Mr. Bernstein runs into a room where Mr. Leland is going through all the crazy stuff that Charles Kane has bought in Europe and sent back to America. Now it sounds like Kane wants to buy the world's biggest diamond.
Leland feels like a prude for the way he's always tut tutting Charles' spending habits. And when he asks Bernstein if he's stuck up, Bernstein answers yes.
When Charles Kane returns to America, he gives the secretary a brief note and runs off. The note says that Charles is now engaged to a woman named Emily Norton.
She's actually the niece of the President of the United States. The gang watches as Kane and Norton ride off in a carriage.
We flash back to the present, where Bernstein reminds us that things didn't work out between Kane and Norton.
Bernstein mentions that by the end of his life, Kane had lost nearly everything. Maybe "rosebud" is the name of something he lost in the process.
Bernstein thinks it might be a good idea for Thompson to speak with Kane's former best friend, Mr. Leland. The two of them had a falling out over the Spanish-American War, which Kane supported in his newspaper.