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In 1928, a corporate entity of the American industrial giant Edward Doheny, who had built his fortune in oil production in Southern California and Mexico, purchased a number of lots in Capistrano Beach.
Doheny's son, Ned, formed a development company, the Capistrano Beach Company, which included his wife's twin brothers, Clark and Warren Smith and Luther Eldridge, a contractor, to build a community of Spanish style houses.
According to Dana Point historians Baum and Burnes ,* Eldridge favored two dominant characteristics in his homes, a typically Spanish roof line and the use of large ceiling beams in the houses ' main rooms.
The roofline, covered with red ceramic tiles, incorporated a low-pitched gable, spreading out to one short and one long roof.
The ceiling beams were stenciled artwork painted by artist Alex Meston.
Eldridge was able to complete the original Doheny family house on the bluffs, four houses on the beach, and 18 other homes scattered throughout the area before tragedy struck the ambitious project.
Edward Doheny was preparing for his criminal trial for bribery in the Teapot Dome Scandal, and on February 16, 1929, Ned Doheny and, Hugh Plunkett, his friend and secretary, who were to testify in the trial, were killed in a murder that still remains unsolved.
In 1931, as a memorial to Ned, Petroleum Securities Company, Doheny's family-owned business, made a gift of to the State of California, which is now Doheny State Park.
The unimproved Capistrano Beach properties passed back to Edward Doheny, and, upon his death in 1935, to his wife and heirs.
By 1944, all of the properties had been sold to private parties.

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