Across the
neck that projects over toward Shelter Island on the north, and beyond
the site chosen by Chief-Justice Daly for his residence, lies Peconic
Bay. Toward the east stretches the bay, past the lower end of Shelter
Island, past Cedar Point, and then away off to where Gardiner's Island
is stretching its long arms to the north and south, as if to guard the
great haven inside from the ocean storms. A century and a half ago
nothing stood upon the spot where the town now stands but a few
fishermen's huts. In a short time the settlers were engaged in
whale-fishing off the coast, and thereby really laid the foundations of
Sag Harbor's future prosperity and wealth. In 1760 three sloops were
fitted out to prosecute the fishing in the northern seas, and after the
war of independence Dr. N. Gardiner and his brother despatched on the
same errand the first ship that ever sailed from Sag Harbor. The venture
failed, but others succeeded, and in 1847 sixty-three ships were engaged
in the business. After that date the decline was fast, and now not a
single ship of the whole fleet is left. Captain Babcock, the
lighthouse-keeper of Montauk, sailed six or seven years ago the brig
Myra, the last whaler that left Sag Harbor. His success was not so great
that the owners, the Messrs. French, cared to repeat the experiment; so
that within twenty years Sag Harbor has fallen from its position as the
third or fourth whaling-port in the country to that in which we find it
to-day. The gold fever of '49, the discovery of petroleum and the
increased expense attending the whale-fishing, all contributed to its
decline. It is also claimed for Sag Harbor that Captain Cooper of the
Manhattan, sailing from that port, was the first to take a ship into
Yeddo.

[Illustration: NEAR EASTHAMPTON.]

In and around the town are many evidences of the generally well-to-do
condition of its inhabitants, amongst whom are several whose rise to
greater wealth was checked by the fall of the whale-fishing. In their
homes and those of retired merchant captains are many mementos of long
voyages to China, Japan, the Indies, and, in short, to every part of the
world. It is singular how interesting, as compared with the choicest
things to be found in the shops, these porcelains, lacquers, enamels,
ivories, fans, silks, weapons and cabinets are. They are the trophies of
the Ancient Mariner, who takes some pride in turning over the contents
of his shelves, and derive a pe