naive Swedes are dispossessed of their lands. The miners hire lawyers to fight on the legal side, and also form a vigilante group to fight the "law". McNamara rules ruthlessly, running the mines himself. Glenister sinks into despair, believing that Helen is in on the conspiracy against the miners, and almost loses his stake in the Midas in a night of reckless gambling. He is only saved from that fate by Cherry Malotte, whose unrequited love for Glenister has brought her to Nome. Helen slowly learns about the scheme being perpetrated by McNamara, her uncle, and others, while her affections are torn between Glenister and McNamara.