The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-05-24

The San Francisco Mining and Scientific
Press has the following pertinent observa-
tions aneft the recent suspensions of one
of the chief manufacturing industries of
that city: The Pacific Rolling Mills, one of
San Francisco's largest industries, is about
to close UP its extensive business and re-
tire. The reason assigned Is lack of pat
ronage. Some millions of dollars were in
vested in the home enterprise, which at
one time was q profitable one. The bonded
Indebtedness aggregates $500 600, of which
100000 bears per cent interest and $780,
COOS per cent. The hope Is expressed in that
time all claims will be fully paid. President
Neal is inclined to ascribe the failure to
eastern competition" Post-mortems are
seldom sautary, but it is in order to OBJ
serve that poor management, a narrow
guage policy and sole reliance on local
pride Will wreck any business concern of
any kind. 1t is likewise evidence of infe-
rior business sagacity to assume that the
mere existence Of a manufacturing insti-
tuition In place bestows the right to claim
local patronage, more especially when with
that claim is coupled the right to directly
compete with those from whom 1t asks pat
ronage and support. The facts are not lost
sight Of that high prices for labor and
fuel, freight rates, limited industrial area,
and active business competitors all formed
formidable combination, but 1t Is thought
tHdI proper management WOulu nave CUl-
tinued to make the business profitable
one, and that the inability of the directors
to carry 1t on Is no just argument against
the permanent cessation of such effort
on this coast.
The News Letter handles the same SUBJ
Ject in an equally outspoken way and its
remarks are quoted below, as they seem
to represent the sore feeling that is prev.
n Ant nd HI1@ -. &c., -
turing enterprise the existence of
which has always been a matter
of pride to San Francisco. The
News Letter says: The progressive ele-
ment In San Francisco. as yet unfortunate
ly in the minority, has been treated to an
other exhibition of the policy which has
done so much to retard the prosperity Of
the city In the practical abandonment of
the Pacific Rolling Mills. Here we have
most important adjunct of the great ship
building industry which is gradually being
developed here absolutely blotted out, not
on account of any lack of capital, but
simply because the large shareholders in
1t are devoid of sufficient public spirit to
carry 1t on. The apology they make is
that they have found 1t impossible to make
expenses, for the reason they can find no
one to deal with them; nobody wants their
wares. And why? Because they are ex-
actly thirty years behind the times. which
is fully half century, when what was con-
sidered advancement here in the 7O's is COM
pared with conditions which prevailed else
where. The unfitness of the plant to meet
the requirements of modern shipbuilding
is not owing to lack of capital. Any one
of the wealthy people owning the bonds
could have individually have equipped the
works and placed them in position second
to none In America. But the outlay would
be immense from the standpoint of San