The Red Cloud chief., 1912-03-07
CHAPTER XVII.

When the ferry system began to
run. and the time between Oakland
and San Francisco was demonstrated
terrific expenditure started to turn
Not that II really did turn, for he
promptly went into further invest
mcnts. Thousands OF lots in his resi-
dence tracts were sold. and thousands
of homes was being built Factory sites
also were selling. and business proper.
ties In the heart Of Oakland. All this
tgnded to "a steady appreciation in the
value OF Daylisht's huge holdings. But.
as of old. he had his hunch and was
riding II. Already he had begun bor
rowing from the banks. The mag
nificent profits he made on the land
he sold were turned into more land.
into more development: and instead
of paying off old loans, he contracted
new ones. AS he had pyramided in
Dawson City. he now pyramided I'm
Oakland: but he did it with the
knowledge that 1t was n stable enter.
prise rather than q risky pacer.min.
ung boom.
Work on Daylight's dock system
went on apace; yet II was one OF
those enterprises that consumed
money dreadfully and that could not
be accomplished as quickly as a ferry
system, Not content with manu-
featuring electricity for his street rail-
ways In the old-fashioned way. In pow.
er-hOuses. Daylight organized the Sier.
ira and Salvador Power Company. This
Immediately assumed large proper
ltions. Crossing the San joaquin Val
ley on the way from the mountains,
aud plunging through the Contra Cos.
ia hills. there were many towns. and
even robust city, that could be sup.
piled with power, also with light: and
It became n strcet,and.housc.lig lighting
project as we'll As soon as the pur-
chase OF power sites in the Sierras
was rushed through, the survey par.
ties We're out and building operations
begun. And so 1t went. There were
a thousand maws into which he pour.
ed unceasing streams Of money
In the spring of the year the Great
Panic came on. Tho first warning
was when the banks began calling In
their unprotected loans. Daylight
promptly paid the first of several of
his personal notes that were present.
ed: then he OWNED that these de-
mands but indicated the way the wind
was going to blow, and that one OF
those terrific financial storms he had
heard about was soon to sweep over
the United States. How terrific this
particular storm was to be he did not
anticipate. Nevertheless, he tool
every precautlon in his power
and had no anxiety about his weather
ing 1t out.
And In the end. when early summe,
was on. everything began to mend
Came day when Daylight did the un
precedented. He left the office ar
hour earlier thnn usual. and for the
reason that for the first time since the
panic there was not an item OF worl
waiting to be done. lie dropped into
Hegans private office. before leaving
for a chat. and as he stood up to 20
he said:--
"Hegan. we're all hunkadory. We'r,
pulling out OF the financial pawnshoy
IN fine shape. and well get ont with
out leaving one unredeemed pledg,
behind. The worst Is over. and tn,
end Is in sight Just tight rein for
couple more weeks. Just bit of
pinch or a furry or so now and then
and We can let 60 and spit on on
hands"
For once he varied his programme
Instead of going directly to his hote
he started on a round OF tho bars m
cafes, drinking cocktail here and