Col. Worth buys the island of Ventura for his son Norman. Located off the coast of Santa Barbara, it is meant for Norman to establish a socialist commune there. When his socialist friends fail to work, law and order needs to be restored. However, Comrades Herman and Catherine Wolf take over as heads of the commune, and sentence Norman to work in the stables, under the threat of the lash. Productivity falls as workers know they must work nine hours a day, and thus work slowly. When Norman finds a way to find gold on the beach, the device is stolen by Wolf. Wolf's wife Catherine then leaves for Santa Barbara, deeming family life to be too capitalistic.
Eventually, Norman reaches out to his father and to the Governor of California, who liberate the island. The Red flag is replaced with the American flag.