Gilpin observer., 1912-04-25
CHAPTER XVIII.

When the ferry system began to
run. and the time between Oakland
and San Francisco was demonstrated
to be cut in half, the tide of Daylights
terrific expenditure started to turn.
Not that it really did turn. for he
promptly went into further invest
ments. 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
tended to steady appreciation in the
value of Daylight's huge holdings But,
as of old. he had his hunch and was
riding 1t. 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 in
Oakland; but he did 1t with the
knowledge that 1t was a stable enter
prise rather than a risky placer-min.
ing 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-
ra and Salvador Power Company This
Immediately assumed large proper
tons. Crossing the San Joaquin Val
ley on the way from the mountains,
and 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 a eet.and-houselighting
project as well. As soon as the pur.
chase OF power sites in the Sierras
was rushed through. the survey par
ties were 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. The 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 took
every precaution in his power
and had no anxiety about his weather.
ing 1t out
And in the end, when early summer
was on. everything began to mend
Came n day when Daylight did the un-
precedented He left the office an
hour earlier than usual. and for the
reason that for the first time since the
panic there was not an item of work
waiting TO be done. He dropped into
Hegan's private Office. before leaving.
for a chat. and as he stood up to go.
he said:-
"Hegan. we're all hunkadory. We're
pulling out OF the financial pawnshop
in fine shape. and wen get out with
out leaving one unredeemed pledge
behind. The worst Is over. and the
end is in sight Just tight rein for a
couple more weeks. Just a bit OF a
pinch or a furry or 30 now and then.
and we can let go and spit on our
nands"
For once he varied his programme.
Instead OF goikg directly to his hotel.
he started on a round Of the bars and
cafes, drinking a cocktail here and .