Adventures of Superman

Strange episode. First they land on the island and the water disappears. Jonathan Skagg allegedly lives on the island but he appanently has no access to any water. no explanation. Later on, the clues are read and Jimmy Olsen makes up a story about a Captains Palm tree. He admits to making it up soon after he tells it. When the diamonds are found, Jonathan Skagg tells everyone that he painted the tree white himself. How would Jimmy know to tell the story about the white tree?