The San Francisco call., 1910-05-14
GENERAL FINANCIAL
OUTLOOK IS GOOD
Stocks Show Downward Tend
ency, but Business Indica-
tiOns Inspire Optimism
Merger of Local Banks in Line
With Policy Adopted in
Other Big Cities
By PAUL SINsHEIMER

By PAUL SINSHEIMER
While there has been much 10 inspire
optimism during the week, business
generally has continued at the same
level and stocks have shown down
ward tendency. There has been no ap-
preciable change in the current none
1ary rates, although the influences of
a quiet bond market still obtain. The
contemplated consolidation of the san
Francisco National bank with the Bank
of California is in line with the policy
that calls for a union Of closely asso-
ciated financial interests. The history
OF the last year in local commercial
circles records similar amalgamations
or great magnitude. Bank mergers of
great size have recently been accom-
plished in New York, Chica go. Kansas
City and Seattle It is a definite ten
dency that win have further eXemplifi-
cation in san Francisco.
RAILROAD SITUA ALTON PROMISING
The railroad situation holds abundant
promise. From Chicago ii is announced
that the Hartman lines have placed an
order for more than 1900 frei ght cars
10 he delivered this year at a cost of
Sl3-150.00e- 3 This. il Is stated. is in ad-
dition to the 1880 refrigerator cars for
which orders already have been placed.
The company is preparing TO handle a
large western business. President Lov-
cit or the Southern Pacific. after a tour
of inspection, has predicted the largest
crops in several years
Improved facilities for the handling
of California business VIII also be pro
Tided by the Santa lie. The company
has undertaken to obtain a greater
share Of the fruit crop and is installing
the necessary equipment near stockton.
This activity on the part of the Santa
Tie has been Interpreted as a desire TO
become a more important factor in the
transportation business in California.
DEVELOP TERRITORY
The common territory tapped by the
Southwestern Pacific. the Joint property
the Santa Fe and the Southern Pa
.ifc. is 10 he developed as rapidly as
the rails can be laid to Eureka Con-
tracting firms have doubled their work
inE forces for the summer months
Local holders Of Southern Pacific
stock have received advices assigning
different causes for the remarka BILE
strength Of the security in the New
York market. one Wall street author
ity insisted upon the correctness of the
report denied here that the company
conremp plated the sale Of its oil lands.
This authority had IL that the compa ny
would derive a sufficiency of fuel for
80 years TO come from the Associated
OIL company and had therefore decided
10 dispose of It's petroleum lands held
Sd the name Of The Southern Pacific.
lt was asserted that there would be q
melon cutting OF unusual proportions.
Further denials OF this report brought
forth a statement attributins the activ-
j-y Of the stock TO the great value Of
ihe land concessions obtained from the
Mexican government
The outlook for California shippers
i= brighter than for some time past.
The decision Of the interstate commerce
commission abolishing The switching
fee has removed what has been termed
"a discriminating tax on the commerce
of san Francisco" The item has been
af sufficient size to handicap local in
alstrial enterprises in competition with
those Of eastern cities The assurances
Of recognition by congress OF the ele-
nsent OF water competition in connec-
lion with She pending railroad bill has
also rcmo1 ed q depressing factor.
Pending rate cases instituted by san
Francisco shippers give promise of
large degree OF success, as evidenced
by recent decisions.
Tie first shipments of fruit have
gone to tie eastern markets and have
brought satisfactory prices. The har-
,-est conditions support the earlier csti-
mates.
Agricultural and Oh lands continue
the most active feature Of local trading.
Several sales OF large acreages have
been brought to conclusion during the
week The transfer Of, the Haggin
ranch near Sacra mento, containing A.,
coo acres. for something ia excess Of
s15000O0 was the largest recorded A
brisk inquiry for delta lands has been
evidenced by the sale Of portions of
Roberts and Union islands. Several
local capitalists are reported TO be in
the market for ranch tracts for sub
division purposes. There are now pend
ing transactions Of unusual magnitude.
The demand for oil properties is on
the increase. The beginning of an eX-
tensive enterprise is foretold in an
option taken on the Bell ranch in Santa
Barbara county, embracing 10000 acres,
for total sum Of $4,000. 600 The rapid
expansion of the industry is indicated
bv the announcement that the Pro
ducers' transportation company intends
10 psrallel its own pipe line from the
Midway and Coalinga fields TO tide
water. Development continues TO spread
with the Introduction Of eastern and
foreign capital
To the great activity in petroleum
and ranch lands has been assigned in
some degree the weakness displayed by
stocks during the week. California
wine association and City Electric were
conspicuous in the downward move
ment. On reports OF an assessment
Wine association fell from 35 to 25,
rsllying at this figure. II was subse-
quently stated that there would be an
issue Of preferred stock to take care
Of the necessities for the coming season
While crop reports are favorable, the
market conditions have shown no i'm
provement
The drop ia City Electric was interP
preted as . natural reaction after an
uninterrupted advance. during which
The stock has more than doubled. The
= vidends OF IS cents a share viii be
continued and there was no special
news TO occasion the decline
Spring Valley shared in tho prevail
ing weakness. easing off. but closing
with renewed strength Al 47sz bid. The
stock gave way under rumors that dir
fculties had been encountered I'm nego-