Finding himself financially embarrassed, James Waldo decides to form a fake oil company and sell stock. He forms a partnership with Henry Morgan, who is unprincipled as himself. They go to Santa Maria, California to carry on operations. James Waldo takes his daughter Kate, an adventuress, that she may hold Morgan to his agreement; Morgan takes his wife Rose. a woman gifted with a beautiful character who has become estranged from her husband because of his attention to other women. Widow Green of Santa Maria invests her late husband's insurance in this fake oil. Soon after, her son Eben is forced to leave their farm and seek employment. He is put to work on James Waldo's oil drills. Eben falls in love with Marjorie, the daughter of Stubbs, the head driller, who becomes unprincipled under Waldo's money influence and agrees to let Waldo know when they strike oil. They do strike oil and Waldo, with Stubbs' assistance, hides the fact from the rest of the shareholders. The shareholders, ignorant that oil has been struck, decide to let their stock go for the amount of the assessment, which Waldo insists must be made. He plans to buy this stock cheap. Eben discovers his plans, and by a clever ruse, buys the assessment and gets control of the company. The oil stock increases in value. Eben marries Marjorie, Waldo finds out that "Honesty is the best policy," and Henry Morgan finds out that his wife's love is of more value than the smile of any other woman.