On a boat to San Francisco, Nellie Proctor is nearly caught stealing a man's wallet, but because she slips it into James Blair's pocket, he is arrested for the crime and sentenced to two years on the chain gang. Nellie, ashamed at having sent an innocent man to prison, convinces her friend Milligan to help James escape, after which all three go to an Alaskan mining town to begin new lives. While James prospects for gold, Nellie and Milligan find work in a local saloon, and Nellie takes charge of four orphaned children. Warren McKenzie, the saloon owner, is also the sheriff, and when he discovers James' identity, he threatens to turn the young man over to the law unless Nellie visits him in his cabin. To save James, with whom she has fallen in love, from a second prison term, Nellie consents, but James and the children come to her rescue.