The $84,000 Lesson: How Two Men Haggled Over Seattle’s Future

"It took Kirkman a long time to get educated up to Seattle prices," said Captain Gilmour yesterday. "But he finally got there. That little education cost him $84,000."

When he first made up his mind to invest in Seattle, William Kirkman selected the property which we bought today. Mr. Denny [the seller] said he would not sell at all unless we would agree to improve it. On those terms, as he said, we could have the property for $90,000. That was dirt alone, and I knew it, but as I said, he thought Kirkman had not then realized his education. He thought the price too high, and went back among his cattle and sheep.

The next time he came, Mr. Denny had advanced his price to $96,000. Still Kirkman was not fully educated, but he is an apt scholar and learns fast. He went home again, however, but did not stay long. When he came back he was willing to pay the $84,000, but Mr. Denny in the meantime had raised it to $95,000. By this time Kirkman's education was nearing completion.

He offered $40,000 but Mr. Denny would not budge. They both slept over the proposition, and in the morning were as far apart as ever. During the next forenoon conference Mr. Denny told us that he had refused $100,000 for the property from a syndicate of gentlemen who wanted it for speculative purposes, but who would not improve it.

"We knew Mr. Denny and we knew him truth," said Captain Gilmour. "Kirkman thought about it, and I told him I had always been of the one opinion that it was a good buy, and that if I had not expected to get hold of a half interest in it I should not have sold the cracker factory. That settled it, and the bargain was closed with Mr. Denny on the spot."

"How will you improve the property?"

"Two Front Street lots will be covered with a brick block with 150 feet front, and four stories high. We have already commenced turning out the brick at the rate of 20,000 per day at the McCallister yard, near the mouth of the Duwamish. This building will be erected during the summer and fall. On the two back lots between the railroad tracks we will build and have ready for operation as soon as the Seattle, Lake Shore and Eastern Railway reaches the Columbia, a large flouring mill and grain warehouses. We have not decided yet whether we will use wood or brick for our mill, but I think we shall use brick. We will also build a substantial wharf out to deep water, and endeavor to place our property in such a shape as to get good interest on our money."

"How did Mr. Kirkman feel after the trade was closed?"

"He felt first rate, and I am confident he would not sell out for double what the property cost him. As soon as we got the trade closed, he started for Walla Walla, but will be over again in a short time."