In "The Outsiders," Dally doesn't want Johnny to turn himself in because he believes that it will only make things worse. He argues that Johnny will be convicted of murder and executed, while the other boys will receive lighter sentences. Dally knows that the justice system is not always fair, and he fears that Johnny will be punished more severely than he deserves.
Dally's own experiences with the law have taught him to distrust the authorities. As he explains to Johnny and Ponyboy, "It ain't fair that we have all the rough breaks...You know that kid ain't going to get no fair shake in court. You know that. The whole gang knows that. We'll testify that he wasn't with us, then we'll get him out of town" (Chapter 4).
Dally's solution is for Johnny to go into hiding and for the boys to help him escape the authorities. He believes that this is the only way to ensure Johnny's safety and freedom. However, Johnny ultimately decides to turn himself in, partly because he wants to take responsibility for his actions and partly because he doesn't want to spend the rest of his life on the run.
Dally's fear for Johnny's safety and his distrust of the justice system reflect the harsh reality of life for many underprivileged youth in the 1960s. His actions also show the strong bonds of loyalty and brotherhood that exist among the Greasers, who are willing to risk their own safety to protect one of their own.