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C00002 00002							3689 Soeth Court 
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						3689 South Court 
						Palo Alto, Ca. 9$306
						October 24, 1975

Dear Dick and Ellen:

	I'm glad to hear  that you are all still alive.   Even though
you don't  write, it seems like  you are all doing well.   As for me,
all is well here too.   Vicarm ic temporarily stable- in that no  new
influxes of money are  required at the present time, nor  do I see an
immediate need in the future.  I think the company can proceed on its
own in a viable manner now... although I have yet to get any personal
income oet of the venture.

	I'm  glad yoe  called  to feel  out  my thoughts  on the  new
developments- land wise- in Petrolia.

	Let me  summarize what  I gather  is the  current  situation.
Howard came to  you and said that  he was negotiating with  Clark for
the  purchase of Clark's  land by Bob  McKee.  McKee  is not directly
dealing with  Clark because they  do not  get along  too well,  while
Howard and Clark do.   Howard says Clark wants $500  per acre for 640
acres, and wants $12k earnest money right advance of closing
the deal (expected closing date sometime next  January). Howard wants
the deal  because he has  arranged with McKee  to buy or  get a small
extra strip of land  to improve his water  sources.  KcKee wants  the
land so  he can  subdivide it, and  also build  a house for  himself.
Howard  and McKee  want you because  you have  money to lend  at this
time.  In return, they offer  you a discount price on choice  acreage
adjoining  your present  land, or  better vehicle  access, or  better
water sources, etc.... somethat depending on what YOU want.

	You  think McKee  really needs  the money, because  he hasn't
really made much on  the land deals he  has already been into.   This
may or may not be true.   One thing to consider is that almost nobody
bought the land outright.   Everyone is paying  their $200 or so  per
month mortgage TO McKee.  They will be doing  this for as much as the
next 10  or 20 years.  Somehow, although McKee  may not have too much
cash at the present time, he must have a hell of a lot of assets, for
he is  still title holder  [or creditor in  case of default]  to just
about all the land around Petrolia and Honeydew.

	McKee is a prime example of entrepreneurmanship.  He is doing
the AMERICAN DREAM, and should be given high praise  for his success.
He has parlayed limited funds  into large assets with great LONG TERM
potential.   Even if  he does  nothing  for the  next few  years,  he
remains a  landlord until  all his  buyers pay  off their  mortgages.
Just the interest on say $500,000 is $40,000 a year at 8%!!

	Dick, every month our assets sit in the bank, or in stocks or
bonds they cost us some money, because inflation is greater  than the
interest we  are getting,  and particularly  the appreciation  in the
posessions  we hold  dearest- LAND-  and space,  and enough  room and
freedom to shape our own mini-culture in this  ever strangling world.
Just this last year, that  land around Petrolia has appreciated by at
least 25-100%.

	It seems to me that if you are concerned about the future  of
the valley,  you should do  something about it.   It's easy  to trust
McKee and  Orem, but lets face it, Howard  is no youngster, and McKee
is a professional developer.   On the other  hand, you are a  doctor.
You are also one of the few people  in the valley who can make a good
living  right where you are.  You also  are in the position where you
can really do  some good things  for the community,  as you have  the
admiration  and  respect  of  both  the  new settlers,  and  the  old

	You also have one thing  both McKee and Orem dont  apparantly
have at the moment... financial resources.  You,  thru Mom and I have
the ability  to buy that piece outright, but it  would be folly to do
so.  McKee doesn't intend to either, and neither does Clark  want all
the money  right now.   Look at things this  way- you could  buy that
land now, and just hold on to it- for a year or two.  As agricultural
preserve- or  ranchland.    The taxes  are  low,  and the  land  will
appreciate at  a rate  greater than the  interest you will  be paying
Clark.  You will  have a tax deduction  because of the interest,  and
the small taxes.  This is a very significant  thing to consider.  You
will  also have  a $350k asset,  appreciating everyday,  while having
invested $35-$100k maximum.  After a  while, you may or may not  want
to give up some of the land.   A few parcels sold to the right people
at the  right time, could return the whole investment.  UNLIKE McKee,
you would not have to  scurry about and sell off the land  right away
if you didnt want to.

	There is also  this to consider.  You  would probably want to
sell some of the land before too long, for as you pay off the  loans,
the interest  would decrease, and  the tax  advantages would go  away
too.   Also, conisder what  happens if the Beatty  ranch comes up for
sale- it would be nice to  be fluid enough to protect your  interests
if necessary with  a purchase there too.  Remember,  $300k buys about
$1million worth  of land these days.  And the most favored persons in
this country are the large landowners, because they have  all the tax
advantages, and  all the centuries  old traditions and  laws on their
side... so long as they follow the rules of the range.

	It sounds  like  I'm suggesting  you  buy the  whole  valley.
Well, that may be a little bit difficult to do.   But if you dont, it
just may  get turned into a  Sea Ranch !!   Probably not, because the
stark example  is  so close  [Liz  and I  drove  over there  when  we
returned home after  our last visit], but it wouldn't  surprise me if
your  beautiful valley got axed  up pretty bad.   Just think what the
little subdividing McKee has done  did to the landscape.   Dirt roads
everywhere,  and everytime someone  furthur subdivides,  another road
gets made, and more  trees topple, and more  springs get tapped,  and
fire danger increases, and sleepy Petrolia gets  turned into a suburb
of  Eureka when the state  decides that the population  demands a new
road be built (route 1 extension to Eureka).

	I say  to you-  act  firmly in  this matter.   You  can  make
yourself heard.  McKee will listen,  Orem too and also Clark, because
you  can back up your feelings and  decisions better than anyone else
in the valley- execpt maybe the Mercedes dealer from Chicago.

	You worry about the time and effort involved in dividing your
land up.  If that's, a problem, there is no rush.  This world is full
of eager doers.  You can afford to take your time, and you can afford
to get some help... from me, or from professionals  as you are not in
the super rush or financial bind guys like McKee are in.

	I  have expressed  an interest  in buying  land in  or around
Petrolia.  Because its a beautiful place, and because it has a chance
to remain beautiful.  I have  gathered from talking with you that you
have  mixed feelings about this,  thus I have  not pressed the point.
True, I am an engineer  involved in high technology, but you  know, I
feel  I could run  Vicarm from  Petrolia if I  wanted to,  because my
knowledge is  what is  important, not  my explicit  presense.   True,
things run more efficiently when I am around, but that isn't the most
important thing  in life.  I should add that  there is also no reason
in the world why high technology shouldn't be found in out of the way
places- because  communication is just as  good in and out  of places
like Petrolia as anywhere else.

	You'll probably  get this letter on Saturday.  Call me if you
want to talk some more.  I can come up when you want, even during the
week if necessary.  I hope this note hasn't been too long winded , as
in Dad's tradition, but my writing to  you has helped me sort out  my
thoughts better than just idle pensees.

	Good luck.

P.S. I bought a pump motor for you about  two months ago, but haven't
gotten  around to  sending it  up to you.   I  hope you  haven't done
something else.