Vermilion and the S.S. Anne

Cut, the trash can puzzle and a third free starter

Cut, the trash can puzzle and a third free starter

Collect the Bike Voucher from the Pokemon Fan Club chairman and redeem it in Cerulean for a free Bicycle.
Board the S.S. Anne with Bill's ticket. Cure the captain's seasickness for HM01 Cut. TM08 Body Slam and TM44 Rest are aboard. The ship sails once you leave with Cut, so sweep it first.
Beat Lt. Surge. The gym door is behind a two-switch trash can puzzle. In Yellow he has exactly ONE Pokemon: Raichu at L28 - fast and strong. Catch a Diglett or Dugtrio in Diglett's Cave next door: immune to Electric, and Dig is super effective. Reward: Thunder Badge and TM24 Thunderbolt.
With the Thunder Badge in hand, Officer Jenny gives you a free level 10 Squirtle. That is all three Kanto starters in one save.
Pick up the Old Rod from the fishing house.