The battle between Daly and the newspaper became even more bitter when, as city council member, he discovered and thwarted a secret contract between the paper's owner and publisher, Henry Pittock, and the city for a water line to be run to his new residence, now known as the Pittock Mansion. The insider deal called for the expensive project to be constructed entirely at city expense, despite the fact that the mansion was located a half mile outside the city limits at the time. The contract was cancelled, Pittock's public image tarnished, and he was reportedly enraged by the incident.