Changes

The resentful Hunsacker sued Mulligan and asked for a court order compelling Mulligan to grant the loan. The initial trial judge, [[Judge Narragansett]], told the [[jury]] in his charge to them that he could find no precedent for granting the relief for which Hunsacker had prayed, and believed the law under which Hunsacker had sued to be unconstitutional. The jury, perhaps in a case of [[jury nullification]], found for Mulligan. Hunsacker appealed. In a result that perhaps even John Galt found incredible, the appellate court reversed Judge Narragansett's dismissal and remanded the case for further consideration. A second jury found for Hunsacker, who now had a judgment against Mulligan.

The resentful Hunsacker sued Mulligan and asked for a court order compelling Mulligan to grant the loan. The initial trial judge, [[Judge Narragansett]], told the [[jury]] in his charge to them that he could find no precedent for granting the relief for which Hunsacker had prayed, and believed the law under which Hunsacker had sued to be unconstitutional. The jury, perhaps in a case of [[jury nullification]], found for Mulligan. Hunsacker appealed. In a result that perhaps even John Galt found incredible, the appellate court reversed Judge Narragansett's dismissal and remanded the case for further consideration. A second jury found for Hunsacker, who now had a judgment against Mulligan.

John Galt went straight to Mulligan and told him that this sort of travesty of justice would continue so long as men like Mulligan continued to put up with it. Mulligan would later say that he took all of fifteen minutes to agree to join John Galt's strike. Like Francisco d'Anconia, Mulligan determined to liquidate his enterprise as he left. Unlike Francisco, the liquidation took all of twenty-four hours. He simply called in all his loans and then paid off his deposits and canceled their accounts. With that done, he vanished. A team of bank examiners later found that the books of the Mulligan Bank balanced exactly. The Mulligan Bank was wiped out, but wiped out in a manner by which not a single depositor had lost any money.

John Galt went straight to Mulligan and told him that this sort of travesty of justice would continue so long as men like Mulligan continued to put up with it. Mulligan would later say that he took all of fifteen minutes to agree to join John Galt's strike. Like Francisco d'Anconia, Mulligan determined to liquidate his enterprise as he left. Unlike Francisco, the liquidation took all of three months. He simply called in all his loans and then paid off his deposits and canceled their accounts. With that done, he vanished. A team of bank examiners later found that the books of the Mulligan Bank balanced exactly. The Mulligan Bank was wiped out, but wiped out in a manner by which not a single depositor had lost any money.

While this was happening, John Galt visited Judge Narragansett in his chambers. Judge Narragansett stepped down from the bench and vanished on or about the same day that Midas Mulligan completed his liquidation.

While this was happening, John Galt visited Judge Narragansett in his chambers. Judge Narragansett finally stepped down from the bench and vanished six months following the liquidation of the Mulligan Bank.

== The founding of the Gulch ==

== The founding of the Gulch ==

Midas Mulligan did not leave his bank penniless. He converted all his holdings into [[gold]] (still lawful for an individual to hold in those days) and bought a vast tract of land in a secluded valley in the [[Rocky Mountains]]. Incredibly, the valley was never listed on any map. The original owners were cattle ranchers who each owned a section of it, and none of whom could see the whole. The floor of this valley was at an elevation of 8000 feet above sea level and was probably in a cup-like formation in either [[Colorado]] or [[Wyoming]]; the novel never makes clear where.

Midas Mulligan did not leave his bank penniless. He converted all his holdings into [[gold]] (still lawful for an individual to hold in those days) and bought a vast tract of land in a secluded valley in the [[Rocky Mountains]]. Incredibly, the valley was never listed on any map. The original owners were cattle ranchers who each owned a section of it, and none of whom could see the whole. The floor of this valley was at an elevation of 8000 feet above sea level and was probably in a cup-like formation in either [[Colorado]] or [[Wyoming]]; the novel never makes clear where.

Mulligan cut off all means of access to the valley except for one road, which he camouflaged. Then he built a small house and a large stockpile of seed, livestock, and other provisions. As he later explained, he wanted "never again to look in the face of a looter."

Mulligan cut off all means of access to the valley except for one road, which he camouflaged. Then he built a small house and a large stockpile of seed, livestock, and other provisions. As he later explained, he wanted "never again to look in the face of a looter." He contracted with John Galt to build him a powerhouse based on his electrostatic motor, the first practical use that Galt's signature invention ever found.

When John Galt informed him that Judge Narragansett had joined the strike, Mulligan offered the judge a leasehold so that he could build a house of his own. Shortly thereafter, Mulligan and Narragansett offered the same invitation to Richard Halley.

When John Galt informed him that Judge Narragansett had joined the strike, Mulligan offered the judge a leasehold so that he could build a house of his own. Shortly thereafter, Mulligan and Narragansett offered the same invitation to Richard Halley.

William Hastings lived out his life on the "outside" and later died. For a long time, no one but these three men lived in the valley full-time. Each man raised a different sort of crop for mutual trade: Mulligan grew tobacco (which he later would package in his own brand of cigarettes, with a dollar sign as its logo). Narragansett raised chickens and dairy cows. Richard Halley planted fruit orchards. Yet as the strike movement grew, the other strikers would repair to the valley every year in June. Each man built his own house, if only for the one month out of twelve that he could spend in the valley.

William Hastings lived out his life on the "outside" and later died of [[heart]] disease. For a long time, no one but Mulligan, Narragansett, and Halley lived in the valley full-time. Each man raised a different sort of crop for mutual trade. Mulligan grew tobacco (which he later would package in his own brand of cigarettes, with a dollar sign as its logo). Narragansett raised chickens and dairy cows. Richard Halley planted fruit orchards. Yet as the strike movement grew, the other strikers would repair to the valley every year in June. Each man built his own house, if only for the one month out of twelve that he could spend in the valley.

The event that probably transformed the valley from a simple place of refuge for Mulligan, Narragansett, and Halley—and a holiday resort for Galt and the other strikers—to a thriving community with many more full-time residents, was Mulligan's decision to ask John Galt to build another electrostatic motor in the valley. Galt built a very large motor and used it to drive a bank of [[dynamo]]s to generate electricity. John Galt took great pains to keep his invention secret: even though he never expected that anyone would ever set foot in the valley who was not a part of his strike (an expectation that would prove moot later on), he kept his invention, and the power installation, locked down. He erected a large blockhouse of [[granite]] and installed a special [[sound]] [[lock]] in the front door (and presumably in all the other doors). This door would open only when someone repeated, slowly and with an inflection that would indicate understanding and wholehearted belief, the Oath of the Strike that John Galt had written. He carved this oath on the transom over the front door. It read thus:{{cquote|I swear, by my life and my love of it, that I will never live for the sake of another man, nor ask another man to live for mine.}}

Exactly when Mulligan asked Galt to enlarge his powerhouse—as he surely must have done—is not clear. That event would set the stage for a fundamental transformation. Galt built a very large motor and used it to drive a bank of [[dynamo]]s to generate electricity. John Galt took great pains to keep his invention secret: even though he never expected that anyone would ever set foot in the valley who was not a part of his strike (an expectation that would prove moot later on), he kept his invention, and the power installation, locked down. He erected a blockhouse of [[granite]], about half the size of a railroad freight car, and installed a special [[sound]] [[lock]] in the one and only door. This door would open only when someone repeated, slowly and with an inflection that would indicate understanding and wholehearted belief, the Oath of the Strike that John Galt had written. He carved this oath on the transom over the front door. It read thus:{{cquote|I swear, by my life and my love of it, that I will never live for the sake of another man, nor ask another man to live for mine.}}

Now the valley had a basis for trade: John Galt had become a provider of electric power, and Midas Mulligan was in essence a feudal landlord—and furthermore, Mulligan's land holding was remarkably resource-rich. Francisco d'Anconia determined this by assaying the rocks in the mountains that ringed the valley. Soon, Francisco had begun driving a mine into the mountain. What Francisco could do, perhaps others could do—as soon as John Galt could recruit them.

Now the valley had a basis for trade: John Galt had become a provider of electric power, and Midas Mulligan was in essence a feudal landlord—and furthermore, Mulligan's land holding was remarkably resource-rich. Francisco d'Anconia determined this by assaying the rocks in the mountains that ringed the valley. Soon, Francisco had begun driving a mine into the mountain. What Francisco could do, perhaps others could do—as soon as John Galt could recruit them.

As [[Dagny Taggart]] began her efforts to renovate the Rio Norte Line of the [[Taggart Transcontinental Railroad]] (and eventually take over the line temporarily as the John Galt Line), John Galt recruited several more men into his strike. Some of these were businessmen and inventors of the sort that could exploit the resources of the valley and thus enable the valley to support more of the strikers with full-time gainful employment. One of these was Dwight Sanders, who had built a company that produced the first [[monoplane]]s. Another was Richard McNamara, whom Dagny had recruited to lay the rail of the Rio Norte Line. McNamara laid [[water]] mains and electric and [[telephone]] lines to service the houses.

As [[Dagny Taggart]] began her efforts to renovate the Rio Norte Line of the [[Taggart Transcontinental Railroad]] (and eventually take over the line temporarily as the John Galt Line), John Galt recruited several more men into his strike. Some of these were businessmen and inventors of the sort that could exploit the resources of the valley and thus enable the valley to support more of the strikers with full-time gainful employment. One of these was Dwight Sanders, who had built a company that produced the first [[monoplane]]s. Another was Richard McNamara, whom Dagny had recruited to lay the rail of the Rio Norte Line. McNamara laid [[water]] mains and electric and [[telephone]] lines to service the houses.

Then came the disastrous decision by the [[United States]] government to promulgate a series of new laws and "directives" that effectively destroyed the boom that had begun in [[Colorado]] after the John Galt Line had opened. John Galt was on the scene, of course, and recruited several Colorado businessmen to join his strike, and to come to the valley where they could build new lives for themselves right away. The most spectacular defection was that of [[Ellis Wyatt]], who had devised a method for extracting [[oil]] from [[shale]]. Wyatt set fire to his entire shale field and left a sign on his property explaining his actions:{{cquote|I am leaving it as I found it. Take over. It's yours.}}

The transformational event, the event that finally changed the valley from a simple place of refuge for Mulligan, Narragansett, and Halley—and a holiday resort for Galt and the other strikers—to a thriving community with many more full-time residents, was the disastrous decision by the [[United States]] government to promulgate a series of new laws and "directives" that effectively destroyed the boom that had begun in [[Colorado]] after the John Galt Line had opened. Capping the indignity was a direct [[tax]], which would have been flatly unconstitutional (but who cared anymore?), specifically on Colorado's businesses. John Galt was on the scene, of course, and recruited several Colorado businessmen to join his strike, and to come to the valley where they could build new lives for themselves right away. The most spectacular defection was that of [[Ellis Wyatt]], who had devised a method for extracting [[oil]] from [[shale]]. Wyatt set fire to his entire shale field and left a sign on his property explaining his actions:{{cquote|I am leaving it as I found it. Take over. It's yours.}}

Ellis Wyatt and the others, quite simply, had to hide. So for them, living on unskilled-laborer's wages outside the valley was out of the question. Wyatt took the lead by converting whatever part of his wealth that he could keep safe into gold or machines, and bringing it to the valley. With abundant start-up capital and natural resources ready for the taking, Wyatt and the others started to exploit the valley in earnest. In so doing, they created permanent jobs for most of the strikers. McNamara had to hire three assistants to service a tremendously accelerated demand for utility services.

Ellis Wyatt and the others, quite simply, had to hide. So for them, living on unskilled-laborer's wages outside the valley was out of the question. Wyatt took the lead by converting whatever part of his wealth that he could keep safe into gold or machines, and bringing it to the valley. With abundant start-up capital and natural resources ready for the taking, Wyatt and the others started to exploit the valley in earnest. In so doing, they created permanent jobs for most of the strikers. McNamara had to hire three assistants to service a tremendously accelerated demand for utility services.

The only pilot ever to penetrate the screen uninvited was [[Dagny Taggart]]. She came in hot pursuit of Galt after one of his recruitment flights, and descended to 8700 feet altitude, lower than Galt or any of the other strikers thought that anyone would be brave (or foolhardy) enough to descend. The rays blinded her temporarily and shorted out her aircraft's engine. She came down in a barely controlled crash landing and was injured. Happily, her injuries were easily treatable, and by then Galt's Gulch had a resident physician. (He had joined the strike when the federal government had promulgated the socialization of [[medicine]] several years before Dagny's surprise visit.)

The only pilot ever to penetrate the screen uninvited was [[Dagny Taggart]]. She came in hot pursuit of Galt after one of his recruitment flights, and descended to 8700 feet altitude, lower than Galt or any of the other strikers thought that anyone would be brave (or foolhardy) enough to descend. The rays blinded her temporarily and shorted out her aircraft's engine. She came down in a barely controlled crash landing and was injured. Happily, her injuries were easily treatable, and by then Galt's Gulch had a resident physician. (He had joined the strike when the federal government had promulgated the socialization of [[medicine]] several years before Dagny's surprise visit.)

[[Henry Rearden]] came close to penetrating the screen and suffering his own crash landing two weeks later, when he searched for Dagny from the air. At the last minute he pulled up and left the valley without knowing how close he had come to making an electrifying discovery—or getting himself killed.

[[Henry Rearden]] came close to penetrating the screen and suffering his own crash landing three weeks later, when he searched for Dagny from the air. At the last minute he pulled up and left the valley without knowing how close he had come to making an electrifying discovery—or getting himself killed.

Technically, the Gulch had a one-ship navy, that being [[Ragnar Danneskjold]]'s [[privateer]]ing vessel. But Danneskjold's activities were limited to seizing government "relief" shipping, destroying the ships of the D'Anconia Copper Company at Francisco d'Anconia's request, and a one-time shore raid on a steel mill on the coast of [[Maine]], after Orren Boyle's Associated Steel Company attempted to make Rearden Metal at that site. For much of the history of the Gulch, these were the only offensive military actions that any member of the Galt's Gulch society took.

Technically, the Gulch had a one-ship navy, that being [[Ragnar Danneskjold]]'s [[privateer]]ing vessel. But Danneskjold's activities were limited to seizing government "relief" shipping, destroying the ships of the D'Anconia Copper Company at Francisco d'Anconia's request, and a one-time shore raid on a steel mill on the coast of [[Maine]], after Orren Boyle's Associated Steel Company attempted to make Rearden Metal at that site. For much of the history of the Gulch, these were the only offensive military actions that any member of the Galt's Gulch society took.