Captain Smith’s main mission was to establish a coast watching station near Davao. This was one of the main Japanese naval bases during World War II with its large, natural harbor. On 18 March, Smith left on a 32 foot boat and sailed around the south coast of Mindanao to Davao with Lt. William Johnson and Lt. Robert Ball. Johnson was a veteran of Motor Torpedo Boat Squadron 3 and had made the run with the four PT boats that brought MacArthur, his family and staff to Mindanao in March 1942. Ball served as a radio operator with the 5th Air Base Squadron at Del Monte. Both had escaped from Dansalan Prison Camp in July 1942. Working with Fertig’s radio unit in Misamis, Johnson was chosen by Smith to man the coast watching station in Davao. Ball, as the top radio expert in 10th Military District, went along to help set up the station.
The station set up by Smith, Johnson, and Ball was a key element in the fostering of the guerrilla movement in the Philippines. Up until that time the U.S. Navy could not see the benefits of using submarines for supply missions when they could be hunting Japanese ships. After the first sinking of Japanese ships coming out of Davao, thanks to Johnson’s reports, the navy saw the benefits of coast watching stations all over the Philippines and became eager to help the effort.