In this year he met with the most serious misfortune of his business life. He shipped a cargo of stone for Canada, and the vessel encountering a storm which disabled her, a large portion of the cargo was thrown overboard. The cargo was insured in the Quaker City Insurance Company of Philadelphia, but before the claim could be adjusted the Company failed, and Mr. McDermott was rendered a considerable sum worse off than nothing. This misfortune, however, only served to stimulate his energy, and having established a good credit by the promptitude with which he had always met his business engagements, and at the same time created a high impression of his business qualifications, those with whom he had traded, and in whose debt he had been brought, encouraged him to continue business by allowing him all the time he should require to repair his losses and make himself whole. He soon made another trip to Canada with the most gratifying result, taking orders for upwards of three hundred tons of stone, the returns from which paid off all his indebtedness and left him something more than even with the world. From January to August, 1862, was spent by Mr. McDermott in Lower Canada, chiefly among the French population, and was one of the most successful periods of his business experience thus far. Returning to Berea, we next find him on his way to Cincinnati as one of a company of "Squirrel Hunters" in response to a well-remembered call of Gov. Tod for a force to resist the threatened invasion of the State by the Confederate forces under Kirby Smith. Arriving at Cincinnati it was found that the patriotic citizens of Ohio had so freely answered the demand upon them that more than enough to protect the State against several times the menacing army were already on the ground, and the Berea company was permitted to return home. The remaining months of the year were passed by Mr. McDermott in making preparations and perfecting plans for the ensuing year's business. [Illustration: Yours Respectfully, James McDermott]