Victor Smith and a Tale of Three Lost Treasures – Legends of America
The annals of American history are replete with stories of ambition, intrigue, and lost fortunes. Among these tales, the saga of Victor Smith, a man of considerable aspirations and controversial actions, stands out. Appointed as the Collector of Customs for the District of Puget Sound in Washington State by President Abraham Lincoln in 1861, Smith’s tenure was marked by political maneuvering, accusations of embezzlement, and a series of unfortunate events that led to the disappearance of not one, but three potential treasures.
An Unfavorable First Impression and Ambitious Plans
Upon his arrival in Port Townsend, Washington, Victor Smith, a former newspaper editor from Cincinnati, Ohio, was far from impressed. He viewed the burgeoning town as little more than a collection of "huts" inhabited by individuals he considered uncouth. This unfavorable impression, coupled with his ambitious nature, fueled his desire to relocate the Customs House to Port Angeles, a move that would ignite a fierce rivalry between the two towns.
Smith’s motivations were not solely based on personal preferences. With the Civil War raging, he strategically argued that Port Angeles offered a more defensible location against potential British intervention. He claimed that the existing Port of Entry in Port Townsend was vulnerable to attack from the British naval base on Vancouver Island in British Columbia, suggesting that the British might align themselves with the Confederacy.
In anticipation of the relocation, Smith and four other men acquired land in Port Angeles, forming a Townsite Company to develop the new community. This move, however, did not go unnoticed by the residents of Port Townsend, who soon became aware of Smith’s plans. Understandably, this created a sense of hostility and resentment within the community, setting the stage for a protracted battle over the Customs House.
Political Maneuvering and Congressional Approval
Undeterred by the growing opposition in Port Townsend, Smith sought to expedite his plans. When his initial letters to the Treasury Department failed to produce the desired results, he traveled to Washington, D.C., to personally advocate for the relocation and fortification of Port Angeles. Emphasizing Port Angeles’s superior location due to its proximity to the ocean, Smith successfully convinced Congress to move the Customs District of Puget Sound from Port Townsend to Port Angeles. The decision was officially ratified in June 1862, marking a significant victory for Smith and his allies.
Accusations of Embezzlement and a Show of Force
However, Smith’s triumph was short-lived. While he was en route back to the West Coast, celebrating his success, Lieutenant Merryman, the Acting Collector of Customs in Port Townsend, conducted an audit of the Customs House’s books. The audit revealed a discrepancy of approximately $15,000, prompting Merryman to immediately report the matter to the Treasury Department.
Upon Smith’s return to Port Townsend on August 1, 1862, Lieutenant Merryman denied him access to the Customs House, accusing him of embezzlement. Merryman insisted that he would await official clearance from the Treasury Department before allowing Smith to resume his duties.
Refusing to be thwarted, Smith resorted to a dramatic display of force. He returned to the ship on which he had arrived and ordered the captain to aim the ship’s three 12-pound cannons at the Customs House and the city’s commercial district. Faced with the threat of imminent bombardment, Merryman reluctantly relinquished the records, and the ship sailed for Port Angeles.
Indictment and Acquittal
The citizens of Port Townsend, incensed by Smith’s actions, traveled to Olympia to protest his behavior to the governor. A federal grand jury subsequently indicted Smith on 13 counts of embezzlement and misuse of public funds. However, the Treasury Department, after conducting its own investigation, quashed the indictment, clearing Smith of the charges.
Disaster Strikes: The First Lost Treasure
Meanwhile, Smith proceeded with the construction of a large building in Port Angeles, intended to serve as both his family home and the Customs House. However, the residents of Port Townsend continued their efforts to denounce Smith and the transfer of the Port of Entry.
In December 1863, disaster struck Port Angeles. A landslide in the Olympic Mountains caused a dam to burst, unleashing a torrent of water that swept through the town. The flood leveled much of the city, including the Customs House, which was swept into the Strait of Juan de Fuca. Tragically, two customs employees lost their lives in the disaster. Smith and his family were spared, as he was out of town at the time.
It was this disaster that gave rise to the first tale of lost treasure. According to legend, the Customs House contained a strongbox holding $1,500 in banknotes and numerous $20 gold coins, valued at $7,500 at the time. Some claimed that this money represented funds that Smith had embezzled, while others argued that it was payment rightfully owed to him by the government for his property in Ohio. Regardless of its origins, the strongbox was lost in the flood, and its whereabouts remain unknown to this day.
A New Role and Another Disappearance: The Second Lost Treasure
In January 1864, President Lincoln removed Smith from his position as Customs Collector. However, his "friends" at the Treasury Department secured him a new role as a special agent.
In this capacity, Smith was often entrusted with transporting large sums of money. In 1865, while returning to San Francisco with his family on the Gold Rule, Smith was tasked with transporting a significant amount of payroll funds. However, the ship ran aground on Roncador Reef near the Isthmus of Panama. Although there were no fatalities, the ship remained stranded for 11 days as the 700 passengers survived on salvaged supplies.
Amidst the chaos that followed the wreck, the strongbox containing the payroll funds mysteriously disappeared. Smith remained on the reef, attempting to salvage the chest. According to the tale, a diver eventually recovered the chest, but the gold was missing. Smith accused the captain of theft, but many suspected that Smith himself had absconded with the money.
Smith’s family had already crossed the Panama Canal by railroad and returned to San Francisco on the sailing ship America. Two weeks later, Smith followed, reaching San Francisco and transferring to the Brother Jonathan on July 28, 1865, for the trip to Port Angeles. The question remains: did the payroll funds from the East Coast end up at the bottom of the ocean near Roncador Reef, or did they accompany Smith to San Francisco?
The Brother Jonathan and the Final Lost Treasure
After boarding the Brother Jonathan, Smith was once again entrusted with a large sum of money – approximately $200,000 – intended to pay the troops at Fort Vancouver, Walla Walla, and other posts in the Northwest. The ship was also believed to be carrying crates of $20 gold pieces for transfer to Haskins and Company and Wells Fargo. Additionally, a government Indian Agent for the Northwestern Region may have brought gold coins on board for annual treaty payments to the tribes.
As the Brother Jonathan passed through the Golden Gate and headed north, it encountered strong headwinds and heavy seas that worsened throughout the journey. The ship briefly docked at Crescent City to offload cargo. As it resumed its course, the storm intensified, and Captain DeWolf decided to steer westward to avoid the treacherous rocks of St. George’s Reef. However, on July 30, 1865, the ship struck a rock and began to break apart.
Many of the passengers who boarded the lifeboats were immediately thrown out as the smaller vessels capsized. In the end, only 19 of the 244 people on board survived, reaching Crescent City harbor in a damaged boat. For weeks, bodies washed ashore, but the gold and money on board were never recovered. Victor Smith was among the casualties.
In 1866, the Customs Port of Entry was returned to Port Townsend, much to the delight of the town’s residents.
Conclusion
The story of Victor Smith is a complex and intriguing one, filled with ambition, controversy, and a series of unfortunate events. Whether he was a victim of circumstance or a perpetrator of wrongdoing remains a matter of debate. However, one thing is certain: his legacy is forever intertwined with the tales of three lost treasures, each adding a layer of mystery to the saga of Victor Smith and the turbulent history of the Pacific Northwest.