thirty-day option, at which time he had expressed confidence in my ability to close the deal for him. and as I had gone to the expense of making a trip to Minneapolis, bringing Smith back with me. and he was then in San Francisco. but expected to reach Eureka in a few days. Mr. Hammond was unable to get a hearing.
When I learned of Hammond's presence, I lost no time in calling Smith up by 'phone, advising him that my option would expire within two days, but that Mr. Vance had expressed a willingness to grant a few days' grace, providing Smith would come to Eureka on the first steamer. I likewise notified him of Hammond's presence, and pointed out the eagerness displayed by the latter in seeking to get hold of the property. In fact, we discussed the matter for something more than an hour on the long-distance telephone, and after explaining all the details, I felt convinced that Smith would at least comply with my expressed wish and come to Eureka on the first boat. He wound up our conversation, however, by telling me that it would be impossible for him to do so just then, but that he would come up within a week or so.
When I hung up the receiver, I was thoroughly disgusted with Smith, I knew, as a matter of fact, that he wanted those lands, and I had full faith that a sale would be consummated if he could be induced to make the trip without delay, as he had been there that summer, and had also inspected these lands the summer before, at which time he made purchases of adjoining tracts, and their value was well-known to him.
But Smith was proceeding on the theory that both Edward Vance and myself would eventually come to his terms, and in order to force this condition, he determined to hold off for the time being, and keep Vance on a string. Besides, my proposition to him involved the investment of $1,000,000—a whole lot of money, and his egotism led him to assume that he was the only man in the country who could swing such an amount.
He had reckoned without his host, however, when he ran up against Hammond, as the latter had almost unlimited financial backing, and was quick on the trigger when he caught sight of a good thing.
Disgusted beyond measure at Smith's arbitrary policy in handling the deal, I went to Vance the next morning and explained the whole situation to him, with the result that all negotiations with Smith were terminated at once, and Hammond became the purchaser at the price indicated, depositing $100,000 to bind the bargain before leaving Eureka.
This transaction took place in 1902, and the same property today is easily worth $10,000,000. It might be well to state, however, in justice to this estimate, that about $400,000 has since been expended in betterments, but as $10,000,000 is a conservative estimate of the present value, the margin of profit is not seriously affected. No sooner had I apprised Smith over the 'phone that Vance had closed with Hammond, than he started at once for Eureka, and as soon as he got there, he pitched into me as a balm for his chagrin in getting left. Nothing could illustrate the nature of the man more aptly than this episode. I was made the bumper for all his woes, and his moral calibre was of too insignificant bore to take any of the blame. I was a big loser by the operation, as well as himself, because I was not only minus my commission, but was also out considerable money expended in going to Minneapolis in the effort to induce Smith to come to the Coast, not a cent of which I ever got back.
About the time that Smith secured the thirty-three claims in township 14 south, ranges 3 and 4 east, described in a former chapter, I prevailed upon him to visit Humboldt county, California, with a view of interesting him in a tract of redwood there. This was his first trip to that region, and when he saw the magnificent timber, he became so highly elated that he insisted upon my getting hold of some of it for him. I already held an option on 7,000 acres, and told Smith that I could probably secure between 25,000 and 30,000 acres more, which would cost him less than $10 an acre. He purchased the 7,000-acre tract forthwith, and instructed me to obtain options on the balance as soon as possible.
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