Within ninety days I had corralled 17,000 acres for him, in this way, at an average cost of $8.75 an acre, all of which adjoined his other purchase. He was sojourning in Portland at the time, and after I had secured the options on the 17.000 acres. I went there and explained matters to him. Smith agreed to take the lands, drawing up a contract to the effect that he would advance $8 an acre upon receipt of a deed to each 160-acre claim, together with an abstract showing perfect title in his name.
It was agreed further that his own cruisers should estimate the standing timber thereon, and that all claims found unsatisfactory should revert to me. Those coming up to the standard he was to accept, at $9.50 an acre, the extra $1.50 an acre to be paid upon completion of the contract. The latter was executed in duplicate by Smith and myself, each retaining a copy. He thereupon went with me to Humboldt county, where he deposited $100,000 in the Bank of Eureka, to be expended in fulfilling the provisions of the contract. He also left instructions with the bank to draw upon him for any amount sufficient to meet all deficiencies.
During the summer of 1901, while the transfers were being made to Smith. he visited Eureka again, and while there entered into an oral agreement with me. by which it was stipulated that I should secure all the available lands in the vicinity of those contracted for, upon which I was to receive a commission of fifty cents an acre. In other words, I was to purchase the lands at the lowest possible figure, and he was to allow me this fifty cents an acre as a bonus. Settlement, however, was not to be made with me until after he had acquired a perfect title to the entire 17,000 acres.
I purchased 10.000 acres under this oral arrangement, and 13,500 acres under the first or written contract. My failure to secure the full quota of 17,000 acres for him, in accordance with the provisions of the written contract, was on account of several of those upon whom I relied selling out at a much higher figure to somebody else. As I was personally acquainted with those who had given options, and had the utmost confidence in their integrity, I had not insisted upon reducing the options to writing, and when they sold to others, I was without recourse, and consequently unable to deliver the lands.
It will be observed that under the terms of the written contract. I had stipulated to deliver approximately 17,000 acres to him. It will likewise be noted that I fell 3,500 acres short of this quantity. This shortage was not caused wholly b" the failure of some of the owners to live up to their verbal agreements with me, but in part was on account of some of the tracts having defective title, and I knew it would be useless to undertake to cure them.
Realizing the utter impossibility of securing a sufficient amount of land to make up the 17,000 acres, and knowing that Smith had cruised the entire tract I had given him, I called upon him in Minneapolis for the purpose of effecting a settlement.
This he was apparently willing to do, but insisted that it should be "according to written contract." It dawned upon me then that he was playing a holdup game with me. and that unless I was able to produce the required 3,500 acres, I would probably experience more or less difficulty in getting anything. After remaining in Minneapolis about three days, and perceiving the futility of staying any longer, I returned to Eureka and sought my brother's legal advice in the matter. Upon examining the written contract, I was assured that Smith had all the best of it, and for me to make the best settlement with him I could.
I thereupon proceeded to Portland, Oregon, where I called upon Fred A. Kribs, who informed me that he was in receipt of a wire from Senator Mitchell. in Washington, D. C. to the effect that patents were about to issue on the thirty-three fraudulent claims in township 14 south, ranges 3 and 4 east. This gave me an idea, and I lost no time in letting Kribs know that it was my intention to go to Washington immediately and file a protest against the issuance of patents on the claims, and have them held in abeyance Until such time as Smith was willing to do right by me in connection with the Humboldt county lands. I declared that Page 302
