Gilin, is just released from prison and now that the government has clamped down on the sale of tires, decides to enter the tire-stealing-for-resell racket. Driving home, he has a car wreck with defense workers Bill Barry and Mary Dale. His girlfriend Nikki persuades the gangster to settle Bill's claim by giving him the old car belonging to his Chinese servant Tom, who is about to enter the army. Gilin sets up auto lots all over town where he sells cars and tires stolen by his gang. He also sells faulty synthetic tires and Mary's brother Freddy is killed when one of those blows out. Bill and a group of defense workers try to trace the tire by its treads and finally locate one of Gilin's car lots as the place where it was sold. Gilin orders Nikki to set a trap for Bill so he can be eliminated. But Nikki warns Bill through Mary. Bill, feeling that Nikki knows the source of the "hot rubber" goes to see her at Gilin's apartment, where Gilin knocks him out. Tom, in his newly-issued Army uniform, pleas with his old boss to give up this unpatriotic racket and is shot by Gilin.