This, for a time, discouraged a continuance of the survey. We returned to Mariposa and frankly reported the results of our work and explained the difficulties of the route to those who were most interested in the project. For certain reasons it was deemed advisable to complete the survey between the branches of the river; when it was thought that some equitable arrangement could be made with the South Fork Company for a union of interests in case of sale. The Yosemite Company proposed to convey water over or near the same route as the other, and also to supply water to the miners on the north side of the Merced. By this stroke of policy, it was supposed that a _legal_ division of water could be obtained, that the New Yorkers (Fremont & Co.) would only be too glad to pay for. I did not feel sanguine in the success of this scheme, and so expressed myself. My experience in the cañon with Peterson taught me that an equivalent in cash, which was offered for my services (and which I accepted), was better than any speculative interest _in Spain_, or even New York. The survey was accordingly recommenced. Four of the company put up the body of a house in the valley. This was the first house ever erected there. It was of white cedar “_puncheons_,” plank split out of logs. The builders of it supposed that a claim in the valley would doubly secure the water privileges. We made this building our headquarters; covering the roof with our tents. We continued work on this survey until late in November; and until the falling snow rendered the hillside work most difficult; we then returned to Mariposa. During this survey, while exploring the dividing ridges of the Merced river and the South Fork, our party ran on to an encampment of the wretched Yosemites; mostly old men and women. They had gone out on the extreme southwestern point of the divide on the slope of the South Fork. As Peterson planted his instrument for an observation, the Indians cried out in alarm, thinking no doubt that he was aiming some infernal machine to destroy them. I approached to see if I could recognize any of them as those who had visited our store, before the murders of our men. I also scrutinized their clothing; but their ragged garments would not admit of even a surmise as to their quality or pattern.