4%. jack: "barron's" love income. to read more check out this edition ofm. that's it for now. see you next week on "barron's roundtable." >> beauty's in the eye of the beholder. so meet the beholders. >> these paintings just did not appeal to me. and i don't think they appealed to my wife, either. >> i said, well, i guess the salvation army is as good as anyplace. we don't want them. >> but one man's trash... >> it just knocked my socks off. >> we have $50,000. >> within a few weeks, everybody knew about it. >> ...is another's treasure. >> did you ever consider stopping? >> there is a point we all have to stop. but no.

>> i'm jamie colby, and today, i'm in denver, colorado. i'm meeting a retired couple who relocated here to be close to family. it was that move, or rather the downsizing that preceded it, that brought this inheritance surprise to light. >> my name's don camp. i don't know a thing about art, and i doubt you'll disagree when you hear about the two paintings that sat in my basement for years. >> don, phyllis, i'm jamie. >> jamie, glad to meet you. >> you have a beautiful home. don and phyllis's story starts a few years back in 2011, when don retires from his job as an electrical engineer in upstate new york. oh, they have all sorts of plans. they want to downsize. they want to travel the world, see their daughter in taiwan and work with christian charities in africa. and they want to be closer to their grandchildren in denver.

so don and phyllis sell their house. how long had you been in that house? >> about 20 years. we had accumulated a lot of stuff. >> with the move date looming, phyllis assigns don the unpleasant task of going through the basement. >> we had a path with boxes on both sides. it was a challenge. >> it's there that don rediscovers two paintings, draped under a bed sheet. >> both of them were probably the same vintage, probably 1920s, in their original frames. >> i knew about the paintings down there, because i'd covered them up with a sheet. >> did you know how you and your husband had obtained them? >> they came from don's parents, so that's all i knew. >> don inherited the paintings from his mother, lillian camp, who had died 21 years earlier in 1990. >> we weren't fond of them, and so they ended up in the basement.

♪ >> one of them is titled "arizona desert." >> one was a landscape scene from the southwest. >> it was a nice mountain scene. didn't have any particular meaning to us, though. >> eh. the other is titled "ruth." >> it's a woman standing by a doorway and a wall, and you can't make out her features very well. and in the foreground is a pillar with a vine running up the side of it. and that's about it. >> you wanted them out. >> i even mentioned throwing them in the dumpster. >> but phyllis figures a charity will take them. >> i said, "well, i guess the salvation army is as good as anyplace. we don't want them." >> don's about to give 'em away, but hesitates. did you think they were valuable? >> had no idea. so i wanted to contact our local

auctioneer and get an opinion. >> that local auctioneer is david mapes, in vestal, new york, just west of binghamton. don sticks the paintings in the back of his van and calls david on his cell. >> what were you thinking? >> well, i see a lot of paintings come in on the back of cars, so i wasn't real excited. >> don's not getting his hopes up, either. if this doesn't pan out, his next stop -- the salvation army, that is, if he doesn't pass a dumpster along the way. then he opens the hatch to show the auctioneer. >> what happened? >> they were laid out in the back of my mini-van. and his mouth kind of dropped open. i remember his words. he said, "that's just a painting. this other one is art." >> but first, our "strange inheritance" quiz question. grant wood's "american gothic" is one of the most recognized paintings in the world.

whom did wood use as his models? his plumber and the plumber's wife, his sister and his dentist, or his own parents? the answer after the break. fun fact: 1 in 4 of us millennials have debt we might die with. and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right - by consolidating your credit card debt into one monthly payment. you can get your interest rate right - by locking in a fixed low rate today. and you can get your money right. with sofi. check your rate in 2 minutes or less. get a no-fee personal loan up to $100k.

>> so, whom did painter grant wood recruit as the models for his iconic painting, "american gothic"? it's b. wood chose his sister and his dentist to be the farmer and

daughter depicted in the painting. >> retirees don and phyllis camp are busy packing for their move from upstate new york to denver, colorado, when they decide to get rid of two paintings don inherited from his mother decades ago. >> they were not our favorite. >> [ chuckles ] >> if we'd fallen in love with them, then i think it would have been a different story. >> on a lark, don takes them down the road to local estate appraiser david mapes. first, david eyeballs that southwestern landscape. >> it was a pleasant picture. >> pleasant? >> yeah. >> then the appraiser takes a good, long look at the woman in the red shawl. while the appraiser is staring at that painting, don is staring at the appraiser. >> and his mouth kind of dropped open. >> it just knocked my socks off. >> right in the parking lot? >> it just spoke to me. it's just one woman. you can't see her face.

it's covered with a shawl. this simple, plain, exciting scene of this woman. >> they bring the paintings inside so david can look up the signatures on his computer database. first, he types in the signature on that "pleasant" western landscape. >> karl hoerman, a german artist. >> did he tell you what he thought that one was worth? >> maybe $800. >> nothing to sneeze at. then david examines the picture of the woman in the red shawl. in the lower left-hand corner, a signature -- victor higgins. >> victor higgins. how much did you know? >> i never heard of him before. >> turns out, the guy's work sells for big bucks. >> one of his paintings sold at sotheby's for over $400,000. >> he appeals to the modern aesthetics, not only back then, but specifically today.

>> mark sublette, an authority on western painting, knows all about victor higgins. born on a farm in indiana in 1884, the artist leaves home as a teenager and studies painting at the art institute of chicago. in 1913, he's one of many american artists blown away by an international exhibition of modern art called the armory show. >> you had all these cubist and impressionistic paintings coming from europe. and it really shook up the entire art world. >> the staggered american artists, including higgins, resolve to develop their own modern styles. so several artists from around the country converge in taos, new mexico -- at the time, a sleepy southwestern pueblo. >> we have crystal-clear, blue skies with wonderful light penetration. it's a perfect setup for a colony, and that was exactly

what happened. >> they establish the taos society of artists. higgins travels to taos and becomes a member. his southwest paintings are a hit with his wealthy, big-city patrons. >> higgins makes most of his money sending paintings from taos to chicago and new york. >> his work becomes even more popular after his death in 1949. back in upstate new york, appraiser david mapes shares the news with don camp. that painting he was ready to toss in a dumpster is a big deal. >> it's an unknown painting. it just popped up, and here it is. i said to him, "this is a very valuable painting," and he said, "how valuable?" i said, "well, it's going to sell for over $100,000." >> i was amazed. >> that's a good number. >> [ chuckles ] yes. >> what did you think would happen? >> i had no idea. i was just glad that they were out of the house. [ both laugh ]

>> keep in mind, don and phyllis are busy clearing out their house for the move to denver. don doesn't think twice about leaving both paintings with his eager new acquaintance. >> he wasn't counting on it being worth anything, so it's gonna be christmas, whatever it brings. >> but before david can put a painting that he hopes is worth six figures on the market, discriminating buyers will need to know a lot more. >> they may be fakes or frauds. that's the first thing as a dealer -- is it real? 'cause often, they're not. >> here's another quiz question for you. what's the name of the desert in southern new mexico? is it the chihuahuan, coyote, or sonoran desert? the answer when we return. ah! come on!

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>> so, what's the name of the desert in southern new mexico? it's a, the chihuahuan desert, which extends into west texas. >> in upstate new york, don and phyllis camp learn from their local estate appraiser that one of two paintings inherited from don's mother might be worth 100,000 bucks or more. >> it was good news. >> it's this portrait of an elusive pueblo woman, signed by the prominent taos school artist victor higgins. >> it's a very good field to be selling into, because a lot of collectors love that type of painting. >> first, david mapes has to appraise and authenticate the painting for auction. there are three notations on the back, written in pencil -- the name "ruth," victor higgins, and $600. >> and if you think about it, that was quite a bit of money

back then. >> after decades in a dusty basement, mapes has a name and a purchase price. but he still needs to know how "ruth" got into the hands of don's family. >> david asked me, "what's the story behind this painting?" i talked to my brother. we agreed that it must have come from our great uncle, curtis. >> why do you think he would have been interested in southwestern art? >> well, uncle curtis was a corporate attorney, as i understand, and he was on the board of the chicago art institute. >> where victor higgins studied. the appraiser concludes the painting is authentic and was likely painted in the 1920s. he knows he's about to stun the art world. you're like in the outskirts of new york. you're not in manhattan. you're not in the southwest. this is not your expertise. >> for the most part, we do estates. whenever somebody passes away, we go and take everything out that we can sell.

we often find treasures in there, but not like this. it had everything going for it. >> and when he shares his findings with art experts, he learns there's even more reason to love this painting. it turns out that ruth is a rather special lady. that's because after the 1920s, higgins switched his focus from painting human figures to landscapes. >> higgins quit doing paintings with figures. quite frankly, the pieces that are going to demand the most value in today's market are the ones with figures. >> for example, this higgins landscape sold for $130,000 in 2005. but a higgins similar to "ruth," entitled "four shawled women," sold at sotheby's for more than three times that amount, over 400 grand. that would be quite a payday. but remember, don and phyllis stuck the painting in their dusty basement for years.

>> the canvas was a bit saggy, a little bit loose. there was quite a bit of cracking in the paint. >> i'm thinking, "well, okay, maybe it'll draw $100,000." >> little does he know, mapes gets a far bigger offer for "ruth" even before he advertises the auction. david's on the road when a top dealer reaches him on his cellphone. >> he said, "i want to make you an offer before the auction." i pulled over. i said, "what's your offer?" he said, "$300,000." >> impressive. >> [ chuckles ] exactly what i said. >> even a small auction house in the middle of new york countryside, within a few weeks, it was apparent that everybody knew about it. >> mark sublette isn't surprised that big-city dealers would circle around the small-town auction house. >> generally, a painting like that's gonna go to one of the major auction houses. and as dealers, we hope that we might be able to get a bargain, quite frankly. >> did you call don? >> no, but things are going

through my mind. if he wants to pay $300,000, then other people are going to pay more. i thought about it for a short period of time, and i said, "no." >> that's risky, isn't it? >> it could be, but i was so confident in this picture and the market for it. >> next lot is the higgins. >> so, is the small-town auctioneer in over his head? >> okay. >> will savvy dealers paint him into a corner? or will ruth provide a windfall to a couple in their golden years? >> okay, we have $50,000 to start. who'll do $60,000? >> what's your "strange inheritance" story? we'd love to tell it. send me an e-mail or go to our website, strangeinheritance.com. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic.

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>> now back to "strange inheritance." >> a victor higgins painting entitled "ruth" is headed for auction. art dealers are intrigued that a work by the famous taos society

artist has turned up out of the blue, or, in this case, out of the basement. >> as a dealer, we love to get pieces that are one-owner, family. it makes it more special. >> it's don and phyllis camp's strange and rather ironic inheritance. in their own words, they never cared much for ruth. >> what is it you didn't like? >> the lady looked very sad, like she was floundering. it left me with an empty feeling. >> listen, art is in the eye of the beholder. >> that's right. she's very lonely. i'm not a lonely person. >> but the lonely figure of ruth is precisely why an arizona art collector named ray harvey is so excited about the painting. >> the thing about higgins -- the figures are very rare, very hard to come by, and very much in demand. >> you were committed from the minute you saw the image? >> pretty much. >> you could say ray has a special interest in ruth. he purchased that similar

higgins, entitled "four shawled women," from a private seller in 2008 for more than half a million bucks. was there extra intrigue because no one had seen "ruth"? >> definitely. it's just so nice when a painting like that comes up undiscovered. >> ray will be out of the country when ruth goes up on the block. he makes plans to watch the auction online from a hotel in positano, italy, and bid by phone. >> as it happens, don camp and his wife, phyllis, won't be there, either. they're visiting their daughter in taiwan. did you tell your daughter, "oh, by the way, while we're here, we're auctioning these two very ugly paintings we can't wait to unload"? >> [ laughs ] yes. >> we had 10 people on the telephones, fielding bids, and then we had a number of people in the audience. >> others are booting up their computers, like ray harvey in positano, where it's 1:00 a.m.

>> you're always nervous about auctions, especially when you're buying something sight unseen. >> are you already logged onto the internet? >> well, tried to. couldn't get on. the connection was bad, and i'm thinking, "i sure hope they can get through to me." >> then, just before the bidding gets under way, ray connects by phone with the auction house in upstate new york. >> what if the phone hadn't gone through? >> it's unfortunate. you would just miss out. guys like myself, i guess the chase is a big part of it. >> the first one is the lot 97, the karl hoerman. >> first, a warm-up -- the other painting that don inherited, entitled "desert landscape." >> margaret buys it at $1,100, 161. >> it sells for a more-than-expected $1,100. is that an omen for "ruth," who don and phyllis considered donating to the salvation army, if they didn't just throw her out? >> everybody on the phones? >> i asked for an opening bid, and it opened at $50,000. >> okay. we have $50,000 to start.

who'll do $60,000? >> the dealer who offered david mapes 300k a month before the auction is there and still eager to bid. so is ray harvey. >> $70,000. we have $80,000 in the back. now $90,000. $90,000. >> they had quite a bit of action on it. >> do you remember your first bid? >> it was $300,000. >> i have $300,000. >> okay, we have $300,000. >> that would have been a good price? >> that would have been a steal. >> can i get $310,000? >> no one's getting a steal today. >> $320,000. $330,000. >> it keeps on climbing, past 400k, $450,000. >> we get up to $500,000. >> anyone drop out at that point? >> oh, yeah, a lot of people did. it was down to ray harvey, plus the floor bidder. >> did you ever consider stopping? >> you know, there is a point we all have to stop. but no. >> $640,000's bid. $650,000. we have $650,000 on the phone from italy. >> going once, going twice... >> is the camera ready for this?

[ laughter ] [ crowd cheering ] >> sold to the arizona art lover ray harvey. >> you want the total number? >> sure, why not? >> $650,000. >> i'm gonna fall off my chair. >> okay. [ both laugh ] that's about what i did. i had no concept, no concept, that it was worth that much. >> holy smokes. >> as of now, that's the third highest price that his paintings have ever sold for. >> victor higgins' enigmatic painting of ruth darn near ended up in a dumpster. >> well, i think the main thing i like about it is the color and the simplicity of the woman. >> ray will soon loan "ruth" to various museums, but today, she lives in his entryway, looking every bit the masterpiece. >> and the condition to this day after so many years in a basement, under a bed sheet. >> it's an amazing story. and i refer a lot to paintings that are collection-makers, you know? this would be considered a collection-maker.

>> here's my wedding. >> as for don and phyllis, that unexpected windfall courtesy of "ruth," gives them a once-in-a-lifetime opportunity to make a charitable donation bigger than they ever imagined. they fund the completion of a well for a needy community in africa. >> we gave 1/4 of it to a christian mission in kenya so that that well could be completed. >> that's spectacular. what did you buy for yourself? >> we bought a new car. that was all. >> a ferrari? >> no. a honda odyssey. >> you're so sweet, phyllis. >> we were just grateful. >> turns out, don isn't the only one in the camp family who inherited a painting that once belonged to old uncle curtis. his big brother also got one by another prominent taos artist named walter ufer. the difference is don's brother actually liked his, so much so

it's been hanging in his home for half a century. i'm jamie colby. thanks for watching "strange inheritance." and remember -- you can't take it with you. fox business. [♪] lou: good evening. president trump is deploying 2,000 troops to saudi arabia to meet increasing threats in the middle east. the president authorizing sanctions against turkey but not yet activating those sanctions, depending on what the turks do in syria and whether or not the kurds are protected. president trump announcing a new phased approach to the u.s.-china trade negotiations in the obvious hope of deescalating rising tensions and rising

rhetoric of both nations and ultimately balance