The San Francisco Call. Newspaper, December 18, 1898, Page 20

20 THE SAN FRANCISCO CALL, SUNDAY, DECEMBER 18, 189S. N A =N \ N N \ AN\ \ \\ X = “ & ) e MAYOR PHELAN, ® @ 4 3 © PO POP \\\\\\\ j) WM SRR ST F. W. COHRMANN, President Merchants® Association. :@0@06@@0@@@@@®0®®©®®®®©®®@©©@©®vé/@@@ OUR CITY: By Mayor James D. Phelan. XX X4 POOOPVVPVOVPPPIPPIODPOOVPOPOIOILLPOOOPOOOP tion of the Philippines and Hawaii have all given a new direction to the thoughts of our citizens. This eventful year has drawn their at- tention to the great possibilities of San Francisco as a distributing cen- ter. It has turned their faces to the sea. When any of the great countries bordering on the Pacific are stirred to acl{v!ty by the opening of mines or the upbuilding of manufactures. San Francisco, as though she were in electrical communication with the re- motest parts, feels every pulse-beat. This demonstrates the fact that San Francisco, by reason of her position as the chief port of the United States on the Pacific Ocean, is the natural emporium of every land served by Balboa's sea. The Alsska movement last summer found a responsive chord in San Francisco, and gave to our merchants a new and unexpected trade, awak- ening heaithfully our local activities. Mills in China have drawn to this port from the Southern States vast shipments of cotton, which speedily go forward in many ships to the Orient. The desire of the Japanese to imitate western methods has brought them naturally to San Francisco for a large part of their trade, and to- day they are constructing in our shipyards ve 1s of war, and., de by side, messengers of peace are being constructed for distant intercourse with the islands of the Pacific. The Trans-Siberian Railroad. which will find its terminus at Vladiv tok, will result in a new line of steamers to San Francisco. The possible dismemberment of the Chinese Empire by the Russians, the Germans, the French and the English, or the nolicy of “the open door,” will do much to make the Pacific Ocean the theater of commercial enterprise, paralleled only by the past experience of the Atlantic. California, with its 700 miles of sea coast, will he the beneficiary, in a large measure, of this great change now impending, and when we recall the fact that the Pacific Ocean has a surface of 76,000,000 miies of water, over which every country has a freeright of way, without let or hindrance, we cannot but foresee the ultimate realization of our destiny San Francisco is 4600 miles from Yokohama. and 6100 miles from Hong- kong—less by more than one-half the distance between those points and the great maritime ports of Europe. San Francisco is in the most direct course between the ports of Asia and the Nicaragua Canal, and perhaps a vessel will save 2000 miles of sail- ing by touching at San Francisco rather than the Hawaiian Islands. which are popularly, but erroneously, believed to be a more convenient calling station between the remote East and the Far West. The construction of the Nicaragua Canal is bound to give immediate and marvelous impetus to every substantial interest of commercial Francisco and of productive California. It will save 10,000 miles of the route between this port and New York. The political activity of the Hawalian Islands is sure to result in even closer relations between our city and that fertile group, secure of a future place in' the sisterhood of States. If California receives, she must also give; and from her natural re- sources and from her manufactures. which will be stimulated by the de- mands of the commerce of the Pacific, there can be no question as to the ability of the State to respond to every call made upon it. But from the point of view of commerce, the advantages possessed by San Francisco, as a distributing center must be sedulously cultivated, and, if wisely done, the “Pacific opportunity” will alone suffice for the greatness of its future. The year then just ending has turned our eyes to the Secure in mines, grains and fruits, we look for new fields to conquer—we leok to commerce. Venice in the height of her maritime success, “When her merchants were Princes and her traffickers were the noble of the earth,’ annually wedded, with gorgeous ceremony, the beautiful Adriatic. Let California now inaugurate the ceremony for our city. Too long has the flirtation laslted. Let us wed the Pacific in good faith and await the issue of the union. GHE achievements of Dewey, the acquisition by conquest and annexa- sea 0090900990000 0000000PPOVCVIVCVP0OOCC®OOO OUR COMMERCE: . By F. W. Dohrmann, o President Merchants' Association. & L R O R R T R R OR ORI ORISR PRI s~\~><~)z REVIEW of the commerce and industries of San Francisco during the past year and an opinion of their future prospects presents a subject of greater magnitude than can be fully or justly treated within my limited time and ability. During my absence of nearly the entire year I visited many parts of the United States and Eu- rope, and a comparison of commercial and industrial coénditions clearly shows, notwithstanding last winter's drought, that 1898 has been the most satisfactory year since 1892. Considerable fear and anxiety prevail lest we have another dry winter, with possible failure of crops, scarcity of money with farmers, resulting in accumulation of debts instead of discharging mortgages, as well as re- trenchment in comforts and improvements. Shrinkage of business and profits would naturally follow, as our commercial and industrial interests depend mainly upon our coast tradeand home prosperity. This uncer- tainty already affects the volume of trade in many wholesale lines, and if continued will certainly reduce holiday retail business as well. Under such adverse conditions buyers are cautious and a habit of closeness becomes contagious. Let us, therefore, fervently hope that ere this may be published bounteous rains will have restored the confidence of our people, so that our farmers may rejoice at their prospective harvests and our dealers at their customary holiday trade. Regarding our immediate future, I feel assured, even with a dry season and small crops, that we will have a fair year, so far as trade on this coast is concerned. The great diversity of our products renders it nigh impos- sible now that all of them can or will fail. If what is raised only brings fair prices there will still be enough to export or sell at home to keep our pro- ducers even, and enable every sound and well conducted enterprise to be carried on without loss. Bver since it became apparent that the recent war would result in the acquisition of new terrjtories I noticed in Europe, as well as in Rastern citfes, that marked attention was given to our coast and particularly to 8an Francisco and its prospects for growth and prosperity. =Evidently the impression prevailed that opportunities for greater commercial activity and expansion into new fields were now offered in San Francisco and that an immense increase of business is now easily within her reach, This view it appears is also largely shared at home, and while it may be correct to a great extent as to the future, we should not overrate the benefits imme- diately obtainable, nor underrate the efforts necessary to eventually secure them. Examining the situation conservatively the first result of the acqui- sition of new colonies will be an influx of representatives of Eastern manu- facturers and of other interests, who will not only seek colonial trade, but will also compete with our merchants and manufacturers for coast trade. As our interfor population is now even too small in proportion to our cities and the fleld in which we already compete for trade with Eastern houses is too restricted for the established enterprises, it seems that Pacific Coast houses will have still closer competition, diminished profits and increased expenses for conducting and promoting their business. Nor are the markets in the Far East, except in some staples, ready and prepared to purchase ex- tensively what our merchants have to offer or our manufacturers produce. Therefore it behooves us all to watch carefully how things are going. Work hard to hold our own in our own markets, and reach out intd new fields only when adequate preparation, skill, energy, enterprise and sufficient cap- ital will enable us to gain as much there as we will surely lose if we let Eastern competition get ahead of usat home. ‘While direct efforts for Far East trade must be made by individual en- terprise, or by a combination of houses or formation of companies, much may be done to add to the opportunities which should be afforded for such enterprises as will naturally make our city again a foremost distribfuting center. First—While the influx of additional competition, as above outlined, will in the beginning divide trade with existing houses, it will also tend to make San Francisco more distinctively than heretofore a center and headquarters of trade. We should, therefore, not only try to hold our own in local trade against the new-comers, but welcome them, so that ultimately our city may profit by their coming. Second—We must secure all freight facilities afforded elsewhere for get- ting goods here cheaply. Wherever possible we must avail ourselves of through freight rates from manufacturing points to consumers. Thus we can sell goods here in the new markets at a fixed price, as purchasers there are not familiar with and do not care to speculate in the cost of the trans- portation of goods. Third—We must make every effort to induce competing ocean steamship Hlnes to make San Francisco their starting point by making port charges as light as possible and the loading and discharging of ships of all kinds easy, quick and safe. An able article fully covering this subject written by a contributor to the Merchants' Association Review will be published in the January number of that paper. I will not, therefore, elaborate upon this subject here. Fourth—By all means we must encourage factories and all industrial enterprises at home. No commiunity can be permanently prosperous or se- cure the highest degree of prosperity through the mere selling of its own products. Manufacturing is the greatest source of wealth. Fifth—We must make San Francisco headquarters for all Oriental through travel and must offer visitors inducements to stop and stay here as long as possible. Bureaus of information for tourists should be main- tained for this purpose. Our hotels, o excellent otherwise, should see that IRVING M. SCOTT, W. C. RALSTON, President Union Iron Works. Vice-President Miners’ Associat! at least the principal languages are spoken by some of their employes, is the case in all other countries where there is international travel. Sixth—We must make our city beautiful, agreeable and attractive so th people living in less congenial lands will prefer to live in San Francisco, as Europe they now spend their time and money in Par Seventh—Above all we must stand toge a community far the co1 mon good even at a temporary individual sacrifice. We must quit quarr ing and fighting with the various inter. represented here, except to a Jjust differences fairly and squs . The open-door plan by which we ha often thrown our grievances to the world in an exag. best plan to settle them. Let us induce competit whenever possible. Take a firm stand when monopolies encroach beyo their rights and privileges; but see to it that the officials selected by people will be capable and honest, and deal fairly with corporate intere when they are satisfied with a reasonable income upon the investme made. Eighth—To lead the public to tak public questions; to support hono obligations to the municipality, is the duty of the pr zen. The Merchants’ Association is indebted to the pres S its efforts to advance the progress and prosperity of San Francisco. its members are the chief supporters of the pre of this city. Therefo feel justified in appealing to the newspapers whose mighty power mold a great extent the destiny of this metropolis, to unite in the support of e measure tending to ameliorate the condition of our city. Ninth—Finally, we must have first, last and all the time united ac for good, honest, efficient, progressive and liberal government, which r than any other one thing will secure for us protection, justice, he: comfort, prosperity and happiness. ated form is not t in public utilit PPV OOPOVOOHIOOVRDHOOHOOOOEGOOOOOOOS & Ty v ¢ OUR SHIPBUILDING : @ By Irving M. Scott, z President Union Iron Work: 0000000000000 0000000000000000000000¢ Y THE extension of our territory to the Sandwich Islands and Philippin with the enforcement of the navigation laws now in istence, an impetus will be given to American shipping in the = proportion that foreign ‘vessels are prevented from trading bety American ports. The products of the Philippines and the Sand: Islands which reach America will be carried in American ships to a gr er extent than they ever have before, which makes a corresponding mand for an incre n our American ships. The near completion of the great line through Siberia to Vladive or to Port Arthur opens a field for American enterprises, and the new velopments and divisions of commerce taking place in and about €l would require an incre: in the quality, size and speed of the ships her fore plying between these two points. These three trade centers can be obtained by the proper enterprise action on behalf of the Americans, and most certainly if the people of € fornia do not promptly avail themselves of the opening it will be filled others. The O. & O. S. S. Company's ships are chartered ships owned InEngli and if they touch at either Manila or Hawaii, in the event of same coming American property, they will not be allowed to touch at San l‘fl clsco; consequently this would require a transshipment of freight at ell of the above named poir or else a direct communication from some j ental point to San Franci: . The Pacific Mail & amship Company is owned in New York and the bulk of the busine: The best steamer on the line.to China is an E lish-built ship, and that company certainly cannot keep up with the pres > demands without increasing the number, size and speed of its steamers The Pacific Coast Steamship Company 1s owned bv a company wh headquarters and interests are at Seattle, and whose interests in north are greater than they are in San Francisco. This company has able and energetic president, who has built and maintained a railway direct to Seattle, and intends to put a line of steam on from Seattle the Orient, which line will deflect that much trade from San Francisco. railroad line does deflect a certain amount of traffic and travel from f Francisco that goes north to Seattle and hence to the Orient, instead passing through San Francisco. The lines which posse the best facilities will win in this competiti ‘What are the people of California doing to maintain their trade? Cc merce will not be developed in its full strength and activity unless the i plements that carry it on are owned and controlled at the port throu which the trade is to be operated. It is to be hoped that all the people of San Francisco, without regard politics or calling, will so imbue themselves with an advanced public sp that the result will be that the bulk of this trade will be obtained for & Francisco and carried on American bottoms, whose earnings will be added and remain a portion of the wealth of our State. Borrowed capital takes the interest money out of our ¢ountry and trai fers it to people who own the capital. There is plenty of money idle hi in our banks which once started in developing the commerce of the Pac Ocean and making San Francisco a distributing port will find steady e ployvment and a fair return. Otherwise the continucus depletion of the co merce of San Francisco, by being transferred to other points through lit whose interests are not here, will go on. The lines owned by Mr. Isano, running in connection with the prese Pacific Mail, will undoubtedly aid in bringing the cheaper freight to t port. It is claimed the shins can be operated more cheaply with Japan: than with American seamen. While this will bring freight to us, the eai ings of that company, which our merchants help pay, will go ta Jap: First-class passengers want a better class of boat and will only patron ships of the best speed and accommodations. I think it can be safelv said that these conditions are as yet unfulfill and they are open to the enterprise of the first comer. Let us sincerely ho for the benefit of our entire co: , that sufficient enterprise can be found use the capital now dormant, and still further increase our opportunit for employment and profit. LORORCRCRORCRCRCRORCRORRCRCRCECRORCRRCA A A A AR A A A E A A X X X : OUR WHEAT: e By Horace Davis, g@@@@@@@@@@@@@@@@@@9@@@@0@ AR R TS O review the trade in breadstuffs at this time is difficult and unsati factory, because in the first place all the statistics of the trade a made up by crops in crop years, running from July to July—ea such year representing a completed crop—while on the other hand tl calendar year is to us an arbitrary division, breaking into the midd of the natural harvest year. Besides, at this particular time, even the ca endar year is not closed, so that any summary made to-day is fragmentary and incomplete. However, I will try to outling the main features of the year 1898, so far as we can distinguish them naw. The weather has controlled the course of trade this year to an unusual degree. It is always an important factor in the business, but this year it has exercised an unusually potent influence. The year opened with fine promise of bounfiful harvests, but after the first of February dry, cold weather gradually set in and the promise of January slowly faded away. Sharp spring frosts destroyed the early fruit and damaged the grain some- what, though much of it was already ruined, Still we held on to our faith and hoped against hope, but by the first of June the conviction forced itself upon us that we were face to face with the most disastrous year since 1864. In the Southern half of the State the grain was utterly ruined, but ag you went north it improved considerably and the Sacramento Valley gave promise of a fair crop; but after the grain was rive and ready for cutting a fierce narther swept over the upper counties, thrashing out the standing grain and scattering a large part of it on the ground. When all was said and done we gathered in about one-third of our January promise. The harvest of 1898 was not much more than enough for seed and food. Whatever we export, whether in the form of wheat or flour, must come from either our hold-over stock or what we imported from our neighbor States. The year reminds me of 1864. That year we had only ten inches of rain, not enough to nourish the growing grain, and the crop was a failure. That harvest was probably just about enough for food and seed; but word went out that California was starving, and cargo after cargo of wheat and flour came up from Chile. Some barrel flour was even sent round the Horn from New York, while Oregon shipped us all she could spare, which wasn't much. Prices went up very high. I bought wheat that year at 5% cents per pound and flour touched $13 per barrel. Still we exported censiderable to Pacific ports, even to Australia, and finally when the market broke the Chilean flour in this port was re-exported from bond to China. Now let us return to 1898, The vear opened with wheat at about $1 40 per cental, and the price ranged from $1 40 to $1 45 until about the mid- dle of March, when it began to climb to higher points. The lack of rain created a panicky feeling, and at the same time the notorious corner in the Chicago market had its effect on wheat in San Francisco, The price was forced so high in Chicago that wheat was actually shiyped from the State of Washington across the mountains to supply Eastern millers. The corner broke in Chicago at last, and wheat, which had reached $1 85 here. fell rapidly to a Liverpool parity, and by the end of June was selling at about $1 25. And now see the difference in the conditions of 1864 and those of 1898 In 1864 we were able to absorb the small surplus of Oregon, but this vear the two Northern Pacific States had a crop of over a million of tons of wheat. They were able to supply all our wants and had left over an enor- mous surplus for export. To carry this away they drew on us for tonnage, and paid from 30 shillings upward, as high as 37s 6d for European ship-