The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-09-17
Manufacturers Will Come to
San Francisco if Exempt
From Taxes.
VIEWS OF PROMINENT MEN.
Many Think a Solution Lies In
increasing Freight Rates to
This Point.


ance to a few pertinent suggestions that
have evidently taken deep root in the
minds of those directly interested. He
argued for more manufactures for San
Francisco, but he did more than this, for
he suggested plan by which manufactur-
ers could be induced to come to this City.
Mr.. Leggett carefully revised the manu-
featuring enterprises of San Francisco and
the causes that have hitherto prevented
similar institutions from locating here. He
said the only feasible method to attract
manufacturers was to exempt from tax
alton the machinery, raw material and
finished product of the manufacturer, as
well as the capital devoted by him to the
carrying on of his business.
With view of finding out just how the
manufacturers themselves felt on this
subject a CALL representative interviewed
several of the most prominent yesterday.
Without single exception they heartily
indorse the plan suggested by Mr.. Leggett,
though many of them entertain ideas
which they claim are just as important in
their way to the manufacturer OF this City
as is the matter of taxation. For instance,
some claim that Eastern rates into San
Francisco are too low and that coal is 100
high. These things, they say, must be
remedied. along with taxation, before local
manufacturers can successfully compete
with Eastern concerns. Others hold that
the lack of skilled mechanics is barrier
that must be overcome before San Fran
cisco can hope to rank as manufacturing
center.
Mr.. Sperry of the Sperry Flour Milling
Company said:
The idea of exempting from taxation manu-
foat oAXan Ipppptt
tainly a good one, and would unques1onably
place local institutions on a footing very nearly
equal with Eastern or foreign institutions 1t
would certainly benefit the Hour business
wonderfully. At the present time we get very
little OF the Oregon trade, because the cost OF
wheat is so much greater here than there. AS
a matter OF fact Oregon ships flour right into
California and unless something is done We
can never hope to control that which is right
fully ours Yes, l am in favor OF eXemptlng
manufacturers from taxation of any kind, and
l believe tWo-thirds of the people feel the same
way.
Secretary D. B. Moody also favored the
proposition, saying that San Francisco is
now handicapped by the labor and fuel
problem, and unless something was done
to offset this local manufacturers would get
the worst of it.
R. S. Moore, manager of the Risdon Iron
Works, said:
If local manufacturers were exempt from tax
atlOn on tnelr plant, CAp1Jdl anu prOQuCIS tney
could compete with the world. Such law as
this would be the means OF attracting hun
dreds of such institutions to our City, and all
classes would be greatly benefited in eonse-
quence. | want to see such an idea take def
mite shape, and am pleased TO see THE CALL
leading the fight.
Mr.. Dow of the Dow Machine Works
said:
1 think the idea good one-excellent, in
TACT, but 1 am afraid there are certain features
which render it impractieable For instance,
would not such exemption come under the
head of class legislation, which is clearly not
legal? Again the taxes which would be lost to
the City and County from such law must of
necessity be raised by some other means. Mind
l am strongly in favor of any proposition that
will help to build up San Francisco, and am
only pointing out what l think the people
would regard as class or special legislation If
it can be shown to the people at large that
such law would be beneficial TO them, in
spite of the increased taxation, am sure that
there would be little or no opposition. As a
manufacturer | would be greatly benefited by
such a law, and think itwould be the means
of making San Francisco the greatest manufac-
turing center west Of st. Louis. 1t is entitled
to this by right OF location alone, and believe
it will ultimately'become so.
Mr.. Pease of the Goodyear Rubber Com
pany said:
1t is not so much exemption from taxation
that San Francisco manufacturers need as it is
protection from the cheap eastern freight
rates and the high price OF fuel. OF course,
freedom from taxation would be OF great as
sistance and l concur in all that Mr.. Leggett
has said, but freight rates and coal are the
main Things to contend with. Freight is
shipped into San Francisco from New York at
an average rate of 81. st. Louis, Kansas City
and other Middle Western cities have identi-
cally the same rate. Chicago is about 10 cents
less Coal is about three times as expensive
here as it is in the East, while labor is better
paid in San Francisco than it is in New York.
with all these conditions confronting US, am
afraid that the mere act of exempting manu-
facturers from taxation VIII not accomplish
what we would like.
I am a member OF the Manufacturers ASCOT
alton and willing to do all in my power TO
bring about the desired resultant is more
manufacturers-but l am afraid that 1t must be
done in some other way than by freedom from
taxation. AS an evidence that what l say is
true let me cite one fact. San Francisco, with
only one railroad, actually pays a less rate on
its Eastern goods than Portland with three or
four transcontinental lines. How are we go
ing to compete with Eastern manufacturers
with such a condition as this confronting US?
B. Wood of the Columbian Wooden
Mills said:
Mr.. Leggett's idea is q good one and would
certainly benefit and build up San francisco
manufactures wonderfully. But there are
other things to be considered. For instance
there are no mechanics here. mat IS the
greatest drawback of all, and II Is due to the
fact that home people do not patronize home
industries.
The manufacturer was and is slave. His
machinery, his merchandise, his all were
mortgaged to others. He must keep his ma
chinery going in order to Hqu1date his Just
debts To do this he must have workmen, but
where could he procure them? To this there
was but one answer-in the very heart OF
Chinatown. The reason of this was that our
boys ana girls refused to learn trades which
held forth no inducement for the future. They
were aware that there was no protection for
them, because there was no market at home.
Time and again have l advertised for white
help. and it has been with the utmost difficulty
that our factory is finally filed with white
labor. believe, as before stated, that the true
lecturers to our City lies in patronizing those
already here. Create the demand for home
made goods by buying them and manufactures
will soon be seen springing up all over San
Francisco.