The morning call., 1890-07-04
OUR LUMBER TRACTS.
English Capitalists Making a Bid
for Them.
0vertures Have Been Made to Certain Firms.
Retieence Maintained as Regards the
Particulars.

1t would seem from recent facts which
have come to the surface that English capt.
tai is being introduced into this country in
larger degree than has been supposed
within the past few years.
Although there has been considerable
gossip about the manner in which this CAPT.
tai has been distributed, there is no doubt
but that it has been in a great measure in
vested in our leading industries and con-
trolls the workings thereof.
The investment of about Sc, o00, 900 in the
brewerieS of our State is DO longer fable,
as it was supposed to be for some time.
owing TO the peculiar actions of the own
ers of the breWeries. 1t Is no admitted
that the amount named has been placed to
advantage in the breweries and that En-
glish gold has the controlling interest in
the leading breweries of the State.
1t has only transpired within the past few
days that the capitalists of the British En-
pire, who, it is well known, have millions
OF pounds at their disposal, have cast theE
greedy eyes upon the forests of redwood
and white pine which mark the State OF
California as a lumber district.
BETTER THAN BREwERIEs
They saw in the spreading forests a har-
vest which, il reaped, would pay them more
interest upon an investment than even the
factories which turned out beer for the
thirsty thousands Of tile State.
Agents were sent cut for the purpose of
inspection. Their reports were of very
satisfactory nature, and fdueiary agents
followed the others. They were given in
structions to act in a careful manner and
in accordance with the reports made by the
r,T-.,1
The reports of the latter were of such a
character that they were given instructions
to open negotiations with the holders of
tracts of timber land in the State.
This state of affairs has not yet come to
any conc usi0n, although propositions have
been made to nearly every holder Of timber
land in the State for purchase of their
property, Good prices have been offered,
but as in the case of the brewery-owners,
the holders OF land have held aioof
The principal reason why the timber-men
are not anxious to sell at this time is, as
oEe prominent dealer put it to q reporter
last night, because every mill in the State
is doing an excellent business Just now,
and in fact they are unable to supply the de-
mands which have been made upon their
resources.
BUSY WITH LUMBERMEN.
The agents of the English syndicate
which has its eyes upon our productive
forests have been busy among the local
lumber merchants during the past few days.
although many Of the lumbermen deny that
they have been visited by any one who is
DESTROYS of purchasing their mills and i'll
terest in a tract of timber land
There Is no doubt, however, that move
ment is on foot 10 purchase, If possible,
controlling interest III the lumber-mills of
the State by a syndicate Of British CAPT
talists.
The movement in this State, kept quiet as
R,rsh on, L. J. I'D n-
a scheme to get possession of the immense
tracts of timber land in Michigan, Wiscon-
sin and other parts of the country.
1t is stated that Michigan, to which State
Eastern and European lumber-dealers have
mainly looked Tor their supply of white
pine. cannot meet the increasing demand
for more than ten years longer.
TRUCKEE LUMBER COMPANY.
"Yes, there are such negotiations going
on" said }. r MerguIre, Tice-President
of the Truckee Lumber Company of this
city, in an interview last night. Il did not
want TO say anything about il though, and
three times within the last two years we
dicates, when there would be some impos-
sible proposition sprung upon us. and we
would have to stop negotiations. This
might be case OF the same kind, and that
reason, added to the likelihood of such a
statement not being for our benefit other
wise, makes me disinclined to talk"
at is an English syndicate that is making
you the proposition, Is 1t noty
1T is. Last January / had the repre-
seEtatives of a very rich English bank call
upon me, and they inquired into the lum-
Der and forests of California. Tney had
already been all over the State, but did
not know 1t, and when l went on to ex-
plain about certain tracts of forests they
would chip in. found that they knew
more thansl did about certain parts of the
country"
A GIGANTIC DEAL.
1T is said that the syndicate is going TO
buy up all of the lumber region possible
aud buy out every company. 1t is also said
that to do this between S25, 900, 600 and $50
100000 are to be invested. Is this true?"
by no means. There is no one syndi-
cate making such deal. 1t is also untrue
that these English syndicates buy out any
thing in toto. They don't do it. They
always buy on the condition that certain
bonds and stocks shall remain in the hands
of the original owners. They have a pur-
pose in this, to be sure, for that is the only
way to inspire confidence in the public
mind that the new urebasers are response
bic. There is no better Recommendation to
a new management than to have the old
management take stock in the property
when 1t is no longer In its hands. They
don't always keep the stock. though. /
know OF one case where the stock advanced
Is pence when put on the market and the
original owners sold out completely. They
had fulfilled their contract, though, and the
peoples confidence remained with the bust
ness Besides not buying SO completely OF
stock they do not buy many plants of the
same kind. England does not care where
her money is SO long as 1t is insured per
cent on the capital invested. At present
understand that there are also negotiations
being furthered to buy out one of my CON-
petltors.
THE STOCK EXAMINED.
The stock and everything belonging to
the company were examined. and 1t was
found that the whole was not large enough
The syndicate wanted TO invest more money
than the whole business could bring, so
negotiations were suspended. Since then
the company has bonded forest tracts and
Increased its value materially, SO that, l
suppose, deal can now be brought about
That syndicate is not the one, sboweyer,
that Is trying to buy one OF our places CUT
Then only a part of your eompany's
possessions are about to be soldP"
That is all. We have large tract and
plant at Truckee, another here, as fine a
sugar-pine tract as is in existence at 0ro-
vile and have interests In Oregon large
enough to make it necessary to run line
of boats TO do the business with San Fran
cisco. Only one or two of these places are
likely to be sold. About two years ago we
had almost closed negotiations for the
Oregon business for S2.000000 and would
have sold it had not the head man of the
deal In England died. No one can tell until
the deal Is completed whether a purchase
will be made. We wont sell unless we get
our price, as our business is too valuable. y
-------s-
According 10 estimates recently made by the
Director OF the hini, the 2o4, 1889 passengers
who leiI tile United States for Europe during the
last fiscal year took with them not less than
100000 In gold or les equivalent in letters