Los Angeles herald., 1891-02-03
The Eyes Of the East Are
Upon Us.
Thousands Of People Who Wish
to Come to California.
Tired of Buying Railroad Securities
That Pay No Dividends.
People Who Haye $4,000 to $685. Each
Looking to California Fruit Orchards
for Certain Income.

tIAoiuCs HuU COucn luil VI pcrtlucuU ulaL-
ter of interest to those who dwell and do
business here. The Judge saw a great
number Of people duiing his visit in
many parts OF the country, and where.
ever he went the talk centered in Cal
ifornia. Yesterday a HERALD reporter
called on him in his Office lat the I'm
iversity bank, and had long chat on
matters such as are outlined in the
heading to this article. In response to
the reporters questions, he said:
ITO begin at the right point, the peo-
pie of the east are in many cases we'll
acquainted with the situation in Califor-
mia. To confine ourselves to Southern
California. and more particularly to Los
Angeles, / may say the local press, in it's
regular daily editions, and in special
efforts OF apictorial or other character,
has done great work for its readers.
The thousands and tens of thousands of
these papers that are sent abroad to
friends of those who are here are read
with great avidity. The facts and Illus
trationsare carefully studied, and in that
way Los Angeles and the other portions
of the section, with their productions,
business and other attractions, are pretty
well known. But what has been learned
only whets the appetite to learn more.
So much has been done to attract atten-
tion to this part of the country.
Nov let us turn to the other side.
What has taken place to cause people
who are settled at the east to wish to
make change? 1 need not dwell upon
the climate and small returns derived
from agriculture. These are old causes
whose effects are too we'll understood by
us all to call for reiteration. l will turn
to the business situation as new cause
added to all the old ones and literally
compelling people to look for some way
to better their condition. To make an
interview come within the limits of
newspaper article, will single out one
large class of people. There are persons
with $4,000 to $25 900, and ranging up to
$5O,OOO and more each, who have
been investors in railroad, coal and
similar stocks for generation or two.
Time was when such investments ran at
about the same value year after year,
and paid say per cent. interest an
nually as regularly as the day came
round. We all know what has been the
history OF such securities of late. No
one can tell what his investments are
worth from day to day, and as for
dividends, they have steadily grown
small and distressingly lees, and more
and mord uncertain ff0ms year to year.
could tell you Of stocks that shrunk in
the last panic 80 to rs per cent. of their
value. The holders lost this money,
and found themselves shorn at one
moment of half to three-v uarters of all
they had. 1t is not q pleasant thing to
look upon your possessions today as cer-
tainly worth given figure-in fact they
would sell at such a figure-and
tomorrow they are worth not
more than 20 per cent. OF that sum. /
met many people who spoke OF our
boom and the great cry made in the east
about the collapse and the way those
who invested here were fleeced. They
point to the collapse in their own in
vestments and say that no experience in
lands could be 80 disastrous as that.
What makes the matter worse is the
firm conviction of these people that the
shrinkage in value Of their property was
not the result of any natural cause, hut
that it was brought about by the cold
blooded manipulation Of men who de-
sired to profit by the panic they created
themselves.
mo, sir; these people will not put
their money into these Investments
again. They are waiting an opportunity
to get it out with the least loss neces-
sary, and as soon as they can turn their
stocks into coin, they will seek green
fields abroad and pastures new. It is
just like the old-time mining excite
ments gotten up on Montgomery street,
San Francisco, to milk the market for
the benefit OF the manipulators,
That game was played sover and over
again. The public seemed to have an
unlimited amount of gullable cupidity.
But there was limit. 1t was reached,
and thereafter no man has been able to
get up craze in mining stocks. So with
those railroad stocks that 20 up and
down at the will OF some unknown pow
er, but pay no dividends, whatever their
rating in the market. The last run of
suckers has been caught in that pool,
and fishing will be very poor there
henceforth.
Here, then, is the situation: At all
points and in all society met great
many people who, knowing the loveli-
ness OF our climate, the pleasure of liy-
ing here, and the profits to be derived
from fruit-growing and other branches
OF husbandry, are putting their money
into some such business. Some Of these
people will bring their money here and
loan it to others who are in some
line of the business and want money
to carry on their enterprises. Others
will go directly into the business for
themselves. Of course man who has
only $4,000 to SIC, 900 all told must ex-
pect to take off his coat and do little
work on his own account. But even
with only 5000 man can get ten-acre
fruit farm, put home and other inn.
provements on it, pla.lt it, and get along
until it comes into bearing. After that
he is independent for life. AS the sums
increase in amount, the possessor is able
to secure larger holdings, and be CORE
spondingly more independent. A man
who mas $40, ,00O can buy one OF the best
ten-acre orange groves in this section,
that will pay him $4,000 q year gross
profit. He can afford to pay to have his
work done. A man who has $25 600
may bank a gross amount of say $500 to
$12,500 a year from an orange orchard,
or he may get $2500 net year interest
by loaning out his money, and be as
sure of his income as the sun shines.
As to when all this will materialize,
will say that these causes are now at
work and producing results daily. These
people are coming in here every day