The film begins at a Board of Inquiry over the Battle of the Little Big Horn; specifically examining the conduct of Major Marcus Reno. Captain Bill Benton (perhaps inspired by Frederick Benteen) is called to the stand, and rather than merely answer questions from the board states that he will tell his version of the “true story” that the audience sees through flashback.
Benton relates his first arrival in the Wild West in 1875, where his detachment is escorting the wife of the local Indian Agent Mr. Turner. The Indians attack the party and abduct Mrs Turner away from Benton’s command. Benton’s army scout “Dakota” advises against tracking the Indians until the next day due to their laying of false trails that lead into ambushes.
The next day Benton and Custer go to meet Crazy Horse and Sitting Bull to negotiate Mrs. Turner’s release. The Indians propose that Custer release all his Indian prisoners in exchange for Mrs. Turner. Custer decides on a compromise: he will hang the Indian leaders if Mrs. Turner is not released. The Indians reluctantly agree and Mrs. Turner is released.
Custer gains Benton’s respect by Custer’s disgust at the incompetent Indian agents who he feels have been put in place by a corrupt Federal administration that Custer and his wife Libby will confront in Washington. Before their departure the captive Indians unsuccessfully attempt to escape and are slaughtered.
Meanwhile, back in the West the Army’s commander General Alfred Howe Terry visits the fort and summons Major Reno and Captain Benton to inform them that Custer is going to be court martialed. Major Reno is deflated when the General offers Captain Benton command of the 7th Cavalry Regiment and a promotion to brevet colonel. Captain Benton refuses and considers resigning his commission out of loyalty to his commander. When Terry offers the same command to Reno, Caroline browbeats her father, which leads him to also reject the offer; he subsequently gives his blessing to Caroline’s and Benton’s marriage and gives up his drinking.
In Washington, Senator James G. Blaine visits the humbled Custer and tempts him with an offer to be his party’s candidate for President of the United States. The Senator informs Custer this can be accomplished through obtaining a reputation through his military exploits in a war with the Indians. The Senator assigns a newspaper journalist (likely based on Mark Kellogg) to Custer, who is sent back without court martial to his regiment.
Custer fails to take sufficient heed of the warnings, and divides his forces, weakening them. Thereafter, events unfold similarly to the historical Battle of the Little Big Horn.
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