Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-04-01
INTERESTING CONSIDERATIONS.
A New Banking House-A Glance at the
Near Future-sacramento About to En-
Ter Upon q New Era Of Prosperity.

Ter Upon new Ira OF Prosperity
A meeting of the stockholders Of the new
b.uking institution about to be opened herr
was hsld yesterday for the purpose of adopt
ing bylaws and transscting other business
The organization of this new bank brings
prominently to view some very interesting
considerations concerning the business out
lock of Sacramento, which are worthy care
full attention, aud are indicated h.isfg in thi;
article. The new bank viii he known SIS III:
California State Bank. l. will open its doori
fer business on Fhe 105h inst The officers are
President, n. d. Rideout; Vice-P President
Albert Gallstin; Cashier, a. Abbott.
The otScev, on inqniry being made, stat:
that the new bank will do strictly CONNER
cial business. and be a bank Of deposit auc
discount. Il will draw exchange on al
parts of Europe and of the UniSeG
States and the Dominion Of Canada. The
stockholders of the rev bank are c. w
CLARK, Albert Gallatin, Gee. g. Perkins, J
R. Watson. Leland Stanford, 80. B. Gum,
w. R. S. Foye, +. w. Hopkins, A. Abbott,
J. p. Brown, n. d. Rideout, Fred. Cox, a.
n. Towne and \. A. Rideout. The business
will be conducted in the old Capital Savings
Bank building at the corner of Fourth and
streets. The rooms have been, for this
purpose, reStted throughout. Mr.. Rideout,
the President of the new bank, is well known
throughout the State. He first engage ed in
the banking business in the year 1855 in
Camptonville, and has been continuously
successful ever since. acquiring the repu-
tation Of careful, experienced and
sagacious financial manager. He is now
the owner of the Bank of Rideout
& Smith, of Marysville. which was founded
in 1861. Mr.. Smith died some years ago.
since which time Mr.. Rideout has conducted
the business alone. He is also proprietor of
the bank of Rideout, Smith & Co, of Oro-
vile, which was established in 1865. He is
the President of and a stakeholder in the
President of and stakeholder in the Bank
of Willows. established at Willows, Colusa
county. September. 1880.
MIR. Abbott, the Cashier of the new bank,
has been in the employ of Mr.. Rideout in the
banking business since he was II years of age,
and for the last four years has been manager
of the bank at Marysville. TIE new bank
about to be opened here has been Incorporated
under the laws of this State, with a capital of
$500 000 The new institution, while hold
ing the usual correspondence with the other
banks with which Mr. Rideont is connected,
will be conducted entirely Independent Of
dent of the new bank would remove from
Marysyille to this city as {. place of residence
at once, but it is stated now that he will not
do so for some time to come. Mr. Abbott,
the cashier, has already removed To this city,
and will make it his home. The Dire csors of
the new bank. well known and premiaent
citizens are Albert GslIstiu. Fred Cox, n.
D. Rideout. G. w. Clark, j. r. Watson,
George G. Perkins and a. Abbott.
The significance of the establishment of
this new banking house is matter OF much
interest to Sacramentans and to the State.
It indicates two things: first, the recognition
city, and the excellence Of its location as
trade center and the natural depot of supply.
and the market ground for all that section Of
the State that is to hold the bulk of the Inferior
Of California, and to be the area
of its largest, as it now is of its most assured
production. And herein are to BIS found the
reasons for the steadily growing
trade of the city, the rapid advance of which
during the last seven years has been regarded
as almost phenomenal by those who have not
studied the subject thoroughly. But second
indication of equal importance ia disclosed in
the statement Of the officers of the bank that
a special feature of thu business will be
the making of loans upon wheat. These
loans will be negotiated on warehouse certiG.
Gates wherever, up and down the river or
along any Of the lines of railroad, that the
wheat may be stored But the now assured
success of the southern transcontinental rail
wav, and the fact that it will be the chief
highway for the shipment of Ca ifornia pro-
ducts to the European market, presents Sac
ramento in new commercial light, ard
makes it certain that this point will become in
the very near future a central depot of grain
ala Il %,
the beginning of an extensive grain warehouse
and storage business, and in ali probability
the erection of grain elevators here. That
the Southern Pacific Railroad will be the
great grain transporting line seems to admit
no longer in doubt. Il will also be trans.
porter of general products and supplies
indeed, the telegraph has already given the
that a contract has been closed
at Eureka, New, for the shipment of 10000
tons of lead ores from Eureka via Sacra
mento and the Southern route to tide. water
on the Gulf of Mexico, and thence to Europe.
It is well understood that grain must be con-
centrated, in order to be handled advantage
ously for the distant markets. Farmers are
themselves disposed to speculate in their own
products, and grain is not disposed of as
soon as thrashed, but always will be held,
to large extent, to await markets, and this
has given rise to and must still further extend
the warehouse storage business. 1t is under
stood by buyers aud producers alike, that
freishts rise as the point of competition re-
cedes. This is commercial axiom that the
most specious reasoning cannot shake. and
the operation of which no artificial efforts
can overturn. Freight carriers, the world
over, will seek to store grain as far from com
peting markets as ID possible, and hence in
terror grain storage must come to be the rule
in California Now fer all the vast wheat
growing region of which Sacramento is the
natural center, she will also become the stor.
age center, and all monetary institutions like
that under notice are aids to that end. Sac.
ramento finds her advantage in her location
upon the chief river of the State. and in thus
being one of the chief competitive points in
the great system OF transportation to and from
this coast. As rates are not, and cannot be
lower from any other competitive point, it
will be seen that every mile that freight,
originating above this point, is carried below
it, is carried at q disadvantage to the owner
of the treight-at loss to him. As freight
seeks the local point where the loves. rate
can be secured for its transportation out OF
the State, it follows that the nearest competi-
tive point will be the most advantageous,
as it is in fact the lowest to the producer.
Freight will not be carried to the seaboard
and then back again to the initial point of
rail departure for the east, and that is, in Cal
ifornia, Lathrop, which is tweniy-four miles
nearer to Sacramento than to the coast me-
tropolis. 1t follows that there can be no in
ducement for the shipper of grain to pass
by Sacramento with his products. Sacra-
mento, it is thus shown, enjoys the
advantage of being on the river
line to the ocean, the advantage
flowing from ocean competition, ard In ad-
dition the advantage Of bsiug on the great
direct line of rail cheap transportation to
the East These considerations are too well
understood by the people to need elaborate
calculation. 1t has been objected that ele
vators and warehouses will not be erected
here, because of the burden of municipal
taxation; but the response to this Is, that
such structures, when erected, will be plsced
beyond the very narrow city limits. lt is
certain, then, that the development of the
new system Of Transporting California pro-
ducts to the Atlantic countries will bring to
Sacramento the products grown this side of
Dixon and north from there to the farthe rest
extent; and. Of course, the products of the
valley of the Sacramento proper on both sides
of the river north, to Oregon while the
extension of railroad lines into the lat: er
State must exercise decidedly beneficial in
fluence upon the business of this city. These
considerations are all naturally suggested by
the fact that such prominent business men as
compose the new banking institution under
notice have located it here, for such are not
apt to invest except they have definite
point in view, and have become convinced as
to the wisdom Of the steps taken to attain it.