:BRARY 
 
 THE UNIVERSITY 
 OF CALIFORNIA 
 
 SANTA BARBARA 
 
 PRESENTED BY 
 FRANCIS M. and ALICE 
 DE F9REST SEDGWICK 
 in memory of 
 
 CHARLES NOYES DE FOREST
 
 PIONEERS OF PROSPERITY 
 
 BY 
 
 DAVID H. WALKER. 
 
 SAN FRANCISCO 
 1895
 
 Copyrighted 1895 
 
 BY 
 DAVID H. WALKER.
 
 JN ACKNOWLEDGMENT. 
 
 THIS book is respectfully inscribed to GEORGE 
 K. FITCH, in public recognition of service to the 
 P u blic perform ed by h im . 
 
 Content to exercise his influence impersonally ', 
 asking for no personal reward, fearlessly combating 
 large corporations, he, as controlling proprietor 
 and editor of the "San Francisco Call' 1 and "San 
 Francisco Bulletin," exercised great and enduring 
 influence. In the events here recorded he was 
 potent.
 
 I. 
 
 A GENERAL REVIEW.
 
 A GENERAL REVIEW. 
 
 THIS is the story of a public awakening. The 
 justification of this assertion will be found in the 
 facts. It is not impossible that the events which 
 are herein recorded shall lead to a commercial 
 revolution on the Pacific Coast. Certain it is 
 that San Francisco will at last take the station 
 which its natural advantages make inevitable. 
 It will be in fact, as in name, the commercial 
 metropolis of the Pacific Coast. 
 
 In the month of October, 1891, there sailed 
 through the Golden Gate into the Bay of San 
 Francisco the ship "Armida," flying the British 
 flag. She was laden exclusively with goods of 
 American material and exclusively of American 
 manufacture, which had been brought from 
 Europe. She was followed by other vessels, all 
 of which had been laden in Europe with Ameri- 
 can goods, which goods had been exported to 
 Europe from New York, and which, having 
 been certified by American consular officers not 
 to have been made dutiable abroad, were now
 
 8 A GENERAL REVIEW. 
 
 reimported to the United States, consigned, 
 however, to other than the point of original 
 departure. They had twice crossed the Atlantic 
 Ocean, had journeyed around Cape Horn, and, 
 after a long and expensive voyage or voyages, 
 had arrived at their point of destination San 
 Francisco. It will sound oddly when the future 
 citizen of San Francisco is told that the purpose 
 of this circumnavigation of half the globe was 
 to save freight money, but such was the fact. 
 
 The lines of clipper ships flying the American 
 flag, as they journeyed between New York and 
 San Francisco, were operated under subsidy 
 agreement with the many railroads comprised 
 in The Transcontinental Association. Clipper 
 rates had, as a consequence, been raised until 
 they were excessive. Foreign ships could not 
 engage in the coast-wise trade of the United 
 States. The Pacific Mail Steamship Company 
 moved freights from New York to San Fran- 
 cisco, or vice versa, only at such rates and in 
 such quantities as were agreed upon between the 
 officers of that corporation and The Transconti- 
 nental Association. Freights by rail proceeded 
 only at the highest rates that could be extracted,
 
 A GENERAL REVIEW. 9 
 
 and the shibboleth, both by land and sea, was, 
 " Charge all that the traffic will bear." 
 
 Years before this, what has been known as 
 the special contract system, had been placed in 
 operation against the city of San Francisco. 
 Merchants were cajoled, bullied, or bribed into 
 making an engagement with the rail transporta- 
 tion lines not to move freights by sea. A tyran- 
 nical condition attended this arrangement which 
 was, that the railroad people should always have 
 the power and authority to open the books of 
 any merchant with whom they had this sort of 
 dealing, and the merchant, thereupon, the books 
 themselves furnishing the necessary evidence, 
 was found, by a not over-merciful inquisitor, to 
 be in observance or in breach of a contract. 
 
 Those who were at the date mentioned, sailing 
 freights from New York to Liverpool and Ant- 
 werp as exports, and thence in other vessels 
 from these European ports to San Francisco as 
 imports, were not unmindful either of the degree 
 of restraint which had been imposed by the 
 special contract system, nor of the degree of 
 shame which the proposal implied in the making 
 or in the acceptance. They were not forgetful.
 
 10 A GENERAL REVIEW- 
 
 The "special contract" even prohibited mer- 
 chants who signed it from purchasing goods 
 from others who imported from the Eastern 
 markets of the United States by sea. 
 
 But there was good, red blood in San Fran- 
 cisco yet. If cargoes could not be received by 
 the lines of least natural resistance under the 
 protection of the American flag, they could, by 
 means devised by resolution and ingenuity, still 
 be secured from Eastern points of supply via 
 Europe and Cape Horn at rates which would 
 leave the dealer some reasonable share of profit. 
 Communications had passed between these San 
 Francisco shippers and the Treasury Depart- 
 ment of the United States in which the query 
 was propounded, whether such shipments were 
 in violation of the navigation laws of this coun- 
 try ? Seemingly satisfactory assurances had 
 been received that the acts in view were not in 
 technical nor real violation of these laws. Rely- 
 ing upon this view, several cargoes were set 
 afloat and in due time arrived at their Pacific 
 Coast destination. Now, to the general aston- 
 ishment, while these vessels were on the way, 
 the Government ordered the confiscation of their
 
 A GENERAL REVIEW. II 
 
 cargoes. The merchants were, therefore, com- 
 pelled to employ counsel and appear in costly 
 litigation, extending over a period of some 
 months, before the Federal courts in the north- 
 ern and southern districts of California. It is a 
 matter of -history, that ultimately the merchants 
 won this fight in the courts, but the whole 
 occurrence was too much for San Francisco 
 patience. 
 
 Situated on a great harbor, which is easy of 
 access, and having naturally all the advantages 
 which belong to an important seaport, San Fran- 
 cisco merchants found themselves ensnared by 
 legal cobwebs and tied up by a transportation 
 conspiracy. Indignation was none the less deep 
 because it was not violently displayed. San 
 Francisco, dispossessed of its birthright of free 
 use of the sea, had no claim to be considered a 
 great trade centre superior to a point inland, 
 remote from the sea. Something must be done. 
 The hour had struck. This preceded the actual 
 organization of The Traffic Association of Cali- 
 fornia, but it paved the way for that organization. 
 An organization being later effected, the conflict 
 to the end was inevitable.
 
 12 A GENERAL REVIEW. 
 
 The cargoes brought on these roundabout 
 trips consisted largely of hardware. It is not 
 without significance that some of the most prom- 
 inent among the Pioneers in The Traffic Associa- 
 tion movement were some of the consignees of 
 these freights. The events just mentioned were 
 vigorously discussed by the newspapers of San 
 Francisco, and some needed new light was there- 
 by cast on existing conditions. The interest 
 which attended the proceedings concerning the 
 seized cargoes in the Federal courts manifested 
 the popular feeling somewhat mildly, perhaps, 
 but with certainty. The names of the foreign 
 ships upon which cargoes were seized, and the 
 dates of their confiscation at San Francisco, are 
 as follows: "Armida," October 16, 1891; "Port 
 Sonachan," November 5, 1891; "Glenalvon," 
 November 17, 1891; "City of Delhi," December 
 3, 1891; "Alcinos," December 8, 1891; "Dum- 
 friesshire," December 21, 1891; "City of 
 Benares," January 12, -1892; " Stockbridge," 
 January 12, 1892; "Duchess of Albany," Janu- 
 ary 18, 1892; " Clackmananshtre," January 
 20, 1892; "Melville Island," February 3, 1892; 
 "Archdale," February 4, 1892; "Fort George,"
 
 A GENERAL REVIEW. 13 
 
 March 25, 1892; " Eskasoni," April 2, 1892; 
 "British Isles," April 12, 1892; "Ananrus," 
 May 28, 1892. The goods that were seized 
 had been moved to Europe by Trans-Atlantic 
 steamers plying on regular lines, and had 
 been trans-shipped in the sailing vessels already 
 named. That the legal attitude of the mer- 
 chants was correct is sufficiently demonstrated 
 by the fact that Congress later amended the law 
 to prevent future shipments in that way. 
 
 The order by the Treasury Department of the 
 United States to confiscate the cargoes was issued 
 after all these cargoes were afloat. Immediately 
 upon receipt of notice that confiscation was in- 
 tended, the merchants discontinued to ship via 
 Europe to San Francisco from New York. The 
 average saving per ton on freight by the round- 
 about route was four dollars ($4). This was the 
 first move to reduce through freights between 
 the Atlantic seaboard and the Pacific Coast. 
 The test case made up by agreement, upon 
 which the merits were tried in the Federal 
 courts, first before Judge Ross in the Southern 
 District of California, and afterwards in the 
 United States Circuit Court of Appeals in San
 
 14 A GENERAL REVIEW. 
 
 Francisco, had the portentious title of "The 
 United States vs. 250 kegs of nails." Clearly, 
 the nails had the better of it. 
 
 San Francisco was not destined to rely upon 
 voyages so circuitous very long. Other means 
 of opening up the broad highway of the ocean 
 to unrestricted transportation were, not very 
 many months after this, actively employed. The 
 first competing line of deep sea steamers between 
 the Atlantic and Pacific Coasts owed its appear- 
 ance to the agency of the Johnson-L,ocke Mer- 
 cantile Company of San Francisco, who, in the 
 summer and autumn of j 891, brought out from 
 New York in succession, six steamers, constitut- 
 ing the Atlantic and Pacific Steamship Line, of 
 which a somewhat detailed account is given in 
 another chapter; 
 
 Four forms of attack against the transporta- 
 tion monopoly have been adopted: Politics, ap- 
 peals to the Board of Railroad Commissioners, 
 transportation by sea, and the construction of 
 competing railroads. Politics, on some con- 
 spicuous occasions, proved ineffectual. Trans- 
 portation by sea was a valuable experiment, and 
 resulted in a large aggregate saving in freights,
 
 A GENERAL, REVIEW. 15 
 
 mounting up to the millions. Competing rail- 
 roads, it has long been apparent, are the real key 
 to the situation. Excursions into the field of 
 politics were not wholly unprofitable, because 
 the helplessness of the people under conditions 
 then existing to accomplish any relief for them- 
 selves by such means was clearly demonstrated; 
 and the luminous certainty appeared that it was 
 necessary to lay down independent highways of 
 steel and to sail ships. It is true that, at the 
 outset, the people of California entertained some 
 delusions, and that their progress towards success 
 was not uninterrupted. There were mistakes, 
 jealousies, some manifestations of weakness, 
 some heart-burnings, some seemingly unneces- 
 sary opposition, attempts at cajolery, propositions 
 were made that were rank treason; in short, all 
 the difficulties attendant upon any great new 
 experience and primary lack of full unity on an 
 agreed plan were encountered. 
 
 It was at first supposed that the high trans- 
 continental rates were alone the source of the 
 commercial woes of San Francisco. Conse- 
 quently, the first attack was aimed at the Trans- 
 Continental Association. It soon became clear
 
 1 6 A GENERAL REVIEW. 
 
 that the position of San Francisco as a distribut- 
 ing centre was not materially altered solely by 
 the lowering of through rates in both directions. 
 High local rates, like a stone wall, encircled San 
 Francisco, preventing the free movement of the 
 products of the interior to the seaboard and 
 minimizing the advantage gained by open com- 
 petition by sea to the Golden Gate. A great 
 saving came to the entire State by the lowering 
 of the through rate, but San Francisco still 
 stagnated. The number of stores and tenements 
 to rent continually increased; realty of all sorts 
 and descriptions produced continually less in- 
 come, or failed to produce any; the values of 
 unimproved property sank; banking institutions 
 anxiously investigated the values of loans upon 
 farm lands. One event led another into the 
 field. To-day as they are marshalled in memory, 
 they seem formidable, but while they were pass- 
 ing, their full significance seemed only partially 
 understood, and there were not lacking detract- 
 ors and theorists who sought to discourage the 
 men who were in the van of progress. 
 
 Let it be set down, that as far as San Francisco 
 progressed, the leaders accomplished headway
 
 A GENERAL REVIEW. 17 
 
 against manifold contrivances of the combined 
 existing transportation companies and moved 
 forward, sometimes disheartened, but never in- 
 timidated, by a plentiful display of white flags 
 displayed by some of those from whom better 
 things might have been expected. 
 
 At the outset there was no declared hostility 
 to any existing corporation. Moderation was 
 suggested and counseled by President Stetson, 
 who presided over the first assemblage which 
 resulted finally in organization. It was confi- 
 dently believed that the associated merchants 
 would be able to exercise moral influence suffi- 
 cient to insure them consideration and fair 
 business treatment. Other associations of a 
 similar sort, it was urged, existed at St. L,ouis, 
 St. Paul, and perhaps other cities, which cities 
 had found relief by presenting a united front as 
 shippers, able to route their freight by any line 
 or lines they might select. The conditions, 
 however, differed greatly. These cities had 
 several transportation lines. San Francisco was 
 only the far-off end of the long haul. The sea 
 was disused largely, and the transcontinental 
 roads, heavily over-capitalized and trying to earn
 
 18 A GENERAL REVIEW. 
 
 an income upon fictitious cost, relied upon the 
 fertile valleys of California to pay in excessive 
 freights and fares sufficient income to sustain 
 hundreds of miles of railroad running over 
 mountains and deserts in which little or no 
 business could be expected to originate. 
 
 Timidity was confined mainly to the educa- 
 tional period, which perhaps was not too long, 
 experience being the best possible teacher. The 
 Legislature then contained no relief. The Board 
 of Railroad Commissioners was strongly en- 
 trenched in the State Constitution and was a law 
 to itself, and the Board had been from the date of 
 its creation, under the influence of the transpor- 
 tation monopoly. 
 
 This Railroad Commission, embracing three 
 members of whom not one was capable of for- 
 mulating a tariff, not one ever having been a 
 practical transportation man, was a transparent 
 farce; and the farcical nature of its proceedings 
 was not lessened by the never failing "excep- 
 tions " taken by transportation companies, doing 
 business in the State of California, to all the rul- 
 ings which were promulgated. These rulings 
 were never sufficiently hostile to justify an
 
 A GENERAL REVIEW. 19 
 
 expectation that the transportation companies 
 would be seriously injured by their application. 
 The whole procedure fitted admirably the use for 
 which it was intended. The people had not 
 risen. The election of two members of the 
 Board was an easy feat for the railroads. The 
 "exceptions" were expected to cause delay, if 
 necessary, through the courts. 
 
 But it is evident primarily, that two men, a 
 majority of the Board of Railroad Commissioners, 
 could be more easily influenced than a majority 
 of the two houses of the California Legislature. 
 The Commissioners never had a "rate clerk," 
 and all their information about California rail- 
 roads came from the officers of the railroads, in 
 other words through the medium of the paid 
 agents of the railroad corporations. They held 
 few meetings. They had fallen into practical 
 disuse. No ray of illumination penetrated to the 
 tariffs which were regularly adopted by the Com- 
 missioners as they came from the railroad offices, 
 until The Traffic Association of California, through 
 its expert tariff-maker, Joseph S. Leeds, made 
 statistical comparisons which were easily com- 
 prehended by any inexpert mind. The local
 
 20 A GENERAL REVIEW. 
 
 rates, or rates between points within California 
 were without a uniform system of classification 
 north of Tehachapi. The Western Classification 
 was unknown in local traffic in Northern Cali- 
 fornia to the Railroad Commissioners. This 
 subject was treated fully by Mr. Leeds as man- 
 ager of The Traffic Association at the first 
 annual meeting of the Association. His picture 
 of such unique conditions will be presented a 
 little later. 
 
 The Transcontinental Association was a power- 
 ful combination embracing in the year 1892 all 
 the lines included in the following enumerated 
 systems : Atchison, Topeka and Santa Fe Rail- 
 road; Atlantic and Pacific Railroad; Burlington 
 and Missouri Railroad in Nebraska; Canadian 
 Pacific Railway; Chicago, Rock Island and Pacific 
 Railway (west of the Missouri River); Colorado 
 Midland Railway; Denver and Rio Grande Rail- 
 road; Great Northern Railway Line; Missouri 
 Pacific Railway; Northern Pacific Railroad; 
 Oregon and California Railroad; Rio Grande 
 Western Railway; Southern California Railway; 
 Southern Pacific Company (Atlantic system); 
 Southern Pacific Company (Pacific system);
 
 A GENERAL REVIEW. 21 
 
 St. L,ouis and San Francisco Railway ; Texas and 
 Pacific Railway; Union Pacific System. These 
 lines all had a common interest to keep the port of 
 San Francisco closed to commerce by sea as much 
 as possible. 
 
 This prefatory chapter is incomplete without 
 the following which appears in the first annual 
 report of Mr. Leeds to the Executive committee 
 of The Traffic Association. Speaking of the time 
 of organization, Mr. Leeds said : 
 
 1 ' It was believed by many at that time that 
 the chief difficulty under which this community 
 was laboring was in the through traffic as rep- 
 resented by the organization known as The 
 Transcontinental Association; that if it could be 
 broken up or modified great good would result. 
 While that is literally true it by no means con- 
 stitutes the heavier portion of the unjust burden 
 imposed by the transportation companies upon 
 the commerce of this coast. It has been found 
 that the principal feature of the trouble has its 
 basis or foundation in the local rates in this 
 State. 
 
 " All conditions which were affected by trans- 
 portation were extremely unsatisfactory when
 
 22 A GENERAI, REVIEW. 
 
 this organization was created. Shippers, both 
 local and through, were under complete subjec- 
 tion to such a degree that many of them were 
 afraid to take part openly in any move for the 
 correction of existing evils, and for very good 
 reasons. Examples were not wanting where 
 those who had courage enough to protest against 
 these wrongs were subjected to the grossest kind 
 of discriminations and their business seriously 
 hurt or ruined. 
 
 " The Transcontinental Association, the most 
 complete and powerful of any of the kindred 
 organizations in this country, was in full control 
 of the situation. The rates imposed by it were 
 such as it chose to exact without reference to 
 justice or equity, as between the merchants, 
 producers or manufacturers of this coast and 
 those of the Mississippi Valley and the East. 
 Every avenue of possible competition was either 
 closed or under complete control, so that the 
 burden was adjusted to serve best the purpose 
 of the carrier. The neutrality of the Pacific Mail 
 Steamship Company was purchased by a subsidy 
 of seventy-five thousand dollars ($75,000) per 
 month under the guise of a space rental of meagre
 
 A GENERAL REVIEW. 23 
 
 proportions, the rates on the freight carried by 
 it, in both directions, being under the complete 
 control of The Transcontinental Association. 
 
 "The commerce of this coast was assessed to 
 pay this subsidy or, more plainly speaking, the 
 subsidy was paid in order that the assessment 
 could be made. The Cape Horn lines in both 
 directions were kept under control by trades on 
 the business and intimidation, so, that they were 
 made satisfied with a fixed amount of tonnage 
 on a high scale of rates practically under control 
 of The Transcontinental Association. Import 
 and export freight rates as represented by the 
 Pacific Mail and Occidental and Oriental steam- 
 ship lines were so manipulated as to destroy all 
 possibility of competition by sea or land, and by 
 ingeniously contrived methods these lines 
 exacted such rates as have driven a large 
 volume of the trade away from this port and 
 forced the establishment of branch houses in 
 foreign countries by some of our importers in 
 order to protect their trade. 
 
 "This, coupled with the high local tariffs in the 
 interior, had the effect of holding the traffic of the 
 whole State upon an unreasonably high basis
 
 24 A GENERAL REVIEW. 
 
 and to a large extent curtailed the trade of the 
 business centres of this coast, at the same time 
 placing it in the hands of competing markets out- 
 side of the State. The transcontinental lines 
 also violated and are still in violation of the 
 spirit of inter-state commerce law by fixing the 
 rates between interior Eastern points and this 
 coast on such goods as are competitive via the 
 Atlantic seaboard with vessels on a lower basis 
 than from the point where the competition exists, 
 while the exceptional circumstances and condi- 
 tions upon which these rates are made lower than 
 intermediate rates on this coast are said to be sea 
 competition. 
 
 '' But the local rates are very much more bur- 
 densome, because they serve not only the purpose 
 of securing an immense local revenue, but serve 
 as a high protective tariff against the possible 
 introduction of a measure of sea competition to 
 the interior country of this coast. The whole is in- 
 geniously contrived to bottle up the interior of the 
 State and reduce the radius of trade of all terminals 
 to the smallest possible limits, because the less 
 business done to and from tide water the less 
 trouble there would be in keeping the water lines
 
 A GENERAL REVIEW. 25 
 
 under control. So it must be plain to your com- 
 mittee that a more reasonable basis of local tariff 
 would necessitate a lower adjustment of through 
 tariffs all over the State. 
 
 ' ' Shippers are frequently informed that the 
 carrier cannot make lower rates to and from tide 
 water, because the freight would move by sea. 
 This explains the great necessity for the control 
 of every avenue whereby sea competition may be 
 introduced to the interior; also the necessity for 
 the control of the State Board of Railroad Commis- 
 sioners who have given no relief to the local situa- 
 tion during an administration of fourteen years. 
 The tariffs in effect to-day in all parts of the State 
 are a reproach upon the intelligence of this peo- 
 ple. They are grossly discriminative; no atten- 
 tion is paid to the measure of service performed. 
 There are in effect in the State three different clas- 
 sifications governed by widely differing rules, 
 which any one of intelligence on that subject knows 
 is entirely unnecessary, except for the sole purpose 
 of covering up the gross discriminations which 
 exist, and to hide a state of affairs too unjust to 
 bear the light of a uniformly adjusted tariff. Be- 
 tween local points in the interior of the State
 
 26 A GENERAL REVIEW. 
 
 there is practically no tariff at all except a min- 
 imum of fifteen cents per ton per mile, which 
 precludes the possibility of an interchange of 
 commodities except in cases of absolute necessity. 
 Under such conditions no industry can start with 
 any assurance of success until it has first made a 
 special bargain with the carrier, whereby he be- 
 comes a special partner in all the profits, but not in 
 the losses besides being placed in the position of 
 absolute subserviency as the recipient of the 
 special favor of being allowed to do business at 
 all in the State of California. Of course the vast 
 resources of this State and this coast cannot de- 
 velop under any such conditions. 
 
 " This local situation has been built up and 
 perpetuated by the carriers, very largely through 
 the control of the various branches of the State 
 and municipal government, through political 
 bosses who are their servile tools, to whom in 
 the past the office-holder has been obligated by 
 a bargain consummated before nomination. 
 The past history of the official acts of these 
 office-holders under boss rule presents an object 
 lesson too plain to require extended mention, 
 it be borne in mind that the prime object
 
 A GENERAL REVIEW. 27 
 
 has always been the absolute control in their 
 own hands of the measure of the rates and fares 
 at ' all the traffic will bear.' Our Board of Rail- 
 road Commissioners is an expense to the State, 
 and, instead of performing a service to the people, 
 it becomes a means of protection to the railroads 
 against the performance of their obligations to 
 the people as common carriers." 
 
 There were other matters of interest which are 
 not alluded to in the foregoing. The Southern 
 Pacific Company was, at this time, furnishing an 
 example of the unjustness of its local rates by 
 bringing to San Francisco from Liverpool, via 
 New Orleans, many commodities at a much less 
 cost than was assessed against local shippers for 
 moving the same commodities from San Fran- 
 cisco to Bakersfield, in Kern County, at the 
 head of the San Joaquin Valley, distant only 
 about 350 miles from San Francisco. The steam- 
 ship lines between San Francisco and China and 
 Japan were, with their rail connections between 
 San Francisco and the Eastern States, in open 
 violation of a ruling of the Interstate Commerce 
 Commission secured by a San Francisco mercan- 
 tile house, and were pursuing a policy which
 
 28 A GENERAL REVIEW. 
 
 largely prevented San Francisco merchants from 
 profitably importing tea from the Orient for ex- 
 portation to the Eastern markets of the United 
 States. The trade between San Francisco and 
 Mexico and Central American countries was 
 hampered by high rates and onerous conditions. 
 The river systems of California were not gen- 
 erally employed to further competitive freight 
 carriage. Port charges against shippers were 
 excessive and ships were heavily taxed. Over 
 fourteen millions of dollars had been paid to the 
 Pacific Mail Steamship Company by the roads 
 of The Transcontinental Association between 
 August, 1877, and March i, 1892, to prevent that 
 line from competing with the rail lines. A large 
 share of this money, which was paid as subsidy 
 to restrain trade, was derived from the earnings 
 of the Government-aided roads which were, and 
 are (April, 1895), heavily indebted to the Gov- 
 ernment of the United States and were pro- 
 fessing inability to pay such debts and accrued 
 interest. At the same time the Government was 
 paying a mail subsidy to the Pacific Mail. 
 
 This anomaly attracted the attention of United 
 States Senator Felton, who introduced a bill in
 
 A GENERAI, REVIEW. 29 
 
 the United States Senate to fix the compensation 
 to be paid for ocean mail service, which bill con- 
 tained the following provisions: 
 
 "And provided further, that no steamship so 
 employed, and no pel son or persons, or com- 
 pany, controlling, owning or running such 
 steamship shall be a part of any combination, 
 pool or understanding whatever, to fix or 
 alter or prorate passenger or freight rates with 
 any competing steamship or railroad lines, or do 
 any other thing whereby the competition of such 
 steamship shall be affected, or traffic on or by it 
 lessened or discouraged, or its standing and effect 
 as an independent competing line shall in any 
 way be affected; and before said steamship, or 
 person or persons or company shall be paid for 
 carrying the mails, it shall be established to the 
 satisfaction of the Postmaster-General that this 
 proviso has not bee*i violated by such steamship, 
 or person or persons, or company." 
 
 It was apparent, if The Transcontinental Asso- 
 ciation found it worth while to pay over fourteen 
 millions of dollars, in a few years, to control the 
 use of the Pacific Mail Steamship Company's 
 vessels, that it was worth still more to San Fran-
 
 3O A GENERAL, REVIEW. 
 
 cisco to have a free movement of commerce by 
 sea. That was one lesson that was not fruitless. 
 One clause of The Transcontinental Association 
 agreement provided that: " It is agreed that the 
 subsidy now paid the Pacific Mail Steamship 
 Company for its steamers between San Francisco 
 and New York State be borne by the several 
 railroad companies here represented in the pro- 
 portion of their revenues from San Francisco bus- 
 iness carried under this agreement." 
 
 Brazilian coffee was laid down at Denver, via 
 New York, at $1.25 per 100 pounds, and the rate 
 from San Jose de Guatemala to Denver, via San 
 Francisco, was $1.92^. Under the adverse con- 
 ditions indicated in the foregoing the tea imports 
 of San Francisco decreased from 170, 696 packages 
 in 1886, to 154,353 in 1891. Tea moved from 
 Yokohama to Salt Lake City, via San Francisco, 
 at 2^ cents per pound, while the same commod- 
 ity moved from Yokohama to Salt Lake City, via 
 Portland, Oregon, went forward at ij^ cents per 
 pound. These are only indicative straws. The 
 whole situation was similar. 
 
 E. F. Preston, Counsel for the San Francisco 
 and San Joaquin Valley Railway, drew another
 
 A GENERAL REVIEW. 31 
 
 picture February 5, 1895, when he said in an 
 open letter: 
 
 "Under present conditions the convergence of 
 all lines of the Sunset system at Tehachapi Pass 
 and points to the south, with connection between 
 ship and car on the shores of the Gulf of Mexico, 
 means the divergence from this place of the entire 
 exports of the State of California. With very 
 low transcontinental rates given to various points 
 called terminals, in the interior, with a high 
 local rate from San Francisco, the seaboard, to 
 such points, it is obvious that the supplies for the 
 interior must reach it via New Orleans and the 
 Tehachapi, so that San Francisco need not con- 
 cern herself with either the exports or the imports 
 of California. This condition appeals to every 
 business man, firm, or corporation within the 
 State of California, and as 'self-preservation is 
 the first law of nature, ' it becomes our primary 
 duty, so far as lies in our power, to avoid a con- 
 dition so disastrous to our State." 
 
 While it is necessary, in order to make this 
 narrative clear and ample, to segregate the 
 various enterprises mentioned, no mistake should 
 be made as to their substantial identity. In all
 
 32 A GENERAL REVIEW. 
 
 of them the individual movers, or very many of 
 them, were members of The Traffic Association of 
 California. These movements were wings of a 
 general advance. Like the ripples caused in a 
 pool the scope of activity continually widened 
 and the manifestations, while all sympathetic, 
 became varied. Had not the merchants moved 
 at first as they did, stagnation would have con- 
 tinued.
 
 II. 
 
 THE TRAFFIC ASSOCIATION 
 OF CALIFORNIA.
 
 THE TRAFFIC ASSOCIATION. 
 
 As the preceding pages have indicated, the 
 public mind was ready for concerted action and 
 all that was necessary was the directing impulse 
 to cause it to take a definite trend. No single 
 individual can lay claim to having created the 
 conditions which made the enterprise now in 
 view a possibility, unless that individual might 
 be the presiding genius of the Southern Pacific 
 Company, who furnished the necessary provoca- 
 tion. 
 
 But in these early days, younger business men 
 did their share, and perhaps more than their 
 share. Several meetings, preliminary to the first 
 formal deliberative gathering of the merchants, 
 were held in the offices of A. L,usk & Co. 
 Isidor Jacobs, the President of that Company, 
 moved so actively, that to him many attribute 
 the credit of precipitating action. After many 
 private conferences a circular letter of invitation 
 was sent out, and on the afternoon of October
 
 36 THE TRAFFIC ASSOCIATION 
 
 19, 1891, a fairly representative meeting of 
 commercial San Francisco was held in the as- 
 sembly hall of the Chamber of Commerce. 
 Thomas J. Haynes, Secretary of the Chamber of 
 Commerce, called the meeting to order. James 
 B. Stetson, upon nomination of W. J. Tilley, was 
 made Chairman. 
 
 Mr. Stetson, taking the chair, made a brief 
 speech, in which he stated the purpose in view 
 substantially as follows: 
 
 "Our object at this meeting is to organize a 
 freight bureau, or traffic association, or by what- 
 ever name it may be termed, whose purpose shall 
 be for mutual protection and extension of the 
 interests of San Francisco; for overcoming, by 
 united effort, discrimination and inequality 
 against the interest of San Francisco; for repre- 
 sentation in conferences upon matters of import- 
 ance to the shipping public with railroad or other 
 transportation companies. Associations similar 
 to the one we propose forming here are in exist- 
 ence in all the Eastern States, and great benefits 
 have accrued through them, and this will not 
 fail to prove successful here. I have been waited 
 upon this morning by members of ten of the
 
 OF CALIFORNIA. 37 
 
 largest business houses in this city, and I am 
 permitted to say, if the organization is begun on 
 the plan here foreshadowed, they will join with 
 us and enter into the work with a determination 
 that it shall succeed." 
 
 Thomas J. Haynes was elected Secretary. Re- 
 solutions were presented by Isidor Jacobs from 
 the committee of arrangements, who had attended 
 to the temporary organization, which proposed 
 that the name should be the Merchants' Traffic 
 Association of San Francisco and the State of 
 California; and which also enunciated generally 
 the purposes of the Association. These included 
 " the construction of canals, competitive systems 
 of railroads, steamship lines, and for any other 
 purpose that may tend to develop the interests of 
 the State; to seek new fields for our merchants 
 to distribute their goods, products and manu- 
 factures," etc. 
 
 Au Executive Committee under the terms of 
 the proposed plan was given power to draw up 
 by-laws and rules for the government of the 
 Association; to select all necessary employees; to 
 designate salaries; to determine the amount of 
 revenue that members should pay; to fix the
 
 38 THE TRAFFIC ASSOCIATION 
 
 qualification for membership, and to arrange such 
 other details as might be deemed advisable for 
 the success of the Association. This outline of 
 organization was adopted practically without 
 change. It was specified that the Executive 
 Committee should be confined to a stated number 
 of members of the mercantile community, from 
 whom should be elected a president, vice-presi- 
 dent and treasurer, and that the headquarters of 
 the Association should be in San Francisco. 
 
 The name after several suggestions as finally 
 adopted was The Traffic Association of Cali- 
 fornia. The speakers at the first meeting all 
 expressed themselves in hearty sympathy with 
 the movement. Prominent part in the proceed- 
 ings as speakers was taken by A. T. Hatch, E. 
 B. Beck, M. Ehrman, E. R. Stevens, William L>. 
 Merry, R. G. Sneath, Fred L,. Castle, Benjamin 
 Sloss, A. S. Hallidie, Harry Green of Monterey, 
 M. P. Jones, Thomas Fitch, Jr., Arthur R. 
 Briggs, A. J. Marcus, and S. N. Griffith of 
 Fresno. 
 
 The choice of the Governing Board, the Exec- 
 utive Committee, was the vital point, as to their 
 care was confided without limit the administra-
 
 OF CALIFORNIA. 39 
 
 tion of the business of the Association. It was 
 voted that the selection should be made by Mr. 
 Stetson, the Chairman. 
 
 These names were considered by the assembled 
 merchants worthy to be submitted in connection 
 with this important trust: J. C. Siegfried, A. J. 
 Mott, E- B. Beck, Isidor Jacobs, C. B. Tilley, 
 H. A. Williams, S. Nickelsburg, B. F. Dunham, 
 M. P. Jones, Thomas E- Hughes of Fresno, 
 George C. Hawley, A. T. Hatch, A. S. Hallidie, 
 James B. Stetson, E. B. Pond, R. J. Smith, J. A. 
 Folger, W. P. Redington, S. I,. Smith, Robert 
 Howe of Sonoma, George R. Sanderson, W. W. 
 Montague, Robert Watt, William I,. Merry, C. 
 E. Whitney, A. R. Briggs, T. C. White of 
 Fresno, Isaac Uphatn, I^evi Strauss, B. F. Stone, 
 M. Ehrman, Adam Grant, L,ouis Sloss, John D. 
 Spreckels, Daniel Meyer, C. B. Stone, Frank 
 Dalton, Thomas Fitch, Jr., C. L. Taylor, William 
 Haas, William I,. Dutton, E. H. Ransom, A. 
 Porter, Will E. Fisher, Adolph Sutro, Robeit 
 Oxnard, Barry Baldwin, J. Neustadter, Thomas 
 Dunnigan, D. N. Walter and Isaac Hecht. 
 
 Before the meeting adjourned a permanent 
 committee to encourage the construction of the
 
 4O THE TRAFFIC ASSOCIATION 
 
 Nicaragua canal was appointed, of which John 
 T. Doyle was Chairman. The preliminary work 
 now being accomplished, the meeting adjourned 
 subject to the call of the chair. 
 
 The first Executive Committee, which was 
 appointed by Mr. Stetson, consisted of F. I,. Cas- 
 tle of Castle Bros., J. C. Siegfried of Siegfried & 
 Brandenstein, F. W. Van Sicklen of Dodge, 
 Sweeney & Co., Robert Watt of the Lang- 
 ley & Michaels Co., B. F. Dunham of the 
 Dunham, Carrigan & Hayden Co., Isaac Up- 
 ham of Payot, Upham & Co., Isidor Jacobs 
 of the A. Lusk Canning Company, Eugene 
 B. Beck of D. L. Beck & Sons, A. W. Porter 
 of Porter Bros., William Haas of Haas Bros., 
 J. H. Wise of Christy & Wise, A. J. Mar- 
 cus, of S. H. Frank & Co., A. S. Hallidie of 
 the California Wire Works, Barry Baldwin, 
 President of the Merchants' Exchange Associa- 
 tion of San Francisco, J. B. Stetson of Holbrook, 
 Merrill & Stetson, S. N. Griffith of Fresno, C. T. 
 Settle, President of the Farmer's Union of San 
 Jose, J. A. Hodges, of H. Buck & Co., 
 Stockton, W. H. Wood of W. H. Wood & Co., 
 Sacramento. It will be observed that the
 
 OF CALIFORNIA. 4! 
 
 first Executive Committee represented only the 
 commercial interests of California, pure and sim- 
 ple. This was the first formal step. The enthu- 
 siasm was marked. 
 
 An informal meeting of the Executive Com- 
 mittee was held October 24, 1891, in the rooms 
 of the Board of Trade. J. B. Stetson was chosen 
 President, and Thomas J. Haynes, Secretary. 
 Committees were appointed on By-Laws and an 
 address. The plan of organization was approved 
 at a meeting held October 29, 1891, when Fred. 
 L- Castle was elected First Vice- President, Barry 
 Baldwin, Second Vice-President, and Isaac Up- 
 ham, Treasurer. The plan of permanent organ- 
 ization was adopted October 30, 1891, and imme- 
 diately after this the Committee actively engaged 
 in securing members under conditions laid down 
 in the Constitution and By-Laws. 
 
 The Constitution and By-Laws provided that 
 merchants, manufacturers, producers, and others 
 interested in, and favorable to, the objects of the 
 organization might be members. The Board of 
 Government was made to consist of nineteen 
 members, from whom were to be elected a presi- 
 dent, first vice-president, second vice-president,
 
 42 THE TRAFFIC ASSOCIATION 
 
 and treasurer. The Executive Committee decided 
 upon the admission of members, had entire con- 
 trol and management of affairs, including the 
 appointment of the manager; was also vested 
 with power to route all freight of members in 
 case of an emergency. One significant fact in the 
 regulations adopted was that no person was eligi- 
 ble to be elected to membership who was in the 
 employ of any transportation company or who 
 had a free pass over the lines of any transporta- 
 tion company. Members were divided into three 
 classes, according to their quarterly payments. 
 Members were secured with comparative ease. 
 A large part of the commercial community of 
 San Francisco felt strongly the responsibility 
 imposed upon it. 
 
 It was early proposed that co-operative asso- 
 ciations should be formed in all parts of the State 
 which should be entitled to representation in the 
 Executive Committee, but it is a fact that very 
 little co-operation was extended to San Fran- 
 cisco, which, practically single-handed and 
 almost alone, made this entire struggle from 
 beginning to the time when a competing railroad 
 seemed reasonably sure.
 
 OF CALIFORNIA: 43 
 
 At a meeting of the Executive Committee held 
 November 18, 1891, on motion of Isaac Upham, 
 the Committee to suggest a person for the posi- 
 tion .of Traffic Manager was authorized to 
 arrange with Joseph S. Leeds. Some corre- 
 spondence had previously passed between individ- 
 ual members of the Committee and Mr. Leeds, 
 who had signified his willingness to come to 
 California. Mr. Leeds began his services with 
 the Association December i, 1891. 
 
 The Traffic Association never had occasion to 
 regret this choice. The reputation which Mr. 
 Leeds had established elsewhere was increased 
 here by his acts. He had bulldog tenacity of 
 purpose and he proceeded in a straight line. He 
 was an expert in all matters pertaining to traffic 
 and was entirely familiar with transportation 
 conditions affecting the trade and commerce of 
 the Pacific slope. Long intimately associated in 
 business with the foremost men who were direct- 
 ing the policy of the great transportation lines of 
 the United States, he understood fully the motive 
 by which they were impelled and the policy 
 which dominated their actions. His integrity 
 was unimpeachable. He was a firm counselor
 
 44 THE TRAFFIC ASSOCIATION 
 
 and good enemy. The intricacies of tariffs, 
 devised to befog the public, were easily unraveled 
 by him. From him radiated many suggestions. 
 He became chief instructor in the science of 
 transportation to a State which was what was 
 then most needed. 
 
 A brief review of his career prior to his engage- 
 ment as Manager of The Traffic Association of 
 California is added for its historical value, for 
 the name of Joseph S. Leeds will always be in- 
 separably connected with the story of the awaken- 
 ing of California, in which he was no mean or. 
 small instrumentality. 
 
 Joseph S. Leeds was born in Clermont County, 
 Ohio, February 18, 1844, and was reared on a farm. 
 He enlisted in the Union army at eighteen years 
 of age in 1862, and served to the end of the Civil 
 War, being mustered out of service in Ohio 
 in June, 1865. He entered a railroad office in 
 August of the same year and learned telegraphy, 
 and in February, 1866, became connected with 
 the railroad. He was General Freight Agent of 
 the Atchison, Topeka and Santa Fe Railroad 
 Company from November, 1884, to January, 1888; 
 Chairman of The Transcontinental Association
 
 OF CALIFORNIA. 45 
 
 frcm January, 1888, to June, 1889; Freight Traf- 
 fic Manager of the Missouri Pacific and St. Louis, 
 Iron Mountain and Southern Railways from June, 
 1889, to May, 1891, when he was discharged 
 from the service by a resolution of the Advisory 
 Board of The Western Traffic Association, for a 
 technical violation of the agreement of that Asso- 
 ciation commonly known as the " President's or 
 gentlemen's agreement," consisting of the publi- 
 cation of open rates at the figures which were, 
 Mr. lyeeds claimed, secretly made by the other 
 lines who were parties to the agreement. He 
 remained idle from May, 1891, to December, 
 1891, when he entered the service of The Traffic 
 Association of California as Traffic Manager. 
 
 During his railroad service he was an active 
 participant in the traffic affairs of the Atchison, 
 Topeka and Santa Fe, The Transcontinental As- 
 sociation and the Gould lines, and was noted as 
 a stalwart defender of the rights of those he rep- 
 resented, as he has been of the interests of Cali- 
 fornia in the contest which has been waged for 
 more than three years. 
 
 The Executive Committee adopted the follow- 
 ing, December 2, 1891: "It is the unanimous
 
 46 THE TRAFFIC ASSOCIATION 
 
 sentiment of the Executive Committee of this 
 Association that, for our mutual benefit, we wel- 
 come the co-operation of members from the 
 interior." 
 
 The Committee to whom was intrusted the 
 duty of getting members consisted of Isidor 
 Jacobs, Isaac Upham, W. H. Wood, F. W. Van 
 Sicklen and A. J. Marcus. As early as December 
 loth, Traffic Manager Leeds and The Johnson- 
 Locke Mercantile Company called attention to 
 the importance of water transportation. 
 
 A competing clipper line was soon established 
 around Cape Horn in competition with the es- 
 tablished carriers. It was not established or 
 controlled by, but was encouraged by The Traffic 
 Association. The expediency of having such a 
 line came before the Association as early as 
 March, 1892. At a meeting of the Executive 
 Committee in that month, Robert Watt moved, 
 and it was so voted, that the interests of the Associ- 
 ation demanded that a line of clipper ships should 
 be established between New York and San Fran- 
 cisco, and the preparation of a plan for such line 
 was referred to the President and Manager of 
 the Association. Some negotiations were opened,
 
 OF CALIFORNIA. 47 
 
 but it appearing that a number of large mercan- 
 tile houses had, upon their own account, practi- 
 cally determined to place a competing clipper 
 line in operation, The Traffic Association, as an 
 organization, took no further part in the matter 
 except to assist as individuals in raising funds, 
 and in an advisory capacity. 
 
 This seemingly small beginning worked out 
 great consequences. The events connected with 
 the operation of the clippers by the Merchants' 
 Shipping Association are given somewhat in de- 
 tail in another chapter. The suggestion of The 
 Traffic Association was certainly well advised. 
 The full measure of effect upon the transconti- 
 nental combination was accomplished. Rates 
 under the influence of competition via Cape Horn 
 fell so that the space rental arrangement between 
 the transcontinental roads and the Pacific Mail 
 Steamship Company became unprofitable. The 
 subsidy of the Pacific Mail was withdrawn. Al- 
 most co-incidentally The Transcontinental Asso- 
 ciation passed out of existence. The way was 
 made clear for the Panama Railroad Company to 
 establish, in connection with the merchants of 
 San Francisco, a competitive steamship line be-
 
 48 THE TRAFFIC ASSOCIATION 
 
 tween New York and San Francisco via the 
 Isthmus of Panama. This mile-stone was reached 
 in just about one year after the Association ac- 
 tively began real work. 
 
 The first year was prolific in topics to engage 
 the attention and activity of the Association. 
 When the first annual meeting was held, October 
 26, 1892, the Executive Committee made a report 
 in which it was said: 
 
 " The circumstances which called for the exist- 
 ence of this organization were and are to-day of 
 paramount importance. While the individual 
 has not the power to cope with such a powerful 
 corporation (the Southern Pacific Company), we 
 believe The Traffic Association of California has 
 that power. It has also the disposition to exer- 
 cise that power impartially, dispassionately, 
 consistently and in the interests of the people of 
 the State. The most critical time in the life of 
 this organization has passed. It has gathered 
 strength from time to time and feels now that it 
 is in a position to cope with the commercial 
 problems which most immediately affect us, with 
 a moral certainty of success."
 
 OF CALIFORNIA. 49 
 
 " The State of California," said the Committee 
 in the same annual report, ' ' needs to have cheap 
 communication within itself. The annual prod- 
 uce of the State should have an easy market. 
 Cost of transportation between local points 
 should be at the minimum. The harbors of the 
 State should be maintained, open and free to 
 commerce; unnecessary restrictions and tolls on 
 trade should be abolished. Taxation should be 
 radically reduced, and by honest determination 
 this can be accomplished. The Railroad Com- 
 mission should be abolished." In conclusion, 
 the Committee congratulated the Association on 
 its increasing strength and evidence of per- 
 manency. 
 
 Traffic Manager Leeds submitted a report and 
 review of the first year's work, calling attention 
 to the fact that what had been done covered a 
 period of only ten months. The work was 
 varied. "One of the strong points gained," 
 said Mr. Leeds, " is in the education of the pub- 
 lic. One year ago there existed in the State a 
 strong prejudice against any movement which 
 had its origin in this city. This was especially 
 true with what are known as terminal points and
 
 5O THE TRAFFIC ASSOCIATION 
 
 prejudice was encouraged by the Southern Pacific 
 Company in order to divert public attention from 
 more vital matters. This has been overcome to 
 a great degree by the work which has been done 
 and the literature which has gone forth from the 
 Association." This literature was voluminous. 
 The Association also, during the first year, 
 filed comparative schedules before the Board of 
 Railroad Commissioners, showing conclusively 
 how much higher rates were in California upon 
 local business than they were in other parts of 
 the country similarly circumstanced. These 
 schedules and resultant hearings (Mr. Leeds be- 
 ing called as a witness before the Railroad Com- 
 missioners), held public attention for a period of 
 several months and they were unquestionably 
 valuable in increasing popular sympathy for the 
 Association's work. Some very ingenious fenc- 
 ing between the Board of Railroad Commis- 
 sioners and Traffic Manager Leeds occurred. 
 The Commissioners desired to have the Associa- 
 tion file a complaint, but were unable to bring 
 this about as it would have put the burden of the 
 proof on the Association. The political exist- 
 ence of the Commissioners was threatened and
 
 OF CALIFORNIA. 51 
 
 the filing of a complaint by R. O. Shivley of San 
 Jose having been procured, Col. Richard P. 
 Morgan was called as an expert to testify that 
 the rates in California were not only reasonable 
 but that they were too low, considering the expen- 
 sive unproductive lines over mountains and 
 deserts of which the California local lines were 
 an integral part. This campaign was long and 
 exciting. 
 
 The Legislature being about to sit, a pledge 
 was formulated which was placed before each 
 candidate for the Senate and Assembly, provid- 
 ing for legislative measures which were consid- 
 ered necessary. Many candidates signed this 
 pledge and party organizations attested their 
 appreciation of the power of the Traffic Associa- 
 tion by taking such action as they saw fit in this 
 connection . 
 
 Rates by sailing vessels around Cape Horn 
 were reduced by the competition of the clipper 
 ships at least four dollars ($4) per ton in a period 
 of five months; at one time not less than forty 
 thousand tons of clipper freights were afloat at 
 these reduced rates.
 
 52 THE TRAFFIC ASSOCIATION 
 
 The organization of the San Francisco and 
 Great Salt Lake Railroad Company, which took 
 place during the year, to build a road from San 
 Francisco to Salt L,ake City, Utah, and to occupy 
 the valleys of California, had its impulse in the 
 activity of The Traffic Association. 
 
 Mr. Stetson resigned the presidency of The 
 Traffic Association early in 1892. Fred L. Cas- 
 tle was elected President to succeed him, Barry 
 Baldwin becoming First Vice-President, and W. 
 H. Wood, Second Vice-President. The attitude 
 of the Association in June, 1892, was outlined in 
 an address and declaration of principles, which 
 was signed by Fred L- Castle as President and 
 by all the members of the Executive Committee. 
 Six months' experience had led the Association 
 to take a definite stand. "The transportation 
 problem," sets forth this address, " is the most 
 vital of any of the questions with which the State 
 of California has to deal at this time. The car- 
 riers have endeavored, in various ways, to im- 
 pugn the motives of the Traffic Association and 
 engender strife between this city and other por- 
 tions of the State. The object is obvious. A 
 divided community could more easily be made
 
 OF CALIFORNIA. 53 
 
 subservient. It is, therefore, deemed advisable, 
 by The Traffic Association of California, to make 
 such a declaration of principles as may not be 
 misunderstood. We believe that a reduction and 
 equitable adjustment of the local tariffs and the 
 establishment of a uniform classification through- 
 out the entire State are needed to help every 
 point and every industry and that the effect 
 would be to lower the standard of the through 
 rates." 
 
 Political action was also recommended. The 
 Democratic State Central Committee and the 
 California League of Progress sent communica- 
 tions to the Committee, promising to use their 
 influence to pledge legislative candidates to act 
 in accordance with a pledge prepared by the 
 Association. 
 
 Before the first year was out, Fred L. Castle, 
 being ill, was unable to serve longer as President. 
 He died soon after, his loss being much regretted. 
 At the first annual meeting the following were 
 elected members of the Executive Committee: 
 Barry Baldwin, W. B. Wellman, John T. Doyle, 
 A. Schilling, Robert Watt, B. F. Dunham, F. 
 W. Van Sicklen, Alvinza Hayward, Charles M.
 
 54 THE TRAFFIC ASSOCIATION 
 
 Yates, Isaac Upham, L L. Baker, A. W. Porter, 
 A. J. Marcus, A. S. Hallidie, Frank Dalton, W. 
 H. Wood, C. T. Settle and S. N. Griffith. Barry 
 Baldwin was elected President; Robert Watt, 
 First Vice-President; L,. L. Baker, Second Vice- 
 President; Isaac Upham, Treasurer, and Thomas 
 J. Haynes, Secretary. A. S. Hallidie declined 
 to serve and John F. Merrill was named to fill 
 the vacancy. 
 
 The years 1892 and 1893 were a period of 
 great activity on the part of The Traffic Associa- 
 tion. In addition to assisting the competing 
 clipper ship line and the San Francisco and 
 Great Salt Lake Railway, a political campaign 
 was organized to effect reforms through the 
 Legislature which made much stir and, soon 
 after that, the plan of what was subsequently 
 known as the North American Navigation Com- 
 pany was brought before the Association for 
 endorsement and support. 
 
 On the last day of 1892 it was voted to send 
 Mr. Leeds to New York to negotiate in company 
 with Frank S. Johnson with the Panama Rail- 
 road Company for an arrangement for moving 
 freights via Panama, and the negotiations re-
 
 OF CALIFORNIA. 55 
 
 suited in providing a way for the maintenance 
 of the North American Navigation Company's 
 line of steamers. In December, 1892, Livings- 
 ton L,o w Baker, Second Vice- President, having 
 died, Walter M. Castle was elected a member of 
 the Executive Committee to fill the vacancy 
 caused by Mr. Baker's death, and F. W. Van 
 Sicklen was elected Second Vice-President. 
 
 The success of the Association was checked 
 during the latter part of the year 1893, by gen- 
 eral financial stringency extending all over the 
 United States. That year the establishment of 
 a coastwise steamship line was discussed. A 
 committee of seven was appointed to confer with 
 the citizens of Stockton, Fresno, Merced, Ber- 
 enda, Madera, Modesto, Tulare, Bakersfield and 
 other points in the San Joaquin Valley relative 
 to the construction of the railroad between 
 Stockton and Bakersfield. The Merchants' 
 Freighting Association, having been formed 
 under the leadership of William R. Wheeler to 
 regulate rates by steamship and rail to and from 
 the southern seaboard between San Francisco 
 and Los Angeles and other Southern California 
 points by putting on competing steamers if
 
 56 THE TRAFFIC ASSOCIATION 
 
 necessary, a conference was brought about be- 
 tween representatives of the Pacific Coast Steam- 
 ship Company and Messrs. Wheeler and Leeds, 
 which resulted in the formulation of a schedule 
 of rates which was satisfactory to the merchants, 
 and which was put into effect. The navigation 
 of the San Joaquin River was also investigated 
 to some extent. 
 
 In June, 1893, Alvinza Hay ward, Barry Bald- 
 win, Isaac Upham, John T. Doyle, F. W. Van 
 Sicklen, Robert Watt, Charles M. Yates, Frank 
 Dalton and J. S. Leeds were appointed a com- 
 mittee to solicit subscriptions for the stock of the 
 proposed railroad through the San Joaquin 
 Valley, to be known as the San Francisco and 
 San Joaquin Valley Railroad. The League of 
 Progress was recognized, and the President and 
 Traffic Manager were authorized to arrange with 
 the League to procure subscriptions for the stock 
 of the railroad. 
 
 The proceedings before the Legislature, early 
 in 1893, looking to the removal of the Board of 
 Railroad Commissioners, the adoption of a dis- 
 tance tariff, and a Constitutional amendment 
 were not successful. The condition of the North
 
 OF CALIFORNIA. 57 
 
 American Navigation Company after a time 
 became precarious. Hard times made it impos- 
 sible to get much money for the proposed rail- 
 road to compete for local business. The San 
 Francisco and Great Salt Lake Railway had also 
 failed as an enterprise, and had been formally 
 abandoned. When the time for the annual 
 meeting arrived, progress was seen to have been 
 temporarily arrested. The bright part of the 
 picture was supplied during the earlier months; 
 but the annual report of the Executive Com- 
 mittee, which reviewed the changes made in the 
 situation by the operation of the North American 
 Navigation Company was re-assuring and there 
 was no faltering. It was this courage that 
 eventually wrested victory from repeated re- 
 pulses. The Transcontinental Association 
 seemed to have been disposed of permanently, 
 which was much cause for congratulation. 
 
 The Executive Committee appointed October 
 25, 1893, included a large majority of those who 
 had conducted the contest, representing the 
 Association from the first. A few new names 
 were introduced. The members elected were 
 John F. Merrill, F. W. Van Sicklen, B. F. Dun-
 
 58 THE TRAFFIC ASSOCIATION 
 
 ham, Ansley G. Davis, John T. Doyle, Robert 
 Watt, Isaac Upham, Jay Deming, Alvinza Hay- 
 ward, S. N. Griffith, A. J. Marcus, Barry 
 Baldwin, I^eon Sloss, Charles M. Yates, George 
 T. Marye, Jr., W. P. Redington, Thomas Magee, 
 C. T. Settle, and W. H. Wood. Barry Baldwin 
 was re-elected President; Robert Watt, First Vice- 
 President; F. W. Van Sicklen, Second Vice- 
 President; Isaac Upham, Treasurer; and Thomas 
 J. Haynes, Secretary. J. S. L,eeds was re-engaged 
 as Traffic Manager. The various occurrences 
 connected with the North American Navigation 
 Company during this year are detailed in another 
 chapter, devoted particularly to the history of 
 that Company. At a noteworthy meeting at 
 which The Traffic Association, Chamber of Com- 
 merce, Board of Trade of San Francisco, Produce 
 Exchange of San Francisco, Stock Kxchange, 
 and California League of Progress were repre- 
 sented, seventy-three thousand two hundred 
 dollars ($73,20x3) was subscribed in a very 
 short time of the one hundred thousand dollars 
 ($100,000) necessary to keep the competing 
 steamers in operation when funds were low. 
 Isaac Upham was a prominent figure in the 
 proceedings.
 
 OF CALIFORNIA. 59 
 
 In May, 1894, ^ e construction of a railroad 
 from Stockton to Fresno or Bakersfield, which 
 had been permitted to slumber for a time, again 
 came under consideration. A new name was 
 adopted; viz., the San Francisco, Stockton and 
 San Joaquin Railroad Company. This project 
 was prosecuted throughout the year 1894. Barry 
 Baldwin resigned the Presidency of the Associa- 
 tion, and Thomas J. Haynes resigned as Secre- 
 tary. Isaac Upham was elected President, B. F. 
 Dunham, Treasurer, and Hosmer W. Leeds, 
 Secretary. Independent candidates for Railroad 
 Commissioners, to whom the support of the 
 Association was pledged, were selected. These 
 were H. M. I,aRue, Alfred J. Marcus, and W. 
 W. Phillips. Mr. I,aRue alone of these candi- 
 dates was elected, he having the Democratic 
 nomination also. 
 
 The prospects for bringing into existence the 
 proposed competing railroad through the San 
 Joaquin Valley varied from time to time, but no 
 definite result was reached prior to the third 
 annual meeting of the Association. It was 
 necessary to secure stock subscriptions amount- 
 ing to three hundred and fifty thousand dollars
 
 60 THE TRAFFIC ASSOCIATION 
 
 ($350,000), or one thousand dollars ($1000) per 
 mile, as a legal basis for the incorporation of the 
 railroad. Only about one hundred and fifty 
 thousand dollars ($150,000) had been pledged, 
 and it was found necessary to extend the time 
 for taking subscriptions six months. 
 
 When the annual meeting was held in 1894, 
 the steamship line between New York and San 
 Francisco, on both sides of the Isthmus, was 
 controlled solely by the Panama Railroad Com- 
 pany, but the low rates which had been brought 
 about by the active participation of the San 
 Francisco merchants as competitive carriers, 
 were still maintained, and permanent competition 
 seemed to have been established. The Execu- 
 tive Committee appointed to serve from October 
 24, 1894, for one year, consisted of Isaac Upham, 
 Robert Watt, F. W. Van Sicklen, B. F. Dunham, 
 Alvinza Hayward, A. J. Marcus, Charles M. 
 Yates, John T. Doyle, C. T. Settle, E. A. Phelps, 
 Ansley G. Davis, Jay Deming, Thomas Magee, 
 L. H. Bonestell, N. P. Cole, Mathias Meyer, 
 Edward Brown, W. P. Fuller, and Fulton G. 
 Berry of Fresno. Mathias Meyer resigned, and 
 John Taylor was elected as a member of the
 
 OF CALIFORNIA. 6l 
 
 Committee. Mr. Leeds was re-engaged for 
 another year. 
 
 The present year (1895) opened with only the 
 competing railroad immediately in view to 
 engage the energies of the Association, but the 
 Association was unalterably committed to this. 
 It was resolved on January 10, 1895, upon motion 
 of John Taylor, Mr. Marcus seconding, that a 
 committee consisting of the President, Vice- 
 President, 'and Traffic Manager, be requested to 
 prepare a letter to be sent to all parties interested 
 in the proposed railroad, and requesting them to 
 attend a meeting to be held January 22, 1895. 
 This letter as prepared was as follows: 
 
 Office of The Traffic Association of California, 
 
 SAN FRANCISCO, January 17, 1895. 
 Dear Sir: The proposition of constructing a 
 railroad in the San Joaquin Valley under the 
 auspices of this organization is too well under- 
 stood by this community to require an introduc- 
 tion ; and the necessity of the road to the 
 commercial, financial, and real estate interests 
 of this City and the State is too apparent to 
 require lengthy discussion.
 
 62 THE TRAFFIC ASSOCIATION 
 
 We regard it as a necessity to enhance and 
 sustain values of real estate and at the same 
 time become an insurance upon the mortgage 
 loans both in this city and in the country. It is 
 a necessity also for the increased business it will 
 create and bring to San Francisco to sustain an 
 important and waning commerce, to which the 
 large number of empty stores, offices, and houses, 
 and the decline of rents and values of realty 
 bear testimony and present an argument more 
 potent then words we can utter. 
 
 The situation in the State north of Tehachapi 
 is too well understood throughout our whole 
 country to admit of the expectation that immi- 
 grants of intelligence will seek to make their 
 homes in the San Joaquin Valley to become the 
 peons of the Southern Pacific Company, or that 
 capital will seek further investment in this city 
 or that valley under such conditions as exist at 
 present. The Southern Pacific Company have 
 discounted the future of California too far in 
 advance. 
 
 This Association has carefully canvassed the 
 mercantile community for subscriptions to the 
 capital stock of the road, and while they express 
 a thorough willingness to take a liberal share, 
 they will not do so to any large extent unless 
 the co-operation of the real estate and financial 
 interests is secured .
 
 OF CALIFORNIA. 63 
 
 We respectfully request that you give this 
 matter your careful consideration and join hands 
 with us for the upbuilding of the State espe- 
 cially this city. We believe the necessity is 
 urgent and the situation for your city critical. 
 We assure you that it makes a vast amount of 
 difference to San Francisco who builds the road 
 in the valleys of California, involving absolutely 
 the future prosperity or adversity of this city. 
 Another road in these valleys, governed by the 
 same instincts and incentives which prompts the 
 one we now have to subserve everything to the 
 long overland haul and to discriminate against 
 this city, as is done when the charge is more for 
 the movement of freight between San Francisco 
 and the valley than is exacted for ten to twenty 
 times the service in the opposite direction, would 
 render San Francisco completely subservient, 
 and make it the supplicant for such favors as it 
 might serve the interests of such roads to grant. 
 
 These are facts too important to let pass un- 
 heeded. It is of the utmost importance that 
 San Francisco shall act promptly. To this end 
 we have extended invitations to the large num- 
 ber of persons, who, like yourself, are interested 
 in the future prosperity of San Francisco, and we 
 earnestly request you to meet them and this Com- 
 mittee to consider and discuss this problem, at 
 the rooms of the Chamber of Commerce on Tues-
 
 64 THE TRAFFIC ASSOCIATION 
 
 day, January 22, 1895, at two o'clock P. M. 
 Respectfully submitted by order of the Executive 
 Committee, 
 
 ISAAC UPHAM, President. 
 
 What had been said by Traffic Manager Leeds 
 concerning the possible future of the San Joaquin 
 Valley and the influence for development to be 
 exerted by the construction of the competing 
 railway through that section, undoubtedly took 
 firm hold on the public mind. There has been 
 no reasoning running counter to the proposition 
 laid down by him. Hence it was argued that 
 the road would not only be profitable, but would 
 serve a very useful purpose in developing the re- 
 sources of the State and in bringing relief from 
 arbitrary rates and discriminative methods on 
 the part of the existing transportation lines. 
 
 The Executive Committee endorsed the view 
 of Mr. Leeds that " a railroad in this valley can 
 rely with almost certainty each year upon traffic 
 in all portions of the valley where irrigation is 
 practicable, and with almost unerring certainty 
 upon a sufficiency of moisture in the foothill 
 country of the western slope of the Sierra Nevada 
 Range, to produce a crop." It was further shown
 
 OF CALIFORNIA. 65 
 
 that the traffic of the Southern Pacific Company 
 in the valley increased five fold in five years. 
 The territory of the valley was an empire in 
 itself. 
 
 At the time of the organization of the Traffic 
 Association, only 2,505,800 acres were under cul- 
 tivation, or about 14 per cent; and the succeed- 
 ing three years were not favorable owing to 
 financial depression, in addition to local causes, 
 for reasonable development. There were suscep- 
 tible of irrigation at least 4,520,000 acres as esti- 
 mated, or nearly 26 per cent of the arable valley. 
 It was a glittering picture indeed, appealing to 
 hope. 
 
 "There are," it was also ascertained, " on the 
 mountain sides, at least 2,000,000 acres of mill 
 timber of the choicest character, besides vast 
 quantities in adjoining counties." Horticulture 
 was supposed to be in its infancy, there being in 
 1892 only 83,498 acres in bearing, and 30,039 
 acres not yet in bearing. The possibilities, with 
 proper encouragement, of horticulture and the 
 introduction of immigration were considered to 
 be beyond comprehension, for, as the report went 
 on, " It is considered that an acre devoted to
 
 66 THE TRAFFIC ASSOCIATION. 
 
 horticulture yields in tonnage for the railroad 
 three or four times as much as any other crop, 
 and the product yields a better rate per ton than 
 wheat or cereals, requiring more labor in propor- 
 tion of area of crop, and hence, more people re- 
 quire supplies, thus creating more traffic for a 
 railroad." 
 
 The population was sparse, and yet in 1892 
 10,000 carloads of the product of the orchard 
 and vineyard, 390,000 tons of wheat, and large 
 quantities of barley, hay, vegetables, live stock, 
 wool, lumber, etc., were produced. It was also 
 held that a railroad would have a large business 
 transporting general merchandise, implements, 
 machinery, coal, salt, cement, lime, and other 
 building materials. 
 
 "Petroleum in large quantities is also found, 
 as well as asphalt, and latterly a very superior 
 quality of lignite coal has been developed in 
 such vast quantities and so cheap of production 
 as to bid fair to revolutionize the fuel question of 
 the whole State, offering a steam coal cheap 
 enough to encourage very materially the estab- 
 lishment of industries in this city and in the 
 valley, which is impossible under present con-
 
 OP CALIFORNIA. 67 
 
 ditions. In reality there is no other portion of 
 our whole country so prolific in resources for a 
 large and profitable local trade." 
 
 These conditions were a powerful incentive to 
 promote action, for it appeared not only would 
 emancipation follow effort in this direction, but 
 the projectors were assured that their expecta- 
 tion of profit in the enterprise was reasonable. 
 From the same authority are derived these ad- 
 ditional statements, which helped to stimulate 
 the people to action. 
 
 "If there is any doubt in the mind of any 
 one as to the causes which retard the growth of 
 the State, a few facts here stated will help to 
 place the responsibility where it belongs. The 
 capitalization of the lines of the Southern Pacific 
 Company in the State, including the Central 
 Pacific (including the Government debt), is as 
 follows: 
 
 Funded debt, 3,498 miles (bonds) $159,615,180 
 
 or $45,630.40 per mile. 
 Capital stock 165,311,300 
 
 or $47,258.80 per mile, 
 
 Total $324,926,480
 
 68 THE TRAFFIC ASSOCIATION 
 
 Leaving out Central Pacific. 
 Funded debt, 2,138 miles (bonds) $70,615,300 
 
 or $33,028.75 per mile. 
 Capital stock ................... 97,31 1,300 
 
 or $45,5 15. oo per mile. _ 
 
 Total .................. $167,926,480 
 
 543-75 per mile. 
 
 ' ' The above is on the basis that the capitali- 
 zation of the line between Mojave and the 
 Needles which is under perpetual lease to the 
 Atlantic and Pacific road is not included in the 
 annual report of the operations of the Southern 
 Pacific Company for the year 1891. 
 
 " The gross earnings on the 3498 miles for 
 1891 were thirty-one million five hundred and 
 fifty-five thousand seven hundred and sixteen 
 dollars ($31,555,716), or nine thousand and 
 twenty-one dollars ($9021) per mile, which, if 
 properly segregated and apportioned, would show 
 that this State is assessed at least ten thousand 
 dollars ($ 10,000) per mile in order to pay interest 
 on this excessively over-capitalized property. 
 
 "In 1891 California had 277 people per mile of 
 railroad, and paid to the railroads in earnings in 
 the State twenty-four dollars and thirty-eight
 
 OF CALIFORNIA. 69 
 
 cents ($24.38) per capita. This includes no earn- 
 ings by any water lines through or local. Con- 
 sidering that most of our fuel and a large portion 
 of our building material, as well as vast quantities 
 of our produce (not including exports), move by 
 water, a conservative estimate would be an 
 annual tax for transportation, assessable to the 
 State of California, of thirty dollars ($30) for 
 each man, woman, and child in the State, or an 
 aggregate of over thirty-six million dollars. 
 
 "In 1891 the State of Kansas, which has no 
 water transportation, paid eighteen dollars and 
 twenty-three cents ($18.23) per capita, and had 
 only 1 60 people per mile of railroad, or 117 
 less than California. For the same period the 
 State of Nebraska, which also has no water 
 transportation, paid eighteen dollars and eleven 
 cents ($18. 1 1) per capita, and had only 200 people 
 per mile of railroad, or 77 less than California." 
 
 The large earnings of the Southern Pacific 
 Company in the San Joaquin Valley could only 
 be attributed to the high prices paid by the less 
 than 200,000 persons living there at that time. 
 
 Curiosity may be entertained in the future, 
 under new conditions, concerning the legislation
 
 70 THE TRAFFIC ASSOCIATION 
 
 which in 1892-93 was considered by the Exec- 
 utive Committee essential to the prosperity of 
 the State. A pledge, of which an outline is herein 
 given, was formulated for presentation to candi- 
 dates for seats in the Senate and Assembly. An 
 address to the voters was also issued recapitulat- 
 ing the pledge submitted to candidates, and also 
 naming those candidates who had voluntarily 
 signed it. 
 
 "The State has suffered," the voters were 
 told, " and is now suffering untold loss by reason 
 of the unjust and grossly discriminating local 
 rates exacted by the carriers within its limits. 
 We therefore conclude that the proper legal 
 regulation of the carriers within the limits of the 
 State is the most important question which pre- 
 sents itself to the people at this time, and that 
 such regulation must be necessarily accomplished 
 by legislative methods properly and intelligently 
 directed." 
 
 The individual pledge exacted from each and 
 every candidate was as follows : 
 
 First That such measures shall be adopted as 
 will compel all railroads to pay their taxes in 
 full, delinquent and current, as other property in 
 the State is taxed.
 
 OF CALIFORNIA. Jl 
 
 Second To pass a bill immediately upon the 
 convening of the Legislature, so amending the 
 Constitution as to abrogate that portion which 
 provides for the regulation of rates and fares 
 and the provision for the State Board of Railroad 
 Commissioners, and at the same time place the 
 regulation of transportation companies in the 
 hands of the Legislature, removing any and all 
 judicial features which may in any way interfere 
 with such regulation. 
 
 Third That such amendment shall be imme- 
 diately submitted to the voters of the State for 
 ratification, so that the same session may pass 
 the necessary bills for the regulation of all trans- 
 portation companies in the State. 
 
 Fourth Pledge the passage of a bill providing 
 a uniform classification and a maximum tariff 
 which will provide reasonable rates between all 
 points in the State; taking out the discriminative 
 features which now exist; introducing such com- 
 modity features as will provide for reasonable 
 rates on cereals, live stock, orchard products, 
 and all other products and manufactures of the 
 State. 
 
 Fifth To provide for a Board of Three Com- 
 missioners to supervise the transportation compa-
 
 72 THE TRAFFIC ASSOCIATION 
 
 nies of the State, to be elected by. the State at 
 large; one for two, one for four, and one for six 
 years; one commissioner to be elected at each 
 succeeding general election. Making necessary 
 provision for removal from office on account of 
 inattention to or dereliction of duty; said Board 
 to be invested with all the powers which are 
 conferred upon the present Board of the State of 
 Iowa, except that in no case shall they exceed 
 the maximum tariff provided by the Legislature. 
 
 Sixth That this shall be made the special 
 work and mission of each candidate so pledged 
 (if elected) until accomplished, and that no 
 adjournment will be consented to until this work 
 is done. 
 
 The Legislative programme ultimately failed 
 because of the action of the " hold-over " Sena- 
 tors. Colonel T. F. Barry, J. S. Leeds, and 
 Barry Baldwin worked hard to carry the plan 
 through, but were unable to reach success. 
 
 The signers of this pledge were many. The 
 following Senatorial candidates enrolled them- 
 selves under the pledge: Noble Martin, H. C. 
 Gesford, B. F. Taylor, William Morris, W. H. 
 Fry, Elliot McAllister, Silas March, William J.
 
 OP CALIFORNIA. 73 
 
 Greer, William J. Dunn, J. D. Horan, F. A. 
 Potter, Thomas F. Mitchell, Munro Greenwood, 
 William J. Biggy, Charles S. Arms, J. K. 
 Phillips, John Fay, John C. Gore, Joseph W. 
 Ward, Bart Burke, W. N. Greer, D. C. Feely, 
 W. E. Shepherd. 
 
 The following named candidates for the 
 Assembly also signed the pledge: Thomas Duffy, 
 A. J. Bledsoe, Aaron Bell, T. W. H. Shanahan, 
 Leon Luighton, George Ohleyer, George A. 
 Sturtevant, Joseph Sheppard, George W. Simpers, 
 L,. L. Hutson, D. J. B. Schroebel, James Farrier, 
 Thomas P. Cusick, Fredrick Emery, Peter J. 
 Kelly, William T. Boyce, Samuel A. Leffingwell, 
 Israel S. Cohen, S. H. Phillips, R. W. Ketcham, 
 E. E. Drees, John Johnson, James H. Wilkins, 
 H. F. Emeric, William Shafer, Richmond 
 Luttringer, George C. Sargent, J. M. Higgins, 
 E. T. Nebens, Joseph G. Gallagher, John 
 Brownlee, Thomas W. Burke, Robert Cress, 
 Andrew G. Maguire, Bert Schlessinger, W. T. 
 Kibbler, Thomas L- Vulicevich, J. W. Keys, 
 Julius Kahn, R. I,. Thomas, Edwin A. Street, 
 Lewis A. Phillips, Edtnond Godchaux, O. D. 
 Baldwin, Henry Warfield, Samuel Shaen,
 
 74 THE TRAFFIC ASSOCIATION 
 
 William Hendrickson, Jr., H. W. Bracken, 
 Joseph M. Marks, A. Decourtieux, William H. 
 Gately, Hugh Stewart, John Hayes, Hugh 
 O'Neal, Thomas B. Russel, A. Bretz, William 
 
 A. Boscon, Iy. W. Kimball, J. F. Faulk, Francis 
 H. McLean, Edward McGuire, J. B. McDonald, 
 Bernard Conway, J. J. Kennedy, John H. 
 Buckley, J. A. Williams, Alonzo McDermott, 
 M. J. Hurley, Charles N. Hitchcock, P. R. 
 Adams, F. Garrigus, H. H. Johnson, J. B. Seely, 
 H. K. Robin, Robert Summers, Massey Thomas, 
 
 B. O. Marston, W. H. Barren, G. S. Nash, H. 
 T. Besse, H. J. T. Jacobsen, W. S. Cunningham, 
 S. Townsend, W. Davison, E. A. Pueschel, 
 James Morgan, S. N. Androus, M. P. Snyder, 
 N. J. Mills, D. J. Johnson, F. B. Whiting, 
 Charles H. Forbes, E. C. Deering, T. F. Kerr, 
 J. G. Wright, R. O. Baldwin, F. H. Holscher, 
 Joseph F. Coffey, T. F. Burns, J. L. Sargent, 
 Henry Lukes, A. R. Downing, O. A. Shaw. 
 
 In judging the results achieved by The Traffic 
 Association, it should be borne in mind that the 
 Association had no fund to draw upon to purchase 
 ships or to build railroads. Its income con- 
 sisted solely of the dues paid by its members.
 
 OF CALIFORNIA. 75 
 
 It was entitled to and retained the confidence of 
 the public. Around it rallied others. It was 
 the central force, and the workers in its ranks 
 will be accorded great credit by all dispassionate 
 observers of the events in which they were the 
 leading actors. 
 
 The first location of The Traffic Association 
 offices was in the building at the northeast 
 corner of Market and Sansome Streets, above 
 the Wells, Fargo Bank. Subsequently the 
 Association moved to 214 Pine Street, between 
 Sansome and Battery Streets, in the building 
 owned by Daniel Meyer. The mercantile organi- 
 zations of the city provided the free use of their 
 Assembly Halls for the annual meetings of the 
 Association and in this way the Chamber of 
 Commerce of San Francisco and the San Fran- 
 cisco Board of Trade showed their good-will 
 toward the enterprise. 
 
 The first President of the Traffic Association, 
 James B. Stetson, held office from the organiza- 
 tion of the Association until May 10, 1892. He 
 then resigned as President, but not from mem- 
 bership on the Executive Committee. Fred ~L,. 
 Castle, who succeeded him, served as President
 
 76 THE; TRAFFIC ASSOCIATION 
 
 from May 17, 1892, until the annual meeting, 
 October 26, 1892, when he was compelled to 
 retire by reason of serious illness. Barry Bald- 
 win was President from October 29, 1892, until 
 June 6, 1894. Isaac Upham was elected Presi- 
 dent, June 6, 1894, and remains in that position 
 (April,- 1895.) 
 
 Of the first Executive Committee, the follow- 
 ing have remained in continuous service up to 
 the date of this publication: John T. Doyle, 
 Robert Watt, B. F. Dunham, F. W. Van Sick- 
 len, Alvinza Hayward, Charles M. Yates, Isaac 
 Upham, A. J. Marcus and C. T. Settle. 
 
 A complete list of those who, at various times, 
 were members of the Executive Committee, in 
 addition to the foregoing, is as follows: Fred I,. 
 Castle, Barry Baldwin, John Taylor, W. H. 
 Wood, W. B. Wellman, A. Schilling, Thomas 
 Magee, L. L. Baker, E. B. Beck, A. W. Porter, 
 A. S. Hallidie, Frank Dalton, S. N. Griffith, 
 Walter M. Castle, Hermann Bendel, Ansley G. 
 Davis, John F. Merrill, Jay Deming, lycon Sloss, 
 George T. Marye Jr., W. P. Redington, A. H. 
 Vail, M. Ehrman, L. H. Bonestell, N. P. Cole, 
 W. P. Fuller, Mathias Meyer, Edward Brown, 
 E. A. Phelps and Fulton G. Berry.
 
 OF CALIFORNIA. 77 
 
 J. S. Leeds resigned the office of Traffic Man- 
 ager, April i, 1895, and withdrew from further 
 work in connection with the Association, return- 
 ing East. A few days later the Executive Com- 
 mittee adopted, by a rising vote, the following: 
 
 "Whereas, Joseph S. Leeds has with zeal, 
 ability, unflinching courage and conspicuous suc- 
 cess, served The Traffic Association of California 
 as Traffic Manager continuously during the 
 period embraced between December i, 1891, and 
 March 31, 1895; and 
 
 "Whereas, This Association perceives that 
 his acts in California have fully justified the wis- 
 dom of the choice made by the Executive Com- 
 mittee; and that he has given to the work of this 
 Association, without stint, the benefit of all the 
 knowledge of transportation and transportation 
 conditions acquired by hini during a long term of 
 years, rich in experience, while he occupied pro- 
 minent executive positions with the great rail- 
 way systems of the United States; therefore 
 belt 
 
 "Resolved, By this Executive Committee 
 expressing the sentiment of this Association, 
 that while this Committee has accepted, with
 
 78 THE TRAFFIC ASSOCIATION 
 
 regret, the resignation tendered by Joseph S. 
 Leeds, we desire to place on record our convic- 
 tion that his name will rank high in the list of 
 those who have pioneered the way to the com- 
 mercial emancipation of California. 
 
 "Resolved, That the thanks of this Associa- 
 tion, coupled with wishes for his future pros- 
 perity, are hereby tendered by this Executive 
 Committee to Joseph S. Leeds. 
 
 "Resolved, That these resolutions be duly 
 entered in the minutes of The Traffic Associa- 
 tion of California; that a copy be transmitted to 
 Mr. Leeds; also that copies be furnished to the 
 daily newspapers for publication." 
 
 Hosmer W. Leeds resigned April 3, 1895, the 
 position of Secretary, and Charles M. Yates, of 
 the Executive Committee, was elected Secretary. 
 At this time it was decided, in view of the fact 
 that the regulation of rates would probably be 
 effected by the operation of the San Francisco 
 and San Joaquin Railway, and other roads liable 
 to be constructed, to give up the offices on Pine 
 Street, and to discontinue active operations until 
 some emergency should arise. The old Board 
 of Officers and Executive Committee continued 
 to serve.
 
 MEMBERS OF 
 THE TRAFFIC ASSOCIATION OF CALIFORNIA. 
 
 SAN FRANCISCO. 
 
 Alaska Improvement Co. 
 H. Levi & Co. 
 A. Schilling & Co. 
 Dodge, Sweeney & Co. 
 Siegfried & Brandenstein 
 Root & Sanderson 
 Wellman, Peck & Co. 
 Christian Froelich 
 Sherwood & Sherwood 
 Holbrook, Merrill & Stet- 
 Deere Implement Co. [son 
 Hawley Bros. Hardware 
 A. Lusk & Co. [Co. 
 
 Roth & Co. 
 Naber, Alfs & Brune 
 Wm. Wolff & Co. 
 Osborn & Alexander 
 S. F. Breweries (Lt'd) 
 
 C. B. Parcells 
 
 J. C. Johnson & Co. 
 Truman, Hooker & Co. 
 Macondray & Co. 
 A. I. Hall & Son [& Co. 
 Wangenheim, Sternheim 
 
 D. N. & E. Walter & Co. 
 Robert L. Toplitz & Co. 
 
 W. Davis & Son 
 
 Neuberger, Reiss & Co. 
 
 I. S. Van Winkle & Co. 
 
 Thomas H. B. Varney 
 
 Luscombe & Isaacs 
 
 J. C. Siegfried 
 
 Kahn Bros., Klein & Co. 
 
 Sachs Bros. & Co. 
 
 John T. Doyle 
 
 Murphy, Grant & Co. 
 
 Lewis Meyerstein 
 
 M. Heller & Sons 
 
 Brown Bros. & Co. 
 
 Neustadter Bros. 
 
 Cahn, Nickelsburg & Co. 
 
 H. M. Newhall & Co. 
 
 Louis Sloss & Co. [Welch 
 
 Cunningham, Curtiss & 
 
 Bonestell & Co. 
 
 Palmer & Rey 
 
 I. Ivancovich & Co. 
 
 E. J. Bowen 
 
 Trumbull & Beebe 
 
 Eugene Avy 
 
 Stiner, Straus & Hyman 
 
 Jules Levy & Bros.
 
 8o 
 
 Muser Bros. 
 
 Williams, Marvin & Co. 
 Easton, Eldridge & Co. 
 California Barrel Co. 
 W. &J. Sloane&Co. 
 C. W. Callaghau 
 F. G. Conklin & Co. 
 Chas. Mayer Jr. & Co. 
 Smith, Stoll & Co. 
 Bronn & Metzner 
 Will & Finck 
 Davis Bros. 
 
 LIST OP MEMBERS OF 
 SAN FRANCISCO. 
 
 Porter, Slessinger & Co. 
 W. Cohen & Co. 
 Bachman Bros. 
 Levi, Strauss & Co. 
 Rosenthal, Feder & Co. 
 L. Dinkelspiel & Sons 
 G. M. Kutz & Co. 
 Cerf, Schloss & Co. 
 Payot, Upham & Co. 
 Arnold. Pollak & Co. 
 Loewe Bros. 
 A. B. Patrick & Co. 
 
 Eagleson, Hawkins & Co. A. C. Nichols & Co. 
 
 S. H. Frank & Co. 
 L. D. Stone & Co. 
 Geo. H. Tay & Co. 
 American Biscuit Co. 
 Schweitzer & Co. 
 Tillman & Bendel 
 
 H. Dutard 
 
 C. E. Whitney & Co. 
 
 Castle Bros. 
 
 Livingston & Co. 
 
 E. R. Stevens & Co. [son 
 
 Marshall, Taggart & Bror- 
 
 Ho ffm an, Alexander & Co. Dalton Bros. 
 
 Kline & Co. 
 C. H. Gilman & Co. 
 Coblentz, Pike & Co. 
 Paraffine Paint Co. 
 C. F. MacDermott 
 G. G. Wickson & Co. 
 Whittier, Fuller & Co. 
 Yates & Co. 
 Taylor, Nason & Co. 
 
 Wolf & Sons 
 Erlauger & Galinger 
 D. Keefe & Co. 
 Porter Bros. & Co. 
 Murray & Johnson 
 Schacht, Lemcke & 
 
 Steiner 
 
 John F. English 
 Baker & Hamilton
 
 THE TRAFFIC ASSOCIATION. 
 
 81 
 
 SAN FRANCISCO. 
 
 M. Ehrman & Co. Miller, Sloss & Scott 
 
 Wolters Bros. & Co. 
 Meyerfeld, Mitchell 
 
 Siebenhauer 
 T. K. Moore & Co. 
 Geo. W. Hume & Co. 
 
 Anglo-American Crockery 
 & & Glassware Co. 
 
 Daniel Meyer 
 J. C. Rued & Co. 
 Paul Keyser 
 
 Carmen Island Salt Works The Sawyer Tanning Co. 
 
 M. & C. Mangels 
 Martin, Fusier & Co. 
 S. P. Taylor Paper Co. 
 Kron Tanning Co. 
 Dickson, De Wolf & Co. 
 The Carlson-Currier Man- 
 ufacturing Co. 
 John A. Stanley 
 Nolan Bros. 
 Phelps & Miller 
 
 Dimmich & 
 Armes & Dallam 
 The Wertheimer Co. 
 Scotchler & Gibbs 
 Moore, Hunt & Co. 
 Coghill & Kohn 
 Spruance, Stanley & Co. 
 W. B. Sumner & Co. 
 Hildebrandt, Posner & Co. 
 
 Allison, Gray & Co. [Co. 
 
 Johnson, Locke Mercantile J. J. Pfister Knitting Co. 
 
 M. S. Grinbautn & Co. E. A. Hubbard & Co. 
 
 (Lt'd) Thos. Day & Co. (Lt'd) 
 
 De Bernardi, Westphal & R. A. Swain & Co. 
 Co. 
 
 & 
 
 Metropolitan Match 
 
 Commercial Co. 
 Jacobs & Brandt 
 W. D. McArthur 
 Russ, Sanders & Co. 
 Reiss Bros. & Co. 
 Norton, Teller & Co. 
 
 Sherman, Clay & Co. 
 Seth Thomas Clock Co. 
 B. M. Atchinson & Co. 
 S. B. Dinkelspiel & Co. 
 Swain Bros. 
 E. Raas & Co. 
 Joshua Hendy Machine 
 Works
 
 82 LIST OF MEMBERS OF 
 
 SAN FRANCISCO. 
 
 Pacific Steam Whaling Co. Pacific Roll Paper Co. 
 
 Hills Bros. 
 
 Haas Bros. 
 
 J. A. Folger & Co. 
 
 Carolan & Co. 
 
 Fontana & Co. 
 
 Merry, Faull & Co. 
 
 Williams, Brown & Co. 
 
 Field & Stone 
 
 Sperry & Co. 
 
 Roth, Blum & Co. 
 
 S. L. Jones & Co. 
 
 Button & Partridge 
 
 Hyman Bros. 
 
 W. S. Hobart 
 
 A. Hayward 
 
 Esberg, Bachman & Co. 
 
 Girvin, Baldwin & Eyre 
 
 Moore, Ferguson & Co. 
 
 A. B. Forbes 
 
 Giant Powder Co. 
 
 W. F. Beck & Co. 
 
 Lowenberg Bros. 
 
 Cabrera, Roma & Co. 
 
 W. I. Morgan & Co. 
 
 Howard, Harris & Co. 
 
 W. E. Hollaway (J. W. 
 
 Grace & Co.) 
 Balfour, Guthrie & Co. 
 
 Langley & Michaels Co. 
 Alfred Greenebaum & Co. 
 Union Iron Works 
 John Taylor & Co. 
 Allison, Neff & Co. 
 American Oil Co. 
 Arnett & Rivers [isch 
 
 Abramson, Bacon & Heun- 
 Schmidt Label & Litho- 
 graphic Co. 
 Simonds Saw Co. 
 Frank Bros. 
 
 Holt Bros. Co. [den Co. 
 Dunham, Carrigan & Hay- 
 Dow Steam Pump Works 
 Pelton Waterwheel Co. 
 Risdon Iron & Locomotive 
 
 Works 
 Francis Smith & Co. 
 
 C. L. Dingley & Co. 
 Geo. H. Fuller Desk Co. 
 E. H. Marwedel 
 Hulse, Bradford & Co. 
 Indianapolis Furniture Co. 
 Heywood Bros. & Co. 
 Wisconsin Furniture Co. 
 
 D. Samuels 
 Raphael Weill & Co.
 
 THE TRAFFIC ASSOCIATION. 
 SAN FKANCISCO. 
 
 Fred W. Spencer 
 Brown, Craig & Co. 
 L. P. Drexler 
 Shoobert. Beale & Co. 
 California Wire Works 
 Parke & I/acy Co. 
 Jones & Co. 
 D. L. Beck & Sons 
 Tatum & Bowen 
 H. P. Gregory & Co. 
 Rix & Birrell 
 
 H. Liebes & Co. 
 
 San Francisco News Co. 
 
 Mathias Gray & Co. 
 
 C. F. Weber & Co. [man 
 
 Kohlberg, Strauss & Froh- 
 
 Herrmann & Co. 
 
 Union Pacific Salt Co. 
 
 B. F. Barton 
 
 Christy & Wise 
 
 B. P. Flint 
 
 Consumers Ice Co. 
 
 Hinckley, Spiers & Hayes Haslett & Bailey 
 
 Bissinger & Co. 
 W. D. English 
 American Straw Works 
 
 Thomas Magee 
 
 C. T. Settle, San Jose 
 
 Baker & Hamilton, Sac'to 
 
 Carrick.Williams&Wright Stanton,Thomson &Co., ' ' 
 
 Fisher Packing Co. 
 G. Verdier & Co. 
 C. H. Reynolds 
 California Furniture Man- 
 ufacturing Co. 
 Wakefield Rattan Co. 
 F. M. Smith 
 Frank W. Rossback 
 Wetmore Bros. 
 The Harry Unna Co. 
 Redington & Co. 
 The Dickman-Jones Co. 
 Roos Bros. 
 
 W. H. Wood & Co. " 
 The A. S. Hopkins Co., " 
 The Sullivan, Kelly Co., " 
 Locke & Lavenson, 
 The I,. Elkus Co., " 
 
 Newbourg & Co., " 
 
 S. N. Griffith, Fresno 
 M. M. Estee 
 Sanborn, Vail & Co. 
 Anglo-Swiss Colony 
 J. W. Morshead 
 A. L,. Bryan Shoe Co. [Co. 
 Osborn Hardware & Tool
 
 8 4 
 
 LIST Otf MEMBERS 
 SAN FRANCISCO. 
 
 Buckingham & Hecht 
 Judson Fruit Co. 
 Buyer & Reich 
 Taylor Goodrich 
 Newman & Levison 
 John Horstman . 
 Adolph Sutro 
 S. Levy & Co. 
 Baldwin & Hammond 
 
 Clabrough, Golcher &~Co. 
 J. J. O'Brien & Co. 
 The Hamburger Co. 
 Justinian Caire 
 F. G. Newlands 
 Woonsocket Rubber Co. 
 W. F. Whittier 
 Washburn & Moen Manu- 
 facturing Co. 
 
 Stearns Manufacturing Co. Albion Lumber Co. 
 
 Thos. Sullivan 
 
 C. R. Winslow 
 
 San Francisco Tool Co. 
 
 Edward Hull 
 
 W. G. Richardson 
 
 Geo. T. Marye Jr. 
 
 Thos. L. Lyons 
 
 Irvine Steuart 
 
 New Zealand Insurance Co. 
 
 Abner Doble 
 
 J. C. Winans 
 
 E. Gamier & Co. 
 
 Schussler Bros. 
 
 A. Crawford & Co.
 
 III. 
 
 FIRST COMPETING RAILROAD.
 
 FIRST COMPETING RAILROAD. 
 
 THE appeal of the Executive Committee of The 
 Traffic Association for assistance in building a 
 competing railroad was in such terms that its 
 purpose could not be mistaken. Indeed, there 
 was no doubt that the attempt to secure compet- 
 ing railway lines would now be abandoned by 
 The Traffic Association, if the Association did 
 not at this time secure aid from the large real 
 estate owners and leading moneyed interests of 
 the city. It was also reasonably certain that if 
 railroad building failed to receive encourage- 
 ment, The Traffic Association would be found 
 without any present work, and the existence of 
 the organization would draw near to a close. 
 The memorable meeting in the Chamber of 
 Commerce Hall, on the twenty-second day of 
 January, 1895, and the pleasing events which 
 immediately, or with very little delay, succeeded, 
 are now fresh in memory. Their full significance 
 appears to be fully understood. It is a pleasing 
 duty to set them down in order for future refer-
 
 88 FIRST COMPETING RAILROAD. 
 
 ence, for on the twenty-second of January, 1895, 
 San Francisco, which had for a period of years 
 been getting in readiness for the decisive 
 moment, uttered a new declaration of inde- 
 pendence. 
 
 Many millions of money which were centered 
 in commerce, and many more millions invested 
 in San Francisco real estate; banking houses 
 concerned in the prosperity of the great farming 
 regions of the State; the hard and faithful work- 
 ers of The Traffic Association generally 
 speaking, representative San Francisco, was in 
 evidence at this meeting. It has often been 
 said, "Young men for war and old men for 
 counsel"; but on this occasion a majority of 
 those present were grey-haired and well advanced 
 in life. There were, among the attendants, 
 many California pioneers. Success had set its 
 seal to indicate the energy, enterprise, and 
 sagacity of the assemblage. In the minds of 
 The Traffic Association members, who had 
 resolved to call this meeting, recollections of 
 what had been done were mingled with hope 
 for the outcome. Events which had preceded 
 were as follows:
 
 FIRST COMPETING RAILROAD. 89 
 
 The San Francisco and Great Salt Lake Rail- 
 way was incorporated May 26, 1892, by Alvinza 
 Hay ward, Daniel Meyer, William Babcock, E. 
 L. G. Steele and E. F. Preston, with a capital of 
 two million dollars ($2,000,000), to build between 
 San Francisco and Stockton, the line to be com- 
 pleted between those points in three years. The 
 intention of the projectors was to build from San 
 Francisco to Salt Lake, using several incorpora- 
 tions for that purpose. One incorporation was 
 to be formed in Nevada to secure a subsidy offered 
 by that State for the construction of a competing 
 road to San Francisco. It was proposed to oc- 
 cupy both the Sacramento and San Joaquin Val- 
 leys and to reach out to Salt Lake with the main 
 purpose in view of furnishing an independent 
 outlet and inlet for California; to re-establish 
 San Francisco as a centre of distribution; to con- 
 trol the trade of the interior of the State with 
 local lines, independently operated. This enter- 
 prise originated in a suggestion made by J. S. 
 Leeds to Alvinza Hayward, who invited capital- 
 ists to discuss the matter in his private office on 
 California Street. 
 
 Forty public-spirited citizens associated them-
 
 9O FIRST COMPETING RAILROAD. 
 
 selves in a syndicate and paid in one thousand 
 dollars ($1000) each to provide the money for the 
 expense of a preliminary survey. The cost of 
 the entire road between San Francisco and Salt 
 Lake was estimated at thirty millions of dollars. 
 A competent engineer, W. H. Kennedy, was 
 employed, and he surveyed a route from a point 
 in Alameda County near Fruitvale Station on the 
 Southern Pacific road, through the hills and the 
 Moraga Valley to a point on the bay shore near 
 Martinez. Lines were also run through Plutnas 
 County, through the Beckwourth Pass, to get 
 across the Sierras. A tract of land was also ac- 
 quired on the water front near Martinez, where 
 it was proposed to locate grain warehouses, etc. , 
 to compete for the large grain shipments of the 
 State. Diligent search has failed to bring to 
 light a complete list of the forty capitalists who 
 went thus far, which failure is regretted. 
 
 The subscriptions for the stock of the San 
 Francisco and Great Salt Lake Railway did not 
 reach one million dollars. The incorporators 
 sought to secure law from the State Legislature 
 which would enable them to consolidate with 
 other corporations, but this failed, and after a
 
 FIRST COMPETING RAILROAD. 91 
 
 time the project was abandoned, being found to 
 be too large for accomplishment at that time. 
 Of this corporation Joseph A. Donahoe was 
 President. All of the survivors, or nearly all of 
 the syndicate of forty are now enrolled in the 
 list of subscribers to the stock of the present 
 (1895) corporation engaged in preparing to con- 
 struct a line from San Francisco to Kern County, 
 through the San Joaquin Valley. 
 
 The prospectus of the San Francisco and San 
 Joaquin Valley Railroad was issued June 19, 
 1893, by authority and at the instance of The 
 Traffic Association of California, Barry Baldwin 
 then being President of the Association. Citi- 
 zens were invited to subscribe to the capital stock 
 of a line to be constructed from the city of Stock- 
 ton to the head of the San Joaquin Valley in 
 Kern County, the length of the line being about 
 230 miles. The intention was expressed to ulti- 
 mately construct a line between San Francisco 
 and Stockton, making a continuous line from 
 San Francisco to the head of the San Joaquin 
 Valley, a total distance of about 350 miles. 
 
 The Executive Committee adopted the follow- 
 ing, which generally defines the purpose then in
 
 92 FIRST COMPETING RAILROAD. 
 
 view, and the reasons by which the committee 
 were actuated: 
 
 ' ' Whereas, There is a great necessity for 
 cheaper as well as more equitable rates of trans- 
 portation between the seaboard of this Coast 
 and the interior, as well as between points in the 
 interior; and whereas, we do not believe that 
 such rates are obtainable at this time, or can be 
 secured in the near future from the railroads 
 now operated in the State, because the policy 
 indicated by their past and present action is 
 antagonistic to the best interests of this city and 
 the State at large. 
 
 "Therefore, be it resolved, By the Executive 
 Committee of The Traffic Association of Cali- 
 fornia that we put forth every effort possible to 
 secure the early construction of a railroad through 
 the San Joaquin Valley, and that we pledge 
 ourselves to the support of the plan outlined in 
 the prospectus now presented by The Traffic 
 Manager. 
 
 "Resolved, That we fully approve of the plan 
 of building from Stockton south into the Valley 
 before constructing between San Francisco and 
 Stockton."
 
 FIRST COMPETING RAILROAD. 93 
 
 The project was dropped after unsuccesful 
 attempts to raise the needed funds. When it 
 was revived in 1894 the Company bore a new 
 name, being known now as the San Francisco, 
 Stockton and San Joaquin Railroad. The route 
 was generally defined to be between San Fran- 
 cisco and a point in Kern County. The capital 
 stock was made six million dollars ($6,000,000), 
 divided into 60,000 shares of the par value of 
 one hundred dollars ($100). A trust was devised 
 to exist for a period of ten years to preserve the 
 road as a competitive carrier. Five Trustees 
 were named, to wit: Isaac Upham, B. F. Dunham, 
 F. W. Van Sicklen, Alvinza Hayward, and 
 Thomas Magee. This project was not formally 
 abandoned. The meeting of January 22, 1895, 
 was called in continuance of the work to establish 
 the San Francisco, Stockton and San Joaquin 
 Railroad. Affairs were destined now to take 
 another turn. Californians were to build the 
 line, but not The Traffic Association of California 
 alone, although the Association found strong 
 recognition for its services, and also for the 
 ability of its leaders in the selection of the first 
 Board of Directors. Claus Spreckels now became
 
 94 FIRST COMPETING RAILROAD. 
 
 prominently identified with the Valley road pro- 
 ject. 
 
 It is now convenient to recur to the meeting 
 of January 22, 1895. E. B. Pond, one of the 
 Directors of the San Francisco Savings Union, 
 presided, Hosmer W. Leeds acting as Secretary. 
 The bank which Mr. Pond represented had 
 shown its public spirit by previously subscribing 
 fifty thousand dollars ($50,000) for the stock of 
 the San Francisco, Stockton and San Joaquin 
 Railroad. Isaac Upham, as President of The 
 Traffic Association, called the meeting to order, 
 and asked those assembled to subscribe enough 
 to make up a total of three hundred and fifty 
 thousand dollars ($350,000) of which less than 
 one-half had been previously raised. B- B. 
 Pond, Thomas Magee, J. S. Leeds, Daniel 
 Meyer, S. N. Griffith, A. P. Williams, E. F, 
 Preston, Frank J. Sullivan, Robert Watt, and 
 Claus Spreckels were among the speakers. Pic- 
 turesqueness was lent to the proceedings by the 
 remarks of Thomas Magee, who said he had 
 been told in the San Joaquin Valley that of 
 every three drops of rain that fell there, two of 
 them were owned by C. P. Huntington. Claus
 
 FIRST COMPETING RAILROAD. 95 
 
 Spreckels predicted ' ' that if we start this road 
 with one-half million dollars, it will never be 
 built." He wanted the subscriptions to amount 
 to at least three million dollars ($3,000,000), 
 and, if possible, five million dollars ($5,000,000). 
 Before the meeting adjourned, the Chairman, 
 Mr. Pond, was authorized to name a Committee 
 to solicit subscriptions. Many offers of sub- 
 scriptions were made before the meeting closed, 
 among them one of fifty thousand dollars 
 ($50,000) by Claus Spreckels. The committee 
 provided for by the meeting, as announced the 
 day following, consisted of Claus Spreckels, 
 Alexander Boyd, James D. Phelan, O. D. Bald- 
 win, Daniel Meyer, W. F. Whittier, Albert 
 Miller, Charles Holbrook, Thomas Magee, John 
 T. Doyle, and E. F. Preston. 
 
 No time was lost. This committee came 
 together the next day after the appointment was 
 announced. The following day news was made 
 public that Claus Spreckels had personally sub- 
 scribed five hundred thousand dollars ($500,000), 
 and that J. D. Spreckels and Adolph Spreckels 
 had each subscribed one hundred thousand dol- 
 lars ($100,000). This start gave the enterprise
 
 96 FIRST COMPETING RAILROAD. 
 
 a decided impulse. A little later the committee 
 was increased in size by the addition of the 
 names of Lewis Gerstle, L,evi Strauss, Christian 
 de Guigne (representing the Parrott estate), J. 
 P. Martin (representing the Sharon estate), 
 Andrew B. McCreery and Alfred Borel. The 
 assistance of others was welcomed and the 
 Executive Committee of The Traffic Association 
 engaged with great vigor in securing subscrip- 
 tions. 
 
 In less than a week from the meeting in the 
 Chamber of Commerce, the Committee which 
 for convenience will be designated the Committee 
 of Promotion, a name which it generally bore in 
 the daily papers had decided to fix the capital 
 stock at six million dollars ($6,000,000), and 
 Claus Spreckels announced that "the road is 
 bound to go, and nothing can stop it." The 
 road was named the San Francisco and San 
 Joaquin Valley Railway. The terms of subscrip- 
 tion were speedily arranged, but carefully. 
 Large subscriptions were quietly secured. The 
 greatest enthusiasm was caused throughout the 
 State by the vigorous manner which character- 
 ized the conduct of the work now in hand. A
 
 FIRST COMPETING RAILROAD. 97 
 
 flood of congratulations flowed in daily upon the 
 promoters. 
 
 When The Traffic Association was organized 
 there were very few citizens who cared openly to 
 antagonize the Southern Pacific Company, which 
 then completely dominated the State. Three 
 years of advancing labors, and this open pros- 
 pect of popular success served to reveal the real 
 drift of public opinion. California was not dead, 
 but sleeping. When the subscription books 
 were first thrown open for public inspection, just 
 one week after the meeting in the Chamber of 
 Commerce, one million one hundred and fifty 
 thousand dollars ($1,150,000) had been sub- 
 scribed. 
 
 These were the original subscribers, and the 
 amounts which they subscribed : 
 
 Claus Spreckels $500,000 
 
 Adolph B. Spreckels 100,000 
 
 J. D. Spreckels 100,000 
 
 W. F. Whittier 50,000 
 
 Alvinza Hayward 50,000 
 
 Andrew B. McCreery 30,000 
 
 A. Borel 25,000 
 
 Adam Grant 25,000
 
 98 FIRST COMPETING RAILROAD. 
 
 Daniel Meyer 25,000 
 
 Levi Strauss 25,000 
 
 L,ouis Sloss & Co 25,000 
 
 Charles Holbrook 20,000 
 
 Thomas Magee 15,000 
 
 E. F. Preston 10,000 
 
 James B. Stetson 10,000 
 
 Payot, Upham & Co 5,000 
 
 An address to the public was published co- 
 incidentally with the opening of the subscription 
 lists to the general public. 
 
 "You are called upon as citizens and as Cali- 
 fornians to respond to the call and aid in com- 
 pleting this subscription at the earliest practicable 
 moment. The co-operation of every man is de- 
 sired and is necessary. The Committee who 
 present this proposition to you are neither pro- 
 moters, contractors, officers nor owners of railroads. 
 The entire scheme and project is as novel to them 
 as to you, and the moving impulse with them as 
 it must be with you is the good, the advancement, 
 the future, and the prosperity of the State of Cali- 
 fornia. The proposition is to make it a people's 
 road, owned by the people, and operated in the
 
 FIRST COMPETING RAILROAD. 99 
 
 interests of the people, and it is to you as a part 
 of the people that we turn for assistance." 
 
 The general plan of organization resembled 
 that of the San Francisco, Stockton and San 
 Joaquin Railroad Company in some particulars. 
 It provided for building from San Francisco to 
 some point in Kern county. The capital stock 
 was fixed at six million dollars ($6,000,000), 
 divided into 60,000 shares of the par value of 
 one hundred dollars ($100) each. Also, there 
 was resemblance to the earlier plan in the pro- 
 vision that the subscribers will place all stock 
 issued to them under the subscription and incor- 
 poration in a pool or trust, but it was now pro- 
 vided that the names of the Trustees and the 
 conditions of the pool or trust would be fixed 
 and determined ' ' by a vote of three-fourths of 
 the whole of the stock so subscribed and issued, 
 taken at a meeting to be called on not less than 
 ten days' notice to all the subscribers and stock- 
 holders in said corporation." 
 
 Over one million dollars having been raised in 
 one day, the progress on the second million was 
 quite rapid. Daily the promoters engaged them- 
 selves in a personal canvass of the city, and this
 
 100 FIRST COMPETING RAILROAD. 
 
 spectacle, of so many grey-haired millionaires 
 and leading men of business forsaking their own 
 personal interests to insure a movement for 
 popular advancement, has not been paralleled in 
 any American city. It is inexpedient here to 
 trace in detail the progress of subscriptions, but 
 a complete list of subscribers and amounts of 
 subscriptions to the date of this publication will 
 be found at the end of this chapter. 
 
 Large subscriptions were received from the 
 Hobart estate, fifty thousand dollars ($50,000); 
 Mrs. A. M. Parrott, fifty thousand dollars 
 ($50,000); the San Francisco and Fresno Land 
 Company connected with the Bank of California, 
 twenty-five thousand dollars ($25,000); James D. 
 Phelan, twenty-five thousand dollars ($25,000); 
 San Francisco Savings Union, fifty thousand 
 dollars ($50,000); James L- Flood, twenty-five 
 thousand dollars ($25,000); Joseph A. Donahoe, 
 twenty-five thousand dollars ($25,000); the 
 Hearst estate, twenty-five thousand dollars 
 ($25,000); Wm. Sharon estate, twenty-five thou- 
 sand dollars ($25,000); Lloyd Tevis, fifty thousand 
 dollars ($50,000); Miller & Lux, fifty thousand 
 dollars ($50,000); Stockton Lumber Company,
 
 FIRST COMPETING RAILROAD. IOI 
 
 twenty thousand dollars ($20,000). Among the 
 subscribers were Mrs. D. D. Colton, whose 
 husband had been associated with Messrs. C. P. 
 Huntington and Iceland Stanford during the 
 early days of the Central Pacific; also Mrs. 
 Anna Donahue. The Hibernia Savings and 
 I^oan Society donated fifty thousand dollars 
 ($50,000), not as a subscription, but as an 
 absolute gift. James R. Kelly was President of 
 the Society, and was largely instrumental in this 
 generous action. The A. A. Hart Company, of 
 New York, reached out across the continent to 
 take one thousand dollars ($1000) worth of 
 stock. Claus Spreckels offered to double his 
 subscription of five hundred thousand dollars 
 ($500,000) conditionally upon the raising of the 
 six million dollars ($6,000,000) in cash. 
 
 Delegations came to the city from Stockton, 
 San Jose, and Oakland, offering assistance in 
 behalf of the citizens of those several com- 
 mittees. 
 
 The first meeting of the subscribers to the 
 stock of the road was held on the afternoon of 
 February 20, 1895, in the Chamber of Commerce 
 Assembly Hall. John D. Spreckels presided,
 
 102 FIRST COMPETING RAILROAD. 
 
 Claus Spreckels being ill. The meeting was 
 called to order by Charles Holbrook, and E. F. 
 Preston was the Secretary. Reports of progress 
 were submitted. There had been daily meetings; 
 the contract for subscription, articles of incorpor- 
 ation and a list of the directors recommended for 
 election for the first year had been prepared, and 
 by-laws had been drawn up. The name adopted 
 was the San Francisco and San Joaquin Valley 
 Railway Company. This was a great meeting; 
 probably the most important in a commercial 
 way that has ever been held in San Francisco. 
 None will exceed it in exerting influence upon 
 the welfare of California. The first Board of 
 Directors elected by the stockholders consisted 
 of the following, of whom all but three were 
 members of The Traffic Association: Claus 
 Spreckels, John D. Spreckels, W. F. Whittier, 
 J. B. Stetson, Robert Watt, A. H. Payson, 
 Charles Holbrook, L,ewis Gerstle,* Alvinza 
 Hayward, Isaac Upham, and Thomas Magee. 
 The committee reported "that although the 
 work is but in its inception, the sum of two 
 
 *Lewis Gerstle soon retired, and was succeeded by 
 Leon Sloss.
 
 FIRST COMPETING RAILROAD. 103 
 
 million two hundred and forty-eight thousand 
 dollars ($2,248,000) for 22,480 shares of the 
 stock has been subscribed." The Bank of Cali- 
 fornia was made the temporary treasurer. It 
 had, in fact, received, acting in this capacity, 
 the first installment of all subscriptions up to 
 this date. Resolutions were adopted expressing 
 the thanks of the shareholders to President Isaac 
 Upham, Traffic Manager Leeds, and the mem- 
 bers of The Traffic Association, in recognition of 
 public services performed by them, which was a 
 very pleasing circumstance. The spirit of the 
 meeting was also manifested by a preamble and 
 resolutions setting forth that ' ' the commanding 
 influence, amounting to leadership, which has 
 been exercised by Glaus Spreckels, in bringing 
 success to this great enterprise, is recognized by 
 the subscribers here assembled." 
 
 The road was incorporated February 25, 1895, 
 in the City Hall in San Francisco, and the 
 articles were immediately taken by special mes- 
 senger to Sacramento, to be filed at the State 
 Capitol with the Secretary of State, The incor- 
 porators were Claus Spreckles, W. F. Whittier. 
 Charles Holbrook, John T. Doyle, and E. F.
 
 IO4 FIRST COMPETING RAILROAD. 
 
 Preston. The first officers of the road were: 
 Claus Spreckels, President; W. F. Whittier, 
 First Vice-President; Robert Watt, Second Vice- 
 President; Isaac Upham, Secretary pro tempore; 
 E. F. Preston, Counsel. Subsequently, Alex- 
 ander Mackie was elected Secretary; Clarence S. 
 Merrill, Assistant Secretary; W. B. Storey, Chief 
 Engineer. 
 
 At the date of this publication (April, 1895) 
 the beginning of construction work on the San 
 Francisco and San Joaquin Valley Railway is 
 near at hand. It is so near that the triumph of 
 those who have long striven together is assured. 
 But after two millions of dollars had been 
 pledged and the popular support had been made 
 sure, a small cloud of danger appeared in the 
 sky. 
 
 It was necessary to secure terminal facilities 
 in San Francisco. To accomplish this, legisla- 
 tion was immediately needed. The last week of 
 the session of the California Legislature had 
 nearly arrived when an amendment was intro- 
 duced to what was known as the Cleaves Bill. 
 This measure was originally designed to permit 
 the State Board of Harbor Commissioners to
 
 FIRST COMPETING RAILROAD. 105 
 
 lease State property for the sites of water front 
 grain warehouses. The amendment introduced 
 in the interest of the new railroad enabled the 
 Harbor Commissioners to lease for a period of 
 fifty years, for terminal uses, to any railroad 
 corporation not having terminal facilities in the 
 city and county of San Francisco at the date of 
 the passage of this Bill, any property belonging 
 to the State, with the proviso that not over fifty 
 acres should be included in the parcel appor- 
 tioned to any one road seeking entrance to the 
 city. Provision was also made for right of way 
 through streets to reach the terminal. The 
 measure met with some opposition in the Assem- 
 bly, various amendments being offered. It 
 finally passed the Assembly in its original form 
 by a decisive vote of sixty to nine. A motion 
 to reconsider was defeated by a vote as decisive. 
 In the Senate the Bill escaped narrowly, having 
 no votes to spare. There were forty members of 
 the Senate and a majority of the whole number 
 was needed, or twenty-one. The vote in favor 
 of the amendment was twenty-one to sixteen. 
 The proceedings were watched intently by a 
 committee of the Directors of the new road who
 
 106 FIRST COMPETING RAILROAD. 
 
 visited Sacramento to advocate the measure. 
 All that remained to be done to secure the 
 needed ground for a terminal was the signature 
 of the Governor and the approval of the selection 
 of site and execution of the lease by the Board of 
 Harbor Commissioners, of which Board the Gov- 
 ernor of the State, James H. Budd, and the 
 Mayor of San Francisco, Adolph Sutro, were 
 constituted members for this purpose by the law 
 just made. 
 
 In less than sixty days from the meeting of 
 January 22, 1895, when success had been uncer- 
 tain and very doubtful, the first engineering 
 corps were in the field, two and one-half millions 
 of dollars ($2,500,000) had been subscribed for 
 stock of the road, and a ship had been chartered 
 from the Johnson-Locke Mercantile Company to 
 bring rails from New York. 
 
 Much care and deliberation were exercised in 
 the preparation of the plan of the pool or trust to 
 insure that the line should be maintained com- 
 petitively. The plan as submitted by the Board 
 of Directors to the stockholders for ratification, 
 contained a preamble which in part was as 
 follows:
 
 FIRST COMPETING RAILROAD. IOJ 
 
 " And whereas, the rate of charge for trans- 
 portation of the corps and products of this State 
 from the interior to the seaboard, and merchan- 
 dise from the seaboard to the interior of the State, 
 have hitherto been excessive, oppressive to the 
 people of the State and destructive to its indus- 
 try and commerce, and all the parties hereto 
 have become subscribers to the stock of the San 
 Francisco and San Joaquin Valley Railroad 
 Company, and have subscribed therefor and 
 undertaken the construction of said railway for 
 the purpose of effecting a permanent reduction 
 in the cost of transportation between the city 
 and port of San Francisco and the great interior 
 valley of the State by the construction and 
 operation of said road as a competitive means of 
 transportation between said points; and the said 
 parties recognizing that in order to insure the 
 maintenance of such reduction of transportation 
 rates as the fixed policy of the said Company, 
 and to insure the permanence of its competition, 
 the voting power of the stock must be confided 
 to nine Trustees, who shall by its exercise in 
 the choice of Directors and otherwise effect those 
 purposes."
 
 108 FIRST COMPETING RAILROAD. 
 
 It was provided that the Trustees should vote 
 the stock, etc., and the duties of the Trustees 
 were defined as follows: 
 
 "And all of said stock so held by said Trus- 
 tees, their survivor or survivors, successor or 
 successors, is held subject to the following irrev- 
 ocable trusts, to wit: 
 
 "First To issue by proper transfers to any 
 persons named as directors enough stock of said 
 corporation to qualify said parties to serve as 
 directors for the term for which they are elected, 
 it being always provided that no person shall 
 ever be qualified unless he is the actual benefi- 
 ciary by trust certificate of as many shares of 
 stock as are necessary to qualify him for the 
 position of a director under the by-laws of the 
 company. That at the expiration of the terms 
 such stock shall be retransferred by said person 
 holding as a director back to the Trustees to be 
 held subject to the trust as herein expressed. 
 
 "Second To cause said corporation, the San 
 Francisco and San Joaquin Valley Railway Com- 
 pany, to honestly, economically and as soon as 
 practical, construct said railroad, and when the 
 same shall have been constructed and put in
 
 FIRST COMPETING RAILROAD. lOQ 
 
 operation, to cause said corporation to so operate 
 said road that the basis for freights and fares 
 shall be the lowest rates of charge which -will yield 
 sufficient revenue to the company to pay for the 
 proper maintenance, operation and betterment of 
 said road, together with proper provision for the 
 payment of interest on any bonded indebtedness, 
 if any there be, together with the creation of a 
 sinking fund therefor as required by law; also 
 for the creation of a surplus fund for the use of 
 said road, and the payment to the stockholders 
 of a sum not to exceed six (6) per cent per year 
 upon the capital stock actually paid into said corpo- 
 ration. 
 
 ''Third In the event of the death, resignation 
 or disability of any one of the Trustees, to nomi- 
 nate in writing some holder of a Trustee's certi- 
 ficate to fill each and every vacancy, and upon 
 such written nomination by the surviving Trus- 
 tees, approved in writing by the holders of trust 
 certificates representing three-fourths (^) of the 
 capital stock covered by said trust certificates, 
 said Trustee shall from and after the filing of said 
 nomination so approved, with the Secretary of 
 said corporation, the San Francisco and San
 
 IIO FIRST COMPETING RAILROAD. 
 
 Joaquin Valley Railway Company, be as fully 
 vested with said shares of stock and trust as if he 
 were one of the original Trustees above named. 
 
 "Fourth The said Trustees agree that all 
 dividends received by them upon the shares of 
 stock in said the San Francisco and San Joaquin 
 Valley Railway Company, shall be allotted, ap- 
 portioned and paid over by them on demand to 
 the holders of said Trustee certificates herein- 
 before provided, ratably, so that the holder of 
 each of said trust certificates shall receive the 
 same amount as he would have been entitled to 
 receive if he had been a stockholder of said rail- 
 road company for a number of shares represented 
 upon said trust certificate. 
 
 "And said Trustees further agree that they 
 will not knowingly vote said stock for the benefit 
 or in the interest of any person or corporation, 
 or interests hostile to the interest of, or in busi- 
 ness competition with The San Francisco and 
 San Joaquin Valley Railway Company, or of or 
 to, or in favor of any party or parties, or com- 
 pany or companies owning or controlling any 
 parallel line of road to the detriment and injury 
 of the corporation hereinbefore mentioned.
 
 FIRST COMPETING RAILROAD. Ill 
 
 1 ' And the said Trustees further agree that the 
 said road shall not be leased to, nor consolidated 
 with, any company which may own, control, 
 manage or operate any of the roads now existing 
 in the San Joaquin Valley, and the Trustees 
 shall not, nor shall their successors, have any 
 power as stockholders to assent to any such con- 
 solidation or lease, or in any way to put the said 
 road under the same management as that of any 
 other railroad now existing in the said San 
 Joaquin Valley. 
 
 "Fifth Said trust shall continue in full force 
 and effect for the period of ten (10) years from 
 the date hereof, provided that the same shall be 
 terminated at any time before the expiration of 
 said ten (10) years, should the holders of the 
 trust certificates for three- fourths (^) of the 
 stock held subject to said trust at a meeting 
 called after ninety (90) days' notice in writing to 
 all of the holders of said beneficiary certificates, 
 so request and determine, and provided further 
 that in the event of the death of all of the sub- 
 scribers hereto at any time before the expiration 
 of ten (10) years, as aforesaid, then this trust 
 shall cease and determine.
 
 112 FIRST COMPETING RAILROAD. 
 
 " Sixth Upon the termination of said trust, 
 and upon presentation and surrender of said trust 
 certificates to deliver to the owners of each of 
 said trust certificates, certificates for the capital 
 stock of said railway company corresponding in 
 numbers and in par value with the shares of 
 stock which by said certificates the said Trustees 
 are bound to deliver, so that upon the surrender 
 of all of said trust stock certificates the said 
 Trustees will have delivered all of the capital 
 stock of said corporation, the San Francisco and 
 San Joaquin Valley Railway Company. 
 
 ' ' And it is mutually agreed that no stock of 
 said corporation, the San Francisco and San 
 Joaquin Valley Railway Company, shall be 
 issued except that the subscriber to said stock 
 becomes a party to this agreement and consents 
 that said stock be issued, and the same shall be 
 issued, to said Trustees, subject to the terms of 
 the trust.as hereinbefore expressed. 
 
 "And it is further agreed that the Trustees 
 and their successors, holding under and by vir- 
 tue of the terms of this agreement, shall be ineli- 
 gible to hold any position or office of profit, or 
 as Director or otherwise, in the said San Fran-
 
 FIRST COMPETING RAILROAD. 113 
 
 cisco and San Joaquin Valley Railway Company, 
 and that the said Trustees shall not at any time 
 furnish any supplies to said corporation, or be 
 interested, directly or indirectly, in any contract 
 with the said corporation other than as Trustee, 
 and shall act as such Trustee without compensa- 
 tion." 
 
 At a meeting of the stockholders of the San 
 Francisco and San Joaquin Valley Railway, held 
 in the assembly hall of the Chamber of Com- 
 merce, April 5, 1895, the Trust was approved 
 and the following were named as Trustees of the 
 road: A. B. Spreckels, James Cross, Daniel 
 Meyer, Thomas Brown, James D. Phelan, F. W. 
 Van Sicklen, Lovell White, Christian de Guigne, 
 O. D. Baldwin. 
 
 It was voted, at this meeting, that the fifty 
 thousand dollars ($50,000) donated by the Hiber- 
 nia Savings and L,oan Society should be distri- 
 buted in stock among the charitable institutions 
 of the city. This action was in accordance with 
 a suggestion made by Robert J. Tobin, Secretary 
 of the Society. 
 
 The site selected for the terminal of the road 
 in San Francisco was known as the China Basin.
 
 114 FIRST COMPETING RAILROAD. 
 
 This choice was approved by the State Board of 
 Harbor Commissioners, consisting of Edward A. 
 Colnon, D. T. Cole, and F. S. Chadbourne, and 
 also by Governor Budd and Mayor Sutro, of San 
 Francisco, acting as members of the Board, 
 the Directors of the road having accepted that 
 site. The bill authorizing the lease of this tract 
 was signed by Governor Budd, thus becoming 
 law, March 26, 1895. 
 
 As the road was devised to develop California, 
 the first contracts for material were awarded to 
 Californians. John F. Merrill of Holbrook, Mer- 
 rill & Stetson, received the first contract for 
 rails; Miller, Sloss & Scott the first contract for 
 spikes; the Dunham, Carrigan and Hayden 
 Company the first contract for bolts and nuts. 
 
 The success of the railroad project inspired all 
 California with confidence. The belief was 
 commonly entertained that the dawn of a new 
 and better day for California was at hand. The 
 services of the daily newspapers of San Fran- 
 cisco were invaluable. One and all urged 
 with power and ability that the road was a 
 necessity. An era of good feeling came in 
 among the editors and proprietors of the daily
 
 FIRST COMPETING RAILROAD. 115 
 
 papers and unity prevailed. The Half Million 
 Club was started. The manufacturers of Cali- 
 fornia came to the front to lay claim to the favor 
 of the public and to pledge themselves to upbuild 
 California. The Merchants' Association, having 
 in view the betterment of the city in all material 
 respects, pushed eagerly forward. It is once 
 more repeated that this is the story of an 
 awakening. 
 
 In the hour of success the fact should not be 
 forgotten, that some years before the Traffic 
 Association of California came into existence, 
 William M. Bunker, editor of the Daily Report 
 newspaper, assisted by O. D. Baldwin, raised 
 nearly two hundred thousand dollars to offer as a 
 bonus to any transcontinental railroad to extend 
 to San Francisco. 
 
 The San Francisco Examiner, W. R. Hearst, 
 editor and proprietor, in April, 1895, successfully 
 assumed the task of forming subscription clubs 
 to popularize the stock of the San Francisco and 
 San Joaquin Valley Railway, and generously 
 offered to add one thousand dollars ($1000) to 
 every thousand dollars subscribed by the clubs. 
 
 The San Francisco Call, Charles M. Short-
 
 Il6 FIRST COMPETING RAILROAD. 
 
 ridge, editor and proprietor, in April, 1895, 
 prepared a pledge which was printed in his 
 newspaper, to which many signatures were 
 secured, making it obligatory upon the signers 
 to use the new line when it should be in actual 
 operation. 
 
 When once the people of the interior towns 
 saw that the road would be built they were not 
 backward in lending encouragement. From all 
 sides came offers of rights of way and stock 
 subscriptions, tracts of lands, etc. Mass meet- 
 ings were held in many towns. Resolutions 
 pledging support were received from Stockton, 
 San Jose, San Mateo, Bakersfield, Modesto, 
 Oakdale, Oakland, Fresno, Turlock, Redwood 
 City, Contra Costa County, Madera, Selma, 
 Tulare, and many other places. Stockton 
 organized a Commercial Association to meet the 
 emergency, with P. A. Buell as President; C. J. 
 Jackson, Vice-President; Orrin S. Henderson, 
 Secretary; and W. W. Westhay, Treasurer; 
 Oakland formed a Terminal Committee, with 
 F. Delger as President and W. V. Witcher as 
 Secretary. 
 
 Rivalry existed between San Jose and Stockton,
 
 FIRST COMPETING RAILROAD. 117 
 
 Both wanted the main line. The Directors of 
 the road went to Stockton and decided to begin 
 work there upon the assurance that Stockton 
 would take stock to the amount of one hundred 
 thousand dollars ($100,000), and would also 
 furnish the right of way through the city and 
 certain considerable tracts of land. The first 
 breaking of ground occurred at Stockton, April 8, 
 1895, when the first surveying party began its 
 work, it having been decided first build in the 
 San Joaquin Valley. 
 
 Public enthusiasm at this date (April 9, 1895) 
 is indicated by a series of occurrences at Stock- 
 ton, where the fund for the purchase of land to 
 be donated to the new road, having not been 
 quite completed, a committee of ladies has been 
 appointed to raise money. Of this committee 
 Mrs. C. Slaughter is President, her associates 
 being Mesdames J. D. Peters, Bassilio Logier, 
 Charles Haas, J. M. McCall, W. M. Elsom, W. 
 
 D. Buckley, Alpha Davis, W. A. Daggett, A. A. 
 Dudley, M. P. Henderson, J. D. McDougald, J. 
 J. Nunan, E. M. Eckstrom, Daniel Rosenbush, 
 G. Giovanesse, P. A. Buell, Herbert Williamson, 
 
 E. Slaughter, William McKee, Joseph Badger,
 
 Il8 FIRST COMPETING RAILROAD. 
 
 Orrin S. Henderson, Frank Cutting, Joseph H. 
 Budd, Clara M. Freeman, W. M. Daggett, and 
 D. Winders. 
 
 Another incident is the projection of an extra 
 issue of the Stockton Mail, daily newspaper, 
 to be edited and managed by the Stockton ladies. 
 Mrs. Alpha Davis was appointed managing 
 editor, and Mrs. McCall, wife of the Mayor 
 of Stockton, was Chairman of the committee 
 having in charge the business part of the paper. 
 
 In San Francisco the Examiner, daily news- 
 paper, is just sending out a special train through 
 the San Joaquin Valley over the Southern Pacific 
 road to gather subscriptions for the road. 
 
 Among the larger subscribers at Stockton 
 were C. M. and Julia A. Weber, ten thousand 
 dollars ($10,000); Wilhoit & Devendorf, seven 
 thousand five hundred ($7500); John Boggs, 
 five thousand dollars ($5000); Simpson & Gray, 
 three thousand dollars ($3000); California Navi- 
 gation and Improvement Co., two thousand five 
 hundred ($2500); Stockton Savings and L,oan 
 Society, five thousand dollars ($5000); Stockton 
 Savings Bank, three thousand dollars ($3000); 
 Farmers' and Merchants' Bank, two thousand
 
 FIRST COMPETING RAILROAD. 1 19 
 
 dollars ($2000); Ross Sargent, two thousand dol- 
 lars ($2000); P. A. Buell, one thousand dollars 
 ($1000); San Joaquin Warehouse Company, one 
 thousand dollars ($1000); H. E. Adams, one 
 thousand dollars ($1000); I. S. Bostwick, one 
 thousand dollars ($1000); First National Bank, 
 two thousand dollars ($2000); Pacific Tannery, 
 one thousand dollars ($1000); T. W. Newell, 
 one thousand dollars ($1000). Madera has 
 pledged rights of way. Visalia, through the 
 President of its Board of Trade, S. Mitchell, 
 pledged all its business to the new road, every 
 shipper in Visalia having signed the pledge. 
 
 A delegation from Visalia visited San Fran- 
 cisco and offered rights of way free for seventy 
 miles through Tulare County, with a free depot 
 site at Visalia. This delegation consisted of 
 Mayor E. C. Farnsworth, of Visalia, E. O. 
 Miller, William H. Hammond, and Ben M. 
 Maddox. 
 
 A delegation from Merced, consisting of W. 
 W. Gray, J. J. Stevenson, H. F. Greer, G. S. 
 Bloss, and James F. Peck, offered rights of way 
 and depot sites in Merced County. 
 
 San Jose had raised, as this account closes,
 
 120 FIRST COMPETING RAILROAD. 
 
 one hundred and sixty-seven thousand four 
 hundred and fifty dollars ($167,450). 
 
 It will be necessary later to publish a volume 
 leading up to the actual beginning of operation 
 of the first competing railroad, and by that time 
 other enterprises will probably be in the field. 
 The awakening is more marked day by day. 
 
 The subscribers to the stock of the road are 
 named herewith, the list being complete up to 
 the date of April 9, 1895, when this matter was 
 placed in the hands of the printer.
 
 STOCKHOLDERS OF THE SAN FRANCISCO AND 
 SAN JOAQUIN VALLEY RAILWAY Co. 
 
 SAN FRANCISCO. 
 
 SHARES 
 
 Aicher, Gustave A 20 
 
 Aronson & Menesini ... 10 
 
 Althof & Bahls 10 
 
 Anglo-American Crock- 
 ery & Glassware Co. 10 
 Ashworth, Mrs. Thos. . . 10 
 
 Albion Dumber Co 20 
 
 Allen, James G i 
 
 Blake, Moffitt & Towne. 25 
 
 Badick, G 2 
 
 Bozich, John S 2 
 
 Baker, D. H 5 
 
 Boy d, John F 10 
 
 Butler, P. F 10 
 
 Britton, Joseph 10 
 
 Bunker, Wm. M 10 
 
 Bixler, David 10 
 
 Burk, Mrs. R 50 
 
 Breeze,. Louisa 10 
 
 Berteling, I/. A 10 
 
 Bradbury, Juo. L, 10 
 
 Borel, Antoine 250 
 
 Brugiere, E. A 150 
 
 Baldwin, O. D.. 100 
 
 Bergin, T. 1 50 
 
 Brandenstein, J 50 
 
 Belshaw, M. W 50 
 
 Baldwin, E. J 50 
 
 Buck, J. A 50 
 
 Baldwin, O. D.(Trustee) 20 
 Brandenstein, M. J. & 
 
 Co 25 
 
 Bissinger & Co 20 
 
 Baldwin, Mrs. M. V .... 20 
 
 Brown, Craig & Co 10 
 
 Bovee, Toy & Co 20 
 
 Baldwin, Mrs. M. V 20 
 
 Brune, Dr. A. E 10 
 
 Bergerot, J. A 10 
 
 Bouestell & Co 5 
 
 Burr, E. W., Jr 20 
 
 Birch, Wm. H 5 
 
 Blank, Chas. A 5 
 
 Baldwin, O. D.( Trustee) 10 
 
 Brooke, George C i 
 
 Braunschweiger & Co. . 20 
 
 Boyken, Adolph 10 
 
 Bickford, C. E i 
 
 Brand, Ernest 3
 
 122 
 
 LIST OF STOCKHOLDERS. 
 
 SAN FRANCISCO. 
 
 SHARES 
 
 Blair, Samuel 20 
 
 Bakersfield Share Club, 
 
 F. E. Valentine, Tr. i 
 Beyfuss, O i 
 
 Coleman, J. V 100 
 
 Coleman, John C 100 
 
 Colton, Mrs. E. M 50 
 
 California Safe Deposit 
 
 Co 50 
 
 Craig, Hugh i 
 
 Cutler, E. B i 
 
 Chy Lung & Co i 
 
 Chew, Ging Lung & Co. i 
 
 Campbell, Thos 5 
 
 Cunningham, J. M 50 
 
 Clark, Estate of, W. S . . 50 
 
 Castle Bros 25 
 
 Cole, N. P 15 
 
 Clinton, Dr. C. A 10 
 
 Cartan, McCarthy & Co. 10 
 Castro Street Land Co . . 10 
 
 Cluff Co., William 10 
 
 Caire, Justinian 10 
 
 Chickering, Thomas & 
 
 Gregory 10 
 
 Callaghan, Mrs. Jane. .. 10 
 Coburn, Tevis Co 10 
 
 SHARKS 
 
 Crim, Maria L 20 
 
 Crim, George S 10 
 
 Coulson, Dr. Nat 5 
 
 Capp, Charles S 5 
 
 Cerf, Schloss & Co 5 
 
 Coghill, Thos. B 5 
 
 Coulter, Robert 3 
 
 Castle, Freddie L i 
 
 Cotter, Mrs. A. M 25 
 
 Donohoe, Jos. A 250 
 
 Donahue, Mrs. Annie. . .200 
 
 Doyle, John T 100 
 
 Dunham, Carrigan & 
 
 Hayden Co 100 
 
 De Young, M. H 50 
 
 Drexler, Louis P 50 
 
 De Laveaga, M. A 50 
 
 De Laveaga, J. V 50 
 
 Dominguez, DonnaW.H. 50 
 Dodge, Sweeny & Co. . . 50 
 
 Doe, Charles F 50 
 
 Doe, Bartlett H 50 
 
 Davis, Willis E 20 
 
 Davis, J. B. F 20 
 
 Durbrow, Emma L 10 
 
 Dennison, E. F 10 
 
 De Vecchi, Dr. P 10
 
 LIST OF STOCKHOLDERS. 
 
 123 
 
 SAN FRANCISCO. 
 
 SHARKS SHARES 
 
 Dalton Bros 10 Eyre, Edward E 50 
 
 Dinkenspiel, Mrs. S. B. . 10 Examiner, W. F. Bogart, 
 
 Dundon, P. F 10 (Trustee) 30 
 
 Denigan, Son & Co 10 
 
 Dinkenspiel & Son 10 Flood, James L 250 
 
 Dean, Peter 10 
 
 Davis Bros. . . 10 
 
 Fireman's Fund Insur- 
 ance Co.. . . 100 
 
 Donahue, P. J 100 Fitch, George K 50 
 
 Dusenbury, J 10 Fuller, W. P. & Co 50 
 
 Dean, Wm. E too Folger, J. A. & Co 25 
 
 Dowling, JohnT.(Tr.).. 10 Franklin, J. L, 10 
 
 Danks.J. W i Follis, R. H 10 
 
 Dunne, James P i Forbes, A. B 10 
 
 Foss, Oscar 10 
 
 Frank, S. H. & Co 10 
 
 Davis, Schonwasser & 
 
 Co 10 
 
 Dietz, A. C. & Co 10 
 
 Freeman & Bates. 
 
 Duprat, Alonia C 10 Fowler, Mrs. Antoinette 10 
 
 Fredericks, Joseph 10 
 
 El Dorado Council No. 
 
 581 of Nat'l Union., i 
 
 Foorman, S 10 
 
 Feusier, I/ouis 10 
 
 Esberg, Bachman & Co. 50 Farnsworth, D. L 10 
 
 Emery, J. S 50 Fitzhugh, Wm. M 5 
 
 Ehrman & Co., M 50 Farren, John W., Jr 10 
 
 Easton, Eldridge & Co . 20 Fisher Packing Co 5 
 
 English, John F 10 Fortmann, Henry P 5 
 
 Evans, Evan C 10 Frank, M. E i 
 
 Ede, Wm. (Trustee) 10 Freud, Harold i 
 
 Edwards, Frank C 2 Freud, Robert i
 
 I2 4 
 
 UST OF STOCKHOLDERS. 
 
 SAN FRANCISCO. 
 
 SHARES SHARES 
 
 Friedlander, Gottlob & Hearst Estate 250 
 
 Co 2 Holbrook, Charles 150 
 
 Hellman, Isias W 50 
 
 Gibbs, Mrs. Augusta K.. 100 Hind, Robert R 50 
 
 Goldstein, Estate of E. L. 50 Heller, E. &. S 50 
 
 Greeuewald, Mrs. L. . . . 50 Haas Bros 25 
 
 Gorrill, R. W 20 Holt, Chas. H 30 
 
 Graff, G 20 Hinkel Bros 25 
 
 Ghirardelli, D. & Sons.. 10 Harvey, Leroy G. & Co. 15 
 
 Greenbaum, Weil & Mi- Hart, A. H. Co., The. . . 10 
 
 chels 10 Hughes, Rienzi 10 
 
 Glootz, Adolph 10 Harshall, Gustav 10 
 
 Gerstle, I^ewis 125 Hulse, Bradford & Co . . 10 
 
 Garratt, James H 5 Heller, Bachman & Co . 10 
 
 Giesting, Joseph G 5 Heinecken, A. C 10 
 
 Garnier, Emile 10 Hirschman, A 5 
 
 Greenberg & Greenberg 5 
 
 Graham Decorative Art . 
 
 Hyman, Jacob 5 
 
 2 Hooper, C. A. & Co 50 
 
 Gunst, Mose A 10 Herzberg, I i 
 
 Gosliner, H. B i Herrmann, C. & Co ... 2 
 
 Guillium, Phillipe 5 Hjul, H. H 3 
 
 Hopkins, E. W 100 
 
 Hayward. Alvinza 500 Harmes, J. T. (Trustee 
 
 Hobart Estate (James for YerbaBuena Par- 
 Cross, President), . .500 lor, N. S. G. W i 
 
 Hibernia Bank * (Robert 
 
 Hicks-Judd Co 10 
 
 J.Tobin, Secretary). 500 Hooper, R. B i 
 
 * Donation.
 
 LIST OF STOCKHOLDERS. 
 
 125 
 
 SAN FRANCISCO. 
 
 SHARES 
 
 Indianapolis Furniture 
 
 SHARES 
 
 Keyes, W. S 5 
 
 Co 10 Keyes, E. D. 
 
 Iroquois Share Club No. 
 2, Louis Metzger, 
 Trustee i 
 
 Jordan, James C 50 
 
 Johnson, J. C 10 
 
 Johnson-Locke Mercan- 
 tile Co 10 
 
 Jones, S. L. & Co 10 
 
 James, J. G 10 
 
 Krause, A i 
 
 Kahn, George H i 
 
 Kueppers, Theodore .... 5 
 
 Kruse, J. H 2 
 
 Kwoug Tong.Tai & Co . . i 
 
 Kwong Lun Hing & Co. i 
 
 Kwong Chen Yuen i 
 
 Lachman, Estate of S. . 50 
 
 Lowenberg & Co. 50 
 
 Jost, C. & Son 10 Levi, H. & Co 50 
 
 Johnson, Mrs. M. A 2 Lilienthal & Co 25 
 
 Jennings, C. B 5 Liebes, H. & Co 25 
 
 Jennings, Thomas ..... 10 Lent, Mrs. Fannie 10 
 
 Judson & Shepard 10 Lent, Mrs. Frances 10 
 
 Jones, D. R 20 Lennon, John A 10 
 
 Lincoln, Jerome 10 
 
 Koshland, S 20 Legallet, Helwig & Co.. TO 
 
 Kittredge, E. H 20 Lehmann, Charles H 10 
 
 Koster, John L 50 Leege, Charles F 10 
 
 Kosach, M. S 3 
 
 Kent, Thaddeus B. (S. F. 
 
 Lievre, Fricke & Co .... 10 
 Levy, Herman 10 
 
 Savings Union) 500 Lyons, Chas 5 
 
 Kohlberg, Strauss & Langhorne, J. P 5 
 
 Frohman 5 Lovell, Mansfield 5 
 
 Koegel, David 2 Lewis, M 10
 
 126 
 
 LIST OF STOCKHOLDERS. 
 
 SAN FRANCISCO. 
 
 SHARES 
 
 Lowry, W. J 5 
 
 Loughborough, A. H . . . 5 
 
 Luchsinger, G. H 3 
 
 Luchsinger, Alvina 3 
 
 Loewenstein, Maurice F. 2 
 
 Lemos, Leon 5 
 
 Meyer, Daniel 250 
 
 Magee, Thomas 150 
 
 Magee, Thomas (Tr. ). . . 150 
 
 Markey , Laura Bent i 
 
 Miller, Dr. John A 5 
 
 Martin, W. H 100 
 
 Main & Winchester 100 
 
 Mayne, Chas 100 
 
 Macdonough, J 100 
 
 Murphy, Frances J 50 
 
 Murphy, May M 50 
 
 Meyerstein, Lewis 50 
 
 Madison & Burke 30 
 
 Miller, Sloss & Scott. . . 30 
 
 Mangels, J. H 20 
 
 Mangels, Mrs. Emma. . . 20 
 Mangels, Miss Agnes. . . 20 
 
 Menzies, Stewart 20 
 
 Mack, J. J. & Co 10 
 
 Marcus, Geo. & Co 10 
 
 Mack, Elizabeth 10 
 
 SHARES 
 
 Madison, James 10 
 
 Mangels, J. H. (Tr. ) 10 
 
 Marye, George T. . Jr.. . . 50 
 
 Miner, W. H 10 
 
 Magee, Thomas (Tr. ). . . 100 
 
 Moore, Hunt & Co 20 
 
 Merle, Marguerite V. ... 20 
 
 May, Joseph 5 
 
 May, Edward 5 
 
 Merrill, John F 50 
 
 Manning, John M 5 
 
 Morgan, E. M 5 
 
 Manning, John M 5 
 
 Martin, Andrew T 10 
 
 Moriarty, Elizabeth A . . 2 
 
 Morgan Oyster Co 25 
 
 Melve, Duncan W 2 
 
 Montague, W. W. & Co. 50 
 
 Meyer, A i 
 
 Mercer, Mrs. Mary A. . . 10 
 
 Miller & Lux 500 
 
 Moore, Ferguson & Co . 10 
 
 Muir, John 10 
 
 MacDermott, C. F 100 
 
 McMullin, J 10 
 
 McCarthy Bros 10 
 
 McNab, Theresa 3 
 
 McCreery, A. B 300
 
 LIST OF STOCKHOLDERS. 
 
 I2 7 
 
 SAN FRANCISCO. 
 
 SHARES 
 
 McCarthy, C. G 5 
 
 SHARES 
 
 Phelan, James D.. ...... 250 
 
 McNulty, P. Roscoe .... 5 Preston, E. F . . . . 100 
 
 Mackay, Alex. & Son . . 2 Payot, Upham & Co .... 50 
 
 McDonnell, S. A i 
 
 McKee, Lester H. S.. i 
 
 Phelan, Mary L 50 
 
 Pond, E. B 50 
 
 McMahon, Thos 10 Payne, Theodore F 50 
 
 McDevitt, Edward (Tr.) 2 
 
 Mikulich, August 
 
 Page, Arthur 10 
 
 7 Phelps & Miller 10 
 
 Phelps, E. A. (Tr.) 10 
 
 Neustadter Bros 50 Poly, Heilbron & Co ... 10 
 
 Niebaum, Gustav 50 Page, Geo. Thos. (Tr.). . 10 
 
 Naber, Alfs & Brune 20 Priet, P 5 
 
 Neubauer, Herman W . . 10 Page & Falch 8 
 
 Norton, Teller & Roden 10 Poheim, Joe 5 
 
 Nightingale, John 30 Pforr, John 5 
 
 Nicol, Wm 5 Patrick, A. B. & Co 10 
 
 Naughton, Francis i Pollard & Dodge 10 
 
 Newman & Levinson . . . 
 Nichols, A. C. &Co.... 
 
 5 Perley, A. S 2 
 
 3 Popper, Max (Tr. for Iro- 
 
 quois Share Cl'b No. i) 5 
 
 Ohlaudt, N 50 Payot, Mrs. Henry 10 
 
 Oppenheimer, Henry. . . 10 Pacific Lumber Co 25 
 
 O'Farrell & Co 10 Peterson, Frank B 2> 
 
 O'Brien, Thos. V 10 
 
 Orrick, O. S 5 Quinn, John E 10 
 
 Orsi, Giaromo 5 Quarg, Emil i 
 
 Parrott Estate 500 Redington & Co 25
 
 128 
 
 LIST OF STOCKHOLDERS. 
 
 SAN FK AN CISCO. 
 
 SHARES 
 
 Roth & Co 10 
 
 Russ, Ad. G 10 
 
 Rey, Valentine J. A 10 
 
 Roth, Blum & Co 10 
 
 Rohte, Emil 10 
 
 Roos, Adolph 5 
 
 Roos, Achille 5 
 
 Rankin, G. A 5 
 
 Raphael, Nat. M i 
 
 Rolph, James, Jr i 
 
 Roy, Thomas 2 
 
 Recalt, Jean i 
 
 Spreckels, Claus 5000 
 
 Spreckels, John D 1000 
 
 Spreckels, Adolph B. . . 1000 
 
 Sloss, Leon 1 25 
 
 Strauss. Levi 250 
 
 S. F. & Fresno Land Co.. 250 
 
 Stetson, J. B 100 
 
 Sachs, Sanford 50 
 
 Shortridge, Samuel M . . 100 
 
 Swayne & Hoyt 5 
 
 Simpson & Millar 10 
 
 Spreckels, J. D. (Tr.)... 3 
 
 Sang Lung & Co. i 
 
 Spreckels, John D. (Tr.) 70 
 Schweitzer, Bernard .... 50 
 
 SHARES 
 
 Solomon, S 50 
 
 Sachs Bros. & Co 50 
 
 Sachs, Estate of Martin 50 
 
 Sheldon, Mark 50 
 
 Sherwood & Sherwood.. 50 
 
 Sullivan, Frank 50 
 
 Sullivan, Alice Phelan. . 50 
 
 Stetson, J. B. (Tr.) 50 
 
 Siebe Bros. & Plageman 30 
 
 Seymour, S. H 30 
 
 Schilling, A 25 
 
 Shroth, Chas 25 
 
 Spreckels, J. D. (Tr.). . . 25 
 
 Schwabacher Bros 25 
 
 Shainwald, Buckbee & 
 
 Co 20 
 
 Silverberg, S 20 
 
 Schoenberg, Louis 10 
 
 Stolp, G. M 10 
 
 Schreiber, John 10 
 
 Salfield.C. D. & Co. (Tr. ) 10 
 
 Selby, Mrs. T. H 10 
 
 Schohay, A. & Son 10 
 
 Sharp, Wm 10 
 
 Sanborn, Vail & Co 10 
 
 Schussler, M. & Co 10 
 
 Splivalo, C. R. & Co. .. 10 
 Spruance, J. M 10
 
 LIST OF STOCKHOLDERS. 
 
 129 
 
 SAN FRANCISCO. 
 
 SHARES SHARES 
 
 Samuels, D 10 Touningseu,J 10 
 
 Sherman, Clay & Co 10 Tillman, Fred., Jr.(Tr.). 10 
 
 Son Bros. & Co 10 Taussig, L 10 
 
 Sperry Flour Co 50 Taussig, L/ouis & Co 10 
 
 Stein, Simon & Co 25 Tay, Geo. H. & Co 10 
 
 Shea, Bocqueraz & Co. . 20 Tillman, Fred, Jr. (Tr.). 10 
 
 Smith, Peter A 10 Tevis, Lloyd 500 
 
 Shirley, John 10 Taylor, Thos. G 10 
 
 Stevens, A. C 10 Tsue Chong Wing Mon 
 
 Sharon Estate 250 Kee i 
 
 Stockton L/umber Co . . . 200 
 
 Siebrecht, F 5 Umbsen, G. H 20 
 
 Sullivan, Thos 10 Union Fish Co 10 
 
 Stein, J. H. & Co 2 Union Lumber Co 15 
 
 Siegfried, J. C. (Tr.) 10 
 
 Simpson, James 5 Van Sicklen, F. W.(Tr. ) 5 
 
 Seidel, F. S 10 Viavi Co., The 10 
 
 Selfridge, Minnie L.... 5 
 Spreckelsjohn D.(Tr.).25O 
 
 Volkman, C. M 10 
 
 Vermeil, J. L 10 
 
 Smith, Chester L. (Tr. ) . 50 Verdier, G 10 
 
 Sherman, C. H 5 Vogelsdorrff, Mrs. Rosa. 3 
 
 Sweeny, Thos. U 10 Vickery, W. K 2 
 
 Sheridan, Mrs. Lillian. . 3 Von der Nienburg i 
 
 Struven & Birgle 3 Van Loben Sels, P. J . . . 10 
 
 Spreckels, John D.(Tr.). 3 
 
 Watt, Robert 50 
 
 Tillman & Bendel 35 Whittier, W. F 500 
 
 Taylor, John 30 Walter, D. N. & E 50
 
 130 
 
 LIST OF STOCKHOLDERS. 
 
 SAN FRANCISCO. 
 
 SHARES SHARKS 
 
 Whittell, Geo 50 Western Iron Works. . . . 10 
 
 Williams, Dimond & Co. 30 Weber, A. C 5 
 
 Wagener, Maria 20 Wattson, Mrs. Mary .... i 
 
 Watson, Thos 10 Windt, Morris 10 
 
 Winslow, C. R 10 Watson, Mrs. Emilie.. .. i 
 
 Wickware, Geo. C 10 Wing Chong Wo & Co.. i 
 
 Wellman Estate Co 10 Wan Yune Lung Kee. . . i 
 
 Wilson & Bro 10 Watterson, G. T 10 
 
 Williams, A. P 10 
 
 Wolff, Wm. & Co 10 Yates, Charles M 10 
 
 Williams, Brown & Co. . 10 Young, E.B 5 
 
 Witzel & Baker 10 Young, Wm. W 10 
 
 Wagenheiui, Sol & Co.. 10 
 
 Wolters Bros. & Co 10 Zeile, F. W 25 
 
 Woods, F. H 25 Zweig, H 10 
 
 Wetherbee, Ellen M. . . . 50 Zetzseke, Fred'k M 5 
 
 Wright, A. G 5 Zellerbach, A. & Sons. . 5 
 
 BAKEBSFIELD. 
 
 Beal, C. N i McCray, Harry W i 
 
 Edmonds, R. A i Rice, Frank S I 
 
 Frisette, R i Reid, S. Howard i 
 
 Guhl, August E i Rosenmyre, J. V i 
 
 Hunter, J. E. G i Snook, Walter i 
 
 James, Walter i Thomas, W. H i 
 
 Jackson, C. W i Taylor, J. T i 
 
 Kratzmer, August i Webster, A. J I 
 
 Bakersfield Share Club, 
 
 Munzer, T. G. . . i 
 
 Morley, James V I 
 
 F. E. Valentine.. i
 
 LIST OF STOCKHOLDERS. 
 
 BAKERSFIELD. 
 
 SHARES SHARES 
 
 Reed, S, N i Packard, H. L i 
 
 Bethel, F. J i Sanborn, William H i 
 
 Tibbett, George A i Morrison, R. G i 
 
 Dale, R, C i Carson, F. C i 
 
 Davis, E. P i Swayne, R. B I 
 
 Heyman, Alex i Robinson, F. W I 
 
 Weill, Sam i Jameson, E. D i 
 
 Beer, L,ucien i Millard, W. S i 
 
 Beatty, C. W i Hunt, G. C I 
 
 Webb, W. C i Galles, Paul i 
 
 Niederaur, J i Goodhue, S. G i 
 
 Britz, Nick i Pogson, R. M I 
 
 Withington, R. W i 
 
 Carillo, F. M. i 
 
 Galli, G i 
 
 Huebner, A. F i Hoenshell, D. S i 
 
 Oliver, Gray i Simpson, Harry I 
 
 Scott, Winfield. 
 Ferguson, R. G. 
 Wible Bros.. 
 
 Scribner, John I 
 
 Hartley, R i 
 
 Cohn, C ............... i 
 
 Beck, William ......... i 
 
 Hayden, B, A ......... I Beard, George .......... i 
 
 Stockton, R. N ......... i Carlock, F, M .......... i 
 
 Galloway, R. E ........ i Glenn, I. II ............ i 
 
 Olds, H. P ............. i White, R. J ............ i 
 
 Jean, J. G .............. i Weaber, A .............. i 
 
 St. Clair, L,. P .......... i Jerrue, D. B ............ I 
 
 Barnard, D ............. i Packard, T, J .......... I 
 
 Chatom & Consolation, . i Price, George W.. ..... I 
 
 Stanton, H. H .......... i Lechner, H. C .......... I
 
 132 
 
 LIST OF STOCKHOLDERS. 
 
 BAKERSFIELD. 
 
 SHARES 
 
 Howell.W. A... i 
 
 SHARES 
 
 Baer, Charles i 
 
 Doherty, W. J I Fox, Charles P I 
 
 Taggart, E. K i Wren, Phil i 
 
 Cowgill, C. C i Solomon, M. W i 
 
 Patton.J. E i Lockhart, T. W i 
 
 Smith, S. C i 
 
 Gregory, R. F i 
 
 Armstrong, A. A i 
 
 St. Clair, Everett i 
 
 Borgwardt, M, J i 
 
 SeroyJ. E i 
 
 McLeod, C. B i 
 
 Hirschfeld, I i 
 
 Lee & Lang i 
 
 Graves & Banker i 
 
 Lannon, W. J I 
 
 Allen, F. H i 
 
 Petit, F i 
 
 Waggoner, O, J i 
 
 Knoop, William i 
 
 Roberts, T. L i 
 
 Roberts, Herbert i 
 
 Lempke, B. H i 
 
 Wong Sing Tai i 
 
 Sing Lee i 
 
 Yee Chung Tai i 
 
 Chung Fook Yuen i 
 
 Frank Dock i 
 
 Hung Far Chung i 
 
 Yim Ah Yeo i 
 
 Sue Tim . . i 
 
 Mulcahy, M. J i Quong Yee Wing r 
 
 Fry, Bessie I Yuen Sue i 
 
 i 
 i 
 
 Woo Tim Ching. . , 
 Quong Song Wah . 
 
 Johnson, Chris i 
 
 Cook, F. H i 
 
 Connor, C. L i 
 
 LOS ANGELES. 
 
 Curtis, Henry P i Russell, Henry i 
 
 ALAMEDA. 
 
 Van Oterendorp, K 25 Koelitz, F. A. 5 
 
 Henn.W. O.. .. I
 
 LIST OP STOCKHOLDERS. 133 
 
 ADELAIDE. 
 
 Smith, James I 
 
 PORT COSTA. 
 
 Bergin, Arthur i 
 
 YOUNTVILLE. 
 
 Myrick, Folsom 4 
 
 WINNEMUCCA, NEV. 
 
 Busch, Anna i 
 
 SALINAS. 
 
 Houghlaud, E. M i 
 
 TUCSON, ARIZ. 
 
 Kelsey, Ed. E I 
 
 SANTA PAULA. 
 
 Mclntosh & Lindsey I 
 
 EL DORADO. 
 
 Richards, Wm i 
 
 OAKLAND.* 
 
 Builders' Exchange S. H. Wilson 
 
 J. Conen Chas. B. Shear 
 
 J. M. Shay G. Seulberger 
 
 W. N. Concannon G. B. Daniels 
 
 W. T. Veitch & Bro. F. C. Jordan 
 
 Oakland Shoe Store Tribune Pub. Co. 
 
 Phelan & Fish F. B. Ginn 
 
 Fred Becker Dr. T. W. Hall 
 
 Pierce & Co. J. H. Umphred 
 
 Taft & Pennoyer A. F. Gunn 
 
 * Subscriptions amounting to $186,850 in total; list 
 as near complete as it was possible to make it up to the 
 date of publication.
 
 134 
 
 UST OF STOCKHOLDERS. 
 OAKLAND. 
 
 W. W. Garthwaite 
 
 W. L. Hill 
 
 Thos. Garrity 
 
 F. F. Baker 
 
 E. H. Pardee 
 
 J. Johnson 
 
 Colton Bros. & Co. 
 
 M. C. Rigney 
 
 J. Malony 
 
 W. P. Wetmore 
 
 A. Kendall 
 
 C. L, Maxwell & Sons 
 
 Kahn Bros. 
 
 Abrahamson Bros. 
 
 Pierce Hardware Co. 
 
 Robert Smilie 
 
 Joseph Boquet 
 
 J. H. O'Brien 
 
 Kirkland & Trowbridge 
 
 Frank C. Howe 
 
 Wm. R. Davis 
 
 M. A. Whidden 
 
 C. H. Spear 
 
 Laura J. Forrest 
 
 Dr. A. H. Mueller 
 
 Taylor & Gray 
 
 H. D. Hougham 
 
 Geo. M. Shaw 
 
 E. C. Robinson 
 
 O. E. Hotchkiss 
 
 J. L. Barker & Co. 
 
 J. L. Wetmore 
 
 Wm. F. Lewis 
 
 Webster & Gray 
 
 L. A. Stephenson 
 
 Z. T. Gilpin 
 
 G. E. Brinkerhoff 
 
 T. W. Corder 
 
 J. J. Hanifin 
 
 T. Smith 
 
 Mrs. Mary Canning 
 
 E. Cavanaugh 
 H. B. Pinney 
 
 F. J. Woodward 
 A. P. Holland 
 E. Gilbert 
 Brigham, Hoppe & Co. 
 
 J. W. & M. J. Laymance 
 
 D. E. Collins [& Co. 
 George Kauffman 
 
 G. E. De Golia 
 R. D. Hunter 
 George W. Arper 
 Dalziel & Moller 
 
 E. I/enhardt 
 John Covant 
 Uhl Bros. 
 
 F. Delger
 
 LIST OF STOCKHOLDERS. 
 OAKLAND. 
 
 135 
 
 Blake, Moffitt & Towne 
 Mrs. W. J. Dingee 
 J. B. Garlick 
 J. Tyrrell 
 Wm. P. Todd 
 
 F. K. Shattuck 
 Win. Kohler 
 M. C. Chapman 
 
 A. de Lao de Laguna 
 J. E. Morris 
 A. S. Woodbridge 
 J. A. Beckwith 
 T. W. Badger 
 V. P. Mitchels 
 W. N. Pearce 
 Chas. Jurgens 
 Arthur Brown 
 
 D. D. Crowley 
 A. S. Blake 
 
 G. R. Williams 
 
 E. A. Howard & Co. 
 A. Steffanoni 
 
 C. W. Kinsey 
 
 Puget Sound Lumber Co. 
 
 W. W. Blow 
 
 James Moffitt 
 
 W. J. Dingee 
 
 Central Bank [Heat Co. 
 
 Oakland Gas Light and 
 
 John R. Glasscock 
 
 L. S. Church 
 
 Dr. A. H. Pratt 
 
 George Chase 
 
 J. B. Richardson 
 
 C. B. White 
 
 Geo. T. Hawley 
 
 F. M. Smith 
 
 A. J. Frank 
 Claudine Saubury 
 Sohst Bros. 
 Wm. Gregory 
 Camron & McDonald 
 W. D. Foote 
 
 J. W. Nelson 
 Oakland Enquirer 
 
 B. McFadden 
 Ross Morgan 
 A. Kayser 
 
 A. H. Breed & Co. 
 Higgins & Collins 
 O. C. Kirk 
 Metcalf & Metcalf 
 Adams Estate 
 Charles Camden 
 
 Oakland Bank of Savings Union Savings Bank 
 
 F. A. Heron 
 
 Henry Evers
 
 136 LIST OF STOCKHOLDERS. 
 
 OAKLAND. 
 
 Jas. B. Barber James P. Taylor 
 
 H. A. Luttrell Al. Wood & Bro 
 
 R. McKillican Gary Howard 
 
 Jas. A. Johnson E. A. Heron 
 
 W. B. Henshaw H. P. Dalton 
 
 Mutual Investment Union C. O. Alexander 
 
 C. W. Randall J. L,. Davie 
 
 James Miller E. M. Chabot 
 
 Thomas Crellin W. E. Miller 
 
 W. W. Baker John Winter 
 
 Ruby Hill Vineyard Co. F. R. Girard 
 
 Burnham, Standeford & J. J. White 
 
 J. M. Bassett [Co. J. Hanly 
 
 F. Senram & Co. O. M. Sanford 
 
 J. E. McElrath P. M. Fisher 
 
 S. B. McKee Stephen G. Nye 
 
 A. Barstow T. W. Corder 
 
 Fibush Bros. Chas. E. Snook 
 
 A. Campbell W. G. Manuel 
 
 M. Y. Stewart Dr. H. B. Mehrmanu 
 Geo. C. Pardee
 
 IV.
 
 THE NORTH AMERICAN 
 
 NAVIGATION COMPANY. 
 
 THE Johnson-L,ocke Mercantile Company, suc- 
 cessors of William T. Coleman Company, an old 
 and historical house, were large shipping and 
 commission merchants in this town, and some 
 time in 1891 began studying transportation prob- 
 lems on this Coast. They had an active corre- 
 spondence with the firm of T. Hogan & Sons, 
 large shipowners, as to the possibility and ad- 
 visability of running a line of steamers via Cape 
 Horn, from New York to San Francisco and 
 return. After negotiations extending over six 
 months, arrangements were closed between T. 
 Hogan & Sons and the Johnson-Locke Mercan- 
 tile Company. C. H. Haswell, Jr., formerly 
 Agent of the Pacific Mail and O. and O. Com- 
 pany, in Japan, assumed the management of the 
 Johnson-Locke Mercantile Company's Steamship 
 Department. 
 
 The line of steamers known as the Atlantic
 
 140 NORTH AMERICAN NAVIGATION CO. 
 
 and Pacific Steamship Line was inaugurated be- 
 tween New York and San Francisco, via Cape 
 Horn, and the first steamer to leave New York 
 was the " Keweenaw," July, 1891. The next 
 was the " Mineola," which left New York, Au- 
 gust i5th, followed by the "Mackinaw," Octo- 
 ber 3d, with the " Progreso," "Mineola" and 
 " Conemaugh" following. The inauguration of 
 this line created a great deal of interest in mer- 
 cantile and shipping circles and resulted in forc- 
 ing the Southern Pacific Company to make 
 reductions in rates. The Atlantic and Pacific 
 Line was run without subsidy amid great diffi- 
 culties, but was kept alive by strenuous efforts 
 on the part of the Johnson-Locke Mercantile 
 Company until an article appeared in 1892 in 
 the Associated Press reports as a dispatch, an- 
 nouncing the rupture of the alliance between the 
 Panama Railroad Company and the Pacific Mail 
 Steamship Company, and in this rupture there ap- 
 peared a faint ray of hope. The Johnson- Locke 
 Mercantile Company telegraphed to the Panama 
 Road Directors advising them of the situation in 
 San Francisco, and the desire on the part of the 
 merchants of this State to secure any relief pos-
 
 NORTH AMERICAN NAVIGATION CO. 141 
 
 sible from the exactions of the Southern Pacific 
 Company and inviting them to enter into com- 
 petition in the carrying trade with a through 
 line of steamers between New York and San 
 Francisco, via Panama. 
 
 Upon the suggestion of the Panama Railroad 
 Company, the Johnson-L,ocke Mercantile Com- 
 pany investigated the situation at great length 
 and, after viewing the position of affairs, the Pa- 
 nama Railroad Campany agreed with the John- 
 son-Locke Mercantile Company that if they could 
 or would raise sufficient funds to inaugurate a 
 service on the Pacific Ocean, between Panama 
 and San Francisco, the Panama Railroad Com- 
 pany would co-operate with the service on 
 the Atlantic Ocean, running between New York 
 and Colon, and connecting with the Pacific ser- 
 vice, and thus establishing a through line. 
 With this end in view, the Panama Road Direc- 
 tors entered into an agreement with the Johnson- 
 IvOcke Mercantile Company. 
 
 Immediately after a clear understanding had 
 been reached the North American Navigation 
 Company was hastily incorporated, with the 
 following directors: William L. Merry, Frank S.
 
 142 NORTH AMERICAN NAVIGATION CO. 
 
 Johnson, C. H. Haswell, Jr., Frank Dalton, 
 William Thomas, Herman Bendel, A. B. Field, 
 and J. J. Moore. All liabilities were personally 
 assumed by the Johnson-Locke Mercantile Com- 
 pany which pledged for themselves that all sums 
 spent in organizing and promotion would be 
 advanced by them. Captain William L- Merry 
 assumed the Presidency, and co-operated with 
 Frank S. Johnson and C. H. Haswell Jr., in 
 their efforts to secure subscriptions. They 
 undertook to raise a subscription list, before Mr. 
 Johnson left for New York to meet the Panama 
 Directory, and succeeded in pledging the sum 
 of sixty-seven thousand five hundred dollars 
 ($67,500), and this roll of honor included the 
 following names: 
 
 Captain R. R. Thompson, who led with a sub- 
 scription of ten thousand dollars ($10,000), 
 followed by Alvinza Hayward and Abbie M. 
 Parrott, each with five thousand dollars ($5000); 
 also Herman Bendel, Thomas Magee, William 
 Babcock, C. Carpy, C. J. Hendry Sons Company, 
 A. W. Harriman, W. F. Mills, A. B. Field, Cap- 
 tain William L,. Merry, Frank S. Johnson, W. I/. 
 Locke, C. H. Haswell, Jr., J. J. Moore, William
 
 NORTH AMERICAN NAVIGATION CO. 143 
 
 Thomas, A. Lusk & Co., H. Levi & Co., Stetson- 
 Renner Dray age Company, and P. J. Martin, for 
 various amounts from one thousand dollars 
 upwards; Frank S. Johnson, William L. Merry, 
 and C. H. Haswell Jr., subscribing largely as 
 trustees for mercantile and shipping houses who 
 did not then desire to have their names made 
 public. 
 
 At this time, it must be remembered, these 
 merchants assumed the initiative and threw down 
 the gauntlet in an aggressive way to the Southern 
 Pacific Company. The enterprise was fraught 
 with some danger. Having thus the skeleton of 
 an organization duly officered, with a prelimi- 
 nary subscription list, but not a dollar in the 
 treasury, and the promise of a contract on the 
 part of the Panama Railroad Company if a 
 Company could be formed in San Francisco, the 
 Johnson-Locke Mercantile Company with Cap- 
 tain Merry, invited the assistance of The 
 Traffic Association. Before a reply or decision 
 could be reached by that organization, Frank 
 S. Johnson, the President of the Johnson-Locke 
 Mercantile Company, started for New York. 
 At that time much doubt was expressed as to
 
 144 NORTH AMERICAN NAVIGATION CO. 
 
 whether the Panama Railroad Company was 
 using the merchants of San Francisco to secure 
 a better contract with the Pacific Mail Steamship 
 Company. The stand was taken by Mr. 
 Johnson, Captain Merry and Mr. Haswell, that 
 the propositions made to the Johnson-L,ocke 
 Mercantile Company were so dean cut, and the 
 standing and position of General Newton, Mr. 
 Oppenheim, and Mr. Drake, who were in the 
 active management of the Panama Railroad 
 Company so unquestioned, that negotiations 
 must have been opened in good faith, and, in 
 their opinion, would be carried out in good faith 
 to the end. 
 
 The Traffic Association promised to co-operate 
 if it could be proven that negotiations were bona 
 fide. When Mr. Johnson arrived at New York 
 negotiations were immediately begun, and after 
 the expiration of some three weeks Mr. Johnson 
 was enabled to telegraph Captain Merry and 
 Mr. Haswell that he had secured a preliminary 
 contract, signed by him, and binding the Panama 
 Railroad to establish a line from New York to 
 Colon, and to co-operate with the line, and the 
 Railroad Company to the Isthmus, with a com-
 
 NORTH AMERICAN NAVIGATION CO. 145 
 
 pany organized in San Francisco, provided that 
 it had a paid-up capital of one hundred thousand 
 dollars ($100,000). This contract was forwarded 
 to San Francisco by Mr. Johnson. The Traffic 
 Association, at the suggestion of Mr. L,eeds, then 
 suggested some changes in the contract. Mr. 
 Leeds was instructed to go on to New York, 
 where he found in the meantime a formidable 
 combine had been gotten up by Mr. Huntington, 
 and every obstacle was being thrown in his and 
 Mr. Johnson's way. Too late the Southern 
 Pacific saw that the Panama Railroad Company 
 was in earnest, and, feeling the presence of Mr. 
 Lead's master hand, were willing to make con- 
 cessions, but the contract already secured by Mr. 
 Johnson stood. The Panama Railroad Company's 
 Directors, if they had desired to avoid this 
 responsibility, could not have done so, but they 
 turned a deaf ear to the Southern Pacific officials, 
 and being sincere in the desire to close with the 
 San Francisco merchants, they consented to the 
 slight modifications requested by Mr. Leeds in 
 Mr. Johnson's contract. 
 
 The capital stock of the North American 
 Navigation Company, upon the demand of the
 
 146 NORTH AMERICAN NAVIGATION CO. 
 
 Panama Railroad Company, and with the consent 
 of Mr. I^eeds and Mr. Johnson, was raised in 
 the new contract to two hundred thousand 
 dollars ($200,000). Meanwhile the old Board, 
 which was the creation of the North American 
 Navigation Company, was in existence. The 
 Traffic Association now promised, in addition to 
 the sixty-seven thousand five hundred dollars 
 ($67,500) already raised by the Johnson-L,ocke 
 Mercantile Company, to secure the balance of the 
 two hundred thousand dollars ($200,000), and 
 desired, in view of this, that the majority of the 
 North American Navigation Company's Board 
 of Directors should be composed of the members 
 of The Traffic Association. This being cheer- 
 fully accorded The Traffic Association then 
 undertook to raise the balance of the money, but 
 found it a most difficult task. People were 
 dubious and skeptical, times were hard, and 
 time fast approached when the first vessel under 
 the contract was to be dispatched for New York; 
 viz., March 9, 1893. There was not a dollar in 
 the treasury then, all liabilities up to date having 
 been assumed and paid for by the Johnson-Locke
 
 NORTH AMERICAN NAVIGATION CO. 147 
 
 Mercantile Company, but not a dollar of capital 
 stock had been raised or paid in. 
 
 There were subscriptions, but these subscrip- 
 tions were binding only on two hundred thousand 
 dollars ($200,000) being raised, and only one 
 hundred and fifty thousand dollars ($150,000) 
 had been, up to that time, secured, and a week 
 before the sailing date of the first steamer it 
 looked as though the money could not be raised 
 in time. Through the strong faith in this enter- 
 prise of Messrs. L,ouis Sloss & Co., the owners 
 of the steamer "St. Paul," the Johnson-L,ocke 
 Mercantile Company were enabled to charter 
 that vessel under the joint auspices of Alvinza 
 Hayward, he having guaranteed the sum of five 
 thousand dollars ($5000) and the Johnson-Locke 
 Mercantile Company having guaranteed, in 
 addition to their previous guarantee, the 
 remainder. The "St. Paul " was thus chartered 
 and dispatched March 9, 1893. 
 
 The sailing of the "St. Paul " for Panama was 
 the occasion of quite a demonstration. It was 
 believed, as the vessel departed, that the North 
 American Navigation Company might prove to 
 be a permanent institution, and there was great
 
 148 NORTH AMERICAN NAVIGATION CO. 
 
 rejoicing accordingly. The "St. Paul" was a 
 small ship, but the only vessel available at the 
 time. It had previously been employed on one 
 memorable occasion at least, to compete with 
 the transcontinental lines in the movement of 
 seal skins between San Francisco and Europe. 
 On its first voyage as carrier for the allied San 
 Francisco merchants it took out a miscellaneous 
 cargo of California products valued at about two 
 hundred thousand dollars. The commodities in 
 the cargo, according to the evening papers of 
 San Francisco, included wine, brandy, California 
 butter, vegetables, dried fruits, California leather, 
 California varnish and paint, pickles, borax, 
 California herbs, silver ware, plated ware, and 
 California made household furniture. A large 
 number of merchants went to the Lombard - 
 street-wharf before the steamer departed, and 
 exchanged congratulations in the cabin of the 
 steamer. While there were no speeches the 
 health of several gentlemen largely instrumental 
 in the enterprise was pledged. Captain Merry, 
 the President of the Company; Leon Sloss, 
 of the Alaska Commercial Company; Barry 
 Baldwin, President of The Traffic Association;
 
 NORTH AMERICAN NAVIGATION CO. 149 
 
 Traffic Manager Leeds, and many members of 
 The Traffic Association were interested specta- 
 tors. As the vessel moved away a crowd repre- 
 senting all classes of San Franciscans cheered- 
 Passing steamers sounded their whistles in salute. 
 Altogether San Francisco on this day was 
 decidedly in good humor. 
 
 Just prior to that time, the new Board came into 
 office, as follows: William L. Merry, Herman 
 Bendel, Gustav Niebaum, M. H. Hecht, E. B. 
 Pond, J. S. Leeds, Daniel Meyer, and Frank 
 Dalton. Charles M. Yates, who had served on 
 the Board for a time, resigned. The capital 
 stock was being subscribed to slowly, when it 
 was unpleasantly apparent that the contract time 
 for the leaving of the second vessel was at hand. 
 The capital stock not having been raised or paid 
 in, still further obligations were then assumed 
 by the Johnson-Locke Mercantile Company and 
 William L. Merry, under the pledge that they 
 should be reimbursed, and the "Mexico" was 
 chartered. At that time the Johnson-Locke 
 Mercantile Company advanced and became re- 
 sponsible for the sum of nearly twenty thousand 
 dollars, but their faith in the enterprise never
 
 150 NORTH AMERICAN NAVIGATION CO. 
 
 wavered. Shortly after the departure of the 
 "Mexico," the capital stock was subscribed 
 through the efforts of The Traffic Association, 
 and two hundred thousand dollars ($200,000} 
 were paid in. 
 
 The North American Navigation Company, 
 which, up to that time, had been in rather 
 intangible form, took its place as an organized 
 corporation, William I,. Merry being elected 
 President, and the Johnson-Iyocke Mercantile 
 Company, in recognition of their services, having 
 been appointed as General Agents, and C. H. 
 Haswell, Jr., Secretary. Mr. Haswell efficiently 
 filled his position as Secretary for two years. 
 The functions of the Johnson-Locke Mercantile 
 Company only ceased on the disbandment of 
 the Navigation Company. 
 
 The situation as it had existed and as concern- 
 ing the Pacific Mail, may be better understood by 
 some reference to the relations of that Company 
 to the transcontinental lines. About 1875 or 
 1876, when there was but one line of rails across 
 the continent, war was made by the overland 
 carriers on the Pacific Mail, which was at that 
 time operating the Panama road, and the result
 
 NORTH AMERICAN NAVIGATION CO. 151 
 
 of this was that the steamship line accepted a 
 subsidy of one hundred and ten thousand dol- 
 lars ($110,000) per month to neutralize that line 
 as a competitor. The Panama Railroad Com- 
 pany practically became a party to the subsidy 
 contract with the Pacific Mail in February, 1878. 
 This practically withdrew competition on time 
 freight. 
 
 The special contract system directed against 
 San Francisco merchants came into effect in 
 1878 and extended to 1882. The subsidy of the 
 Pacific Mail, after the contract system had been 
 fully established, was reduced to eighty-five thou- 
 sand dollars ($85,000) per month. When the 
 transcontinental pool was organized, which 
 occurred with the advent of other lines to the 
 Pacific Coast, the pool assumed the subsidy of 
 the Pacific Mail. The pool collapsed in the rate 
 war with the Santa Fe in 1886. The Trans- 
 continental Association was organized in De- 
 cember, 1887, and became effective January i, 
 1888. The subsidy of the Pacific Mail was then 
 resumed at sixty-five thousand dollars ($65,000) 
 per month, was afterwards Increased to seventy- 
 five thousand dollars ($75,000) per month in
 
 152 NORTH AMERICAN NAVIGATION CO. 
 
 1889, and that subsidy was continued up to 
 December 31, 1892. Millions of dollars were 
 expended during the period of years, to neutral- 
 ize the commerce of San Francisco by sea. 
 
 An extract from an address made by Isaac 
 Upham, President of The Traffic Association, at 
 the Annual Meeting of the Association, October 
 24, 1894, describes the situation concisely. 
 
 "At that time," said Mr. Upham, referring to 
 the period just preceding the organization of the 
 North American Navigation Company, "the 
 Transcontinental Association was ruling su- 
 preme, and dictated the rates of freight on goods 
 shipped and received from the East. The rail- 
 roads were pooled against us; also the ships 
 around Cape Horn, and the Pacific Mail was 
 subsidized. We were paying four dollars and 
 twenty cents ($4.20) per 100 pounds for first-class 
 freight by rail, and fifteen dollars ($15) per ton 
 around Cape Horn." 
 
 The contract negotiated between the Panama 
 Railroad Company and the North American 
 Navigation Company, by Messrs. Leeds and 
 Johnson, provided that the Navigation Company
 
 NORTH AMERICAN NAVIGATION CO. 153 
 
 should establish, operate, and maintain, from 
 March, 1893, to May i, 1894, a ^ ne f steamers 
 of adequate power and carrying capacity, between 
 San Francisco and Panama, for the transportation 
 of mail,, passengers, and freight, expressly agree- 
 ing to make at least one sailing of its steamers 
 every twenty-five days, from San Francisco 
 to Panama, and likewise from Panama to San 
 Francisco, and as many more trips monthly as 
 the business might require; also, that the Navi- 
 gation Company should develop, to the fullest 
 extent practicable, the traffic by its steamers in 
 connection with the Panama Railroad. 
 
 Steamers were to have net cargo capacity of 
 not less than 2000 tons each, with a speed of 
 not less than ten knots per hour. The Naviga- 
 tion Company also agreed to transport all mails, 
 passengers, treasure, and freight to all points on 
 the Pacific Coast between San Francisco and 
 Acapulco, exclusive of the latter port, and to 
 deliver the same to points of destination on the 
 Pacific Coast North of Acapulco. The Panama 
 Road undertook on its side to meet on equal 
 terms the conditions provided for the Navigation 
 Company. The Navigation Company agreed to
 
 154 NORTH AMERICAN NAVIGATION CO. 
 
 supply and maintain a working capital large 
 enough to conduct the business, in the amount 
 of at least two hundred thousand dollars ($200,- 
 ooo) between March 15, 1893, and May i, 1894. 
 
 The Railroad Company agreed to deliver for 
 carriage to the Navigation Company at Panama 
 all European freight and treasure destined to 
 Pacific points north of Acapulco which the rail- 
 road might receive from the other Atlantic lines, 
 and the Navigation Company agreed to deliver 
 this to points of destination. The Navigation 
 Company also agreed to employ only the Panama 
 Railroad's ships at Colon for moving mail, 
 passengers, etc., destined for American, Atlantic 
 and Gulf ports. The right was given to the 
 Navigation Company to issue through bills of 
 lading in the territory indicated, and it was 
 agreed that the Panama road should not through 
 bill with any other carrier than the Navigation 
 Company unless required by law to do so. 
 
 Rates were to be mutually agreed upon from 
 time to time, the proportion for the Navigation 
 Company to be forty-five per cent of the through 
 rate, the Railroad Company twenty-five per 
 cent and the carrier from Colon to United
 
 NORTH AMERICAN NAVIGATION CO. 155 
 
 States and vice versa thirty per cent on the 
 through rate. The Navigation Company was 
 given the same division upon European traffic 
 as then existed between common carriers. The 
 Navigation Company was compelled to agree 
 that it would operate the line and conduct its 
 business absolutely independent of and in active 
 competition with all other steamship or railroad 
 companies, and that it would not sell, lease, or 
 in any way transfer or allow the control of the 
 vessels or property to any competing steamship 
 or railroad line, or to any party controlling such 
 competing line. The Panama Railroad accepted 
 the same terms on its own part. Either party 
 could annul the agreement upon ninety days' 
 notice. The contract expressly provided that 
 its terms should not apply to transportation from 
 or to any port between Panama and Acapulco. 
 
 The Trustees of the stock of the Navigation 
 Company were W. W. Montague, Isaac Upham, 
 and William Babcock. They had power to 
 transfer stock and to qualify seven persons to act 
 as Directors. 
 
 The North American Navigation Company 
 had a short life, but during its existence its
 
 156 NORTH AMERICAN NAVIGATION CO. 
 
 crusade for commercial emancipation for the city 
 of San Francisco was attended with great results. 
 It found a faithful ally in the Panama Railroad 
 Company. A war of extermination was begun 
 by the transcontinental railroads. Freight was 
 carried from the Atlantic seaboard to San Fran- 
 cisco at rates which could certainly have given the 
 carriers only a very small, if any , margin of profit. 
 Using the rates in effect in the year 1892 as a 
 basis for comparison, it was discovered that 
 within a few months after the steamer "St. 
 Paul" sailed from San Francisco, west bound 
 rates had been reduced from forty-five to sixty 
 per cent, a low average being fifty per cent, 
 which was at the rate of about five million 
 dollars per annum upon business moving into 
 California. Fully as marked a reduction was 
 exhibited by a comparison with east bound 
 rates in 1892 with those in effect in the fall of 
 1 893. As an illustration, the saving on seven com- 
 modities produced in California, these being dried 
 fruit, raisins, canned goods, wine, wool, barley, 
 and beans, was stated by Traffic Manager Leeds, 
 to have been one million eight hundred and 
 thirty-three thousand five hundred and seventy-
 
 NORTH AMERICAN NAVIGATION CO. 157 
 
 nine dollars ($1)833,579), this including trans- 
 portation both by sea and rail. 
 
 " The difference/' said Traffic Manager Leeds, 
 using the foregoing figures in his report to The 
 Traffic Association in 1893, "to the producer 
 and shipper of the State in marketing a year's 
 product will reach, at a low estimate, two million 
 seven hundred and fifty thousand dollars, or 
 about two hundred and thirty thousand dollars 
 per month, a grand total east and west per 
 month of six hundred and forty-six thousand 
 six hundred and sixty-six dollars ($646,666), 
 or twenty-one thousand five hundred and fifty- 
 five dollars ($21,555) per day." It was necessary 
 for the overland carriers to exterminate the 
 North American Navigation Company to pre- 
 serve high charges. The policy of the Naviga- 
 tion Company was to follow downward the war 
 rates made by the transcontinental lines . 
 
 It was apparent soon to the enemies of the 
 Navigation Company, who carefully watched the 
 movement of east and west bound freight, that 
 the two hundred thousand dollars ($200,000) 
 provided as a guarantee fund or working capi- 
 tal would soon be exhausted. The Navigation
 
 158 NORTH AMERICAN NAVIGATION CO. 
 
 Company's ships were not well filled. They did 
 not receive the patronage to which the line was 
 entitled, although the line was making the fight 
 for the common public good. The funds of the 
 Navigation Company ran so low that by October 
 3, 1893, conferences occurred between the Direc- 
 tors and Messrs. John F. Merrill, Barry Baldwin, 
 B. F. Dunham, and Isaac Upham, who repre- 
 sented the Executive Committee of The Traffic 
 Association, and by them a resolution was 
 adopted urging The Traffic Association to raise 
 additional funds for the continuance of the line. 
 The Association moved as suggested. A public 
 meeting was held in the Chamber of Commerce, 
 Isaac Upham presiding, and the emergency was 
 fully presented. It was necessary to raise more 
 money at once, and one hundred thousand dol- 
 lars ($100,000) were called for, that being the 
 sum which it was estimated would be needed to 
 complete the contract with the Panama Railroad 
 Company up to May i, 1894. This one hundred 
 thousand dollars ($100,000) were raised, but the 
 
 \ 
 
 line still failed to get its due share of the trans- 
 portation business, and in January, 1894, when 
 the annual meeting of the stockholders of the
 
 NORTH AMERICAN NAVIGATION CO. 159 
 
 Navigation Company was held, it became neces- 
 sary to dispatch Mr. Leeds once more to New 
 York to conclude an arrangement with the Pan- 
 ama Railroad Company for assuming the business 
 of the line and to release the North American 
 Navigation Company from their contract. Before 
 this, it was imperative that the Central Ameri- 
 can business, which had been built up between 
 Acapulco and San Francisco, should be aban- 
 doned; also that one steamer should be taken off 
 the through line; also that the schedule of 
 twenty-five days interval in sailing should be 
 adopted. 
 
 The last Board of Directors of the Navigation 
 Company was elected January 5, 1894. It con- 
 sisted of Messrs. W. L. Merry, E. B. Pond, 
 Gustav Niebaum, Frank Dalton, J. S. Leeds, M. 
 H. Hecht, and Daniel Meyer. Captain Merry was 
 elected President; Daniel Meyer, Vice-President 
 and Treasurer, and C. M. Haswell, Jr., Secretary. 
 
 The Panama Railroad Company locally repre- 
 sented by Eugene H. Hinton, permitted the 
 Navigation Company gradually to retire from 
 business without completing its contract. The 
 Navigation Company's affairs were finally placed
 
 160 NORTH AMERICAN NAVIGATION CO. 
 
 in the hands of John I,. Howard and William L- 
 Merry as trustees, to bring them to a conclusion. 
 The line operated during a period of fifteen 
 months from San Francisco. It did not engage 
 in the passenger business. The cost to the 
 merchants of San Francisco of the maintenance 
 of this line was three hundred thousand dollars 
 ($300,000), or twenty thousand dollars ($20,000) 
 per month during the period of its existence. 
 The saving in reduced freight rates in money 
 actually paid out, as carefully estimated, 
 amounted to at least ten million dollars 
 ($10,000,000) to the State of California. 
 
 An interesting circumstance and necessary to 
 be recollected was that the more profitable busi- 
 ness between Panama and Acapulco north 
 bound was entirely out of the reach of the San 
 Francisco line. The Pacific Mail Company 
 managed to hold this business for itself by secur- 
 ing an injunction in New York. In 1872 the 
 Panama Railroad Company sold a line of 
 steamers to the Pacific Mail Steamship Com- 
 pany and the language of the contract was 
 interpreted to mean that in securing the "good 
 will" which went with this transaction, the
 
 NORTH AMERICAN NAVIGATION CO. l6l 
 
 Pacific mail had gained the sole right to do 
 business between the Central American ports 
 above named, in which the Panama Railroad 
 Company participated. This interpretation was 
 maintained until some time after the North 
 American Navigation Company had retired from 
 participation in the carrying trade. The restrain- 
 ing injunction was not modified in New York 
 until March, 1895. The North American Navi- 
 gation lyine was able to move freights from San 
 Francisco to Mexican and Central American 
 ports without restriction on its own account, 
 without participation by the Panama Railroad 
 Company, but it lost a rich revenue which 
 accrued to the Pacific Mail Steamship Company 
 from Panama to Acapulco and this hastened the 
 termination of the enterprise. 
 
 The contest in which the North American Navi- 
 gation Company was engaged will be remembered 
 long by students of transportation problems, and 
 by the people of California generally. All the 
 transcontinental lines were engaged, and the 
 basis of ' ' differentials ' ' which had given Chi- 
 cago an advantage, for a long period, over the 
 Atlantic seaboard as a supply point, was
 
 1 62 NORTH AMERICAN NAVIGATION CO. 
 
 destroyed. The combined railroads lost many 
 millions of dollars of revenue in a war of exter- 
 mination which was waged against the adventur- 
 ous merchants of San Francisco and their ally, 
 the Panama Railroad Company. The movement 
 of the bulk of traffic from the Eastern States to 
 California was changed in direction, and the 
 Southern Pacific Company with its Sunset Route 
 drew away from the "Chicago lines" and the 
 Chicago merchants business which they sup- 
 posed to be undisputably theirs under the elab- 
 orate system which San Francisco had de- 
 stroyed. 
 
 Freights fell so low and competition became 
 so sharp that certain railroads refused to bid in 
 the market for moving the lower classes of 
 freight. This was the most picturesque trans- 
 portation conflict that the people of the United 
 States have witnessed. Hundreds of millions of 
 dollars and tens of thousands of miles of railroads, 
 and all the great transportation men who directed 
 the destinies of the transcontinental railroads, 
 were pitted against a handful of San Francisco 
 merchants and a capital of three hundred thou- 
 sand dollars ($300,000) invested in chartered
 
 NORTH AMERICAN NAVIGATION CO. 163 
 
 ships, and an alliance with the Panama Railroad 
 Company. The war resulted in forcing the 
 North American Navigation Company off the 
 sea a victory which was not conclusive for the 
 transcontinental combination in the present 
 light of facts and conditions. The victory 
 against San Francisco, in that field, will never 
 be complete until San Francisco retreats. At 
 present the march is forward, and promises well 
 to be continued in that direction. Fortunately, 
 San Francisco has been proved to be a commu- 
 nity that " does not know when it is beaten." 
 
 STOCKHOLDERS OF THE NORTH AMERICAN 
 NAVIGATION COMPANY. 
 
 Amer. Bank & Trust Co. Dunham, Carrigan & Hay- 
 Anglo-American Crockery Davis Bros. [den Co. 
 
 & Glassware Co. L. Dinkelspiel & Sons. 
 
 William Babcock W. E. Dean 
 
 H. Bendel Iv. P. Drexler 
 
 J. Bergman & Co. Jos. A. Donohoe 
 
 Bank of California B. & J. S. Doe 
 
 M. Brandenstein Thos. Day & Co. 
 
 Buckingham & Hecht M. Ehrman & Co. 
 
 Brown Bros. & Co. Mendel Esberg 
 
 Bonestell & Co. Geo. H. Eggers 
 
 Alfred Borel & Co. A. B. Field
 
 164 
 
 LIST OF STOCKHOLDERS. 
 
 Baker & Hamilton 
 
 Bauer Bros. & Co. 
 
 John Barton 
 
 Jos. Britton 
 
 Bush & Mallett 
 
 Butler, Schultz & Co. 
 
 A. H. Clough 
 
 C. Carpy 
 
 N. P. Cole & Co. 
 
 Castle Bros. 
 
 Crane Co. [Welch 
 
 Cunningham, Curtiss & 
 
 Annie Donahue 
 
 Frank Dalton 
 
 Dodge, Sweeney & Co. 
 
 Haas Bros. [son 
 
 Holbrook, Merrill & Stet- 
 
 Martin Heller 
 
 Heywood Bros. & Co. 
 
 Hulse, Bradford & Co. 
 
 H. Hughes 
 
 Geo. T. Hawley 
 
 W. R. Hearst 
 
 C. A. Cooper 
 
 Hibernia Bank 
 
 S. L. Jones & Co. 
 
 Thos. Jennings 
 
 J. C. Johnson & Co. 
 
 Jones & Co. [tile Co. 
 
 Johnson, Locke Mercan- 
 
 Kohler & Chase 
 
 G. M. Kutz & Co. 
 
 H. Kullman 
 
 Koshland & Co. 
 
 Lowenberg & Co. 
 
 J. A. Folger 
 
 Jos. Fredericks 
 
 S. H. Frank & Co. 
 
 James G. Fair 
 
 Melville Furth 
 
 First National Bank [Co. 
 
 Fireman's Fund Insurance 
 
 H. P. Gregory & Co. 
 
 German Savings & Loan 
 Society 
 
 D. Ghirardelli & Sons 
 
 Greenbaum, Weil & Michels 
 
 A. H. Herriman 
 
 Hendry Sons & Co. 
 
 A. Hay ward 
 
 W. W. Montague & Co. 
 
 Lewis Meyerstein 
 
 Daniel Meyer 
 
 Eugene Meyer (Trustee) 
 
 Miller, Sloss & Scott 
 
 John McKee 
 
 Murphy, Grant & Co. 
 
 Simon Meyer 
 
 Miller & Lux 
 
 Neuberger, Reiss & Co. 
 
 John Nightingale 
 
 Newman & Levison 
 
 Neville & Co. 
 
 Neustadter Bros. 
 
 Nevada Bank 
 
 Occidental Land & Im- 
 provement Co. 
 
 J. J. O'Brien & Co. 
 
 Osborn & Alexander 
 
 Porter Bros.
 
 UST OF STOCKHOLDERS. 
 
 165 
 
 P. N. Lilienthal 
 Langley & Michaels Co. 
 I/evison Bros. 
 Livingston & Co. 
 W. L. Merry 
 W. T. Mills 
 A. B. McCreery 
 Main & Winchester 
 Thomas Magee 
 Redington & Co. 
 Roth, Blum & Co, 
 Reiss Bros. & Co. 
 Rosenthal, Feder & Co. 
 D, Samuels 
 
 A. Schilling & Co. 
 Sachs Bros. & Co. 
 Sanborn, Vail & Co. 
 Louis Sloss & Co. 
 Schacht.Lemcke &Steiner 
 South San Francisco Pack- 
 ing & Provision Co. 
 
 Sadler & Co. 
 Mark Sheldon 
 Martin Sachs 
 H. & S. Sachs 
 
 B. Schweitzer 
 Adolph Sutro 
 Gustav Sutro 
 R. G. Sneath 
 Levi Strauss & Co. 
 W. &J. Sloan &Co. 
 Stein, Simon & Co. 
 William Thomas 
 
 R. R. Thompson 
 Tillman & Bendel 
 
 Abby M. Parrott 
 
 Jas. D. Phelan 
 
 Chas. M. Plum 
 
 People's Home Savings Bank 
 
 Chas. W. Pike 
 
 Parke & Lacy Co. 
 
 Payot, Upham & Co. 
 
 Pacific Bank 
 
 Rosenthal Bros. & Co. 
 
 G. Verdier & Co. 
 
 I. S. Van Winkle & Co. 
 
 N. F. Walter 
 
 Wellman, Peck & Co. 
 
 C. E. Whitney & Co. 
 
 Whittier, Fuller & Co. 
 
 Will & Finck 
 
 Lovell White 
 
 William Wolff 
 
 Waterhouse & Lester 
 
 James K. Wilson 
 
 Raphael, Weill & Co. 
 
 Chas. M. Yates 
 
 Wm. H. Yates [tion 
 
 Alaska Packers' Associa- 
 
 G. W. Alexander 
 
 Alaska Improvement Co. 
 
 Armes & Dallam 
 
 Anglo-California Bank 
 
 Abramson-Heunisch Co. 
 
 E. J. Baldwin 
 
 Board of Trade 
 
 Boyd & Davis 
 
 Bissinger & Co. 
 
 M. J. Brandenstein 
 
 Jules Cerf
 
 1 66 
 
 LIST OP STOCKHOLDERS. 
 
 John Taylor 
 The Harry Unna Co. 
 Utica Mining Co. 
 Mrs. Peter Donohue 
 Thomas Day & Co. 
 H. L. Dodge 
 Chas. F. Doe & Co. 
 Fontana & Co. 
 E. L. Feldman & Co. 
 I. R. Girard (Oakland) 
 Hoffman, Alexander & Co. 
 M. Heller & Sons 
 Hills Bros. 
 Hinz & Landt 
 A. I. Hall & Son 
 John L,. Howard 
 W. Cohen, Hirsch & Co. 
 Holt Bros. Co. 
 Indianapolis Furniture Co. 
 Capt. Jerome (owner of 
 Keweenaw & Progreso 
 Kullman, Salz & Co. 
 Kron Tanning Co. 
 E. H. Kittredge & Co. 
 H. Liebes & Co. 
 S. B. Leavitt & Co. 
 John F. Merrill 
 Mack & Co. 
 Moore, Hunt & Co. 
 C. H. Meyer 
 
 Cerf, Schloss & Co. 
 Castle Bros, (employees of) 
 Coghill & Kohn 
 Malm & Steele 
 A. C. Nichols & Co. 
 Pelton Waterwheel Co. 
 J. J. Pfister Knitting Co. 
 A. B. Patrick & Co. 
 Pacific Lumber Co. 
 J. E. Ruggles 
 Roos Bros. 
 Sharon Estate 
 Stiner, Straus & Hyman 
 Sherman, Clay & Co. 
 S. F. Savings Union 
 C. T. Settle (San Jose) 
 Son Bros. 
 
 Spruance, Stanley & Co. 
 It. H. Sweeney 
 Schwabacher Bros. 
 Sherwood & Sherwood 
 J. C. Siegfried 
 E. P. E. Troy 
 I/ouis Taussig & Co. 
 C. M. Volkman 
 Wilson Bros. 
 A. P. Williams 
 Winchester Arms Co. 
 Wagenheim, Sternheim & 
 Co.
 
 V. 
 
 THE MERCHANTS' SHIPPING 
 ASSOCIATION.
 
 MERCHANTS' SHIPPING ASS'N. 
 
 THE Merchants' Shipping Association was 
 formed in May, 1892, for the purpose of obtaining, 
 by organized co-operation, freights from the 
 Atlantic to San Francisco at the lowest possible 
 cost. The organizers of the Association con- 
 sisted of the following firms: Dunham, Car- 
 rigan, and Hay den Company, Baker & Hamilton, 
 Huntington, Hopkins & Co., Miller, Sloss & 
 Scott, A. Crawford & Co., J. W. Grace & Co., 
 Hawley Bros., Wellman, Peck & Co., and I. S. 
 Van Winkle & Co. L. L. Baker was the first 
 President; A. Crawford, Vice- President; and 
 C. K. Miller, Secretary. J. W. Grace & Co. 
 were to act as Agents of the Association. Upon 
 the death of I,. I,. Baker and Andrew Crawford 
 N. T. Romaine, of Van Winkle & Co., succeeded 
 to the Presidency and Wakefield Baker to 
 the Vice-Presidency. The purpose in which 
 this line had its origin being to place in the 
 hands of its projectors independent transporta- 
 tion facilities, they did not start in to engage in
 
 170 MERCHANTS' SHIPPING ASSOCIATION. 
 
 a general transportation war; but the older clipper 
 lines that had enjoyed a monopoly of the business 
 for years at exorbitant rates determined that the 
 new line should be short lived, and lowered 
 their rates to such an extent that the existence 
 of the Merchants' line was threatened. It was 
 then that the merchants of San Francisco felt 
 the necessity of rallying to the support of the 
 Merchants' Shipping Association. A general 
 meeting of the merchants was held at the rooms 
 of the Board of Trade, in August, 1892, Presi- 
 dent J. P. Le Count, of the Board of Trade of 
 San Francisco, presiding. 
 
 At this meeting most of the leading wholesale 
 firms joined the Merchants' Shipping Associa- 
 tion, and a guarantee fund approximating one 
 hundred thousand dollars ($100,000) was sub- 
 scribed for the maintenance of the new line. It 
 was decided that the business of the Association 
 should be conducted by an Executive Committee 
 consisting of twelve representatives from the 
 different firms. The Committee was as follows: 
 
 N. T. Romaine, of I. S. Van Winkle & Co.; 
 Wakefield Baker, of Baker & Hamilton; B. F. 
 Dunham, of The Dunham, Carrigan and Hayden
 
 MERCHANTS' SHIPPING ASSOCIATION. 1.71 
 
 Company; Henry Payot, of Payot, Upham & 
 Co. ; A. Cerf, of Cerf, Schloss & Co. ; W. B. 
 Wellman, of Wellman, Peck & Co.; F. W. Van 
 Sicklen, of Dodge, Sweeney & Co.; R. B. Huie, 
 of J. W. Grace & Co. ; M. P. Jones, of Jones & 
 Co. ; H. Michaels, of L,angley and Michaels Com- 
 pany; C. E. Miller, of Miller, Sloss & Scott, and 
 George Hawley, of Hawley Brothers Hardware 
 Company. 
 
 Under this management the business of the 
 Association continued in active operation until 
 January i, 1894. 
 
 The "Chas. E. Moody," the first ship of the 
 Merchants' Line arrived in San Francisco in 
 November, 1893. It brought 2800 tons of general 
 merchandise. It has been followed by regular 
 monthly arrivals since then to date. The line was 
 under the direct management of the Association 
 until January i, 1894, at which time Messrs. Grace 
 & Co. undertook to continue it on their own ac- 
 count. The expiration of the contract between 
 the Panama Railroad Company and the Pacific 
 Mail Steamship Company brought the Isthmus 
 route early in 1893 into competition with the 
 clippers, a result which had not been anticipated.
 
 172 MERCHANTS' SHIPPING ASSOCIATION. 
 
 Rates by way of the Isthmus went so low that the 
 business of the clippers was interfered with very 
 seriously. A large amount of money was lost 
 by both the clippers and the steamers. The 
 older clipper lines which had pursued a war of 
 extermination also lost heavily, but the Mer- 
 chants' Line survived, and under a guarantee of 
 support from the merchants is to-day succesfully 
 conducted by W. R. Grace & Co. (April, 1895). 
 
 There was a lesson in these transactions which 
 consisted principally in the demonstration that 
 no matter how strong any compact might be made 
 in restraint of trade to control rates and limit the 
 volume of sea tonnage to be carried, the open 
 ocean, by way of Cape Horn, always held out an 
 adequate remedy for those in San Francisco who 
 had the courage and enterprise to become car- 
 riers on their own account. The rates on sailing 
 vessels from San Francisco to New York also de- 
 clined. 
 
 Joseph S. Leeds, manager of The Traffic 
 Association of California, attributed the collapse 
 of The Transcontinental Association and the 
 discontinuance of the Pacific Mail subsidy to 
 the operation of these clippers. Merchants in
 
 MERCHANTS' SHIPPING ASSOCIATION. 173 
 
 San Francisco were able to secure through bills 
 of lading from San Francisco to points in Iowa 
 by way of Cape Horn and New York, utilizing 
 on the Atlantic Seaboard rail lines leading 
 inland, transporting their freights all the way 
 around Cape Horn, and bringing them back to 
 the Missouri River at a price which enabled 
 them to compete with the transcontinental lines 
 leading direct from San Francisco to the Missouri 
 River. 
 
 In August, 1892, soon after the "Moody" 
 arrived in San Francisco, it was carefully esti- 
 mated that 42,000 tons of freight were on the 
 way by sea for San Francisco from New York; 
 also that about 15,300 tons were on the way via 
 Cape Horn from Philadelphia. Twenty-four 
 vessels were on the way, or loading, which were 
 bound from the Atlantic to the Pacific Coast. 
 Philadelphia business men were purchasing Cali- 
 fornia goods to arrive by sea to distribute 
 throughout the eastern country by rail. 
 
 The value of any undertaking of a public 
 nature is better judged by its results in the way 
 of public benefit than by the amount of dividends 
 or loss shown on the balance sheet. The long 
 journey by way of Cape Horn from New York 
 precluded the transportation of the higher
 
 174 MERCHANTS SHIPPING ASSOCIATION. 
 
 classes of freight for which greater charges are 
 made by the rail lines. But carriage of the 
 lower class freights, heavier merchandise, opened 
 the way for a competition in the transportation 
 of all classes of freight, so much so that the old 
 members of The Transcontinental Association 
 not only found themselves in competition with 
 the sea carriers, both via Cape Horn and via the 
 Isthmus, but they also became keen competitors 
 of each other; and the shorter water way between 
 New York and New Orleans employed in con- 
 nection with the rail lines of the sunset route of 
 the Southern Pacific Company, incidentally be- 
 came another factor in demonstrating a great 
 truth concerning the value of competition by 
 water. With these facilities the Southern Pacific 
 Company was enabled successfully to compete 
 with all other lines leading from the seaboard on 
 the Atlantic Coast by connections to the Pacific 
 Coast, and to secure for itself fully the "lion's 
 share " of all the tonnage that must move by rail, 
 and also to continue in the possession of the" lion's 
 share " of this traffic long after the Merchants' 
 Association retired from active participation as 
 carriers on their own account, and the North 
 American Navigation Company had been suc- 
 ceeded on the Pacific Ocean by the Panama 
 Railroad Company's steamships.
 
 VI. 
 
 THE CALIFORNIA LEAGUE OF 
 PROGRESS.
 
 THE CALIFORNIA LEAGUE OF 
 PROGRESS. 
 
 THE California League of progress performed 
 an important public duty between the years 
 1892 and 1895. This organization was born of 
 the belief of some clear-headed young business 
 and professional men of San Francisco that 
 California could not progress until emancipation 
 from the domination of the Southern Pacific 
 Company should be accomplished; also that 
 they were concerned in the permanent prosperity 
 of this State equally with their seniors. It 
 required fortitude on their part to place them- 
 selves in antagonism to the Southern Pacific 
 Company, a fact which may be less appreciated 
 now, when the tide has turned, than it was at 
 that time. The existing evils were apparent; 
 but the dread of the Southern Pacific Company's 
 vengeance was common. Several hundred 
 young men enrolled themselves as members of 
 the League of Progress. Active participators in
 
 1 78 CALIFORNIA LEAGUE OF PROGRESS. 
 
 significant events, they were also efficient in 
 exerting influence upon junior San Franciscans. 
 They found themselves pitted, in common with 
 The Traffic Association and other kindred 
 organizations, against the most powerful trans- 
 portation monopoly of the time, which con- 
 trolled traffic and politics in California, and 
 which also was a factor in society. 
 
 " It was everywhere said," truthfully remarks 
 one of the organizers of the California League of 
 Progress, " that we were foolish to provoke the 
 hostility of the monopoly; also that we could 
 accomplish nothing." Progressive young men 
 stood at the fore with The Traffic Association. 
 Simultaneously they studied the problems pre- 
 sented and learned the lessons inculcated by 
 experience. To the juniors will come the greater 
 share of the fruits of success in the future. As 
 members of the advance guard they manifested 
 their mettle. 
 
 The California League of Progress was organ- 
 ized at a public meeting held in the Bijou 
 Theatre, June 7, 1892. This meeting was called 
 to order by Walter M. Castle. W. H. Metson pre- 
 sided, Maurice F. L,oewenstein being the Secre-
 
 CALIFORNIA LEAGUE OF PROGRESS. 179 
 
 tary . The purpose of the meeting was set forth 
 in the following, which was unanimously adopted : 
 
 ' ' Whereas, The business interests of the State 
 are suffering from lack of co-operative action on 
 the part of our merchants, manufacturers, miners, 
 and producers; and whereas, the young men of 
 San Francisco desire to awaken the old-time 
 spirit of progression, which has years lain dor- 
 mant; therefore be it 
 
 "Resolved, That an association be formed, the 
 objects of which shall be the advancement of 
 California's best interests, and the promotion of 
 any enterprise that will contribute to the welfare 
 of her people; be it further 
 
 ' 'Resolved, That the interests of San Francisco 
 and the interior being identical, the objects of 
 this Association can only be accomplished 
 through the united action of the whole State. 
 
 "We, therefore, call upon the young men of 
 all sections of the State to immediately organize, 
 so that a State I/eague may be formed to suc- 
 cessfully carry out the grand objects of our 
 Association." 
 
 A committee on organization of which George 
 Pippy was Chairman, submitted a Constitution
 
 180 CALIFORNIA LEAGUE OF PROGRESS. 
 
 and By-laws. In these provision was made for 
 a Board of Control to administer the affairs of 
 the League. The first Board of Control was 
 selected by a committee consisting of M. A. 
 Rothschild, A. E. Castle, O. F. Westphal, W. F. 
 Wellman, A. T. Vogelsang, H. T. Hart, and 
 James McNab. The first Board of Control con- 
 sisted of Andrew Carrigan, Walter M. Castle, 
 Samuel Dinkelspiel, Morris Feintuch, Henry 
 Gray, Thomas J. Harris, Frank Harrold, George 
 H. Pippy, John Partridge, Henry P. Sonntag, 
 A. L,. Stetson, H. A. Williams, William A. Wil- 
 son, and Harry E. Wise. The officers for the 
 first year were: Frank Harrold, President; W. 
 H. Metson, First Vice-President; Walter M. 
 Castle, Second Vice-President; Henry Gray, 
 Secretary; Samuel Dinkelspiel, Treasurer. 
 
 The League secured quarters at 132 Market 
 Street. At the first public meeting after the 
 organization had been completed, sympathy with 
 the aims of The Traffic Association was ex- 
 pressed in the following terms: 
 
 4 ' Whereas, The heavy tribute levied by the 
 common carriers operating within the limits of 
 the State of California has stunted our inland
 
 CALIFORNIA LEAGUE OF PROGRESS. l8l 
 
 commerce, checked the growth and prosperity of 
 our trading and industrial pursuits and imposed 
 a condition of inertia in a city which, by its 
 many natural advantages, should be one of the 
 busiest in the commercial world; and whereas, 
 The Traffic Association of California, with a 
 view to the correction of corporate abuses, has 
 adopted a memorial for presentation to the rep- 
 resentative political parties requiring them to 
 pledge their candidates for either branch of the 
 Legislature to reformatory legislation on the 
 transportation question; therefore be it 
 
 "Resolved, That the California League of 
 Progress heartily endorses the plan of action 
 proposed by The Traffic Association of California 
 and pledges to it its unanimous and unqualified 
 support." 
 
 About this time the competing clipper ships 
 line was about to be operated by the Merchants' 
 Shipping Association between New York and 
 San Francisco via Cape Horn. The use of com- 
 peting clippers and also of the steamships of the 
 Atlantic and Pacific Steamship line established 
 via Cape Horn was urged publicly and privately 
 by the members of the League and by the Board
 
 1 82 CALIFORNIA LEAGUE OF PROGRESS- 
 
 of Control in its official capacity. Similar 
 support was also afforded to the North American 
 Navigation Company when, a little later, that 
 line was established. 
 
 The necessity of competing railroads was also 
 perceived and the construction of such lines was 
 strongly urged by the League. At all times mem- 
 bers of the League expressed not only their will- 
 ingness, but also their desire, to assist personally 
 in raising funds for such purpose. An offer of 
 support was made to Alvinza Hayward and his 
 associates in the San Francisco and Great Salt 
 Lake Railway enterprise. When The Traffic 
 Association projected a competing railroad line 
 through the San Joaquin Valley the League 
 offered to district the city, and to act as can- 
 vassers for subscriptions for capital stock. Many 
 of the League members appear in the list of 
 subscribers to the stock of the San Francisco and 
 San Joaquin Valley Railway in 1895, an( i were 
 known as workers in that direction . 
 
 During the first year of the life of the League 
 of Progress, an attempt, which was crowned 
 with success, was made to secure a change in 
 the system of harbor tolls established by the 
 State Board of Harbor Commissioners. Petty 
 exactions existed, which implied a large annual
 
 CALIFORNIA LEAGUE OF PROGRESS- 183 
 
 aggregate to be paid by shippers. The Harbor 
 Commissioners had control of the collection of 
 tolls and the manner of collection. The rate o 
 toll on merchandise was generally five cents per 
 ton. What was known as a " credit list " was 
 in vogue, which relieved parties from the obliga- 
 tion of delivering statements and paying tolls 
 upon merchandise in cars, provided such parties 
 made application to be placed on the list. The 
 application being granted, the owner or con- 
 signee was given a credit by the Harbor Com- 
 missioners, but was held accountable for the 
 gross tolls on the merchandise in which he was 
 concerned. The Southern Pacific Company and 
 some others had been granted credit for tolls, 
 and the Southern Pacific Company was made 
 responsible for the collection of five cents per 
 ton for all freights passing in its custody over 
 the State's wharves. The State received only 
 five cents per ton for this business. It was of 
 common knowledge that a fraction of a ton was 
 compelled by the carriers to bear the full charge 
 for a ton. This excess went into the pockets of 
 the carriers. A report was submitted to the 
 League concerning this matter by James K. 
 Taylor, Managing Secretary of the League, of 
 which the final paragraph was as follows:
 
 184 CALIFORNIA LEAGUE OF PROGRESS. 
 
 "In my opinion neither the Southern Pacific 
 Company nor any of the persons and firms named 
 is entitled to demand from consignees anything 
 in excess of five cents per gross ton for merchan- 
 dise arriving in its custody. The State certainly 
 gets no benefit in the charge in excess of that 
 amount, and I do not believe that the State 
 maintains its docks and wharves with the view 
 that they shall become a source of revenue to 
 private parties." 
 
 The League took aetion. A suggestion was 
 made to the Harbor Commissioners to arrange a 
 system of graduated charges of State toll to be 
 paid on merchandise arriving at San Francisco in 
 less than ton lots, and a victory was won which 
 resulted in saving many thousands of dollars 
 annually to the merchants. 
 
 Here is an extract from a letter addressed to 
 "Alvinza Hayward and Associates, August 19, 
 1892, which indicates the spirit of younger Cali- 
 fornians at that time: 
 
 " We take the opportunity presented in the 
 opening to subscription of the stock books of the 
 San Francisco and Salt Lake Railroad Company, 
 to show the gentlemen who have encouraged 
 your enterprise, and the public generally, the 
 position taken by the California League of Prog-
 
 CALIFORNIA LEAGUE OF PROGRESS. 185 
 
 ress in this matter of such paramount impor- 
 tance to the people of this city and State. 
 
 "The California League of Progress recognizes 
 in the incorporation of your Company the 6rst 
 practical step towards the breaking of the trans- 
 continental freight monopoly that has been 
 allowed to be maintained to the great damage of 
 the reputation of this community for enterprise 
 and for bold and independent action in public 
 affairs of such moment as this, to the pecuniary 
 disadvantage of every receiver and consignee of 
 merchandise at San Francisco, and to the abso- 
 lute endangerment of the perpetuity of many 
 mercantile business of long establishment; a 
 monopoly which has hindered the development 
 of the metropolitan city of the Pacific Coast, and 
 kept California an inaccessible country to thou- 
 sands of ambitious Americans on the Atlantic 
 seaboard, who might otherwise have tried their 
 fortunes in the Golden State, and helped in the 
 building up of this great Commonwealth of the 
 Pacific. 
 
 ' ' We are confident that the auspicious re- 
 awaking of the independent spirit of pioneer 
 days, and the establishment of this new connec- 
 tion with the outside world, will eventually 
 restore to us the population which should have
 
 1 86 CALIFORNIA LEAGUE OF PROGRESS. 
 
 been ours twenty years ago; make opportunity 
 for the employment of millions of dollars of idle 
 capital; give to our merchants the interior and 
 local trade which naturally should be tributary 
 to this metropolis and ultimately lead to the re- 
 establishment of a condition of general prosperity 
 for the people of our City and State." 
 
 Congress was memorialized in favor of the 
 construction of the Nicaragua Canal. Port 
 charges were investigated. It appeared that 
 pilot charges were regulated by legislative enact- 
 ment. A committee, understanding something 
 about legislation, naively remarked in a report 
 concerning this matter: 
 
 " It would be highly impracticable for the 
 League to undertake the reformation of any 
 abuse requiring legislative action in the present 
 condition of affairs, and if we may judge the 
 future by the past, in this matter of port charges, 
 it will be a long time before ship owners will bid 
 successfully against the pilot ring for legisla- 
 tion." 
 
 The League was very active. It is not necessary 
 to recount all happenings. The League strongly 
 favored the issuance of bonds by the State to 
 provide for the construction of a Union Depot at 
 the foot of Market S'reet, San Francisco. The
 
 CALIFORNIA LEAGUE OF PROGRESS. 187 
 
 vote at the succeeding election was close. The 
 League had several hundred members, who, with 
 probably few exceptions, voted to issue the 
 bonds. It has been claimed and very likely the 
 claim is correct, that the votes of the League and 
 votes influenced thereby, carried the day. 
 
 Encouragement was extended to the San 
 Francisco World's Fair Association to provide 
 for a San Francisco "exhibit," at the Columbian 
 Exposition held in Chicago in 1893. The cause 
 of The Union Transportation Company, a river 
 steamship line, which was a competitive freight 
 carrier, and which was hampered by discrimina- 
 tion in the matter of water-front facilities at San 
 Francisco, was urged before the Harbor Com- 
 missioners. Municipal concerns were taken up 
 and various recommendations were made. 
 
 Several resignations in the Board of Control 
 occurring the first year, Will E. Fisher, R. B. 
 Bain and T. T. Chappell were elected members 
 of the Board. While the young men of San 
 Francisco were now alert, the interior remained 
 apathetic and the formation of branch Leagues 
 outside of San Francisco, which was proposed, 
 could not be brought about. 
 
 The officers who were elected for the second 
 year were as follows: President, T. J. Harris;
 
 188 CALIFORNIA LEAGUE OF PROGRESS. 
 
 First Vice- President, W. H. Metson; Second Vice- 
 President, Etnile H. Kahn; Secretary, Maurice F. 
 Loewenstein; Treasurer, W. D. McArthur. The 
 Board of Control included the foregoing and also 
 the following: A. F. Baumgartner, Henry Gray, 
 S. C. Irving, Fred J. Koster, Charles H. Maass, 
 Louis Saroni, R. E. Starr, B. D. Pike, Wallace 
 A. Wise and Charles L. Pierce. 
 
 In the second year of the existence of the Cali- 
 fornia League of Progress, John L. Davie, (who 
 has been elected Mayor of Oakland in 1895), anc * 
 others, started an opposition ferry between Oak- 
 land and San Francisco with the intention of 
 making the same permanent. The enterprise, 
 although heartily welcomed and patronized by 
 the public, received scant courtesy from the 
 Board of Harbor Commissioners. In this respect 
 the opposition ferr) r line shared the fate of other 
 concerns seeking to establish competition in the 
 carrying trade in California through the efforts 
 of servants of the State in behalf of the all-pow- 
 erful Southern Pacific Company. This time the 
 Board of Harbor Commissioners made success 
 for the new enterprise impossible by giving its 
 ferry-boats a berth on Mission Street wharf, 
 which is generally used by freight boats only. 
 As at that time most of the slips had been rebuilt
 
 CALIFORNIA LEAGUE OF PROGRESS. 189 
 
 at the foot of Market Street, prior to the construc- 
 tion of the Union Depot, the League held that 
 the Da vie Ferry and Transportation Company 
 was entitled to one of the slips in compliance 
 with the promises made by the Board of Harbor 
 Commissioners to the Board of Control of the 
 League prior to the election of 1892; namely, that 
 the landing facilities at the foot of Market Street 
 would be open to every legitimate competitor. 
 Consequently, the Board of Control appeared be- 
 fore the Board of Harbor Commissioners, but 
 obtaining no satisfaction, they addressed Gover- 
 nor Markham, who, as Governor, was ex-officio 
 member of the Board. The case was presented 
 to the Governor in all its merits, but the latter, 
 however, although apparently investigating the 
 grievances of the opposition ferry company, took 
 sides with the Board of Harbor Commissioners 
 and the Southern Pacific Company, and thus 
 helped to crush this enterprise. 
 
 During the early part of 1894 tne League lent 
 encouragement to the managers of the Midwinter 
 International Exposition. The enterprise was 
 not receiving the support of the public it was 
 entitled to and the League, believing that the 
 reputation of the State was at stake, worked 
 hard to make the enterprise more popular.
 
 IQO CALIFORNIA LEAGUE OF PROGRESS. 
 
 One of the most important features of the 
 work of the league during this year was the 
 investigation of telephone rates. After collecting 
 data from all over the United States and abroad 
 the conclusion was arrived at that the rates 
 charged by the California Company were exorbi- 
 tant and that its methods were most arbitrary. 
 As the Company did not see fit to reduce its 
 rates, a circular containing the result of the 
 investigation and conclusions of the League was 
 mailed to every subscriber to the Telephone 
 Company, with a view of getting them to sub- 
 scribe to the opposition telephone company, 
 which was then being started. The League 
 endorsed the new enterprise and helped its 
 promoters in every way possible. The investi- 
 gation referred to brought the matter to the 
 attention of the public, and was largely respon- 
 sible for the inquiry by the Legislature of 1 895 
 into the methods of the Telephone Company. 
 
 The League was also represented at the Trans- 
 Mississippi Congress and was honored by having 
 one of its delegates, A. E. Castle, elected Vice- 
 President from California. As such, Mr. Castle 
 represented the State at the Trans-Mississippi 
 Congress at St. Louis, November, 1894. 
 
 The work of the League has been intended
 
 CALIFORNIA LEAGUE OF PROGRESS- 191 
 
 for the public good. The L,eague retains its 
 organization, having (April, 1895,) the following 
 Board of Control and officers: F. T. Koster, 
 President; A. J. De L,amar, Vice-President; 
 Jonas Erlanger, Secretary; S. C. Irving, Treas- 
 urer; Henry Gray, C. It. Pierce, T. J. Harris, 
 Charles Bier, W. K. Brackett, J. H. Bruning, 
 Charles H. Maass, W. H. Metson, Frank Pink- 
 ham, Harry Unna, Alexander T. Vogelsang.
 
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