Two German cruisers escape to the Pacific and begin to raid the Australian coast. They sink one merchant marine ship, leaving a sole survivor, Jack Rawson.

Although Margaret "Peg" Martyn of the Carolina territory loves Terry, a poor poet, her father, Sir Wyndham Martyn, wishes her to marry the ancient Arthur Elliott. At the engagement party, Peg's wish that "the pirates might get her" comes true when Captain Bones and his men ransack Martyn's estate and carry Peg off to their ship.