The searchlight., 1912-04-12
CHAPTER XVIII.

When the ferry system began to
and San Francisco was demonstrated
to be cut in half. the tide OF Daylights
terrific expenditure started to turn.
Not that II 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 IT, Already he had begun bor-
rowing from the banks. The mag.
niicent profits he made on the land
he sold were turned into more land.
into more development: and instead
of paying of old loans. he contracted
new ones. AS he had pyramided in
Dawson City. he now pyramided In
Oakland; but he did II with the
knowledge that 1t was a stable enter
prise rather than a risky placer-min-
ting 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
ta hills. there were many towns. and
even a robust city. that could be sup,
piled with power. also with light: and
Il became a street-and house lighting
project as we'll 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 II went There were
Q thousand maws into which he pour
ed unceasing streams Of money.
In the spring Of the year the Grea,
Panic came on. The first warning
was when the banks began calling In
their unprotected loans. Dayligh,
promptly paid the first OF several oi
his personal notes that were present
ed; then he OWNED that these de
nands but indicated the way the wind
was going to blow. and that one ol
those terrific financial storms be had
heard about was soon to sweep ovel
the United States. How terrific this
particular storm was to be he did no,
anticipate. Nevertheless. he tool
every precaution In his power
and had no anxiety about his weather
ing II out
And In the end. when early summer
was on. everything began to mend
Came a day when Daylight did the un
precedented. He left the office al
hour earlier than usual. and for tn,
reason that for the first time since tn,
panic there was not an item of worl
waiting to be done. He dropped Int,
Hegan's private Office. before leaving
for q chat. and as he stood up to GO
he said
.'Hegan. we're all hunkadory. we'r,
pulling out Of the financial pawnshol
eA ina shape. and well get out 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 q bit OF ,
pinch or . furry or so now and then
and We can let so and spit on ou
hands.-
Tor once he varied his programme
instead Of goins directly to his hotel
Ae started on a round of the bars an,
sarss. drinking . cocktail here and [