Los Angeles daily herald., 1889-07-18
The outlook for the Future-Brtsh sh
Times Ahead.


1t has been so coolly assumed that Los
Angeles is dead that it gives us great
pleasure to show that we not only are
still alive and kicking, but with healthy
vitality withal. The press of the north
ern and central counties has kept up the
clamor about our "busted" boom so in
ceseantly that very few people know that
Los Angeles is not only fairly prosperous
but is by far the most active city of the
same population on the American conti-
nent, far eclipsing even San Francisco in
ratio. While it is true that an occasional
growl is heard here about hard times,
the same dolorous note is heard twenty
times az often in the city OF the Golden
Gate; while in the East, during the past
year, there has been absolutely no limit
to the business depression.
The signs are abundant that this style
of thing will change shortly. During his
late visit to this coast Mr.. G. P. Hunt
ington told we'll known capitalist that
there would be great revival in rail
road building in Southern California and
Utah this winter. He did not enter into
details, but the HERALD in previous is
sues has given an outline of the proposed
extension of the Utah Southern Railway
from Milford to Barstow, the Union Pa
cific having secured trackage from the
latter point to Los Angeles. We are en-
abled to confirm this intelligence from
another source, and to give additional
details.
The building OF the three hundred and
eighty.fve miles which separate Milford
from Barstow will be begun as soon as
the hot season is over, and it will be
prosecuted with great energy till Los An
geles has another transcontinental rail-
way. Its effect upon this city and
county and upon the whole of Southern
California cannot fail to be highly bene-
fetal in more ways than one. In the
first place, it will add to our railway Ia
cilities and thus increase our ability to
reach remunerative markets. 1t will not
only do that, but it will create new mar
kets for our products.
That it will do the latter no one who
understands the peculiarly valuable min
eralogical characteristics of that portion
OF Utah traversed by this road can doubt.
The country around Milford is specially
rich in coal and iron, and the new road
will traverse absolutely the most extern
sive coal measures on the American con.
tinent, the iron deposits being equally
vast and valuable. The coal can be sold
in Los Angeles at IS ton, thus assuring
us, in combination with our crude petro-
leum, cheap fuel. The new railway is
also aligned by immense deposits Of lead
ores, carrying a high percentage of
silver. Great mining camps will spring
up on its course, and these will all be
feeders to the trade of Los Angeles.
They will buy our fruits, vegetables,
wines, brandies and other staples. Those
who make money in these camps will
naturally come to Los Angeles for their
amusements. They will build homes for
their families here, and be as much fac
tors in our growth as though they re-
sided in the Nietes or San Gabriel val
leys.
A lot of Pennsylvania capitalists, whose
headquarters are in Catisauqua, in that
State, are about to establish an immense
steel making plant in Milford. Their
specially will be the turning out of steel
rails, the Utah iron ore being of such a
rare quality as admits of its instant con-
version into steel, with coal of an excel
lent coking quality lying right beside it.
The rails will be turned out at an unpre-
cedented low figure, and this fact will be
a great stimulus to railway building in
this section.
The moment building starts in in
earnest on the extension of this Salt
Lake road we may co nfdently look for
q great revival in business and real es-
tate speculation in the city and county OF
Los Angeles. The value of realty here
abouts Just now is relatively as low as it
was high fifteen months ago. The PEN
dulum has swung to the opposite ex-
treme. There are great many people
in this city just now, not ably from Den
yer and other Western cities, who are
making observations with view to in
vestment. They are prepared to cast iD
their lot with this section, and in doing
so they will give marked impetus to a
legitimate revival of real estate values.
Another element in the situation
ought not to be overlooked. The banks
all over the country are glutted with
money. There has been long period of
abstention from speculation; and, as a
consequence, the readers of newspapers
notice many transactions in bonds where
the interest is as low as three and even
two and half per cent. This plethora
of money exists in England as we'll as in
the United States and, ,as consequence,
English syndicates are invading many of
the lines of legitimate business in this
country, and establishing trusts on a
gigantic scale. AS capital has never been
30 abundant in the United States as
now, our enormous accumulations will |
be placed where they will earn money.
This is another way of saying that |
an era of business and speculative
activity is at hand. Much Eastern capi-
tai will find its way to California, and to
Southern California, as by far the most
inviting field for investment. When our