. Jones discounts Dick and Andy's conspiracy theory until the would-be assasin is killed in his jail cell and their house boy is poisoned by coffee intended for them. Dick and Alice then visit Suliman, who warns them of imminent danger, but he is murdered himself before he can divulge more. In the meantime, Hassen and Talifah plot to smuggle guns into Liberthd to arm their supporters. Andy discovers the smugglers, and with Dick's help, they uncover the weapons. Jones telegrams for military help, and while the foreign legionnaires do battle with Talifah's men outside the city, the sheik sneaks into Liberthd. Talifah soon discovers, however, that he has ridden into a trap. While Jones is wounded in the ensuing battle, Talifah is killed and his troops captured. Dick, Andy and Alice then return to the United States, where they promise to find Jones a homely secretary who will not leave him to get married.