etend, except officially, that he ever intends to do anything with
his claims. He certainly has done a great work for the country. I'll
agree to everything you say there. But he came into California worth
nothing, and he is now reputed to be worth ten millions and to control
vast properties. That would seem to be reward enough for almost anybody.
He does not need this Basin property for any of his power projects,
except that its possession would let him off from paying a very
reasonable tax on the waterpower he has been accustomed to getting free.
Cutting that timber will not develop the country any further. I don't
see the value of your argument in the present case."

"Mr. Baker has invested in this project a great many millions of
dollars," said Oldham. "He must be adequately safeguarded. To further
develop and even to maintain the efficiency of what he has, he must
operate to a large extent on borrowed capital. Borrowing depends on
credit; and credit depends on confidence. If conditions are proved to be
unstable, capital will prove more than cautious in risking itself. That
is elementary. Surely you can see that point."

"I can see that, all right," admitted Bob.

"Well," went on Oldham, taking heart, "think of the responsibility you
are assuming in pushing forward a mere technicality, and a debatable
technicality at that. You are not only jeopardizing a great and
established business--I will say little of that--but you are risking the
prosperity of a whole countryside. If Mr. Baker's enterprises should
quit this section, the civilization of the state would receive a serious
setback. Thousands of men would be thrown out of employment, not only on
the company's works, but all along the lines of its holdings; electric
light and power would increase in price--a heavy burden to the consumer;
the country trolley lines must quit business, for only with
water-generated power can they compete with railroads at all; fertile
lands would revert to desert--"

"I am not denying the value of Mr. Baker's enterprises," broke in Bob;
"but what has a billion and a half of timber to do with all this?"

"Mr. Baker has long been searching for an available supply for use in
the enterprises," said Oldham, eagerly availing himself of this opening.
"You probably have a small idea of the immense lumber purchases
necessary for the construction of the power plants, trolley lines, and
roads projected by Mr. Baker. Heretofore the company has