The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-10-21
DEPRESSION In TRADE.
1t Has No Effect Upon the
Pacific Bank.
THE CURSE OF MONOPOLY.
What Some Of the Leading Business Men
Have TO Say on the
Subjsct.

looked-for stagnation there is no denying
the fact that tue present extreme depression
arises from other causes than between
seasons"
What are the causes? The answer is not
difficult to find. 1t all lies in the one word,
monopoly. The commerce OF San Francisco
is strangled by the octopus grasp OF the
giant railway monopoly. WHAT little manu-
factories she can boast Of are struggling Ior
an existence through the eXtoItionate rates
charged for bringing raw material over the
railroad. and her industries generally are
becoming more and more paralyzed.
1t is an old saying and a true one that
competition is the life Of trade" The
same maxim will apply with equal force to
railways in their relation to cities. What
has made Chicago the wonder Of the latter
part Of the nineteenth century? Nothing
else but the simple fact that she is the
pivotal point from which lines of railway
branch out in all directions, atfordng splen-
did facilities for the interchange OF trade
and commerce.
There is not another city on the continent
with more natural advantages than San
Francisco as a manufacturing center and
for an immense expansion of trade But at
the same time there is no city on the CONT
nent so miSerably handicapped IN the matter
of tran Importation facilities.
A reporter of The CALL yesterday had
occasion to visit one of the leading business
men of the city and the conversation drlfted
10 the present depression 10 trade
ibid il ever strike you, said he, "hoW 1t
canes about that Eastern manufacturers
can send their products to San Francisco
and undersell the manufacturers OF similar
articles hereP
as that possible2 Why. OF course it is.
Our mechanics are inferior to none IN skilled
workmanship, and the men AT the head OF
our big concerns have no equal IN ali the
essentials that lead to success. But all their
PffIrts to enter into competition with their
Eastern rivals are impeded by the want OF
competing railroad. They are entirely al
the mercy Of the Southern Pacific, and 1t is
surprising how, in the face Of almost insuI-
mountabe obstacles, they manage 10 rub
along as well as they are doing.
Just TO show you how this monopoly
brushes the lite out of an Industry l VIII
mention one instance. The freight on au
article necessary in the manufacture Of one
of OGr products is about go per cent on its
cost 10 New York. Is this not kuOugh to
kill any Industry Our banks are feeling
the depression also. would advise you to
take look at some Of them during the
busiest hours,
Acting upon this suggestion the reporter
made his way to the Pacific Bank, on the
corner Of Pine aud SanSOme streets. For an
hour, between . and 3 o'clock, be watched
the people coming and going. bat there did
not appear to be any sign Of dullness. On
the contrary there was a constant rush
going on, and the tellers and other officials
were kept as busy as it was possible f0T
them 10 be.
After the rush was over inquiries of the
bank officials elected the fact that the pre-
vailing depression had no effect upon theiI
business; instead OF showing any signs .o1
diminutiUn the signs pointed the other way.
Possibly this bank should not be taken as
criterion, but ii was the nearest from
where the conversation between the reporter
and the merchant took place.
The apparent contradiction between the
assertion or the merchant and the activity
displayed in the bank between the hours
mentioned led TO an investigation.
The explanation lies IN the popularity of
the bank and the confidence reposed In its
directorate in business and private circles.
i is well known that since its Inception its
business has been conducted on strictly
legitimate banking principles. Tie wisdom
Of Such a position is shown in the immense
volume Of legitimate business done by the
: bank.
1t was also ascertained that the bank is
Incorporated under the ironclad banking
laws of the State. which are admitted to be
the most eXactlDg of the statutes of any
State in the Union. Therefore, every stock
holder. many OF them comprising the lead
ing conservative business men OF the coast,
is liable for his pro rata share OF all the liza
bilities of the bank. a deposition being thus
protected far beyond the security given by
Limited" organizations or rules governing
national banks. Ii stands TO reason that
this extra security to the deposition and
creditor should have contributed in no
small degree TO the ultimate prosperity Of
the bank.
These facts are, no doubt, already known
to the citizens, but good thing, no matter
10 what shape or form, is none the worse for
being brought to light again.
There are other facts in connection with
this institution which should prove inter
esiing and will bear repetition.
The bank started with the Intention of
having a capital of S5.000,00O. 1t was, how
ever. soon found that SO much money could
not then be prO6tably placed in the pru-
dent way desired, so that, after some minor
changes, the capital was subscribed up to
S50O,O00. then gradually increased to $780,
600. and finally TO S1,000.000.
Since the bank commenced business
Twenty-Five years ago, IL has paid nearly
two million dollars in dividends and has
laid % a surplus fund of over $500, 900,
S300.0o0 of which has been carried to the
surplus fund during the last three years,
besides paying the regular dividend of per
cent to the stockholders. 1t has, in addi-
ton, paid over TWO million dollars for sala-
ries. tax and license, advertising, etc. The
annual volume Of business now amounts to
over S225, goo, 600. Figures are dry reading
but enough has been given to show the
wonderful strides made by this successful
institution.
1t appeare to have been fortunate in hav.
Ing at its helm men of sterling integrity
ripe experience and all the qualities thai
command success, respect and admiration.
Just one other point need be mentioned.
The assets Of the bank, which in early
years were not over half a million. have
risen to nearly five millions, and this not
withstanding the fact that the bank since
haS nf raTd ~ iy,fa t1,, 4
posits or offered any side inducements to at
tract deposit balances.
These are unquestiOnably some OF the
reasons why the Pacific Bank officials
assert that their institution does not in any
way feel the effects OF the depression liz
trade, which business men are only toe
ready to admit is about as bad as they care
to see it.
These facts in connection with this banl
are given not to adorn tale but rather Il
point moral. They do not in any wal
affect the position taken by the merchan
that tile trade and commerce Of San Fran
cisco will never expand but On the con
tTary contract as long as she is under tn
thumb OF railroad monopoly. The clippe
ships have done little to ease the effect
of the monopoly, but they are only suited
TO the carrying OF heavy freight, owing Il
the time consumed in the long voyage
What IS urgently wanted is a rival railroad
20 The Eastern markets, and every one who
mas Inc progress aud welfare of the city al
heart should render every assistance to the
men who are nobly working to bring aboul
this most desirable consummation.
The reporter called upon two or three
other business men, and they were Of on,
accord in blaming the growing depression
In trade upon the one cause-monopoly
Other cities on the Pacific Coast, they say
are growing in commercial Importance a
the expense Of San Francisco, and If thing
go on much longer as they have been doinj
for years the glory Of this beautiful city