The Gaynor Hotel was built by Frank Gaynor of Bangor. The venture failed following attempts to salvage the operation by bringing in beverages and other entertainment from his Bangor enterprises.
Frank Gaynor phoned the telephone operator at Northeast Harbor on May 8, 1910 to see if anything interesting was happening in the village, and when told that his hotel was burning, the operator suspected he had prior knowledge. He smuggled alcohol during Prohibition, and became known as the Potentate, and was the subject of a locally-written poem by that name.
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