In Harlem, then a somewhat remote and quite dead suburb of New York, on Fourth Avenue between 130th and 131st streets, within a block or two of the termination of the avenue on the Harlem River, he found a little abandoned foundry, about 40 feet square, with a lean-to in the rear, used for cleaning castings. It had been dismantled and idle for several years, never, of course, had a floor, and the windows were broken. This he hailed as the very place he wanted, and at once leased it for five years at a small rent, with the ground belonging to it, extending from 130th to 131st Street, 200 feet front by 100 feet deep, and vacant, except this building and a little office, 10×15 feet, on the upper corner. He then turned his attention to providing the “ample capital.” My governor shop on West Thirteenth Street had during my long absence been run quite successfully by my faithful foreman, Nelson Aldrich. Mr. Smith planned to remove this shop to Harlem, and to furnish Mr. Allen money enough to enable him to enter into an equal partnership with me, adding the engine business to my governor manufacture. Everything in my shop was appraised at the round sum of $10,000, and this magnificent amount, as he regarded it, he advanced to Mr. Allen _as a loan_. Mr. Allen had put his savings of several years into a little home in Tremont, a village on the line of the railroad, some three or four miles above the Harlem River. This place had cost him $2500. Mr. Smith told Mr. Allen that he must secure him the repayment of this loan, so far as he could do so, by the mortgage of his house and lot. This demand caused Mr. Allen great distress and half killed his wife. Mr. Smith was inexorable--no mortgage, no money. Mr. Allen thought of a scheme for outwitting him, and the mortgage was executed and the money paid over. He applied this first to making the premises habitable, laying a floor and putting a floor above, which would give a story under the roof, and the beams of which would carry the shafting for driving the tools. He repaired the broken windows and put windows in the front gable to light the new upper story, put on a new roof, installed a portable engine and boiler, and equipped a little smith shop in the lean-to. My tools, etc., were then moved into their new quarters. These tools were all small. In order to make engines some larger ones would be needed. Mr. Allen procured from the firm of Hewes & Phillips, Newark, N. J., a very good planer, large enough to pass work 4 feet wide and high, and a 20-inch lathe. When this installation was completed, Mr. Allen had expended $7500. Then he stopped making purchases and said nothing. The work of my governor manufacture was resumed, and nothing more attempted. This was the state of affairs that stared me in the face on my return. The shop had been running about a fortnight. Mr. Smith told me he had supplied all the money he expected to. Mr. Allen said he had not obliged himself to put all the money