/07 UC-NRLF ?c ] D ft 31 D n The Panama Canal and the Pacific Coast William B. Dana Publishers Commercial and Financial Chronicle Chronicle Building, New York THE LONDON ECONOMIST Founded in 1843 by the Right Honourable James Wilson and afterward edited until his death by Walter Bagehot. Known throughout the world as an independent, critical, impartial and trustworthy authority on THE LONDON MONEY MARKET AND STOCK EXCHANGE. It contains a weekly survey of all the London Markets, with valuable lists of stocks and bonds, Prices Current, and also expert reports on WOOLEN. COTTON. SILK. JUTE AND OTHER TEXTILE INDUSTRIES, IRON. STEEL. LEATHER. COFFEE. SUGAR. ETC.. ETC. Its Foreign Correspondence is unique, as are its INDEX NUMBERS and much of its statistical information. ANNUAL SUBSCRIPTION FOR THE UNITED STATES £2 4 0. OR $10 70 Subscriptions may be sent to the offices of The Journal of Commerce, 32 Broadway, New York (where single copies can also be purchased), or direct to The Economist office, 3 Arundel Street, London, W.C. ADVERTISING Owing to its circulation among Bankers and Merchants of all Nations in all parts of the World, The Economist is a valuable medium for many classes of advertisements. Kennett Cowan & Company INVESTMENT BONDS TTTE Maintain an efficient Statistical " " Department and invite European Brokers and Bankers desiring informa- tion or quotations on any securities which have a market on this side to avail themselves of this service. THE ROOKERY CHICAGO 55 Wall Street Ford Building New York Detroit CABLE ADDRESS: KASECO CHICAGO CODES USED: HARTFIELD, LIEBER, WESTERN UNION Attention is called to the announcement on page n siiiiiiiin in. ; liiiiiiiiB 'URING an uninterrupted existence of more tKan Kalf a century), Hl\e MercKants Loan and Trust Company— trie Oldest Bank in Ckicago — has developed facilities and resources which enable it to offer liberal accommodations and unexcelled service in all branches of banking. Transacting me largest commercial business and having the greatest volume of bank deposits of any State Bank or Trust Company in the West, mis Bank employs the most approved, modern methods to insure fhe expeditious handling of the accounts of its city and out-of-town depositors. A well-organized Foreign Department, with extensive connections throughout fhe world, enables it to meet fhe foreign banking needs of every) customer. CThrough its Trust Department, fhis Bank is qualified by law to assume fhe care and management of estates and to act in any trust capacity. In addition to fhe many other safeguards provided, this Bank also maintains, -vCitK fhe State of Illinois, a special deposit of half a million dollars to guarantee the faithful performance of its duties. Investors purchasing fhe high grade bonds and farm loans sold by this Bank, are recognizing, more and more, the desira- bility' and dependableness of these offerings. On Savings Deposits, fhis Bank pays 3% interest, compounded twice each year. Large capital and surplus, strong manage- ment, and a half century* of safe banking assure absolute security). Satisfactory* facilities provided for banking by mail. THE CHARACTER OF THIS BANK IS REFLECTED IN THE PERSONNEL OF ITS BOARD OF DIRECTORS FRANK H. ARMSTRONG President Reid, Murdoch & Compart}? ENOS M. BARTON Chairman Board Directors, Western Electric Company CLARENCE A. BURLEY Attorney and Capitalist HENRY P. CROWELL President Quaker Oats Company* WILLIAM A. GARDNER President Chicago & Northwestern Railway Company* ELBERT H. GARY Chairman Board Directors United States Steel Corp'n EDMUND D. HULBERT Vice-President CHAUNCEY KEEP Trustee Marshall Field Estate CYRUS H. McCORMICK President International Harvester Company* SEYMOUR MORRIS Trustee L. Z. Leiter Estate JOHN S. RUNNELLS President Pullman Company EDWARD L. RYERSON Chairman Board Directors Joseph T. Ryerson & Son JOHN G. SHEDD President Marshall Field & Company ORSON SMITH President ALBERT A. SPRAGUE, II. Vice-President Sprague Warner & Company MOSES J. WENTWORTH Capitalist We Invite Inquiries in Regard to Any Feature of Our Service ORSON SMITH President EDMUND D. HULBERT Vice-President FRANK G. NELSON ', Vice-President JOHN E. BLUNT, Jr. Vice-President P. C. PETERSON Cashie C. E. ESTES Assistant Cashier Capital and Surplus $10,000,000 Merchant^ Loan !^ ^Trust Company Established in the Year 1857 JOHN J. GEDDES Assistant Cashier LEON L. LOEHR Secretary and Trust Officer A. LEONARD JOHNSON Assistant Secretary) F. W. THOMPSON Mgr. Farm Loan Department H. G. P. DEANS Mgr. Foreign Department G. F. HARDIE Mgr. Bond Department 1 1 2 West Adams Street CHICAGO Attention is called to the announcement on page II PEACE LYON GARY & COMPANY 208 SOUTH LASALLE STREET CHICAGO SPECIALIZE In Timber Securities BUY WHOLE ISSUES OF BONDS SECURED BY FIRST MORTGAGE ON TIMBER LANDS. SELL CAREFULLY SELECTED TIMBER BONDS TO INVESTORS AT PRICES TO YIELD 6% Net Attention is called to the announcement on page n THE ROOSEVELT DAM, SALT RIVER VALLEY, ARIZONA. A GOVERNMENT RECLAMATION PROJECT IRRIGATING, AT PRESENT, 152,000 ACRES. W. G. Souders & Company Investment Bankers 208 South La Salle St., CHICAGO High Grade Investments Secured by first mo rt gage bonds of Steam Railroads Water Powers Electric Railroads Industrials Public Service Corporations We invite inquiries from Bankers and Dealers who are in the market for large blocks or entire issues. In investigating these properties we employ engineers of recognized ability, in whom we have absolute confidence, and auditors whose reports are universally accepted. Attention is called to the announcement on page n IN THE FINANCIAL DISTRICT OF SAN FRANCISCO. Mercantile National Bank of San Francisco Capital and Surplus Three Million Dollars OFFICERS Henry T. Scott . . Chairman of the Board John D. McKee President Frank G. Drum .... Vice-President O. Ellinghouse Cashier W. F. Berry .... Assistant Cashier F. O. Cooke .... Assistant Cashier Thomas M. Paterson . . Assistant Cashier William Babcock H. C. Breeden Warren D. Clark W. F. Detert Frank G. Drum J. D. Grant Charles E. Green DIRECTORS Joseph Hyman Alexander Hamilton John D. McKee Ogden Mills R. H. Pease R. D. Robbins Henry T. Scott M. S. Wilson A General Banking Business Transacted Accounts of Banks, Corporations, Firms and individuals solicited and facilities offered for the transaction of all branches of domestic and foreign banking;. Collections given prompt and careful attention. Correspondence is invited MercantileTrust Company of San Francisco (Owned by the Stockholders of Mercantile National Bank of San Francisco and under same policy of management.) Capital One Million Dollars R. M. SIMS Trust Officer PAUL McDONALD, Assistant Trust Officer A General Trust Business Transacted Authorized to act as executor, trustee, administrator or guardian, and in all fiduciary capacities, on behalf of individuals, institutions or corporations. Acts as Trustee under mortgages and trust deeds made by individuals or corporations. Registrar and transfer agent of bonds and stocks. Depositary under plans of reorganization or other agreements. Documents and securities held in escrow. Securities held on deposit for safe keeping. Financial agent for non-residents. Safe Deposit Department J. H. CLENDENNING, Manager Safe Deposit Vaults in a Safe Deposit Building Every convenience for use of clients or visitors Inspection cordially invited 464 California Street, San Francisco, California Attention is called to the announcement on page ll Illinois Trust and Savings Bank La Salle and Jackson Streets CHICAGO Capital, Surplus and Undivided Profits $15,500,000.00 Pays Interest on Time Deposits, Current and Reserve Accounts. Deals in Investment Securities and Foreign Exchange. Transacts a General Trust Business DIRECTORS Henry A. Blair Stanley Field Frederick T. Haskell James J. Hill Charles H. Hulburd James C. Hutchins Chauncey Keep John J. Mitchell John G. Shedd Frank D. Stout OFFICERS John J. Mitchell . . . President Frederick T. Haskell . Vice-President Chauncey Keep . . Vice-President Henry A. Blair . . Vice-President J. I. Cooper Cashier F. I. Cooper . . . Asst. Cashier E. S. Layman . . J. W. Knight . . David Grant . . William H. Henkle F. M. Sills . . . F. F. Taylor . . . Asst. Cashier Asst. Cashier . Asst. Cashier . . Secretary Asst. Secretary Asst. Secretary W. E. Colt, Jr., Manager Bond Department Illinois Trust Safety Deposit Co., Deposit Vaults The strongest and most spacious in the city A safe place at small cost to keep your securities, documents and other valuable property Attention is called to the announcement on page 11 Condensed Facts regarding the largest Farm Machinery Manufacturer west of the Missouri River Established 1869; incorporated 1892. Two factories, 1,000 employes. Stockton factory occupies seven city blocks. Self-propelled harvesters — two models — 14 to 34-foot cut. Caterpillar tractors made in the following- sizes — 18, 30, 60 and 75 horsepower. Horse-drawn and gas harvesters — six models — 10 to 34-foot cut — capacity 15 to 75 acres per day, cut, threshed and sacked. Other products — disc and moldboard plows, disc and tooth harrows, sciap- ers, special machinery, supplies and lubricants. Twelve American branches and district sales agents — fourteen foreign agents covering every great agricultural district. Holt machines harvest three-fourths of all grain grown on Pacific Coast — 90 per cent of California's crop. Over 6,000 in use. Nearly 2,000 Caterpillars used for plowing, discing, harrowing, seeding, cul- tivating, harvesting, threshing, hauling, filling silos, baling hay, making roads, digging ditches, building levees, pumping, grinding feed, drilling wells, pull- ing stumps, lifting beets, etc. Caterpillars used in the following countries, besides practically every state in the Union ; Australia, Hawaii, Philippines, Canada, Mexico, Argentine, Alas- ka, Belgium, Germany, Austria, Hungary, Spain, Russia, Algeria, South Africa, Patagonia, Bolivia, Cuba, Guatemala. International contests won by Caterpillar — Buenos Aires, 1911, $3,000 prize; Magdalene, S. A., 1913, $15,000 prize; Hungary, 1913, 32 contestants; St. Pet- ersburg, 1913, 9 contestants; Kieff, Russia, 1913; Tunis, Algeria, 1913; Com- peigne, France, 1913; Tunis, Algeria, 1914, 18 contestants (foreign press ad- vices). Caterpillars used by farmers; contractors; highway commissions; counties; townships and municipalities ; armies and railways ; lumbermen ; drainage and reclamation organizations ; agricultural colleges ; sugar companies, and others. You are cordially invited to look over our plant at any time. We'll be busy — we always are — but can find time to shozv friends the inside of one of Stockton's most widely known industries. The Holt Manufacturing Company Incorporated Stockton, California, U. S. A. New York, N. Y. San Francisco, Cal. Peoria, 111. Portland, Ore. Los Angeles, Cal. Spokane, Wash. Calgary, Alberta Attention is called to the announcement on page II ORANGES AND SNOW IN CALIFORNIA. Delivery outfits at one of the San Francisco Plants of National Ice and Cold Storage Company of Califurnia. Icing cars at one of the San Joaquin Valley Plants of National Ic and Cold Storage Company of California. Express cars waiting to be iced at one of the plants of National Ice and Cold Storage Company of California. FACTORIES — San Francisco, Oakland, Stockton, San Jose, Fresno, Santa Rosa, Sonora, Los Angeles, Riverside, San Bernardino, Berkeley, Sacramento, Marysville, Merced, Red Bluff, Bakersfield, Petaluma, Vallejo, Watsonville. Natural Ice Works at Floris- ton, Iceland and Polaris, Cal. NATIONAL ICE AND COLD STORAGE CO. Postal Telegraph Building OF CALIFORNIA SAN FRANCISCO Attention is called to the announcement on page n PANORAMA OF LOS ANGELES. OFFICERS J. M. ELLIOTT President E. S. PAULY Assistant Cashier STODDARD JESS Vice-President A. C. WAY Assistant Cashier JOHN P BURKE Vice-President E. W. COE Assistant Cashier JOHN S. CRAVENS Vice-President A. B. JONES Assistant Cashier W T S. HAMMOND Cashier W. C. BRYAN Assistant to the Cashier W. H. LUTZ Auditor DIKKCTORS JOHN P. BURKE Vice-President JOHN S. CRAVENS Vice-President J. C. DRAKE. President Los Angeles Trust and Savings Bank J. M. ELLIOTT President FRANK P. FLINT Attorney M. H. FLINT. . . Vice-Pres. Los Angeles Trust and Savings Bank C. W. GATES Capitalist E. Q. STORY. . .President California Fruit Growers' Exchange W. T. S. HAMMOND Cashier STODDARD JESS Vice-President H. JEVNE H. Jevne Co. J. O. KOEPFLI Bishop & Co. DAN MURPHY Capitalist E. J. MARSHALL. ..Vice-President Torrance. Marshall & Co. IOHN B. MILLER. .President Southern California Edison Co. Attention is called to the announcement on page 11 Continental and Commercial National Bank of Chicago Capital, Surplus and Undivided Profits. $32,000,000 Invites your patronage John C. Craft, Edward A. Cudahy, DIRECTORS J. Ogden Armour, Alexander F. Banks, John C. Black, Robert J. Dunham, Charles T. Boynton, Albert J. Earling, Eugene J. Buff.ngton, Bernard A. Eckhart, William J. Chalmers, Francis A. Hardy, Alfred Cowles, Frank Hibbard, Edward Hines, Hale Holden, William V. Kelley, Edward S. Lacey, Richard C. Lake, David R. Lewis, Robert T. Lincoln, Eames MacVeagh, William H. McDoel, Robert H. McElwee, D. R. McLennan, Joy Morton, Alfred H. Mulliken, Herbert F. Perkins, Edwin A. Potter, William H. Rehm, George M. Reynolds, Edward P. Ripley, Alex Robertson, Edward P. Russell, James W. Stevens, Charles H. Thorne, Ralph Van Vechten, Herman Waldeck, Charles H. Weaver, Fred E. Weyerhaeuser, Milton H. Wilson. The Continental and Commercial National Bank transacts a com- mercial banking business and has every modern banking facility with each department under official supervision. Patrons are offered courteous, effi- cient and prompt service. The Continental and Commercial Trust and Savings Bank receives checking accounts, of- fers 3% on Savings Ac- counts, and acts as Executor of Estates, Trustee, Administrator or Guardian, Transfer Agent, Registrar and Trustee under Mort- gages. It also conducts a general bond business. OUR NEW HOME Continental and Commercial Trust and Savings Bank Chicago, Illinois Capital, Surplus and Undivided Profits, $5,000,000 Write to the BOND DEPARTMENT for list of MUNICIPAL, RAILROAD OR CORPORATION BONDS recommended for investment. All bonds offered have been first purchased after a thorough investigation through many of the numerous channels open to this institution. On request your name will be placed on our mailing list so that you will receive our circulars as issued The Hibernian Banking Association Chicago, Illinois Capital, Surplus and Undivided Profits, $3,000,000 The Capital Stock of the Continental and Commercial Trust and Savings Bank and the Hibernian Rankin? Association are owned by the Stockholders of the Continental and Commercial National Bank of Chicago. Combined Deposits of these Banks, $250,000,000 10 Attention is called to the announcement on page II The Panama Canal and the Pacific Coast Originally issued as a supplement of The Commercial and Financial Chronicle New York, November 28, 1914 and, by special arrangement with the publishers, simultaneously issued, in the same manner, by THE ECONOMIST, of London, En£., and THE ECONOMIST, of Chicago. Compiled and Edited by Geo. M. Shepherd Foreword THE purpose of the publishers in offering this edition is to provide an authentic and reliable work of reference on the commercial and financial conditions as existing in the Pacific Coast territory of the United States at the time of the opening of the Panama Canal. The publishers have endeavored to make the advertising pages of this edition as valu- able to the reader for purposes of reference as the editorial and special articles, and statistical tables. With this end in view they have exercised careful scrutiny and discrimination as to the character of the advertising appearing herein, without regard to a possible sacrifice in its volume. Representatives of the publishers have necessarily spent much time in the Pacific Coast territory in connection with the work entailed by the preparation and publication of this issue. They have given painstaking attention to inquiries from the most reliable sources of information available as to the responsibility of prospective advertisers. Advertising for this edition has been solicited only from those whose standing and reputation careful in- vestigation has revealed to be of the best. The publishers, therefore, feel justified in stating that, to the best of their information and belief, the advertising pages of this issue may be relied upon by the reader both as to the statements made therein and the responsibility of the advertisers. William B. Dana Company Publishers Commercial and Financial Chronicle Chronicle Building, New York CwiighlrJ in 1914. iiilllhl U Act »l Canute., by WILLIAM B DANA COMPANY, in ollice ol Libr.rUn ol Congre... Wi.kinglnn. D. C. 11 THE GOLDEN GATE. W. R. GRACE & CO. Lima Callao Arequippa La Paz San Francisco New Orleans NEW YORK Seattle Valparaiso Concepcion Santiago Portland Valdivia GRACE BROS. & CO., LTD., LONDON Agents in all ports on West Coast of South America Letters of Credit Foreign Exchange Cable Transfers EXPORTS IMPORTS Atlantic & Pacific SS "Santa Clara" in Panama Canal The first steamer to pass through the Pacific locks SHIPPING General Agents For NEW YORK & PACIFIC S. S. CO. Regular Service From NEW YORK and SAN FRANCISCO To All West Coast Ports of South America ATLANTIC & PACIFIC S. S. CO. Via Panama Canal Between NEW YORK and SAN FRANCISCO San Pedro - Portland - Seattle - Tacoma 12 Attention is called to the announcement on page II A STAND OK FINE SUGAR AND WHITE PINK IN THE SHASTA DISTRICT, CALIFORNIA. WILLIAM R. STAATS COMPANY (ESTABLISHED 1887) Pacific Coast Securities Government, State, County, City, School, Railway, ~~) Public Service :: DOHQS B Also FIRST MORTGAGE BONDS of Cor- porations owning extensive income producing assets including FARM and TIMBER LANDS Order* executed for the purchase and sale of listed securities. Vice-President JOHN EARLE JARDINE 10S West Fourth St., Los Angeles President WILLIAM R. STAATS Pasadena Vice-President JOHN W. EDMINSON 405 Montgomery St., San Francisco Vice-President FRANK C. MONROE 65 South Raymond Ave., Pasadena CHICAUO OFFICE 456 First National Bank Building DUNCAN J. HALL, Manager Attention is called to the announcement oh page n fti dfiftO RETAIL DISTRICT OF SEATTLE AND THE OLYMPIC MOUNTAINS. Expecting to receive a fair compensation for its services, and without pretense of giving something for nothing. The National Bank OF THE REPUBLIC OF CHICAGO tenders its offices to those who appreciate careful and prompt service and intelligent attention to details, helieving that with its large list of correspondents and desirahle connections at the leading commercial centers, it can he of real service to the husiness public. JOHN A. LYNCH, President ROBERT M. McKINNEY, Cashier JAMES M. HURST, Assistant Cashier THOS. D. ALLIN, Assistant Cashier WM. G. LEISENRING, Mgr. Bond Department WILLIAM T. FENTON, Vice-President O. H. SWAN, Assistant Cashier W'M. B. LAVINIA, Assistant Cashier LOUIS J. MEAHL, Assistant Cashier A. O. WILCOX, Mgr. Foreign Exchange Department WALTER L. JOHNSON. Mgr. Collection Department CHAS. S. MACFERRAN, Auditor 14 Attention is called to the announcement on page n Copyright by Gifford, Portland. PORTLAND FROM CITY PARK. LADD & TILTON BANK pi fllfll ii ii ii n nm'm lllill liffiiriiiH II If 1| fff! !*•""'§ 11 ii ii n«*J!S pi* Established 1859 Portland, Oregon, U. S. A. Capital - Surplus - $ 1.000.000.00 1.000.000.00 OFFICERS W. M. LADD, Pre.. EDWARD COOKINGHAM. Vice-Pres. W. H. DUNCKLEY, ROBERT S. HOWARD, Cashier Asst. Cashier J. W. LADD, Asst. Cashier, WALTER M. COOK, Asst. Cashier DIRECTORS WILLIAM M. LADD HENRY L. CORBETT EDWARD COOKINGHAM CHARLES E. LADD J. WESLEY LADD FREDERIC B. PRATT THEODORE B. WILCOX We give special attention to collections and make prompt returns on the most favourable terms. Accounts of banks, firms, and individuals solicited. We issue foreign exchange, letters of credit, and travelers' checks. We will be pleased to furnish information con- cerning climate, resources, &o, of the state of Oregon. Our credit department will answer in- quiries concerning securities and financial invest- ments in this section. Correspondence solicited. Attention is called to the announcement on page II 15 INDEX INDEX TO CONTENTS BY SECTIONS. Editorial Section 21 The Pacific Coast 22 The Canal and the Pacific Coast 25 The Panama Canal 27 History and Construction. Isham Randolph 28 Uses and Benefits. Emory R. Johnson 43 The Panama Canal and the Railroads. John Maurice Clark 47 The Remote Effects of the Panama Canal. John Bates Clark 50 The Pacific Coast 53 Banks & Banking. J. K. Lynch 54 Public Utilities. C. L. Cory 57 Present Status of West. Irrig. Walter V. Woehlke 61 Water Powers. W. E. Herring 69 Rivers & Harbors. W. H. Bixby 71 Securities. G. K. Weeks 74 Mining. H. Poster Bain 76 Agriculture. Thos. H. Means 78 Intensive Farming on Large Scale. S. F. B. Morse 83 Oil Industry. Frank J. Silsbee 87 Shipping Industry. Robert Dollar 92 Fisheries. Miller Freeman 94 The Expositions 97 Panama Pacific Int. Expo., San Francisco 1915. ... 98 Panama California Exposition San Diego 1915.... 100 Timber Section 103 Redwood of California. Junius H. Browne 105 Pacific Coast Timber. G. X. Wendling 107 Timber Bonds. T. S. McGrath 110 State & City Section 113-127 Statistics of debts and resources of states, cities and towns in California, Oregon, and Washington. States, and cities and towns in each state arranged in alphabetical order. Corporation Section 129-150 Securities and reports of public service and mis- cellaneous companies of the Pacific Coast. Ar- ranged in alphabetical order. Public Service Companies 151-161 Additional statements. Bank & Trust Company Section 163-170 Statements of banks and trust companies of the Pacific States. As the Federal Reserve Bank (District 12) is located in San Francisco, the figures of the banks in that city are first shown, followed by California banks arranged alphabetically by cities. Statements of other banks follow, states, and cities in each state, be- ing arranged in alphabetical order. Descriptive Section 171-174 A Unique California Industry. L. E. Webster. ALPHABETICAL INDEX TO ARTICLES. Agriculture of the Pacific Coast — The 78 Banks and Banking on the Pacific Coast 54 Canal and the Pacific Coast — The ,.. 25 Fish Facts and Figures 94 Intensive Farming on a Large Scale 83 Irrigation — Present Status of Western 61 Mining on the Pacific Coast 76 Oil Industry of California— The 87 Pacific Coast— The 22 Pacific Coast Timber 107 Panama-California Exposition 100 Panama Canal — Its History and Construction 28 Panama Canal and the Railroads — The 47 Panama Pacific International Exposition 98 Public Utilities of the Pacific Coast— The 57 Redwood of California— The 105 Remote Effects of the Panama Canal — The 50 Rivers and Harbors of the Pacific Coast 71 Securities — Pacific Coast 74 Shipping Industry of the Pacific Coast — The 92 Timber Bonds 110 Unique California Industry — A 172 Uses and Benefits of the Panama Canal 43 Water Powers of the Pacific Coast 69 ALPHABETICAL INDEX TO CONTRIBUTORS. Bain, H. Foster 76 Bixby, Wm. H 71 Browne, Junius H 105 Clark, John B 50 Clark, John M 47 Cory, C. L 57 Dollar, Robert 92 Freeman, Miller 94 Herring, W. E 69 Johnson, Emory R 43 Lynch, J. K 54 McGrath, T. S no Means, Thos. H 78 Morse, S. F. B 83 Randolph, Isham 28 Silsbee, Frank J 87 Webster, L. E 172 Weeks, G. K \\ 74 Wendling, G. X 107 Woehlke, Walter V '.'.'.'.'. 61 lit @B \\ ; lHUira .ill IS bssj ,[ Sfi , it JUL & The Oldest National Bank in California The First National Bank of San Francisco Organized 1870 Capital and Surplus $4,500,000 Direct connections with every city and almost every town on the Pacific Coast. Prompt Attention Given to all Classes of Collections 16 Attention is called to the announcement on page n INDEX ALPHABETICAL INDEX TO ADVERTISERS. American National Bank, San Diego 167_ American Real Estate Co., New York 1¥> -Anglo d London Paris National Dank, San Francisco.. 18 Associated Savings Banks of San Francisco 162 Babcock Rushton d Co 170 Banco Commercialc Italiana ITS Bank of California, N. A. San Francisco t&i Bank of Italy, San Francisco " ; - Bolger Mosscr d Willaman 127 Brown Bros. d Co ITS Byllesby, H. M., d Co li> Byrne d McDonnell 148 California National Bank, Sacramento 170 Columbus Savings & Loan Society, San Francisco 162 Commercial d Financial Chronicle Inside back cover Continental d Commercial National Bank, Chicago.... 10 Corn Exchange National Bank, Chicago 20 Cory, C. L 159 Cory, H. T 159 Coxoan-Kennet & Co 1 Devitt, Tremble d Co 149 Deutsche Bank, Berlin 175 Econom ist, Chicago 176 Economist, London Inside front cover Eyman d Co 126 First National Bank of Los Angeles 9 First National Bank of San Francisco 16 French American Bank of Savings, San Francisco 162 German Savings d Loan Society, San Francisco 162 Once, w. R., & Co 12 Great Western Power Co 134 Hall d Leicis 148 Hibernia Savings d Loan Society, San Francisco Hi.: Holt Mfg. Co 7-172-174 Humboldt Savings Bank, San Francisco 162 Illinois Trust d Savings Bank, Chicago 6 Investors' Monthly Manual 159 Italian American Bank, San Francisco 162 Ladd d Tilton National Bank, Portland 15 Lee, Higginson d Co 186 Los Angeles Gas d Electric Co 161 Los Angeles Railway Corp 151 Lyon, Gary d Co 3 McCoy d Co 127 Mercantile National Bank of San Francisco 5 Mercantile Trust Co. of San Francisco 5 Merchants Loan d Trust Co., Chicago 2 Mission Savings Bank. San Francisco 162 Morris Bros 158 Mutual Savings Bank, San Francisco 162 National Bank of The Republic, Chicago 14 National Ice d Cold Storage Co 8 Northtcestern National Bank, Portland 168 Pacific Gas d Electric Co 139-152-153 Pacific Light d Power Corp 154 Pacific Lumber Co 104 Pacific Power d Light Co 160 Pacific Telephone d Telegraph Co 141 Perrin Drake d Riley 149 Poole-Clarke L. d Co 102 Portland Railway Light d Power 158 Price, John E., d Co 126 Puget Sound Traction Light d Power Co 157 Rollins, E. H., d Sons 130 Savings Union Bank d Trust Co., San Francisco 162 Security Savings Bank, San Francisco 162 Seattle Lighting Co 147 Souders, W. G„ d Co 4 Southern California Edison Co 156 Staats, Wm. R., d Co 13 Straus, S. W„ d Co 17 Torrance, Marshall d Co 112 Union Bank of Australia Ltd 150 Union Trust d Savings Bank, Seattle 169 Walker's Manual of California Securities 150 WE ARE SPECIALISTS in the following types of sound securities, netting 51 to 6%: First Mortgage Serial Bonds issued by Department Store corporations of the highest credit standing in the large cities. First Mortgage Serial Bonds secured by the highest class of improved real estate in Chicago and other Western cities. First Mortgage Loans secured by improved Chicago property. No investor has ever been compelled to accept loss on any security purchased of this House, founded 32 years ago. Write for Circular X-100 S.W. Straus & Co. INCORPORATED MORTGAGE ^ BOND BAN KERS CSTAftklSHKO IM2 STRAUS BUILDING ONE WALL STREET CH1CACO NEW YORK Attention is called to the announcement on page II 17 THE YOSEMITE VALLEY. HALF DOME IN THE FOREGROUND. A CALIFORNIA BANK Deposits increased from seventeen millions to thirty millions in five years WITHOUT AMALGAMATION Capital, $4,000,000 Surplus, 1,500,000 Undivided Profits, . $300,000 Total Resources, $41,000,000 OFFICERS Herbert Flieshaker, President Washington Dodge, Vice-President J. Friedlander, Vice-President C. F. Hunt, Vice-President R. Altschul, Cashier C. R. Parker, Assistant Cashier Wm. H. High, Assistant Cashier H. Choynski, Assistant Cashier G. R. Burdick, Assistant Cashier G. F. Herr, Assistant Cashier A. L. Langerman, Secretary Bonds Bonds ATTENTION is directed to the opportunities offered investors in Pacific Coast Municipal and Corporation Securities yielding from h.% to \% higher return than corresponding Eastern Bonds. Legal opinion furnished on Municipal Issues. CORRESPONDENCE INVITED BOND DEPARTMENT ANGLO & LONDON PARIS NATIONAL BANK SAN FRANCISCO, CAL. Members San Francisco Stock and Bond Exchange 18 Attention is called to the announcement on page n H. M. Byllesby & Company ENGINEERS New York CHICAGO Tm Trinity Building Continental & Commercial Bank Bldg. Washington Purchase, Finance, Design, Construct and Operate Electric Light, Gas, Street Railway and Water Power Properties EXAMINATIONS AND REPORTS Utility Securities Bought and Sold Among the public utility properties managed by H. M. Byllesby & Company, the following are located in the Pacific Coast States : San Diego Consolidated Gas & Electric Company San Diego, California Western States Gas & Electric Company Stockton, Cal. Richmond, Cal. Eureka, Cal. Oregon Power Company Eugene, Oregon Albany, Oregon Corvallis, Oregon Dallas, Oregon Marshfield, Oregon Tacoma Gas Company Tacoma, Washington Everett Gas Company Everett, Washington Attention is called to the announcement on page II \Q The CORN EXCHANGE NATIONAL BANK CHICAGO i - --JL : ■'■?ii, ; ?.iOT<)»' Corn Exchange Bank Building NORTHWEST CORNER ADAMS AND LA SALLE STREETS Capital $3,000,000 Surplus $5,000,000 Undivided Profits $1,500,000 OFFICERS ERNEST A. HAMILL, President CHARLES L. HUTCHINSON, Vice-President CHAUNCEY J. BLAIR, Vice-President D. A. MOULTON, Vice-President B. C. SAMMONS, Vice-President FRANK W. SMITH, Secretary J. EDWARD MAASS, Cashier JAMES G. WAKEFIELD, Assistant Cashier LEWIS E. GARY, Assistant Cashier EDWARD F. SCHOENECK, Asst. Cash. CHARLES H. WACKER MARTIN A. RYERSON CHAUNCEY J. BLAIR EDWARD B. BUTLER FOREIGN EXCHANGE DIRECTORS CHARLES H. HULBURD BENJAMIN CARPENTER CLYDE M. CARR WATSON F. BLAIR LETTERS OF CREDIT EDWIN G. FOREMAN CHARLES L. HUTCHINSON EDWARD A. SHEDD ERNEST A. HAMILL CABLE TRANSFERS 20 Attention is called to the announcement on page II EDITORIAL SECTION 22 THE PACIFIC COAST THE PACIFIC COAST. At a time when the columns of the press are so largely devoted to chronicling the events of a great war, and attempting to prognosticate its results; and when the financial journals are chiefly concerned in discussing, and striving to solve, the many and varied problems arising from conditions created by a world disturbance of such magnitude, there is no little satisfaction in presenting to our readers an issue devoted to so great an achievement of Peace as the Panama Canal, and to a territory so pregnant with possi- bility in peaceful pursuits as the Pacific Coast of the United States. Departing from their usual custom, the pub- lishers herein offer an edition which is, except for the statistical departments, composed entire- ly of contributed articles. In arranging for each of these articles dealing with conditions on the Pacific Coast the publishers have sought, and have been so fortunate as to secure, the co-oper- ation of the individual to whom a concensus of opinion pointed as best equipped and qualified to deal with the special subject assigned to him. The opinions of these contributors are based on experience, not on theory. As we have become familiar with these various articles, during the process of assembling, co-or- dinating, and preparing the edition for the press, we have been particularly impressed by cer- tain points of unanimous agreement in the opinions expressed. As the articles cover a broad range of activity, and emanate from minds work- ing along widely diversified channels, such con- cordances are significant, and it seems pertinent to direct the reader's attention to them. It may also be well to emphasize the fact that where our contributors unite in a common opinion they are in entire accord with those leaders of commercial thought and activity who are directing the work of intelligent development and substantial prog- ress throughout the entire West Coast territory. The first of these points in importance is, gen- erally speaking, the last to be brought out in the individual articles, namely: the secure confidence with which the future is awaited — the dominant note of optimism. It is not uncommon to hear, from those but vaguely familiar with conditions on the Pacific Coast, expressions of opinion to the effect that affairs there are in a sad way; that a revival of activity is remote, if not im- probable. Such is not, in fact, the case. The Pacific Coast may pause to permit of a re-ad- justment of fundamental conditions. In its periods of more strenuous activity, basic economic prin- ciples trail, breathless, in the wake of the im- petuous optimism and headlong energy which characterize its progress. Re-adjustments are thus rendered necessary. Also, since no human energy is absolutely indefatigable, prodigal ex- penditures of vital force necessitate occasional recruiting intervals of relaxation. Thus, the Coast may pause — must, indeed — but let none be so fatuous as to believe that it will stop. The Pacific Coast, in common with the rest of us, has made its mistakes and is suffering for them; the more keenly in that, during a normal period of rehabilitation and adjustment, events conspire to bring about a time of stress, when the results of all mistakes are magnified, and made peculiarly obvious and painful. That such mis- takes are fully appreciated, and that constructive minds are engaged in devising remedies, is the second point which will become apparent in the perusal of the subsequent pages. The third is: the unanimous recognition of the fact that the future influx of population to the Pacific Coast must be diverted, to as great a degree as possible, onto the land. Com- merce may be broadly classified in three element- ary divisions: Production, Conversion, and Mer- chandising, the first including only the develop- ment of natural resources and the actual crea- tion of wealth, the second comprehending the treatment of raw materials by manufacture, the third involving the transfer of commodities be- tween men or nations. Activity in the first of these divisions distributes population over the agricultural lands, through the forest areas, and in the mountainous regions. The second and third divisions create cities, either as industrial centers or as logical points of transfer. Both of the latter divisions being wholly dependent upon the first, it is obvious that population should ad- just itself accordingly. It is an economic error to rear large cities on the edge of a great poten- tially productive territory, only a small percent- age of which is fully developed. The Pacific Coast logically falls into the first of the three divisions. From the standpoint of its ultimate possibilities, productive development of the Pacific Coast has only been fairly begun, while its cities have grown with an astounding and disportionate rapidity. Cen- sus figures show a much larger percentage of urban population on the Pacific Coast today than in other essentially productive areas in the United States. The Coast may be termed, to coin a phrase, "over-citied," for the time being. The contemplated effort at diversion of population onto the land will gradually correct the error, and the result will be a sounder economic basis throughout the territory. The fourth point of unanimity to be noted is: that land values on the Pacific Coast have ad- vanced too far, and too fast. It is frequently re- marked by those most actively engaged in the Coast's permanent and sane development that the incubus from which the territory has suf- fered most in the past has been the unscrupulous real estate promoter, colloquially (but aptly) termed "land shark." The operations of those that prey on the credulous were there made so easy and profitable by the alluring possibilities of high returns from irrigated land, that their business extended with such rapidity as to be- come a serious menace to the prosperity of the territory. Illustrative of what is being done on the Coast to remedy the situation as regards land values, and to discourage the further activities of the "land shark," witness the sweeping reductions in the price of raw land, and the restrictions re- THE PACIFIC COAST 23 garding its sale, which have been instituted by the railroads, and other large landholders, as cited in a subsequent article. A recent decision of Judge Bean in a United States district court in Oregon is likewise apposite for purposes of illus- tration. The case in point was a suit brought by land purchasers against the sellers, alleging mis- representation of the productive possibilities of the land. In deciding for the plaintiffs the pre- siding judge ordered the return of all payments on the contract, together with the costs of the action, stating that the sellers "must know what the land is good for" ; belief in its possibilities not constituting a sufficient defense against the charge of misrepresentation. The adoption of such drastic measures will do much to correct the mistakes of the past, and eliminate the possibility of their repetition. Much of the publicity that has emanated from the Pacific Coast has been unfortunate in char- acter. Consisting largely of the propaganda of the self-interested, it has been highly bombastic; teeming with hyperbole. It has exaggerated all the attractions (inventing them when occasion demanded), and carefully avoided any mention whatsoever of any existing difficulties to be en- countered. Its tendency has been to attract the invalid, seeking a salubrious climate where an exceptional fruitfulness of soil might offset im- paired physical efficiency; the indolent, thinking to obtain a maximum return for a minimum of effort; the incompetent, hoping that, where a benign nature dispenses special largess, lack of ordinary ability would not be so apparent, nor its results so painful. Such types are a benefit to no community, least of all, perhaps, to the Pacific Coast, where the tremendous amount of develop- ment yet to be accomplished demands a little more than an average man's-sized day's work from each inhabitant every twenty-four hours. The failures of such deluded ones have added no small quota to the disastrous results of the operations of the "land shark." Commercial organizations, variously desig- nated, abound on the Pacific Coast. Many of these owe their origin to the local activities of the traffic department of one of the transcontinental railroad systems, which has indirectly profited by fostering and encouraging them. While these organizations have been laudably energetic and enthusiastic, they are frequently ineffectual, either because badly managed, or because insuf- ficiently informed as to the real needs of the community which they were attempting to serve, or both. Of late, a number of such organ- izations have undertaken to make a serious study of conditions and conduct development and publicity campaigns with intelligence and efficiency. These are performing a real service to their respective territories. They eliminate misrepresentation, in so far as is possible, and endeavor, by presenting the real facts to pros- pective settlers, to prevent an influx of indigents and undesirables. The Coast wishes to increase, not only its population, but also its thought units, and units of energy per square mile. The real work of development and progress was begun, and is being continued, by men of the largest physical and mental capacity. The hostile Redman, the weary miles of unknown desert, the difficult mountain ranges, and other obstacles encountered and overcome by the pio- neers, precluded the possibility of any but the sturdiest and most courageous reaching the Coast at all in the days of early settlement. Such men have developed the Coast, and, conversely, the Coast develops such men. Undoubtedly cli- matic conditions are partially responsible, but there is something deeper, more subtle, and more inspiring, at work at man-making on the Pacific Coast. The very vastness of the territory, its great distances, and the sense of limitless ex- panse which it engenders, seems to demand mental expansion and expansiveness. Magni- tude is omni-present on the Pacific Coast. Its mountains are capped with eternal snows, while in its fertile valleys, millions of acres bask in eternal summer. The Coast mentions a chasm as worthy of note; it is thirteen miles wide and a mile deep ; a waterfall ; it has a sheer fall of half a mile. Trees grow four hundred feet high, and, through apertures made in their base the Coast drives its coach and four. Comparisons super- imposing a considerable group of the European countries, with a number of our eastern states thrown in for good measure, on one of the Pacific Coast states, and still leaving a respect- able margin, have been worn threadbare to odium. None the less the physical bigness of things is inspirational, and has its own peculiar effect on those to whom such wonders are the commonplaces of their immediate surroundings. Take at random some of the figures which will be found on the ensuing pages: six hundred continuous miles of high tension, steel towered, transmission line; five hundred and fifty thousand horse power; four billion, three hundred million barrels of oil; fifteen hundred and twelve billion, nine hundred million feet of standing timber. The business man of the Pacific Coast must not only deal constantly in such figures in the regular course of routine work; but, to transact his busi- ness intelligently, he must be able to comprehend them and their significance. Small wonder that he expands in imagination, looks far into the future, and falls into an expansive habit of mind. Nor can he be severely censured if he grows to be rather cavalier in his treatment of 1.3 inches, or tupence ha'penny. Rome has sat for centuries on her seven hills, and seen the westward march of empire reach and pass her; Seattle, finding herself somewhat similarly located topographically, decided that hills were bad for business. Visioning an empire to come, she temporarily removed herself from her hills and proceeded to dispense with them by means of the most abundant available commodity — water. The hills were sluiced away onto the tide-flats, where they make excellent factory sites. In replacing herself on the leveled land, Seattle demands quarters so modern that they include a forty-two story office building. 24 THE PACIFIC COAST On the hot ashes of one of the most dire munic- ipal disasters in history, San Francisco began her rehabilitation, and in six years has completed it. It requires a search to discover traces of the fire in the bright, modern metropolis at the Gold- en Gate. These instances are cited only as typ- ical, not as unique. The spirit is the same through- out the entire territory, and even the smallest communities are performing feats proportion- ately as startling. The reticent and reserved may take exception to the easy familiarity and blatant local pride of certain types; the ultra-conservative may depre- cate the proclivity of certain others to deal con- tinually in extravagant figures and superlatives; there are extremes of every type, and there is log- ical reason for such idiosyncracies. Speaking by and large, the man that the Coast develops is lov- able, stimulating, and wholly admirable. He lives in the open air and sunshine, does big things in a big way, as a casual matter of course, and he is not afraid. Thus we find, through those who speak for it, that the Pacific Coast faces the future with con- fident optimism. Proud of itself and of its past achievements, it nevertheless fully realizes its mistakes and is endeavoring to rectify them in the most reasonable manner. It seems to be a generally accepted fact, that further immediate development should be along the lines of produc- tion — the increasing creation of wealth. To those working intelligently, conscientiously, and per- sistently along this line, there is no section of our land that offers a more attractive field. To the shirker there is nothing offered, west of the Rockies, other than the usual emolument ac- cruing to the indifferent and inferior worker. To the average man, the Coast territory holds forth the certainty of a generous reward for earnest endeavor. But to him in whom lies, either latent or developed, the germ of true commercial great- ness; who can think in more than eight figures, and build for more than a hundred years; the one man in ten thousand who may, perhaps, re- claim another Imperial Valley, or bridge another Great Salt Lake — to him there opens a field of limitless possibilities presenting problems and struggles to delight his soul. If he will go to the Coast and identify himself with it; permit the Coast to develop him along the lines that it does develop men; become inoculated with that indom- itable spirit that fires those that dwell within its boundaries; make their people his people, and their God his God; take his share of the great work, and solve his share of the great problems; give to the Coast his best, unselfishly, and with true patriotism; — to him the Pacific Coast will return lavish measure of honor and gratitude, and, incidentally, the ransom of a hundred kings. Copyright 1914, by Curtis & Miller. SEATTLE'S NEW SKYSCRAPER AND MOUNT RAINIER THE PANAMA CANAL AND THE PACIFIC COAST 25 THE CANAL AND THE PACIFIC COAST. From a commercial point of view, the main object of undertaking such a work as the Panama Canal is, of course, the shortening of distances for oversea traffic. It is abvious that, given a line of steamships running between two ports, great benefit will arise if the dis- tance to be traversed is halved or considerably re- duced. Here it is proposed to make an attempt to estimate the effect of the Panama Canal upon the trade of the Pacific coast of the United States and Canada with Great Britain. The following figures show the saving of distances which will be made by English vessels and vessels of the east coast of the United States when making voyages to Pacific ports. Seattle is, of course, a United States port, but, as it is close to Vancouver, the figures relating to it may be taken as applying to Canada also : — New York. New Orleans. Liverpool. To Seattle by Magellan. 13.953 14,369 14,320 To Seattle by Panama. 6,080 5,501 8,654 Distance saved 7,873 5,666 8,868 New New York. Orleans. Liverpool. To San Francisco by Magellan 13,135 13,551 13,502 To San Francisco by Panama. 5,262 4,683 7,836 Distance saved 7,873 8,868 5,666 Thus it will be seen that New York and New Orleans gain a much greater advantage than Liverpool. On the other hand, Jamaica and the other West Indian islands will be brought much nearer the Pacific coast, and, what is a far greater benefit, they will find themselves upon a main trade route instead of being, as hitherto, in a cul : de-qac. From the commercial point of v^ew, trade in the Tinted States ports is the most important to Great Britain, not merely because of the volume of trade between the Western States and Great Britain which goes by sea, but because of the much 'larger popula- tion in the vast districts tributary to San Francisco compared with the population of Western Canada. The population of the three Pacific American States was over 4 millions in 1910, while more than 2y 2 millions were enumerated in the eight adjacent mountain States; whereas there were less than iy± millions in 1911 in the whole of British Colum- bia, Alberta, Saskatchewan, and the North- West ter- ritories. The following table shows, moreover, that though Canada's trade from the Pacific to this coun- try is relatively large, it is now much smaller than from American ports: — Net Tonnaoe of Shipping Entered and Cleared ix British Posts from Canada and the United States in 1912. Entered. Cleared. Canada— Tons. Tons. Atlantic ports 2,688,448 2,578,993 Pacific ports 93,850 57,618 U. S. A.— Atlantic ports 8,451,803 8,806,192 Pacific ports 184,013 115,088 Thus the Canadian Pacific shipping is a larger pro- portion of the whole, but is not so large as our trade with San Francisco and Puget Sound. The critical point, however, is not the amount of shipping that now passes between this country and the Pacific, but the amount that will do so when the Canal is open. And in this connection it should be pointed out that there has been a marked decline in Bhipping between this country and American Pa- cific ports, and this for two reasons. In the first place, the competition of trans-continental routes has no doubt diverted traffic from the slow journey round the Horn, and in the second, the export of West- ern American corn, which was the staple cargo of the old sailing ships from California to Liverpool, has been partially absorbed by the home market. In view of this latter consideration it is a very open question whether the shortening of the journey will succeed in attracting larger quantities of Californian wheat to Great Britain. Puget Sound is also the outlet for timber from the State of Washington, which produces more than any State of the Union, while California is easily the largest petroleum pro- ducer in the States. These two commodities are badly needed by this country, and though it is doubtful whether the tolls will be light enough to make it commercially feasible to bring lumber through the Canal, it is quite possible that California might send some of its oil via Panama. The trade, however, which is most certain to be stimulated by the shortening of the route is that in fruit, which is one of the chief products of the Pacific coast. The Canal will bring this fruit area as near by sea to the British market as is South Africa. In the other hand, the growing population of these States affords a market for British goods which has been appreciably affected by the reduction of the tariff. The effect that the Canal may have upon Canada is, naturally, of paramount interest to Englishmen. One of the main industrial features of the present time is the development of the western portions of Canada, and these are certain to make abundant uso of the Canal. Recently, Dr. Vrooman read a paper before the Royal Colonial Institute in which he took a very sanguine view of the country and the ad- vantages which it will derive from the Panama Canal. "Two thirds," he said, "of the future prod- ucts of Canada are tributary to the western sea." There is no doubt that Alberta and Saskatchewan might easily produce five times as much grain as they are now doing, and may probably do so in the not distant future. Such an estimate is not merely an exercise of the imagination, as is too often the case in forecasts of alleged coming countries; the unoccupied lands are of exactly the same quality as the productive lands, and a stream of immigrants is pouring in ; thus the production of Western Canada is certain to increase by leaps and bounds. It is esti- mated that Alberta has one hundred million of acres suitable for agriculture and less than three million are under cultivation. Saskatchewan, which is con- siderably larger than France, saw its population in- crease from 91.000 to 492,000 between 1901 and 1911. It has about eight million acres under culti- vation. It is practically certain that these two prov- inces will ship their grain entirely from Pacific ports when the Canal is opened. Dr. Vrooman urges the people of Canada to be prepared for the vast in- crease of traffic which he believes is imminent. He estimates that to make adequate docks at Vancouver will take twenty years, and is anxious that works shall be at once begun of "sufficient dignity and im- portance." Unfortunately, the people of Vancouver do not seem to be awake to the situation. In contrast with this, the port of Los Angeles, which aims at be- 26 THE PANAMA CANAL AND THE PACIFIC COAST coming the leading port of the coast, has pledged itself to spend $18,000,000 on its harbour by 1918. But, whether the main traffic passes through the ports of Canada or North America, there can be no doubt that a large proportion of it will pass through the Panama Canal. Another circumstance may be noted ; in 1912 only one sailing ship called at Vancouver, and thus practically none of its shipping is insepa- rably tied to the Magellan route. San Francisco exports to Great Britain produce valued at £ 1,500,000 and much of this is likely to go through the Canal, especially as a considerable proportion consists of fruit, salmon, and other canned goods, which will be the better for a quick passage. The figure given above, of course, only refers to sea- borne trade; by far the largest part of California's exports goes by land, and much of this will, in fu- ture, be railed to the Pacific and help to swell the Canal traffic. San Francisco will greatly benefit by the Canal. The last Consular Report says: "It is reported that various steamship companies — British, German, Japanese, and others — are making arrange- ments to run lines through the Panama Canal and make San Francisco one of their ports of call." It is also anticipated that a good many of the emigrants will arrive by Panama, thus avoiding the expensive railway journey from eastern ports. There is, in fact, every reason to expect that the Pacific coast of North America will contribute very largely to the traffic of the Panama Canal, which must inevitably depend for its success mainly upon San Francisco, Los Angeles, and Vancouver. At present the South American coast is not likely to do very much for it. The competition of the Magellan route will remain, and doubtless will be formidable in the case of lum- ber and other bulky articles, but the distance is so enormous that Panama can hardly fail to have the preference in most cases, provided that the Canal tolls are reasonable. As regards Oriental ports, the Suez Canal will be, in some sort, a competitor. The Pan- ama Canal will only bring New York 350 miles near- er to Hong Kong, while Great Britain is 1,600 miles nearer that port via Suez than via Panama. So far as the frozen meat trade from Australasia is con- cerned, shipowners declare that they will make no change in their arrangements in spite of the saving of distance by coming via Panama; for they prefer the colder, and consequently cheaper, route. The Canal route from the Antipodes involves a long slant- ing journey through the tropics, whereas the route from New Zealand via the Horn takes the shortest possible route across the equator. Since logs of most ships show that when water is entering the ship at 84 degrees F. the refrigerating machinery has to be kept going for 12 to 15 hours a day, against 9 hours a day when the water is entering at 57 degrees F., it is clear that the new route would involve additional expense in addition to the tolls levied for the use of the Canal itself. Again, a formidable competitor will be the Tehu- antepec Railway, which, opened in 1907, runs from Puerto, Mexico, in the Gulf of Mexico, to Salina Cruz, on the Pacific. The through traffic on this line is rapidly increasing, and now amounts to over 700,000 tons yearly. It carries more than double the freight of the Panama Railway, and the figures of the lat- ter are swollen by Canal material, which will soon cease. The following figures show the difference be- tween the Mexican and the Panama routes: — New York to San Francisco, via Mexico, 1,173 miles shorter; Liverpool to San Francisco, via Mexico, 609 miles shorter; New 7 Orleans to San Francisco, via Mexico, 1,767 miles shorter. But as regards many kinds of merchandise, the Mexico route is likely to compete successfully with the Canal. A writer in the Economic Journal estimates the annual cost of the Canal, including sinking fund, at 21 million dollars. "A liberal estimate of receipts from tolls, based on the tonnage of vessels which might have used the Canal in 1909-10, had it then been in existence, places the revenue at something over .$6,000,000 per annum. Therefore, even without taking into account any in- crease in operating expenses with increased tonnage, the business of the canal must grow to three and a half times the estimated volume of 1919-10 before a profit can be realised." At one time a far more gloomy view was taken of the probable receipts. The eminent United States traveller, Colonel Church, speaking before the Royal Geographical Society, said : "I may say that, with a year of labour, I ana lysed all the commerce that would possibly go through the Canal if it were open to-day, and I could not make it a million tons." Certainly, this is an underestimate, but it is important to notice the contentions that only 6 per cent, of the area of South America lies on the Pacific slope of the Andes, and that the North American railways may be able to carry freight as cheaply as a ship can carry it from San Francisco to New York by way of Panama, The Canal also will be handicapped, and the United States will be handicapped in their use of it, as long as their mercantile marine continues on its present small scale. Mr. Vaughan Cornish has remarked: "There is at present some ground for the extreme opinion sometimes expressed in the United States that the Canal is being built with American money for the use of Europe — and, one may add, of Japan." The Canal, in all probability, will disappoint many expectations, for it is such a great work that great results are expected from it, and these can hardly be expected under the present conditions; there must be material to work upon. It should be remembered that a mere saving of distance is not enough to make a waterway successful. To compare small things with great, the Corinthian Canal is little used, al- though it effected a very considerbale saving of dis- tance. But the Canal will have the advantage of serving, in Western Canada, a country which must be one of the chief granaries of the world, and can- not fail to grow very rapidly in population and pro- ductiveness. Whereas Panama is not now on a trade route, unless the comparatively insignificant one from San Francisco to Valparaiso may be so de- scribed, it will hereafter stand on the convergence of two routes — that from Europe and that from New York — and these two will radiate from Pan- ama into the Pacific to the north and south coasts, and also to Japan, China, and Australasia, It may be long before the tolls become remunerative, but its immediate effect upon commerce will be stimulat- ing, and eventually the Isthmus is likely to become one of the busiest resorts of shipping upon the face of the globe. THE PANAMA CANAL The Panama Canal— Its History and Construction By ISHAM RANDOLPH, C.E., D.E. Member of the Board of Consulting Engineers for the Panama Canal. Member of the Advisory Board of Engineers 1909. Chief Engineer of the Chicago Drainage Canal During Entire Period of Construction 1893 to 1907. Consulting Engineer 1907 to 1913. The Panama Canal is an accomplished fact! A section has been torn from the backbone of the Isthmus and the shores, which since time began have stayed the proud waves of the Atlantic of the North and held back the swelling tides of the Pacific on the South, have been cleft to receive the sweet waters of an inland sea, pent up by man and by him to be loosened at his pleasure. The Chagres River is a submissive captive and the way from ocean to ocean has been shortened for the toilers of the sea by eight thousand four hun- dred and nineteen miles. Such is the fact but there remains an ante- cedent history to that fact, and a part of that history is dependent upon "the testimony of the rocks" which testimony the geologists assume to read and impart the facts to their lay brethren. But there are "faults" in rocks and it follows that if there be faults in the text, there must be faults in its rendering by the savant who under- takes it. I think that the rocks of Panama have baffled the geologists and kept their age old secrets and will keep them until time shall be no more. Only "He who knoweth all things" can tell when and how there came to be the narrow strip of land which serves as a bridge joining the two continents of America. We know that it exists and white men found it out only 422 years ago. And when they found the Isthmus they found it inhabited by a people of different hue and different characteristics, and today we no more know how these people came to be upon it than we know how the Isthmus came to be a barrier between the world's greatest oceans. He who essays to write history which ante- dates his own existence, or if it be contempora- neous and not coming within his personal knowl- edge, is dependent upon what others have written or what they have told him, for what he accepts as historic fact and records as truth to be accepted by those who come after him. The historian should be a delver after truth; old archives should be studied and the weight of evidence carefully considered in the light of reason and of probability before ancient history is presented to modern credulity and modern his- tory should stand the test of rigid cross-exami- nation; its witnesses should have their veracity tested by the most rigorous standards. But some who write of history need not be his- torians in the strict sense of the term, for the work has often been so well done by others that he can "reap where he has not sown" and gather of the harvest made ready for him, and that is my fortunate situation with regard to all the ancient and some of the modern history of Panama. For the purposes of this paper, ancient history long drawn out is unessential but ancient history epitomized meets its needs fully; and most ad- mirably have these needs been anticipated by the report of the Isthmian Canal Commission of 1899-1901, Chapter 2, pages 18 to 43. But much TKE FIRST STEAMER TO PASS THROUGH THE PACIFIC LOCKS. THE PANAMA CANAL 29 of what is there recorded is irrelevant and be- yond the scope of this paper. Moreover, if the facts of the text can be pre- sented in fewer words to meet our need, that economy in language will be practiced. "When Columbus left Spain in 1502, on his fourth and last voyage, his intention was to go still further westward and endeavor to find a strait that would lead to India. He would thus complete his great discovery and demonstrate the correctness of the theories upon which his expeditions had been undertaken. He reached Honduras and followed the coast line to Darien, but long-continued and severe storms, the hostile attitude of the Indians, and the dis- couragement of his followers interfered with his plans and progress, and with sorrow and regret he turned toward Hispaniola with his shattered ships before he had accom- plished the long-hoped-for result, in which, however, his faith was not abated. When he died on the 26th of May, 1506, he was still fully satisfied that his discoveries were In the eastern part of the Old World, and never fully real- ized the extent and grandeur of his achievements." The early discoverers were all searching for a strait giving direct passage to the East (Cathay). Finally they came to the realization of the fact that a new world had been discovered and the strongest confirmation of this fact was afforded "in September, 1513, by Vasco Nunez de Balboa, then governor of a province in Darien known as Castilla del Oro," who organized an expedition to go in search of a "great sea, beyond the moun- tains," of which the Indians had told him. "He crossed from Santa Maria de la Antigua, the capital of his province, a city founded in 1509 or 1510, near the Atrato River, to a point near Caledonia Bay, where Acla was afterwards built; thence he proceeded with a con- siderable force of Spaniards and Indians across the divide, and on the 25th day of the month reached a high ridge above the gulf which he named San Miguel. Advancing beyond his companions to a favorable elevation, he was the first European to behold the great ocean to the south, which he called the South Sea, from the direction in which he viewed it." "Four days later he entered the sea and With great ceremony claimed it by right of discovery for his royal master, the King of Spain." The nanative goes on to tell of Balboa's ambi- tion to discover yet more lands; how he caused the timbers for four brigantines to be framed on the Atlantic coast; how he compelled the natives to transport these timbers to the Pacific Coast; how the first lot of timbers was swept away by flood; how he again caused the timbers for four brigantines to be framed on the Atlantic coast and transported by the natives to the Pa- cific to be successfully framed and launched. This was cruel and deadly work for the Indians and "Bishop Quevado testified before the Spanish Court that 500 poor wretches perished in this work, while Las Casas says the deaths were nearer 2,000 in number." But Balboa was super- seded by Pedro Arias de Avila, better known as "Pedrarias." The jealousy of the supplanter caused him to charge Balboa with treasonable conduct and after a form of trial he was con- demned and beheaded in the latter part of 1517. Thus was meted out to him the decree promul- gated after the ark rested on Mount Ararat, "Whoso sheddeth man's blood by man shall his blood be shed." The city of Panama was commenced in August, 1517, and in September, 1521, it was made a city by royal decree, with special privileges and a coat of arms. It became the Pacific terminus of a line of posts and a road was at once constructed via Cruces on the Chagres River to Acla, which was the Atlantic port until the distinction and the profit was, in 1597, transferred to Porto Bello. This highway was paved and, according to some accounts, it was only wide enough for riders and beasts of burden, but Peter Martyr says that two carts could pass one another upon it. "The value of this interoceanic communication increased every year. After the conquest of Pizarro vast quantities of gold and silver were brought from the mines of Peru to Panama, carried across the Isthmus on the King's horses, kept for that purpose, and transported from the eastern terminus of the paved way in royal galleons to Spain." "The importance of a maritime connection and the dis- couraging results of the efforts to discover a natural chan- nel between the two oceans suggested to many minds the idea of a ship canal. * * * According to one authority, Charles V. directed that the Isthmus of Panama be surveyed with this purpose in view as early as 1520. In February, 1534, a royal decree was confirmed directing that the space between the Chagres and the Pacific be examined by experienced men, and that they ascertain the best and most convenient means of effecting a communica- tion between the navigable waters of the river and the ocean and the difficulties to be met in the execution of such a project. The Governor, Pascual Andagoya, reported that such a work was impracticable, and that no king, however powerful he might be, was capable of forming a junction of the two seas or of furnishing the means of carrying out such an undertaking." Enough history has now been quoted to show that the seed of the Panama Canal was sown 394 years before the canal bloomed into existence. Was there ever another aquatic plant of such slow growth? The City of Panama was captured by Sir Henry Morgan in February, 1671, and on the 24th day of that month it was burned. Two hundred and forty-one years and one day later the present writer saw the ruins and took pic- tures of some of them. The present city of Panama occupies a site about seven miles west of the original city and it was commenced January 21st, 1673. This I learn from the "Canal Zone Pilot." But to return to my text book. On page 28, I read: "No actual progress In the way of establishing a marl- time communication from the Atlantic to the Pacific had been made during the three hundred years of Spanish occupation. Baron Von Humboldt, who visited New Spain about this time and took a great interest in this subject, deplored the lack of accurate knowledge of the physical features of the isthmian country. * • * The publica- tions of Humboldt were extensively read and revived the interest of the commercial nations of the world in this subject. The Spanish Cortes was aroused to action and in April, 1814, passed a formal decree for the construction of a canal through the peninsula for vessels of the largest size and provided for the formation of a company to undertake the enterprise, but it led to no results and Spain's opportunities to obtain the glory of opening this great highway for the commerce of the world terminated in 1823 when the last of her Central and South American provinces succeeded in establishing their independence." I could go on quoting from the chronicles to which I have resorted for my ready made his- tory many interesting statements but I do not think it well to burden this paper with a record of all of the abortive attempts to bring about the building of an Isthmian Canal between 1814 and 1869: and I only resume at the latter date be- cause the data about that period gathered by Commander Selfridge and reported to the Con- gress of the United States were brought to my attention some time in the mid-nineties. The demand for transportation facilities across the Isthmus became so imperative that capitalists determined to build a railroad and reap the harvest which their shrewdness fore- saw. In May, 1847, one Mateo Kline secured 30 THE PANAMA CANAL a franchise for such a railroad and in December, 1848, this franchise was transferred to Aspin- wall, Stephens and Chauncy who, with their as- sociates, organized the Panama Railroad Com- pany, commenced work in 1849, and opened the road for traffic early in 1855. The At- lantic terminus on Limon Bay was Aspinwall — later the name was changed to Colon — and the Pacific terminus was Panama. The length of the road was 47% miles. Tradition has it that in building this railroad, a life was sacrificed for every cross tie in it, so great was the mor- tality among the workmen. Were this tradition true, it would mean that the road cost abom 150,000 human lives in the six years spent in building it. In flat contradiction of the tradi- tion is the fairly well authenticated fact that at no time were more than eight thousand men employed in building the road. It is interesting to note that the ties used in building the Panama Railroad were of lignum vitae, and that they were still in use after nearly sixty years' serv- ice when the rising waters of Lake Gatun buried them from sight. In 1869 General Grant became President of the United States and in his first message to Congress "commended an American canal on American soil to the American people." "Congress promptly responded to this sentiment by adopting a joint resolution providing for further explora- tions of the isthmus by officers of the Navy, and Admiral Ammen, as Chief of the Bureau of Navigation, was author- ized to organize and send out expeditions for this purpose. In March, 1872, a further resolution was adopted for the appointment of a commission to study the results of the explorations and to obtain from other reliable sources all available information regarding the practicability of the construction of a canal across the American continent. The President appointed on this Interoceanic Canal Com- mission Gen. A. A. Humphreys, Chief of Engineers, United States Army; C. P. Patterson, Superintendent of the Coast Survey, and Commodore Daniel Ammen, Chief of the Bureau of Navigation of the Navy." In February, 1876, "after long, careful and minute study of the several surveys of the var- ious routes across the continent," this Commis- sion reported "that the route known as the 'Nicaragua route' beginning on the Atlantic side at or near Greytown; running by canal to the San Juan River; thence * * * to * * * Lake Nicaragua, from thence across the lake and through the valleys of the Rio del Medio and the Rio Grande to * * * Brito, on the Pacific coast, possesses, both for the construction and maintenance of a canal, greater ad- vantages and offers fewer difficulties from engineering, commercial and economic points of view than any one of the other routes shown to be practicable surveys sufficient in detail to enable a judgment to be formed of their respective merits. This report was not transmitted to Congress until April, 1879, when it was called for by a resolution of the Senate. It is in print as "Sen- ate Ex. Doc. No. 15 46th Congress, First ses- sion." Having back of him French support, Lieut. L. N. B. Wyse, in May, 1876, entered into a con- tract with the Columbian Government to build a canal across the territory of the Republic. In May, 1878 this contract was so modified and ex- tended as to give the promoters the exclusive privilege, for a period of ninety-nine years, of constructing the canal covered by the original contract without any restrictive stipulations other than those safeguarding the rights and property of the Panama Railroad. The general route of the proposed canal was to be determined by an international congress of engineers to be assembled not later than .1881. Accordingly, the International Scientific Con- gress convened in Paris in May, 1879, with a membership of 139 and their decision was in favor of the route from Colon (Aspinwall) to Panama. The Wyse concession was transferred to "La Compagnie Universelle du Canal Interoceanique de Panama," better known in the United States as the Panama Canal Company. Ferdinand de Lesseps was President. The Wyse concession was purchased from its holders by this new com- pany with the high sounding name for 10,000,000 francs. The purchasers then proceeded to sell 600,000 shares of stock of 500 francs each. Two years were devoted to surveys and ex- aminations and preliminary work. The plan adopted was for a sea level canal 72 feet wide on the bottom and a navigable depth of 29.5 feet. The volume of excavation computed for this canal was 157,000,000 cubic yards. The center line elevation at the summit of the Culebra cut was 333 feet above the sea level. The cost of this plan as estimated by DeLesseps in 1880 was $127,600,000.00 and the time required for con- struction was given as eight years. Work on this project continued until 1887. By that time De- Lesseps had to admit a fact, which had long been manifest to others, namely; that with the re- sources available, the canal could not be car- ried through at the sea level. A provisional change was made to a lock type of canal for which the water for the summit level was to be provided by pumping. Work under this plan was carried on until 1889 when the company be- came bankrupt and was dissolved by a judg- ment of the "Tribunal Civil de la Seine" on Feb- ruary 4th of that year and a liquidator was ap- pointed by the court to take charge of its af- fairs. The liquidator gradually reduced the force employed and suspended work May 15th, 1889. He thereafter appointed a "Commission d' etudes" composed of eleven Frenchmen and for- eign engineers with Inspector General Guille- main, director of the Ecole Nationale des Ponts and Chaussees, at its head. The Commission made a study of the entire project and on May 5th, 1890, submitted a plan for a lock canal which they estimated would cost $112,500,000.00 to complete and suggested that to cover the cost of administration and financing, this estimate should be increased to $174,600,000.00. The old company and the liquidator had by sale of stocks and bonds raised $246,706,431.68. The face value of the securities issued to raise this money was $435,559,332.80. The number of persons hold- ing these securities was over two hundred thous- and. There had been excavated in all about 72,000,000 cubic yards and there had been pur- chased and transported to the Isthmus an enor- mous quantity of machinery and other equip- ment valued at $29,000,000.00. The scandals connected with the old company led to the prose- THE PANAMA CANAL 31 cution and conviction of DeLesseps and other prominent persons. In 1894, the New Panama Canal Company was organized and took over all of the canal property except the Panama Railroad shares which were held for its benefit. Work was resumed on a small scale and continued until June 30th, 1899, by which time the additional excavation amount- ed to about .5,000,000 cubic yards and the addi- tional expenditures to about $7,000,000. The interest of the United States in an Isth- mian Canal was manifested by an act of Con- gress, approved March 3rd, 1899, authorizing the President to appoint that Commission from whose report I have quoted. The men selected by President McKinley for this important task were: John G. Walker, Rear Admiral, United States Navy, President; Samuel Pasco; Alfred Noble; George S. Morrison; Peter C. Hains, Colonel United States Corps of En- gineers; William H. Burr, O. H. Ernst, Lieut. Col- onel, United States Corps of Engineers; Lewis M. Haupt; and Emory R. Johnson. The members of the Commission convened in Washington on June 15th, 1899, and immediately began the work for which they were appointed. The scope of their investigations embraced the following subjects: 1. The Nicaragua route. 2. The Panama route. 3. Other possible routes. 4. Industrial, commercial and military value of an inter- oceanic canal. 5. Rights and privileges. Later in the division of the duties, number one was assigned to Mr. Noble, Mr. Burr and Colonel Hains; number two to Mr. Burr, Mr. Morrison and Lieut.-Col. Ernst; number three to Mr. Morri- son, Mr. Noble and Col. Hains; number four to Mr. Johnson, Mr. Haupt and Mr. Pasco; and num- ber five to Mr. Pasco, Lieut.-Col. Ernst and Mr. Johnson. To follow these gentlemen through the ramifi- cations of their researches would be to trans- cribe their report which will not be attempted and only very prominent features of it will be noted. At a very early stage of their activities, the Panama Canal became prominent. The new Panama Canal Company made overtures looking to a sale of their bankrupt enterprise. The Com- mission visited Paris, sailing from New York, August 9th, 1899. Upon reaching Paris, the Canal Company displayed its wares, giving the Americans free access and every facility for ex- amining maps, plans, profiles and all other data relating to the Canal, of which it was possessed. Mr. Maurice Hutin, the Director General, and Mr. L. Choron, the chief engineer, as well as the other officers of the company, extended every courtesy to the visitors and afforded all needed assistance. A special meeting of the Comite Technique was also called to give the Commis- sioners such oral explanations as they might de- sire. After making all needed investigations the Commission returned to New York, sailing from an English port on September 29th, 1899. On January 6th, 1900, the Commission sailed from New York for Greytown, Nicaragua. As the outcome of its studies, the Commission submitted its report to the President under date of November 16th, 1901. This report presents estimates of quantities and cost of four "other possible routes" but concentrated its work on the Panama and Nicaragua routes. The other pos- sible routes and their estimates of cost were: The Sassaedi route $263,340,000.00 Aglaseniqua route 283,440,000.00 Caledonia route 320,040,000.00 San Bias route 289,770,000.00 I will digress here to make a few personal statements in regard to the San Bias route, or as it was first named to me prior to the submis- sion of this report, the Darien Mandinga route. About the year 1896 during the construction period of the Chicago Sanitary & Ship Canal, a Chicago attorney, named Bliss, called on me and told me that he had become much interested in reading Commodore Selfridge's report on his Isthmian Canal investigations and he asked me if I thought a ship tunnel, such as Selfridge sug- gested, seven miles long was practicable. I told him that my answer would depend upon the character of the material through which the tun- nel was to be bored. He could not tell me what material would be encountered. Later on, Capt. Robert Wainwright of the First United States Cavalry, called on me one morning and introduced his father-in-law, Gen- eral Charles Serrell, a retired engineer officer, who was desirous of seeing our work. I took them both over the work and they were greatly interested. As we were returning to Chi- cago, General Serrell said to me: "I will tell you now why I wanted to meet you. I wish to talk with you about a sea-level canal." "Yes," said I, "a sea-level canal with seven miles of tunnel on it." He seemed surprised and asked what I knew about it. I told him of my talk with Mr. Bliss. "Well," he said, "I can tell you what the moun- tain is made of; it is granite and the length of the tunnel will be only four and a half miles; and the distance from tide water to tide water only twenty-one miles." He went on to say that he had in his possession the notes of the survey made for and at the cost of Mr. Frederick Kelley of New York and these notes he wished to submit to me and have me examine them. He did sub- mit them to me and they were in good preserva- tion and had all the ear-marks of authenticity. I also went over estimates of quantities and unit prices applied to the work. General Serrell enlisted the active sympathy of Senator Scott of West Virginia and Mark Hanna. I corresponded with Senator Scott in regard to the matter but had no communication with Sen- ator Hanna. Both Senator Scott and General Serrell advised me that they had aroused Pres- ident McKinley's interest in the project. The President died, Mark Hanna died, and the last time I saw Senator Scott he was still firm in his conviction that the government had made a mis- take in not taking up this project. 32 THE PANAMA CANAL To go back to the report of the Commission, from page 51, I quote: "The Kelley examination, starting from the Pacific, was carried with level and transit up the Chepo and Mamoni rivers across the summit to a point on the Carti, follow- ing the valleys of these streams. The Selfridge surveys, starting from the Atlantic side, were carried with level and transit up the Mandinga River, across the divide, and up the Nercalagua River nearly to the divide, while baro- metrical reconnaissances were made up the Carti River overlapping the Kelley survey. This is the narrowest place on the Isthmus, it being less than thirty-one miles from shore line to shore line and only about two-thirds of this distance from the Atlantic to tide water in the Chepo River. Furthermore, the Pacific harbor is quite as good as that at Panama, while Mandinga Harbor, in the Gulf of San Bias, at the northern end of the route, is all that could be desired." The Commission, in investigating the cost of the San Bias project, figured the tunnel at $22,- 500,000 per mile, an estimate far exceeding my own computations. They used a unit price of $5.00 per cubic yard for excavation, which would be all right for headings, but the great bulk of the ex- cavation should be done for about $2.00 per cubic yard. They figured on lining the entire tunnel with concrete five feet in thickness, estimated to cost $10.00 per cubic yard. However, even at the excessive unit costs ap- plied in the Commission's report, the cost of the San Bias route would have been close to $100,- 000,000 less than the cost of the Panama Canal has proven to be. The question would be debat- able as to the comparative merits of 4.5 miles of ship tunnel and 1.54 miles of locks. If the world should need another canal across the American Isthmus, the San Bias route would be very tempting, and owners of a canal at sea level with a tunnel of 4.5 miles and a total length of twenty-one miles from tide water to tide water might justify a claim of superiority for their waterway over our waterway of thirty-five miles from tide water to tide water with an intermed- iate stretch of water elevated eighty-five feet above the sea level. With this brief digression, I will resume the narrative derived from the report of 1899-1901. That report disposes of "other possible routes" and concentrates on Nicaragua and Panama. On page 173 of the Report, they make a comparison of these rival routes: "The total length of the Nicaragua route from sea to sea is 183.66 miles, while the total length of the Panama route is 49.09 miles. The length in standard canal sec- tion and in harbors and entrances is 73.78 miles for the Nicaragua route and 36.41 miles for the Panama route. The length of sailing line in Lake Nicaragua is 70.51 miles, while that in Lake Bohio is 12.68 miles. That por- tion of the Nicaragua route in the canalized San Juan Is 39.37 miles. The preceding physical features of the two lines measure the magnitude of the work to be done in the construction of waterways along the two routes." On a previous page is this statement: "The Nicaragua route has no natural harbor at either end. At both the Atlantic and Pacific termini, however, satisfactory harbors may be created by the removal of material at low unit prices and by the construction of protective works of well-established design. An excellent roadstead, protected by islands, already exists at Panama and no work need be done there, either for harbor con- struction or maintenance. At Colon, the Atlantic ter- minus of the Panama route, a serviceable harbor already exists. On page 174, we find this summation of costs: "The cost of constructing a canal by the Nicaragua route and of completing the Panama canal without including the cost of acquiring the concessions from the different gov- ernments is estimated as follows: Nicaragua $189,864,062.00 Panama 144,233,358.00 For a proper comparison, there must be added to the lat- ter the cost of acquiring the rights and property of the New Canal Company. This Commission has estimated the value of these in the project recommended by it at $40,000,000.00." In the chapter devoted to maintenance and operation, the Commission arrives at the con- clusion that this charge will be for Nicaragua route $3,300,000 per annum Panama route 2,000,000 per annum Covering the negotiations with the officials of the New Panama Canal Company, this statement is presented: "Much correspondence and many conferences followed, but no proposition naming a price was presented until the middle of October, 1901, and after a prolonged discussion, it was submitted to the Commission in a modified form, on the 4th of November, to be included in its report to the President. The itemized statement appears in an earlier chapter of the report. The total amount for which the company offers to sell and transfer its canal property to the United States is $109,141,500.00. This added to the cost of completing the work makes the whole cost of the canal by the Panama route $253,374,858, while the cost of the Nicaragua route is $189,864,062, a difference of $63,- 510,796 in favor of the Nicaragua route. In each case there must be added the cost of obtaining the use of the terri- tory to be occupied and such other privileges as may be necessary for the construction and operation of the canal in perpetuity. The compensation that the different states will ask for granting these privileges is now unknown." The final recommendation is stated thus: "After considering all of the facts developed by the in- vestigations made by the Commission and the actual sit- uation as it now stands, and having in view the terms offered by the New Panama Canal Company, this Commis- sion is of the unanimous opinion that 'the most practicable and feasible route' for an isthmian canal to be 'under the control, management and ownership of the United States^ is known as the Nicaragua route." This report was transmitted to Congress De- cember 4th, 1901. But there was to be a sequel to this report. The New Panama Canal Company realized that if the United States should build the Nicaragua Canal, the last chance of securing salvage from its wreck would be gone and its officers lost no time in opening up negotiations with the Commission, the result of which was that on January 18, 1902, the Commission addressed a further com- munication to the President of the United States, the first sentence of which reads: "Sir: The Isthmian Canal Commission has the honor to submit the following report upon the proposition of the New Panama Canal Company to sell and dispose of all of its rights, property and unfin- ished work to the United States for $40,000,000." This was the salient feature of the supplemental report and it sealed the fate of the Nicaragua canal. The President transmitted the report to the United States Senate. A description of the prominent features of the canal which this Commission proposed to build at Panama will be deferred until other historic events become a part of this narrative ; but before taking leave of the report of 1889-1901, its value to the historian should be pointed out. With its text and its appendices, it fills a volume of 681 printed pages and it treats of such a variety of correlated subjects that it may well be regarded as exhaustive in its discussion of interoceanic canals. The act of Congress under which the commis- sion, from whose report we have quoted so freely, was appointed was no doubt prompted by an event which aroused the American people to the need of an "American canal on American soil for THE PANAMA CANAL 33 American people." That event was the voyage of the United States man-of-war "Oregon," which sailed from San Francisco on the 19th of March, 1898, and dropped anchor at Key West May 24th. She had steamed 14,000 miles in sixty-eight days, was in fighting trim at the end of the voyage and was able to take a prominent part in the destruction of the Spanish fleet under Cervera on July 3rd, 1898. Had the Panama canal been completed when the "Oregon" made this voyage, her distance travelled would have been re- duced 8,415 miles and her time reduced thirty- eight days, but a splendid bit of naval history would not have been written. An Act of Congress, approved June 28th, 1902, empowered the President to purchase from the New Panama Canal Company all of its rights and properties enumerated in the report rendered by the Commission on January 18th of that year at a cost not in excess of $40,000,000, provided a satisfactory title could be obtained. The Presi- dent was further authorized to acquire from the Republic of Colombia, upon reasonable terms, a snip of land across the Isthmus not less than six miles wide; "the control of this right of way by the United States to be perpetual and the right to construct the canal within the boundaries of this strip from the Caribbean sea to the Pacific Ocean." The proposed canal to be "of sufficient capacity and depth as shall afford convenient passage for vessels of the largest tonnage and greatest draft now in use, and such as may rea- DETAIL OF CONSTRUCTION WORK. CONE OF LEAPING WATER. GATUN SPILLWAY. sonably be anticipated" with all necessary locks and other appliances as well as safe and com- modious harbors at the termini and suitable pro- vision for defense. The sum of $10,000,000 was appropriated and the President was directed to "cause contracts to be entered into for the con- struction of the canal, its harbors and defenses, limiting the additional expenditure to the sum of $135,000,000, to be met by future appropria- tions." The act also called for the creation of an Isthmian Canal Commission to be composed of seven members. A treaty was negotiated by Mr. John Hay, Sec- retary of State, with Mr. Herran, representing the government of Colombia, under the terms of which the United States would acquire the right to construct the canal. This treaty was ratified by the United States, but on August 12th, 1903, was rejected by the Colombian Congress. The Department or State of Panama had long been straining at the tether which held it to Colombia, as frequent attempted revolutions had shown. The year 1902 had been one of internecine strife; one incident of which was the sinking in the Bay of Panama by the insurgents of the Colombian gun boat "Lautaro." The government's chief mil- itary representative on the Isthmus, General Car- los Alban, went down with the ship. One mast of this vessel was still visible above the surface in 1909. The strife of 1900-1902 terminated on the 21st of November 1902, when a treaty of peace between the government and the "Lib- erals" was signed on board the United States bat- 34 THE PANAMA CANAL tie ship "Wisconsin" in the harbor of Panama. With such a history as a background, it is easy to understand the alacrity with which the citi- zens of Panama seized what seemed to be the psychologic moment to throw off the yoke of Colombia, as was done on November 3rd, 1903. The fullest account of the events preceding the secession of Panama to which I have had access, is found in the "Canal Zone Pilot" on pages 233- 35. The names of the men in the junta who en- gineered the movement are given and it is stated that in the last days of August they held a meet- ing in New York. It is also stated that one of the junta, Mr. J. Gabriel Duque was sent to Wash- ington and what purports to be an interview with Mr. Hay, Secretary of State, is given. Mr. Hay is reported to have said among other things, "Of course, you understand that if there is a revolu- tion, the United States will keep the Isthmus open and allow no fighting near the railway. If there is to be any, it will have to be done before our marines get there." Whatever the precedent facts may have been, when the revolution occurred, the United States Navy was represented at Colon by the S. S. "Nashville" — Commander John Hub- bard — which arrived November 3rd. One hundred and ninety-two men, said to be all he had, served to keep the peace and on November 6th the Colombia troops, five hundred strong, whose arrival on November 3rd on a chartered steamer and a Colombian gun boat is described in the "Canal Zone Pilot," evacuated the Isthmus. The officers in command of this repressive ex- pedition went to the City of Panama directly after landing at Colon. These officers, Generals Tovar and Amaya, were received with military honors, disguising the trap into which they had hastened, and that afternoon they were arrested and imprisoned, but they were released in time for their return to Colombia with their com- mands. The new Republic was recognized by the United States on November 6th, 1903, just three days after the revolution was started. Mr. Philippe Bunau-Varilla was designated by the new Republic as its envoy extraordinary and minister plenipotentiary to the United States, and a treaty known as the Hay-Bunau-Varilla treaty was negotiated, ratified by the Republic of Panama December 2nd, 1903, and by the United States on the 23rd of the following February. Under this treaty, the United States acquired in perpetuity possession of a zone of territory ex- tending across the Isthmus, ten miles in width, five miles on each side of the center fine of the canal. Like control and use was also granted for any other lands or waters outside of the zone which might become necessary or convenient for the work. For the property and rights so con- veyed, the payment by the United States was $10,000,000 and a further annual payment to begin nine years after the ratification of the treaty, of $250,000.00. On April 23rd, 1904, the stockholders of the New Panama Canal Company formally authorized the sale of the Company's property to the United States for the sum of $40,000,000. The transfer of this property was made May 4th, 1904, to Lieut. Mark Brooke, Corps of Engineers, U. S. A., detailed for that duty. The President appointed the Isthmian Canal Commission authorized by the act of June 28, 1902, and the Commission held its first meeting March 22, 1904. The members of this Commis- sion were: Rear Admiral John C. Walker, U. S. Navy (Retired), Chairman. Major General George W. Davis, U. S. Army (Retired). Mr. William Barclay Parsons, C. E. Mr. William H. Burr, C. E. Mr. Benjamin M. Harrod, C. E. Mr. Carl Ewald Grunsky, C. E. Col. Frank J. Hecker, On May 6th, Mr. John F. Wallace was ap- pointed Chief Engineer. He assumed his duties June 1st. On May 9th, the President, through the Sec- retary of War, placed the government of the Canal Zone in charge of the Commission with power to enact and enforce such laws as in its judgment were required to insure order and jus- tice. He appointed Major General George W. Davis, Governor. When the transfer of the New Panama Canal Company's properties was made that company had about seven hundred men at work. The Com- mission decided to continue the work then in progress and to increase the force gradually. The most vital question confronting the Commission was that of health. During the French occupa- tion, the mortality among employees had been appalling. Col. William C. Gorgas had been so successful in producing sanitary conditions in Havana dur- ing the American occupation that he was selected to carry on a like work in the Zone. Omitting the details of alignment, the lock canal planned by the Commission of 1899-1901 may be concisely described as follows: Total length from six fathom line in Limon Bay to deep water in Panama Bay, 49.09 miles. Subdivision of Description Miles ! Cost Channel 1 Colon entrance and 500 ft. wide side 2.39 $ 8, 057,707 harbor slope 1 on 3 From Harbor to Width 150 ft. 14.42 11,099,839- Bohio Locks Bohio Locks 2 lifts, double flight, 84' wide, 740' long, 35' deep over miter sill .35 11,567,275- Lake Bohio Elevation 85' above mean tide area 38.5 sq. mi. 13.61 2,952,154 Obispo gates Designed for use in case of need to drain Culebra cut. 295,431 Culebra section Bottom width 150' 44,414,460 side slopes 1 on 1 7.91 Pedro Miguel Locks 2 lifts, double flight 84' wide, 740' long, 35' deep over miter sills .35 9.0S1.321 Pedro Miguel Level Elevation of water 28' above mean tide 1.33 1,192,286 Miraflores Locks 1 lift, 84' wide, 740' long, 35' deep over .20 miter sill 5,781,401 Pacific Level For 4.12 mi. 150' wide, to LaBoca 200' 8.53 wide, 4. 41 mi 12,427,971 Bohio Dam Earth dam with core wall, top 100' above Gigante Spillway sea level Concrete dam 2,000' long, crest at ele- 6,369,640 vation 85' Artificial channel dis- 1,209,419 Pena Blanca outlet charging into Aqua Clara swamp 2,448,076 Chagres diversion Artificial channel 1,929,982 Gatun diversion Artificial channel 100,000 Panama Railroad di- version 1,267,500 49.09 $120,194,465 Engineering, police, sanitation and general contingencie s, 20% 24,038,893 Aggregate, $144,233,358 THE PANAMA CANAL 35 The Gigante Spillway scheduled above was to pass the surplus flood waters from Lake Bohio into the Pena Blanca swamp. From this swamp the surplus waters were to flow via the Pena Blanca outlet into the Aqua Clara swamp from which swamp they will flow on through other swamps and outlets to the sea. The project thus epitomized in description was ready for adoption by the newly appointed Isth- mian Canal Commission. This Commission seems to have been an inharmonious organization, judged by the resignations which were soon in order. Col. Hecker resigned November 16, 1904, and all the other members tendered their resig- nations to take effect at the pleasure of the President. A new Commission was appointed and entered upon its duties April 1st, 1905. The new members were: Mr. Theodore P. Shonts, Chairman; Mr. Charles E. Magoon, Governor of the Canal Zone; Mr. John F. Wallace, Chief En- gineer; Rear-Admiral M. T. Endicott, U. S. Navy, Chief of the Bureau of Yards and Docks; Brig. General Peter C. Hains, U. S. Army (Retired) ; Col. O. H. Ernst, Corps of Engineers, U. S. Army; and Mr. Benjamin Harrod. Mr. Wallace and Mr. Harrod were the only hold-overs from the first board. During the period between the appointment of the first board and the accession to power of their successors, a strong sentiment in favor of the sea-level type of canal had sprung up. This sen- timent was fostered by the Chief Engineer, Mr. John F. Wallace, who had convinced himself of the practicability of constructing a seal level canal. Mr. Wallace resigned June 13, 1905. Mr. John F. Stevens was chosen to succeed him on July 1st, 1905, and immediately entered upon a vigorous discharge of his new duties. Meantime, Colonel Gorgas had been most as- siduous in his efforts to safeguard the health of the inhabitants of the Canal Zone. His war against every unsanitary condition and his effort to exterminate the deadly stegomyia mosquito, as well as the less deadly but still dreadful anopheles branch of the mosquito family, soon produced re- sults. Waters troubled by mosquitos were oiled, swamps were drained, cisterns screened, until a plentiful supply of pure water, drawn from gov- ernment reservoirs, was distributed over the isth- mus through mains and laterals laid by gov- ernment engineers. The domestic sources of water supply and disease were then done away with. Houses were fumigated, reno- vated and thoroughly screened. Yellow fever | was stamped out and for many years the canal zone has been exempt from the scourge which was so merciless in the years of the French oc- cupation. The sea level idea appealed so strongly to the American people that a popular demand for it seemed imminent. While the President em- ! braced the hope that a sea level canal was prac- ticable, he decided that a change of plan should not be accepted until he had secured for himself , and the Congress of the United States the wisest advice along engineering lines that was procur- able. He decided to bring about the appointment of an international commission to make a study of the merits of both types of canal, and to that end he requested certain foreign powers to ap- point eminent engineers to serve with the Amer- icans whom he would select. King Edward ap- pointed Mr. William Henry Hunter, Mem. Inst. C. E., Chief Engineer Manchester Ship Canal; Emperor William of Germany appointed Mr. Eugen Tincauzer, Koniglich Preussischer Reg- ierungs- und Baurat, Mitglied der Regierung zu Konigsberg i. Pr., Germany; President Loubet of France appointed Adolphe Guerard, Inspecteur- General des Ponts et Chaussees, France; and E. Quellennec, Ingenieur en Chef des Ponts et Chaussees; Ingenieur Conseil de la Cie. du Canal de Suez, France; Queen Wilhelmina appointed J W. Welker, Hoofdingenieur-Directeur van den Ryks-Waterstaat, the Netherlands. The Amer- ican engineers appointed by the president to serve with these distinguished foreigners were: George W. Davis, Major General, U. S. Army, Re- tired, Chairman; Alfred Noble, Chief Engineer, East River Division P., N. Y. & L. I. R. R.; Mr. William Barclay Parsons, Chief Engineer, New York Subway; Mr. William H. Burr, Consulting Engineer, Board of Water Supply, New York City, Professor of Civil Engineering Columbia Uni- versity, Engineering Expert, Aqueduct Commis- sioners, New York City; Henry L. Abbot, Briga- dier General, U. S. Army, Retired; Mr. Frederic P. Stearns, Chief Engineer, Metropolitan Water and Sewage Board, Boston; Mr. Joseph Ripley, General Superintendent St. Marys Falls Canal; Mr. Isham Randolph, Chief Engineer Sanitary District of Chicago. John C. Oakes, Captain Corps of Engineers, General Staff, U. S. Army was ap- pointed Secretary of the Board of Consulting En- gineers for the Panama Canal. This Board convened in the City of Washing- ton on the first day of September, 1905. A let- ter from Chairman T. P. Shonts of the Isthmian Canal Commission advised us of the data placed at our disposal and of the arrangements made for our study and investigations. All of the maps, reports of investigations made on the Isthmus by both French and American engineers, and such collateral data as were deemed pertinent, had been assembled for our use. Our studies com- menced at once and were pursued with assiduity. On September 11, 1905, on invitation of President Roosevelt, the Board made the pilgrimage to "Sagamore Hill," the President's home and sum- mer capital at Oyster Bay. Our reception was cor- dial and we were first entertained by a substantial luncheon presided over by our host and enlivened by a flow of conversation and anecdote that was most agreeable. After luncheon we were as- sembled in a beautiful and spacious room (a re- cent addition to the home, added for reception purposes) and there addressed by the President. His opening sentence was: "What I am about to say must be considered in the light of sugges- tion merely, not as direction. I have named you because in my judgment you are especially fitted to serve as advisors in planning the greatest en- 36 THE PANAMA CANAL gineering work the world has yet seen; I expect you to advise me, not what you think I want to hear but what you think I ought to hear." This was followed by a strong plea for a sea-level canal. Many good reasons were advanced in support of that type of canal. (For this address, see page 12 of the report of the Board) . We re- turned to Washington and resumed our studies. On September 27th, we visited the Wauchussetts dam and other important works constructed by the Metropolitan Water and Sewage Board of Boston. On September 28th, we sailed from New York for Panama on board the S. S. "Havana," accom- panied by Mr. T. P. Shonts, General O. H. Ernst, Rear Admiral Endicott and Mr. B. M. Harrod of the Commission. The tenth meeting of the Board was held on board at ten A. M. September 30th. All were present except Mr. Noble, who remained in New York: his familiarity with the Isthmus, gained during his connection with his studies of the Isthmian Canal Commission, 1899-1901, made further examination by him unnecessary. We landed at Colon on the morning of Wednesday, October 4th, and for the next week devoted our time to a study of the physical features of the chosen route and to obtaining the ideas of those engineers on the work whose experience and ob- servation served to give value to their views upon the many questions on which we had to pass. We gave the Chief Engineer, Mr. John P. Stevens, a very exhaustive examination. At its close I asked if he had any suggestion, any plan of his own, that he would like to have embodied in our report. His reply was: "I suppose I am the only man in the United States who has not a plan for this canal. You gentlemen tell me what is to be done and I will do it." He is a man who does things and he did them in Panama. Those few days spent in close contact with the actual conditions to be met with in doing the work and in study of materials to be encountered in its execution served to convince some of us that the sea level canal project ought not to be adopted. On the third day out from New York on our way down, the Chairman laid before the Board a letter he had received from Mr. C. D. Ward, enclosing a copy of his paper on the "Gatun Dam" which was read before the American So- ciety of Civil Engineers, of which Mr. Ward was a member, on May 18th, 1904. The arguments in that paper appealed so strongly to Mr. P. P. Stearns of our Board that he became a strenuous advocate of its recommendations and, today, the Gatun Dam stands in evidence of the fact that some of man's most prodigious creations have been evolved from the "baseless fabric of a dream." No single feature of the project, as now constructed, was subjected to more persistent and hostile criticism than this earth dam which has now taken its place among the "everlasting hills." Our time in Panama was almost wholly con- sumed by the studies for which we had come and the only relaxation enjoyed was at a breakfast given to the Board by Governor Magoon and a formal call upon the President of the Republic, Dr. Amador. We were received at the Govern- ment building with distinguished consideration and our entrance was between files of soldiers in dress uniforms and officers clad in "all the pomp and circumstance of war," who saluted us and led the way to the reception room, where we met the President and his Cabinet. The Pres- ident was a man of quiet and dignified manners and the brief interview left a pleasant impres- sion. We sailed from Colon for New York on October 11th, on the ship on which we had come. With the crystalizing of our ideas and the strength- ening of our convictions came vigorous discus- sions of the merits of the two types of canal. The five foreign members were a unit for a sea level canal. With them stood General George W. Davis, Chairman, Mr. William H. Burr and Mr. William Barclay Parsons. Their contention and our counter arguments may be condensed into a brief statement, boiled down from very lengthy discussions indulged in by the advocates of each type of canal. For the sea level, the claim was made that the time of passage through the sea level channel would con- sume less time than passage through a lock canal. This, we admitted, would be true until the num- ber of vessels reached fifteen per day at which time — as we demonstrated to our own satisfac- tion — the time would be equal for each type. In a channel of the dimensions which was proposed, no two large vessels would be allowed to pass with both in motion ; one must tie up. This meant a loss of time equivalent to that lost in lockage. In the lock canal, moreover, for eighty-two per cent of the distance there would be deep, wide water in which the vessels could move at sea speed, while in the narrow sea level channel the speed must be reduced to six miles per hour or less. Illustrating this discussion, see the follow- ing table taken from the report: Type of ship Distance between passing places Type of Canal Time required for transit across the isthmus lOshius per day 15 ships per day 20 ships per day 25 ships per day 30 ships per day Type C, 540 ft. by 60 ft. by 32 ft Type E. 700 ft. by 75 ft. by 37 ft Miles ( 5.0 J. 2.5 f 5.0 ■< 2.5 Sea level . ...do.... Sea level. ...do... Lock Hours 8 9 8.6 9.5 11.6 11.1 10.5 Hours 9.6 9.0 9.6 12.8 11.6 10.7 Hours 10.5 9.7 9.7 14.3 12.6 10.8 Hours 11.5 10.3 9.8 16.2 13.6 10.9 Hours 12.9 11.1 10.0 18.9 14.7 ( 11.1 The capacity for traffic of the two types was discussed. We met the claim for greater capacity in the sea level by citing the fact that in the pre- vious year, the Saulte Ste. Marie lock canal had passed 36,617,699 tons in eight months as against 11,500,000 tons through the Suez canal in the twelve months of 1904. Then the question of the vulnerability of the two types was discussed. The sea level advocates claiming that in time of war the locks could easily be destroyed by hostile agents. We contended that forces could be con- centrated for the defense of the locks whereas in a jungle country, such as this canal would tra- verse, vessels would be at the mercy of guerrillas who could sink them easily. During this discus- THE PANAMA CANAL 37 ONE OF TI1F. EMERGENCY DAMS. NOTE MOVABLE PARTS UNDER THE BRIDGE STRUCTURE. sion, Mr. Quellennec received a telegram advis- ing him that the British harque "Chatham" was sunken in the Suez canal, blocking traffic. On November 7th, the following cablegram was re- ceived and translated for us by Mr. Quellennec: "Paris, November 4th, 1905. Board of Consulting Engineers, Panama Canal, Wash- ington: Interruption to traffic occasioned by Chatham exactly ten days. Number of vessels having waited twenty-four hours or over to enter, 53 at Port Said and 56 at Suez. Number of vessels that entered canal within twenty-four hours after traffic had been established, 51. Maximum number of vessels that entered canal during twenty-four hours under normal conditions since opening of canal, 36. (Signed) BONNET." So we had in this incident a demonstration, in time of peace, of what could much more easily happen in time of war. Of course, all of the changes were rung on the danger to ships and locks both, in that type of canals and our condensed answer is found on page 91 of the report: "This "canal (St. Mary's Falls) has been in operation a little more than fifty years and a traffic aggregating about 360,000,000 tons, net register, has passed through it with no accidents seriously obstructing navigation." The locks, as actually built, are equipped with safe-guarding devices more elaborate and more perfect than were conceived of at the time of these discussions. Of course, the elements of cost and time involved in construction figured largely in the discussion. The majority report gives its estimated cost as $247,021,200.00, and the time required to complete as twelve to thirteen years. The minority report placed the cost of the lock project at $139,705,200.00, and the time required to build as nine years. This latter estimate of time has been justified by actual performance but the estimate of cost has been totally eclipsed. Over the relations of the Chagres river to the problem, the differences of opinion between the proponents of the two types of canal were most radical. The minority could not accept the plans and estimates of the majority for the diversion and control of that river as being adequate. The Chagres river was, and ever would have been, an enemy, a perpetual menace, to the sea level canal; whereas it is the friend and ally of the lock canal, supplying the water which alone made the pres- ent construction possible. The issues between the advocates of the two SECOND LOCK LEVEL AT GATUN. CANAL AND OCEAN IN THE DISTANCE. 38 THE PANAMA CANAL types of canal having now been presented, a brief description of what was advocated is in order. Bottom width of channel Tabular Comparison Lock Canal with Sea Level Canal summit level at elevation 85 1,000 feet 19.08 800 " 3.86 600 " 12.29 350 " 0.00 300 " 7.21 200 " 4.70 150 " 0.00 Locks & approaches 2.58 Total 49.72 ~100.00 Excavation, cubic yards. .. .95,965,000 Estimated cost $139,705,200.00 Estimated time required to build 9 Length Miles Percent o f route 38.4 7.8 24.7 0.00 14.50 9.4 0.00 5.20 Length Miles 0.00 0.00 4.87 .77 3.05 19.47 20.39 0.59 Percent o f route 0.00 0.00 9.90 1.60 6.20 39.60 41.60 1.20 49.14 100.00 231,026,477 $247,021,200.00 years 12 to 13 years Owing to the fact that the range in tide in Limon Bay is about two feet between extreme high and low stages and that the extreme range in the bay of Panama is twenty-two feet, it was conceded that a tidal lock at the Pacific end of the canal would be a necessity and the majority provided for such a lock in their plans and es- timates, thereby admitting that an absolute sea level canal was not a possible creation on the route chosen. The minority departed from the project of the Isthmian Canal Commission of 1899-1901 in everything but the elevation of the summit level water-surface, which was established at elevation 85 ft. The Gamboa dam site was abandoned and the Gatun site adopted. The computed area of the Lake of Gamboa was thirty-eight square miles while the area of Gatun lake is 164 square miles. The locks at Gatun are in three flights, dividing the 85 feet of total lift into three lifts of 28.33 feet each. The lock dimensions recom- mended were: usable width 95 feet, usable length 900 feet, depth over miter sills, 40 feet. The first lock south of the Culebra Cut was located at Pedro Miguel with a descent of thirty-one feet — in a single lift — to Lake Sosa, the water surface of which was fixed at elevation 55 ft. above mid- tide. Lake Sosa was to have been created by build- ing dams across the Rio Grande at LaBoca, join- ing Sosa hill on the east to San Juan hill on the west side of the river. Then Sosa hill was to be joined to Ancon hill by a dam, and a third dam was to be extended from Ancon hill in the direction of Corozal to high ground on the east side of the Panama railroad. The site selected for the Paci- fic locks was the west side of Sosa hill, two lifts of thirty-one feet each. All locks were to be in duplicate. In regard to Lake Sosa and the Pacific terminal locks, the Minority report says: (see pages 78-79) "If for military or other reasons, the location of the teminal locks on the Pacific at the shore line of Sosa should be deemed inadvisable and the location at Mira- flores, three and six-tenth miles inland, be substituted, the cost of the canal would be increased about $8,000,000.00." Mention has already been made of Mr. C. D. Ward's communication to the Board recommend- ing the construction of a dam at Gatun. A re- print of Mr. Ward's paper, presented to the Amer- ican Society of Civil Engineers is given as Appen- dix I, page 279 of the report. In that paper he speaks of the Gatun dam site having been sug- gested by Ashbel Welch in 1880. Major Cassius E. Gillette, Corps of Engineers, U. S. A. also brought to the attention of the Board a paper of his which was printed in the Engineering News, July 27th, 1905, entitled "The Panama Canal, some serious objections to the sea level plan." The most elaborate plans and proposals brought before the Board, and urged with much insistance, were those presented respectively by Mr. Lindon W. Bates and Mr. Philippe Bunau-Varilla. The latter project was for the "Straits of Panama." The Board gave patient attention to the elabora- tion of their projects by these two gentlemen with the result that the records of its twenty-fifth meeting contains this entry: "Resolved, That after careful consideration, it is the sense of the Board that the adoption of the plan of either Mr. Bunau-Varilla or Mr. Bates is not expedient." The Board completed its labors and the ma- jority report favoring the sea level canal was signed by George W. Davis William Barclay Parsons William H. Burr William Henry Hunter Ad. Guerard Eugen Tincauzer J. W. Welcker B. Quellennec Of these signators, Messrs. Hunter, Tincauzer, Welcker and Quellennec were men who had had previous experience in canal construction and operation. The minority report recommending the lock canal was signed by Alfred Noble Henry L. Abbott Frederic P. Stearns Joseph Ripley Isham Randolph Noble had built the Poe locks at Sault Ste Marie and had an intimate knowledge of canal requirements. Ripley was Noble's assistant and later, as superintendent of the St. Mary's Canal, had the lock under his charge; Randolph had built the Chicago Sanitary & Ship Canal, at that date the largest (not the longest) artificial water- way man had ever built. The report of the majority is dated January 10th, 1906. The report of the minority is with- out date. The Board held its final meeting Janu- ary 31st, 1906, in the office of Mr. Parsons, 60 Wall Street, New York. Present: The chairman, Messrs. Noble, Burr, Parsons, Abbot, Stearns, Ripley and Randolph. The foreign members had returned to their homes. Both reports were de- livered to the Isthmian Canal Commission. That Commission in turn transmitted them to the Sec- retary of War under date of February 6th, 1906, accompanied by a communication which ends with this statement : "It is our opinion that the plan proposed by the minority of the Board of Consulting Engineers is a most satis- factory solution of the problem of an Isthmian Canal, and therefore, we recommend that the plan of the minority be adopted, subject, of course, to such changes as may be found desirable during construction and with the under- standing that the works in Limon Bay be deferred for the present. The entrance now in use at that place must for the present be used in any event, in order to secure har- bor room for the landing of supplies immediately needed. The question of whether or not it should be changed and what changes should be made can better be determined hereafter." (Signed) T. P. Shonts, Chairman. Charles E. Magoon, Peter C. Hains, Brig.-Gen. U. S. Army < Retired). O. H. Ernst, Col. Corps Eng. B. M. Harrod. THE PANAMA CANAL 39 A minority report favoring the sea level was submitted which ends with these words: "Believing that a sea level canal substantially accord- ing to the project of the Consulting Board would best serve the present and future commerce of the world and the military necessities of this nation, I have the honor to recommend its adoption." (Signed) Mordecal T. Endicott. Mr. John F. Stevens submitted a letter ending thus: "I therefore recommend the adoption of the plan for an 85-foot summit-level lock canal as set forth in the minority report of the Consulting Board of Engineers." The Secretary of War forwarded both reports and those of the Isthmian Canal Commission, and the letter of the Chief Engineer, to the President with a communication which concludes: "We may well concede that if we could have a sea level canal with a prism from 300 to 400 feet wide, with curves that must now exist reduced, it would be preferable to the plan of the minority, but the time and cost of con- structing such a canal are in effect prohibitory. "I ought not to close without inviting attention to the satisfactory character of the discussion of the two types of canal by the greatest canal engineers of the world, which insures to you an to Congress an opportunity to consider all of the arguments, pro and con, reaching a proper con- clusion." (Signed) William H. Taft, Secretary of War. Then comes the transmission by the President to the Congress of the reports accompanied by a message which ends with these words: "The law now upon our statute books seems to con- template a lock canal. In my judgment, a lock canal, as herein recommended, is advisable. If the Congress di- ] rects that a sea level canal be constructed, its direction I will, of course, be carried out. Otherwise, the canal will ' be built on substantially the plan for a lock canal out- lined in the accompanying papers, such changes being made, of course, as may be found actually necessary, in- cluding possibly the change recommended by the Secre- tary of War as to the site of the dam on the Pacific side." (Signed) Theodore Roosevelt. The White House, February 19th, 1906. Congress acted favorably upon the President's recommendation and the task undertaken by the minority of the Board of Consulting Engineers for the Panama Canal was accomplished. The majority of the Isthmian Canal Commission, the Secretary of War, the President of the United States, and Congress, were converted to the true faith of the lock canal and the tide of public opinion which had set so strongly toward the sea level project reached its flood and receded. The construction work, wisely and efficiently organized, was being pushed with all the vigor that a born leader of men could inspire. The sanitary measures enforced by Col. Gorgas had banished the scourge of yellow fever and the fear of it. The work was carried on by forces directly employed by the Government, but building the canal under contract was considered advisable and was urged by Mr. Stevens, the Chief En- gineer. The method under which bids were in- vited provided that the Government should sup- ply the equipment and the contractor to supply the labor and supervision thereof and to be com- pensated on a basis of percentage of cost. On January 13th, 1907, the following bids were re- ceived : George Peirce & Co 7.19 per cent William J. Oliver and Anson M. Bangs 6.75 per cent McArthur-Gillespie Co 12.50 percent North American Dredging Co 28.00 per cent On February 26, 1907, the Isthmian Canal Com- mission, under orders from the President, re- jected all bids. The President gave his reasons for this in considerable detail. In this letter, he says: "Less than two days ago I received a letter from Mr. Stevens in which he asks to be entirely relieved from work on the canal as soon as he could be replaced by a competent person and that person could become familiar with the work. I have accepted his resignation." What were the reasons prompting this resig- nation? .Two strong wills clashed and one of these strong wills had back of it the executive power which resides in the head of a great nation. The Fourth Isthmian Canal Commission was appointed March 7th, 1907 and entered upon the discharge of its duties the ensuing first of April. Its membership embraced Lieut. Col. George W. Goethals, Chairman and Chief Engineer; Major David DuB. Gaillard; Major William L. Sibert; Civil Engineer H. H. Rouseau, U. S. N.; Col. W. C. Gorgas; J. C. S. Blackburn and Jackson Smith. Joseph Bucklin Bishop was made Secretary of the Commission. On July 14th, 1908, Col. F. H. Hodges succeeded Mr. Jackson Smith. Col. Hodges' designation was Assistant Chief En- gineer. Avoiding details, it is sufficient to state that the work was segregated into three divi- sions : First, the Atlantic Division, extending from deep water in Limon Bay to and including the Gatun Locks and Dam, 7.7 miles, Major Wm. L. Sibert in charge; Second, the Central Division, Major D. DuB. Gaillard in charge; including the Culebra Cut, extending from Gatun to Pedro Migul, 31.7 miles; Third, the Pacific Division, in- cluding the Pedro Miguel and Miraflores locks and extending to deep water in the Pacific, 11 miles, in charge of Mr. S. B. Williamson, C. E. The efficiency of this organization is evidenced by the work accomplished; in 1907, the excava- tion was 15,765,290 cubic yards; in 1908, the volume taken out, 37,116,735 cubic yards and that was the maximum year's work. All previous records of accomplishment were broken and higher standards of efficiency established. In 1908, the plans for the canal underwent radical changes which enormously increased the vol- umes of material to be excavated and largely in- creased the volume of material involved in lock construction. On October 23rd, 1908, President Roosevelt addressed a memorandum to the Sec- retary of War authorizing him to have the bottom width of the Culebra cut increased from 200 feet to 300 feet. The report of the Chief Engineer for 1907, page five, says: "The locks are in pairs as now proposed with usable lengths of one thous- and feet and widths of one hundred feet." From page seven of the annual report for 1908, I quote: "The locks are in pairs and since the compilation of the last annual report the projected dimension have been in- creased so that the width in the clear will be 110 feet, the usable length remaining as heretofore, 1,000 feet. The question of increasing the width was raised by the General Board of the Navy in a memorandum to the Secretary of the Navy dated October 29th, 1907, setting forth that the width of the locks as now fixed, namely 100 feet, is in- sufficient for probable ships of future construction and that sound policy would dictate an increase to a clear width of 110 feet." While the Commission, after due consideration was of the opinion that the width already adopted for locks — 100 feet in the clear— was ample for 40 THE PANAMA CANAL all commercial vessels, and sufficient for any bat- tleship constructed, building or projected, it felt that the wishes of the Navy, as expressed by the General Board, should be followed, there being no insuperable obstacles, and it accordingly rec- ommended that the project be modified as de- sired. This modification was approved by the President, under date of January 15th, 1908. While the lock canal had back of it the ap- proval of the Chief Executive and the sanction of Congress, the agitation for a sea level canal was still kept up by some of the newspapers and by one of the leading technical papers. The pro- digious accomplishments in the way of excava- tion shown by the reports from the zone served the proponents of the sea level canal as an argu- ment in its behalf. This agitation became so serious that President Roosevelt decided to meet it fairly and, with that end in view, he arranged with the President-elect to visit the Isthmus and take with him an advisory Board of Engineers. Those whom he appointed were: James R. Freeman, James D. Schuyler, Frederic P. Stearns, Capt. Henry Allen, Allen Hazen, A. P. Davis and Isham Randolph. The armored cruiser "North Carolina" — Capt Marshall — and her consort, the "Montana" — Captain Reynolds — were detailed to take Mr. Taft and his Advisory Board to Panama. Mr. and Mrs. Taft and our Board took passage on the "North Caro- lina" and the "Montana" acted as escort. The start was made from Charleston, S. C. on the morning of January 25th, 1909. En route for Charleston, I stopped over in Washington for a few hours and paid my respects to the Presi- dent. He then said to me: "I do not think you will find anything on the Isthmus to change your mind about the type of canal, but if you do, I be- lieve you will have the moral courage to say so; and you may be assured that both Mr. Taft and myself have the moral courage to make any change that is justified by the facts." We arrived in the harbor of Colon, January 29th, and were met by Colonels Goethals, Gorgas and Hodges, and Majors Sibert and Gaillard and Secretary Bishop. We proceeded to Gatun and there effected a permanent organization by elect- ing Mr. Frederick P. Stearns chairman and Mr. Allen Hazen secretary. We were on the Isth- mus eleven days and made most critical and care- ful examination of every phase of the subject that was the cause of our being sent on this mis- sion. The result was that we were each and every one convinced that no mistake had been made when the lock type of canal was adopted. One incident occurring during out sojourn is of special interest; namely, the opportunity to get an idea of what the harbor of Colon needed in the way of breakwater protection. When the International Board of Engineers was on the Isthmus, Limon Bay was as smooth as a mirror, but on February 1st a Norther set in and on the next day Mr. Taft and his advisors saw a condi- tion which carried conviction that breakwaters ought to be provided to make the harbor safe. All of the vessels that were in port when the storm broke had to put to sea for safety. Another item of interest for entirely different reasons was "un baile" given in honor of Mr. Taft (Presidente electo de los Estados Unidos de Norte America) and Mrs. Taft, by "El Presidente de la Republica y la Senora Obaldia." This func- tion took place in the "Teatro Nacional" on the evening of February 5th. From my diary, I quote : "Presidente and Mrs. Obaldia stood with Mr. and Mrs. Taft and endured a siege of hand-shaking. After the hand-shaking, all of the high dignitaries went over to the stage area and, to slow music, danced a very stately meas- ure with which none of them seemed very familiar. Then dancing became general." The National Theatre is one of the items in which the $10,000,000.00 paid to Panama was in- vested. It is a very beautiful building and one well suited to such a function as the one of that evening. The feast was lavish and champagne was in flood like the Chagres. The return voyage commenced in the late after- noon of February 7th. The home port was New Orleans. At Port Eads our party was trans- ferred from the "North Carolina" to the scout steamer "Birmingham." We reached New Orleans on the afternoon of February 11th and, leaving Mr. and Mrs. Taft to enjoy the ovation tendered by the City of New Orleans, we hastened to Washington and on Tuesday, February 16th. we submitted our report to President Roosevelt. He read it over and promptly, in our presence, dic- tated a message of transmittal to Congress. The reports and message put a quietus on the hopes of sea level advocates. We now come to a comparison of the estimated cost of a lock canal submitted by the Minority of the "Board of Consulting Engineers" with the ac- tual cost thereof as shown by the report of the Isthmian Canal Commission for 1913, (see page 427 to 429.) Estimates of Minority of Board , . of Consult- Comparable Items. ing Engineers. Report of 1913. Construction account $134,965,200.00 $185,316,095.75 Panama R. R. reconstruction.. 4,440,000.00 8,656,061.20 Land damages 300,000.00 617,262.15 $139,705,200.00 $194,589,419.10 Excess cost over estimate of of comparable items 54,884.219.10 $194,589,419.10 Cost of items not covered in the Minority Report: Payment to New Panama Canal Co $ 40,000,000.00 Payment to Republic of Pan- ama 10.000,000.00 Civil administration 6,393,308.73 Department of Law 44,982.27 Department of Sanitation 16,250,164.93 Hotels & Buildings 10,233,182.16 Water & Sewers 6,878,583.68 Roads & Paving 2,726,932.32 Operation & Equipment of Pan- ama Railroad 5,581,388.79 Purchase, Improvement & Re- *■ pair of Steamers 2.680.112.01 .- i Docks & Wharves 490,548.16 -/ Moving and Care of French Equipment 2.S33.23 - ' Fortifications 3,114,357.52 Total items not reported on gfneirs ^ .° f "!""* *"" $104,396,393.80 Total amount expended $298,985,812.90 Total Bond issue authorized by Congress 375,200,900.00 Balance of issue available for work in Panama. 76,215.087.10 These are enormous figures and the expendi- tures have been so made as to leave no shadow of reproach upon the administrators of the fund. No peasant class in any land laments the loss of the hoarded earnings of their lives of toil, as did THE PANAMA CANAL 41 the peasantry of Prance after work was sus- pended in 1889. No pround names have been humiliated; and the strong hand of the law need not to be invoked to punish dishonesty on the part of any administrative officer. The figures show that the actual cost of the work accomplished to June 30th, 1913, exceeded the estimates presented by the minority of the Board of Consulting Engineers by $54,884,219.10. How is this discrepancy to be accounted for? Largely by the increased amount of excavation. The total yardage to June 30th, as shown by the reports, was 203,383,539 cubic yards. The total yardage estimated by the minority was 104,745,- 000 cubic yards, of this amount 95,955,000 was channel prism excavation. A part of this in- creased yardage was due to widening the Cule- bra Cut from 200 to 300 feet. This increase is stated to have been 13,000,000 cubic yards, which amount added to the 53,765,000 computed for the 200 foot width, gives a total of 66,765,000 cubic yards; but the excavation reported to June 30th, 1913, was 93,305,974, showing that the volume of slides to that date had been 26,540,975 cubic yards. The abandonment of the location of the locks and dams recommended by the minority for the Pacific end of the canal added nearly $8,000,- 000.00 to the cost, and the increased length and width and modern equipment of the locks added about $9,700,000.00. In his report of 1909, Colonel Goethals gives CLEARING THE SLIDE. A SLIDE IN THE CULEBRA CUT. quite an elaborate analysis of these differences and he ends that analysis with this statement: "This estimate shows that nearly 50% more work is necessary to complete the canal than was contemplated by the original estimate and that the unit prices, due to labor conditions, cost of materials, and gratuities given the em- ployes have been increased about twenty per cent." But the end is not yet. The final reckoning with Culebra will only come when the last avalanche of mud, and stone engulfed in it, has been dredged away and what is left of Gold Hill and Contractor's Hill has reached the angle of repose. The report of the Board of Consulting Engineers contains 126 pages; of these pages fourteen are devoted to the geology of the Canal Zone, prepared by Mr. Marcel Bertrand, Professor in the National High School of Mines, Paris, in collaboration with Mr. Philippe Zurcher, Chief Engineer of Bridges and Routes of Communications, of France. This in- teresting item is taken from page 163, referring particularly to the Culebra Cut. "The examination of these lands shows that they will stand extremely well, and this fact has been practically proved by the experience of the preparatory trench (cunette), the slopes of which have been exposed to the air for more than two years. Even the marl, which, when in separate pieces, disintegrates and splits easily, resists very well in a mass, and may require, at the most, some local supports to protect it from the action of the atmos- phere." The Isthmian Commission of 1899-1901 pro- posed to wall this cut and carry the railroad through it on a terrace formed by the wall on the east side. Events have shown that no wall that could have been built would have stood up against the slides. 42 THE PANAMA CANAL In his report for 1913, page 23, Col. Goethals says: "The predictions of the geologist in the last annual re- port with reference to the Cucaracha slide, that 'The end of activity of this slide is now well in sight, however, be- cause all loose surface stones and clay have almost slid off, exposing several large dikes and flows of basalt which would successfully maintain in place most of the remain- ing material' has not been realized." While there was much to condemn in the bus- iness conduct of the French projectors of the Panama Canal, their engineers are deserving of high praise. It is my conviction that, if these engineers had been given the money that was raised ostensibly to build, the canal, they would have accomplished that which they undertook, and the commerce of the world would have paid its tolls to the French Company and not to the American Government. These French engineers had to combat the physical problems that nature put up to them. They were handicapped by the rapacity of their own countrymen and they had to meet the "yellow death," against which the medical science of the day had found no defense. The triumphs of medical science made the canal possible and W. C. Gorgas was the great apostle of that science who carried its salvation to Panama. One thinks of the army of workers moving for- ward under the leadership of skilled and deter- mined men to the final accomplishment of a great work and mayhap forgets that it demanded abil- ity of a high order to keep this army properly «»ir«irwii»"K;!il33s r^nrmfFii n • mil 'I' IIII HUH I HI 1 1 iiiii .linn Hill i IIIII 'Ul i •' I 7f» >*f ell III Hill Sll 118 JJ'IH £11 III fill I 111 III llll'li IP* III l!!!J? Ill III HUH *l» III II '•• ••■ .in LOCK GATE IN COURSE OF CONSTRUCTION. victualled and clothed; conditions so essential to the efficiency of the workers. How admirable these conditions have been under the Quarter- master's department as directed by Lieutenant Colonel C. A. Devol, U. S. A., and by Major Eugene T. Wilson, U. S. A., of the subsistence department, is a part of the proud history of America in Panama. All American engineers glory, with the Amer- ican people, in the achievements in Panama of the men of the Corps of Engineers of the United States Army. In many fields, that Corps has built up and sustained a reputation for ability, honor, and integrity, which is a glory to the serv- ice; but we civilian engineers would not have our countrymen forget the part that our unbrevetted fellows bore in the building of the Panama Canal. Goethals, Hodges, Sibert, Gaillard will always be foremost in the thought when the building of the great canal is under discussion; but I do not believe that they forget, or for one moment underrate, the support they had from Williamson, Goldmark, Schildhauer, Zinn, Saville, Nichols, Cornish and others, who supplemented their ef- forts from start to finish. The work stands as a triumph of American accomplishment; builded into it are American imagination, American cre- ative genius, American brains, courage, persever- ance and a tithe of the vast resources of our peo- ple; a work not for ourselves alone but for all the peoples of all the climes "who go down to the sea in ships and do business in great waters." Ejfl i||h^| ~*f(r f. •m .,", v :.,.,',.. : .i '.'■> / mm ^ H **r ~ tit.'. - M DETAIL OF FINISHED LOCK GATE. THE PANAMA CANAL 43 THE USE AND BENEFITS OF THE PANAMA CANAL By Emory R. Johnson, Ph. D., Sc. D. Professor of Transportation and Commerce, Uni- versity of Pennsylvania; Member of Public Service Commission of Pennsylvania; Spe- cial Commissioner on Panama Canal Traffic and Tolls, 1911-13. The Panama Canal has been constructed to shorten the length and time of ocean voyages in order thereby to reduce the costs and rates of trans- portation, to increase the volume of possible ship- ments, and to enable industry to develop with the expansion of trade. The opening of the canal to the world's shipping makes this an opportune time to inquire what economies the waterway will effect, what use will be made of the new route via the Isthmus and how American commerce and indus- try will be developed. The people of the United States are interested, first of all, in the shortening of distances by ocean routes between the two seaboards of the country and in the reduction of freight rates between Atlantic and Pacific ports. Up to the opening of the canal, heavy traffic between the east and west coasts of the United States continued to move via the Straits of Magellan, although from 1907 until stopped by the revolution in Mexico, package freight and some bulky articles were shipped by way of the Isthmus of Tehuantepec. The large fleet which the Ameri- can-Hawaiian Steamship Company employed in the service via Tehuantepec and the vessels that were operated between the two seaboards of the United Slates through the Straits of Magellan (as well as numerous ships not previously in the intercoastal service) are now using the Panama route. The distance between New York and San Fran- cisco via the Straits of Magellan is 13,135 nautical miles aa compared with 5,262 miles by way of the Panama Canal, the saving being 7,873 sea miles. The time saved in making the run from New York to San Francisco via Panama instead of by way of the Straits of Magellan is 32.3 days for a 10-knot freight steamer, and 26.8 days for a vessel of 12 knots -peed. A passenger vessel of 16 knots average speed (which would, of course, not be operated via the Straits of Magellan) can make the voyage from New York to San Francisco in two weeks, or in fifteen days, if a day be spent at Panama to enable passengers to see the canal and the sights of the City of Panama. The western section of the United States is hardly less interested in a shorter route to Europe than in a reduction in the distance by water to the eastern part of the United States. West coast products are exported largely to Europe and the transportation costs by way of the Straits of Magellan have been heavy. The Western States, moreover, import large quantities of iron and steel, textiles and other man- ufactures and have much to gain by the more active competition which European manufacturers, ship- ping by way of the Panama Canal, will be able to maintain with producers in the eastern part of the United States for the trade of the Pacific seaboard and the section which gets its supplies in greater or less share from the west coast importers and jobbers. The distances via the Panama Canal to San Fran- cisco are 5,666 miles less from Liverpool, and 5,528 less from Hamburg than by way of the Straits of Magellan, the reduction in time of voyage for 10- and 12-knot freight steamers being respectively 23 and 19 days. The export trade of the west coast of South Amer- ica is large in volume and of growing importance to the United States and to Europe. For a number of years, 2,500,000 tons of "nitrate have been shipped annually from Chile, four-fifths of it being sent to Europe and one-fifth to the United States. There are large exports of Chilean grain and copper, and, after the opening of the canal, a heavy tonnage of high grade ore will be shipped from Chile to the United States and to Europe. At the present time, the west coast South American import and export trade accounts for some 4,000,000 tons of vessel en- trances and clearances at the ports of Europe and the eastern seaboard of the United States. Europe has gotten six-sevenths of the west coast South American trade and the United States only one-seventh under conditions that have prevailed in the past. It is ex- pected that the United States will, as the residt of the opening of the canal, be able gradually to in- crease this percentage of the trade of western South America. Practically all of the trade of the eastern part of the United States with that of western South Amer- ica will be handled by way of the Panama Canal. The distance from New York to the principal ni- trate port has been reduced 5,139 miles, and the time for 10-knot steamers has been shortened 21 days by the construction of the canal. Valparaiso has been brought 3,747 miles, and for 10-knot steamers 15 days, nearer New York by the opening of the canal. Europe naturally will be assisted less than the eastern part of the United States in trading with western South America, by the use of the Panama Canal; but Europe will be about 3,000 miles nearer the nitrate deposits and 1,500 miles nearer the grain fields of Chili in the future than she has been in the past. A 10-knot freight steamer will be able to make the run from Iquique to Liverpool and Hamburg in 11 days less time via the Panama Canal than by way of the Straits of Magellan. From Valparaiso to Liv- erpool the saving in time by the canal will be about 6 days. In building the Panama Canal the people of the United States were concerned, first of all, with the reduction in the cost of transportation between the Atlantic and Pacific seaboards of the country. For several years prior to the opening of the canal, most of the freight shipped by water between the two sea- boards of the United States was transferred across the Isthmuses of Tehuantepec and Panama, the larger share of the tonnage being shipped via Te- huantepec. The agreement which the American- Hawaiian Steamship Company made with the Mex- ican National Railway in 1907 provided that one- third of the through freight rate between the two sea- 44 THE PANAMA CANAL boards should be paid to the railroad company for transferring freight from the vessel on one ocean across the Isthmus and into the hold of the vessel on the other ocean. It is reported that the Mexican National Railway received on the average, $3.50 per ton of 2,000 lbs. for its service. The cost of trans- ferring freight from vessel to vessel across the Isth- mus of Panama probably has been about $3.00 per cargo ton. This cost of $3 to $3.50 per ton of 2,000 lbs. for transferring freight across the Isthmus is equivalent to $6 or $7 per ton when calculated upon the net tonnage of the vessels employed in the trade, for the reason that modern freight steamers ordi- narily carry two tons of cargo for each net vessel ton. The tolls fixed by President Taft in 1912 are $1.20 per net ton, or about one-fifth of the saving effected by the canal in the cost of transportation between the two seaboards of the United States. The carrier is interested in the reduction in the cost of transportation ; the shipper is concerned with the freight rates. That the canal will largely reduce the cost of transportation between the two seaboards of the United States and will reduce the cost of handling freight between the United States and the western coast of South America, Australia and the Orient north of Honkong, is certain. As regards the freight rates on traffic from the United States to foreign countries, it is probable that competition will give shippers most of the benefit of the reduction in the cost of transportation ; but in all ocean serv- ices, particularly in the line traffic between the two seaboards of the United States, the extent to which the shippers, instead of the carriers, gain from the reduction in the cost of transportation depends upon the ability of the carriers, by agreements, to main- tain rates above the level to which the charges would be forced by unrestricted competition. In this connection the fact is to be borne in mind that most- manufacturers and traders shipping goods between the two seaboards of the United States, via the canal, will be served by regular steamship lines ; only a comparatively small number of exceptionally large producers will dispatch goods in full vessel cargoes in ships which they own or charter. With the exception of lumber, east-bound, coal, west- bound, and occasional large shipments of heavy steel products, most of the traffic will be handled in units of less than vessel loads; and the service desired by shippers will be that afforded by the regular lines, of which there will, in all probability, be several be- tween New York and San Francisco, and one or more from each of the "out ports," such as Boston, Philadelphia and Baltimore. In so far as traffic is handled in chartered vessels or in ships belonging to the owners of the goods transported, shippers may be expected to get the entire saving in the cost of transportation resulting from the use of the canal ; but the rates of the regu- lar steamship lines will be fixed by agreements of the rival carriers; and the history of steamship confer- ences shows clearly that competing steamship lines will be able, by means of their conference agree- ments, effectively to regulate their competitive serv- ices and charges. The services of the several lines will be distributed among the various ports. The rates between any two termini may be expected to be the same by all lines for similar services; and, in general, the rates fixed in the conference agreements may be expected to be maintained at such a level below the general schedule of transcontinental rail- road charges as the managers of the steamship lines find by experience can be maintained, and yet se- cure the volume of traffic required to supply the ves- sels with the requisite traffic. Rates by water will not be all the traffic might bear, but will be what the shippers can and will pay for transportation by water instead of transportation by rail. Rates by water as well as by rail will be fixed with reference to what the traffic will bear. If this be true — and it unquestionably is sound transportation economics — -the people of the United States will be obliged, in order to secure the benefits of lower transportation charges to be obtained from the Panama Canal, to regulate the charges and serv- ices of the intercoastal carriers by applying to those carriers the general principles of regulation that have been successfully applied to rail carriers. The rules applicable to the regulation of carriers by water are not identical with the rules applicable to rail- roads, but the general principles to be followed are the same in both instances. The most concrete measure of the commercial use- fulness of the Panama Canal will be the volume or tonnage of shipping using the waterway each year. The probable traffic of the Panama Canal has been calculated with exceptional care. For six years, end- ing with 1898, the Panama Canal Company kept a record of vessel movements, from which the com- pany was able to calculate the tonnage of ships that would have used a Panama Canal had one been in existence. Again, in the years 1899 to 1901, the Isthmian Canal Commission made an elaborate sta- tistical investigation of the tonnage of available canal traffic. The tonnage figures arrived at by the French company and by the Isthmian Canal Commission showed that had an isthmian canal been in exist- ence in 1899 the tonnage using the waterway would have amounted to 5,000,000 net (vessel) tons. This investigation by the Isthmian Canal Commission was made under the direction of the author who, eleven years later as special commissioner on Pan- ama Canal traffic and tolls, made another equally careful statistical study of the tonnage of shipping that would have used the canal had one been in ex- istence in 1910. During the eleven years interven- ing between the two investigations, the available traf- fic had increased from 5,000,000 to 8,328,000 tons. Inasmuch as it is doubtless safe to assume that the rate of increase that had prevailed from 1898 to 1910 will probably continue, it seems fairly certain that the tonnage of the Panama Canal during 1915 will amount to about 10,500,000 net tons. With an in- crease of only 60 per cent during the first decade, which is 12 per cent less than the rate of increase in the traffic of the Suez Canal during the decade ending in 1912, the tonnage of shipping using the Panama Canal in 1925, at the end of the first ten years of its operation, will amount to 17,000,000 net tons. Those to whom this seems to be a large ton- nage may well compare it with the traffic of the Suez waterway, which, in 1912, was used by 5,373 ships having a net tonnage of 20,275,000. The traffic THE PANAMA CANAL 45 of the Suez Canal in 1925 will doubtless exceed 30,- 000,000 net tons of shipping. The tolls for the use of the Panama Canal — $1.20 per net ton with 40 per cent reduction for vessels in ballast — were decided upon after careful consid- eration had been given to the effect of the tolls upon the traffic and usefulness of the canal. It would have been undesirable to have imposed tolls high coast of North America and Europe, will be much greater than the tolls that have been established. The payment made by vessels for the use of the canal, and consequently the revenues received by the United States Government from the canal, are de- termined by two factors — the rate of tolls and the tonnage upon which the charges are levied; accord- ingly, the Panama tonnage rules are of as much TOWING RUNWAY BETWEEN THE LOCKS AT GATUN. enough to have diverted from the canal to the Straits of Magellan any considerable portion of the large tonnage moving between Chile and the United States and Europe. It would also have been a mis- take to have placed the tolls at a figure that would have lessened the use of the canal by the vessels operating between the eastern seaboard of the United States and Australia, and also the ship- importance to shipowners as is the rate of tolls. The Panama tonnage rules prescribed by the President were formulated after a thorough study had been made of the merits and delects of the several na- tional tonnage rules and of those in force at the Suez Canal. As prescribed, the Panama rules are more nearly like those of the Suez Canal Company than those by which the registered tonnage of Amer- UPPER SIDE OF GATUN SPILLWAY. CONE OP WATER IN 1)1 ST ANTIC. ping engaged in the trade between the eastern sea- board of the United States and the Oriental ports from Manila and Hongkong northward. The sav- ing effected by the canal for the traffic between the two aeaboards of the United States and between the eastern seaboard of the United State- and the west coast of South America, and between the western ican ships i- determined. It is unfortunate that the American. British, French, German, Suez and other tonnage rules are not uniform. As a matter of fact. tin v differ in important details, those of the British Government, under the influence of British shipown- ers, having provided for an especially low net ton- nage as compared with gross tonnage. 46 THE PANAMA CANAL The gross tonnage of a vessel, possibly it should be explained, is the measure of the entire closed-in capacity of the ship; the net tonnage is the entire closed-in capacity minus the spaces occupied by ma- chinery, fuel, and housings for the crew. A vessel ton, gross or net, has nothing to do with weight, but is 100 cubic feet of space. A vessel of 5,000 tons, net, is a vessel of 500,000 cubic feet of capacity avail- able for the storage of freight or for the accommoda- tion of passengers. The application of the Panama rules to the meas- urement of vessels will give vessels a somewhat smaller net tonnage than ships would have if meas- ured by the Suez rules. The Panama net tonnage will be slightly in excess of the registered tonnage of American vessels, and considerably larger than the net tonnage of most vessels under the British or German flags. The Panama rules were drafted with a view to establishing for the Panama Canal as scientific a set of rules as could be formulated. It is to be hoped that the Panama rules will remain un- changed, and that they may have the effect ulti- mately of bringing about a greater degree of uni- formity in the different tonnage rules now applied to the measurement of vessels. The economies due to the use of the Panama Canal, especially for the traffic between north Atlan- tic countries and the countries of western South America, will result not only from the shortening of distance and time of ocean voyages, but also from reducing the fuel expenses of vessels engaged in the traffic. There is no coal in eastern South America, and that on the west coast is of poor quality. Ves- sels trading between Europe and the west coast of South America by way of the Straits of Magellan have to take on large quantities of fuel for the long run around to the west coast of South America, thereby reducing the space available for cargo and thus the earning ability of vessels. Coal will be relatively inexpensive at the Panama Canal, where it can be sold by the Government, without loss, at $5 per ton. The coaling stations at the canal will be largely used by merchant vessels, and in the traffic with western South America the fuel expenses will thereby be much reduced. Indeed, the reduction in fuel expenses will cause the Panama route to be taken by vessels from Europe to Santiago, Chile. even though the tolls charged at Panama somewhat exceed the saving which vessels can make by taking the Panama route instead of the one via the Straits of Magellan. It is interesting to note that vessels trading between New York and Australia, or between New York and Manila, will find fuel expenses via Panama appre- ciably less than by way of the Suez Canal. Coal can profitably be sold by the United States Government at Cristobol for $1.25 less per ton than the price now charged at Port Said. The studies that have been made of fuel expenses via Panama indicate clearly that the lower fuel cost via the American isthmus will be of much assistance to the Panama route in competition with routes by way of the Straits of Ma- gellan and the Suez Canal. The studies that have been made of available canal traffic did not take into consideration the new traf- fic that will be able to move as the result of the open- ing of the canal. In the past, the rich beds of Chil- ean iron ore have remained unworked because the cost of transporting the ore to Europe and the Unit- ed States was prohibitive. The prospective opening of the canal caused the Bethlehem Steel Company to construct a fleet of large ore carriers which have already begun to bring the ore from Chile to the United States. Some of the Chilean ore will also be taken to Europe. All of this traffic will pass through the Panama Canal. Prior to the opening of the canal, only a small quantity of the lumber from Washington and British Columbia could be mar- keted in the eastern part of the United States; with the reduced cost of transportation via the Isthmus, it is expected that a large trade in west coast lumber will be carried on by merchants who distribute lum- ber from Philadelphia, New York and other At- lantic ports. To some extent, this west coast lumber will supplant the lumber from the Southern States, but in larger measure the west coast lumber will sup- plement that from the South. The Panama Canal will enable both the inter- coastal and the foreign trade of the United States to be carried on under more favorable conditions than have prevailed in the past. It is too early to measure in detail the commercial effects of the Pan- ama Canal ; it is certain, however, that the influence of the canal will ultimately be far reaching. The American people, however, must not expect the canal to revolutionize the foreign trade of the United States. The canal will give the people of this coun- try an opportunity to trade with western South America and with trans-Pacific countries under more favorable conditions as regards length of ocean routes and transportation costs, but economies in transportation will not alone determine whether the trade of Pacific countries will be mainly with Eur- ope or with the United States. Europe has the lead of the United States in the commerce of Pacific coun- tries. The exporters from Great Britain, Germany and other European countries are served by numer- ous steamship lines and by a vast tonnage of other available shipping. The financial and banking rela- ions of Pacific countries are mainly with Europe. The merchants of Great Britain, Germany, Belgium and France have long established trade relations with the countries of the Pacific. European merchants have branch houses or agents in South American, Aus- tralian and Asiatic ports. It will take time to trans- fer the bankng, merchandising and trading rela- tions of South American and trans-Pacific coun- tries from Europe to the United States. In order to secure the benefits obtainable from the opening of the Panama Canal, it will be necessary for the American bankers, manufacturers and traders to be alert; and it will also be necessary for the United States Government to formulate a broader commercial policy than has thus far pre- vailed. The Federal Government must seek by prac- tical measures to develop a larger American mer- chant marine in the foreign trade, to facilitate by liberal legislation the growth of international trade, and by favorable banking laws to strengthen the financial position of the United States among com- mercial nations. THE PANAMA CANAL 47 THE PANAMA CANAL AND THE RAILROADS. By John Maurice Clark Among the many questions raised by the open- ing of the Panama Canal, not the least interest- ing will be the effect of this great new waterway on the greater common carriers, the railways, to which it will appear in the two-fold guise of team- mate and competitor. It will develop some new traffic in which the railways will have a share; it will take some of their present traffic away from them, and some traffic will be shifted from its present course, and will run in new channels. All this will bring gains to some carriers, pos- sibly losses to others, while to most it will bring gain and loss commingled. We expect an increase in our export trade to the west coast of South America and the Orient. Exports, moreover, must be paid for with im- ports. Now the greater part of the exports and imports must be carried by rail, some distance at least, and the profits on this business will be one of the benefits which the Panama Canal will bring to the railroads. For much of this com- merce, New Orleans is the natural port, and, in proportion as New Orleans comes thus into its own, the railroads which serve that port must share in its prosperity. Not only in foreign trade does New Orleans expect great growth, but in trade to the Pacific Coast of the United States itself, diverting traffic from the overland routes. Thus the Illinois Central and the Louisville and Nashville may become competitors of the Union Pacific or even of the Great Northern. The strictly north and south lines are not, however, the only ones to share in this traffic. The Rock Island controls a route from Chicago to Galves- ton, and the 'Frisco system also includes a Gulf connection. Thus these western transcontinental roads, which are exposed to the most direct losses from the competition of the canal route, have at least some small chance to participate in gains as well. So much for the commerce of the Gulf ports. What of the transcontinental traffic and car- riers? These roads are clearly liable to very definite losses from the opening of a great new waterway which must inevitably strengthen the competition for business from coast to coast — a waterway through which their own ships may not pass. Aside from the general, normal growth of busi- ness, there will undoubtedly be some business which the canal itself will create. Indeed, there will be a sort of rough, natural compensation at work by which, the more traffic is taken from the roads, the more of other sorts of traffic will come in to them. The steamers cannot make serious inroads into the railways' business without a very considerable lowering of rates; a slight reduction will not do it. And if rates are lowered a great deal, the result will be more than a mere diversion of the existing traffic; it will mean a stimulus to industry and commerce which cannot fail to fur- nish some work for the well nigh universal com- mon carrier, the railroad. But the growth of new business is problemat- ical and takes time, and in the meanwhile the canal route will be taking away from the rail- roads some of the business they already have, just at the time when the revival of the long- and-short haul clause seems threatening to de- prive them of their customary freedom in meeting the inroads of competition. At present the boat lines carry something over one-tenth of the trans- continental freight tonnage. However, the so- called "transcontinental" traffic includes ship- ments from as far west as the Mississippi River, and goods destined to inland points throughout the Pacific slope. In fact, only about one ton in five of the westbound transcontinental traffic comes from farther east than Buffalo and Pittsburg. The Middle West has become dominant over the Atlantic seaboard in the commerce of the Paci- fic slope. Now, obviously, it is the traffic from seaport to seaport that is most exposed to water competi- tion, and half of this traffic the boat lines have already taken from the railroads. In one sense, it would seem as if the railroads had already suffered the greatest damage to which they stand exposed. And yet, even so, there has been no absolute shrinkage of traffic by rail. The increase in the water-borne tonnage has come out of the normal growth of the total vol- ume of business. The question, to which the fu- ture holds the answer, is: will the added advant- age from the use of the canal be enough to take from the railroads the balance of the coast-to- coast freight, and make serious inroads on the business moving from the interior cities? Compared to the present rail-and-water routes across the isthmus at Panama and at Tehuante- pec, the canal route will, of course, be faster and substantially cheaper. The steamship lines will save an amount which may be roughly estimated not to exceed 13c per 100 lbs. of freight, or something like one-tenth of an average transcon- tinental freight rate by rail. This is on the supposition that the boats travel with full cargoes, but the indications are that they will probably find it quite difficult to secure an east bound tonnage equal to the westbound. It is only the heavy eastward movement of Ha- waiian sugar that keeps the tonnage fairly well balanced at the present time. If the freight passing through the canal has to pay expenses on a balance of empty cargo space, the economy of the Panama route will not be quite as great as it appears on paper. It must be further taken into account that the freight rate is not the only consideration in com- petition between a railroad and a line of steam- boats. The rates are now from 20 per cent to 60 per cent lower by water, and still the railroads keep nearly half of the coast-to-coast tonnage. Obviously, a great deal of the business is gov- erned by other considerations than the mere freight rate. It hardly seems probable that an- other 10 per cent subtracted would be enough to overcome all these "other considerations" at | one blow, and take all the remaining traffic away 48 THE PANAMA CANAL from the railroads, even if the roads did not meet the cut in rates. One of the reasons why the railroads can charge more and still keep a large share of traf- fic is the fact that the train-isthmian route de- mands so much handling en route. If a short rail haul is needed at each end, the goods must be loaded and unloaded at least ten times, into and out of three freight cars and two steamers, and all of this means a greater risk of injury to the goods calling for more expensive packing to protect them. With the Canal in use, this disad- vantage would be cut approximately in half, though it would still remain a substantial handi- cap. In the matter of speed the new route will about equal the ordinary slow-freight service of the railways. There are some things which the steamers can not wholly divert by any reduction in rates. Cal- ifornia fruit, and all goods using the special fast freight service of the railroads, would prob- ably continue to move largely as it does now, no matter what inducements the steam- ship lines might offer. The fruit growers' co-operative associations have enormously in- creased the value of their crops by follow- ing up the shipments on their way east- ward, and diverting them by telegraphic orders to the most favorable market. This advantage they will probably not abandon, even if the other obstacles to the carriage of fruit by steamer through the tropics should be successfully over- come. There is doubtless other traffic which will still prefer the overland route, for one special reason or another. On the whole, then, with re- gard to the strictly coast-to-coast traffic, the sit- uation would seem to be this: that the railroads will not lose all of it in any case; but that they carry less than half of it at present, and would probably come out of a defensive rate war with a still smaller percentage. Will they lower their rates? If this strictly through traffic were a thing by itself, they would probably make a determined effort to retain it. But it is not a thing by itself. The whole eastern part of the country is given the same rates on transcontinental business, so that the railroads could not lower the New York rates without a similar loss of revenue on the vastly greater vol- ume of shipments originating, or terminating, at inland points as far west as the Mississippi River. This would be a heavy price to pay to keep a small part of the traffic, already carried at far less than the normal margin of earnings. In- deed, this very fact may help to explain why the railroads have avoided rate wars in the imme- diate past, and have followed a "live and let live" policy toward the steamship lines connecting with the Tehuantepec and the Panama railways. The loss would have been greater than the prize was worth. Unless the steamers begin tak- ing on so much traffic from far inland, as to make serious inroads on this, the main part of the railroads' transcontinental business, we need not expect to see a war of rates inaugurated. For all of this traffic, especially for traffic which does not reach the seacoast at either end of its journey, the railroads will continue to have ad- vantages that should be almost decisive. They will avoid two transfers, with all the delay and chance of injury involved. They can carry the goods more quickly and more safely than can the steamers with rail connections at the terminals. And when the traffic goes by sea, either the ship- per or the steamship company must pay the rail- roads for their part of the roundabout haul, thus increasing the expense of the ocean route. At present, some shipments move by water from as far west as Buffalo and Pittsburg, and from points a hundred to a hundred-and-fifty miles in- land on the Pacific slope. The saving from the use of the canal may be equivalent, at a liberal esti- mate, to an extra haul of three hundred miles at the eastern end of the journey, or less than half as much in the Pacific coast states, where rates are higher. How formidable this widening of the steamers' sphere of influence will prove, is a mat- ter that can only be conjectured. The railraods may be consoled, especially the eastern lines, by the fact that even such traffic as they may lose is not wholly lost. They will merely have exchanged a long haul at a low margin of profit for shorter hauls at more satisfactory returns, mile for mile. If the general growth of traffic is as great as is expected, the result may be no loss at all, but rather an improvement in the character of the traffic and an increase in ton-mile revenues. If the railroads are forced to fight for the mid- dle-western traffic, they may find themselves somewhat hampered because the present or- ders of the Interstate Commerce Commission place certain limits on the practice of charging lower rates to Pacific seaports than to intermed- iate points. This fact should prove to be an in- teresting incidental problem, but not, necessarily, a terrifying one, even though the Supreme Court has upheld the rulings of the Commission. The idea of these rulings is to grant exemption from the long-and-short haul clause and allow the railroads to discriminate in favor of their term- inal cities, just so far as they are compelled by genuine water competition, but no farther. Now that the force of competition by sea is to be con- siderably increased, it is entirely possible that the details of the Commission's plan may need to be reconsidered and extensive changes made. In particular, it seems unnatural that Galveston should be classed with Omaha as a place enjoy- ing no water competition, and that New Orleans should be treated as enjoying no more effective water competition than Madison, Wisconsin. Rates from Galveston may not be higher to in- termediate points than to the coast, and rates from New Orleans may be only 7 per cent higher, while from Boston, New York, Philadelphia and Baltimore, the intermediate rates may be 25 per cent higher, the through rates being forced down by water competition. At present, no regular steamship lines run frrm the Gulf ports to the isthmus, but with the opening of the canal we may expect to see genuine and active water com- petition at these points. Accordingly, we may expect that the Interstate Commerce Commis- sion, following the principle of its first ruling, THE PANAMA CANAL 49 will grant more liberal dispensations from the long-and-short haul clause, especially to the rail- roads serving the Gulf Ports, provided that these carriers show that they need the revenue which higher rates to intermediate points would furnish. So far, we have been viewing the more im- mediate effects of the canal, and we have seen that there will be both gains and losses. Will things bear a different aspect in the long run? Will the railroads ever reach that happy state in which they will not care how much through freight is carried by the steamers? There is good reason for believing that the time will come when railroading will not be a business of "in- creasing returns" to anything like the same ex- tent that it has been in the past, if at all, and when extra tonnage, carried extra long distances at extra low rates, will not be regarded as a val- uable prize, but as a very doubtful asset. For some roads, indeed, that time seems to have arrived already. To the Pennsylvania Rail- road, for example, the regular growth of traffic means the outlay of enormous sums for increased plant to handle the added tonnage, over $64,- 000,000 having been spent thus in the last year alone. In recent years this Company has built what is virtually a separate double-track rail- road to handle freight alone and relieve the main line of congestion. The expenses, for various reasons, (not all connected with increased traf- fic) are growing actually faster than the income. Under such conditions, it is far from true that added traffic always pays, so long as it brings in TOWING ENGINE CLIMBING RUNWAY. LOOKING THROUGH GATUN LOCKS. anything above operating expenses. A road in this condition need not mourn if a competitor kindly relieves it of some of its least profitable business. The condition of the lines east of Pittsburg can, in itself, hardly have much bearing on the question at issue, for these lines are comparative- ly indifferent to canal competition in any case. But we are looking into the future, to a time when lines farther west will be approaching a similar condition. At present, it is the western roads, rather than their eastern connections, which are chiefly responsible for the disregard of distance that characterizes our transcontinental freight rates. When the plant was partly idle, more tonnage was a boon at almost any price. But as traffic becomes more dense, the motive to discriminate becomes weaker and weaker. Thus the western lines made low rates to fill their eastbound empty cars with lumber, with the final result that the policy was too successful. The cars were more than filled, and further shipments of lumber were chargeable with the cost of added rolling stock, and the haul of empty cars westward, as well. This is an extreme case, but typical. The western roads have, of late, been spending many millions in enlarging the capacity of road- bed and rolling stock, while the moving of freight through Chicago, St. Louis, and other western cities is a great and growing problem, calling for huge capital expenditures. No traffic is self- 50 THE PANAMA CANAL supporting which does not contribute its full share toward the interest on these outlays. When congestion turns railroading into a business of diminishing returns, the traffic that was once eagerly sought for at extra low rates, may be- come an actual burden, to be borne grudgingly, and only out of consideration for the many in- terests that are always dependent on an estab- lished adjustment of charges. Across the arid and mountainous stretches of the West the tonnage will hardly grow to this extent, and the officials in charge of these divi- sions may never cease to cast covetous eyes at the water-borne traffic. But as the rest of the country grows up to its transportation facilities, we may expect that the carriers in general will soon cease to lament the business the canal has taken away, while they will continue to enjoy the more attractive business which the many-sided THE REMOTE EFFECTS OF THE PANAMA CANAL. By John Bates Clark, ph.d., l.l.d. Professor of Political Economy, Columbia Univer- sity; Director of the Division of Economics and History, Carnegie Endowment for International Peace. What, after all, is the Panama Canal? Is it merely a ditch, forty-nine miles long, and are the two ends of it respectively at Panama and Colon? In a truer sense it is a connecting link between two vast systems of canals comprising the water routes which radiate from the two terminal harbors to every part of the earth. If we consider that every "steam- ship lane" is in effect such a line of water communi- cation as a canal furnishes, though better than any artificial canal can be, we may say that the ex- cavation across the narrow isthmus of Panama has at one stroke united some hundreds of channels lying eastward from America with an equal num- ber lying on the western side. A myriad of long routes for travelling by water meet and intersect in the small canal zone. It is a truism that commerce binds nations together and that the international bond is closer the more dependent on each other the nations come to be. The commerce between a country having much land and few people and one that has little land and many people is essential to both of them. Eng- land thus clothes other countries and is fed by them. The commercial bond is close between any two regions that in an economic way are as unlike as are temperate regions and tropical ones. All trade is essentially barter. It pays New England to send cotton goods, paper, machinery, etc., to the West Indies in exchange for bananas and pineapples rather than to try to cultivate these fruits; and it pays the West Indian to ac- quire the manufactured goods thus indirectly rather than to attempt directly to make them. Densely peopled regions and sparsely peopled ones make similar gains by exchanging products. A land of shops and factories thrives by commerce with a land of flocks, herds and grain fields. Usually countries of dense population are advanced in a technical way. They abound in mills and shops growth of the country will bring with it. Let us suppose that the canal has taken its place in our commercial system and our grow- ing population and industry have adjusted them- selves to it. The railroads will then, as now, be facing the problem of providing billions of capital to meet the transportation demands of our ever-growing country. What would they say then to a proposal to close the Panama waterway to all coastwise traffic, and throw upon them the responsibility of raising funds to provide facilities for a sudden increase of relatively low grade business? One can hardly imagine them active- ly advocating the passage of such a measure. On the contrary, if, in the year 1950, an earth- quake should destroy the canal, it is quite pos- sible that among those who would view the ca- tastrophe with the most sincere grief would be the heads of the great railroad systems of the country. and they use improved methods and machinery. China, however, is densely peopled and its industrial methods are still primitive. The sea that separates her from America is narrower than was once the English Channel, and it might seem that here were found the countries of the greatest commercial affinity between Avhich incentives to trade would be at a maximum. It is not so. The mere density of the population of China, by providing an unlimited supply of cheap labor, somewhat neutralizes the effect of Ameri- can machinery, and unlike as in many ways the two countries are, there is more of similarity than of contrast in their products. In both of them the in- ternal commerce greatly overbalances the foreign. Both of them are highly civilized and have developed the refinements of life to an extent that calls for a wide range of commodities. In America the goods are made for us by the deft fingers of tireless ma- chines, while in eastern Asia they are, for the most part, made by trained hands. The amount of labor required for a given product is enormously greater in Asia; but the difference in cost between making the goods in Asia and making them in America is far less than it would otherwise be. It is the familiar rivalry of machine and cheap labor, and while the machine wins, yet so long as it is used by an Ameri- can worker, it does not win by such a margin that it can immediately drive the Asiatic worker out of his trade. If used by an Asiatic worker, it can and will do this. It is foreordained that Asia shall go the way of western lands that have put machines in the place of trained hands, and when that happens the entire world must take note of it, and the canal will have a new work to do. In estimating the effect of the canal on the rela- tion of the United States to South America we do not have to assume that the industry of the latter continent is about to undergo such a sweeping trans- formation as is to be expected in Asia. The im- portance to America of lanes of commerce that in- tersect at Panama lies partly in bringing our east- ern states into connection with the western part of South America. From the Pacific states of South America we can draw ores, fertilizers, and, in gen- eral, raw products, in exchange for some other raw THE PANAMA CANAL 51 products and a variety of manufactured ones. By aid of the canal we can greatly increase the volume of such traffic, but the new connection is not likely to transform the industry of the southern continent. With Eastern Asia the case is different. From the first there will be some exchanging of raw products and much exchanging of highly wrought ones. We shall bring thence tea, rice and raw silk, and from the neighboring islands at the south we shall bring hemp and sugar and tobacco ; but we shall also bring from China and Japan art products and many highly wrought specialties. AVe shall send to them refined oil and agricultural produce, together with tools, machines, and a varied assortment of' finished goods. Our importations from Asia will thus com- bine agricultural products with industrial ones; our exports to Asia will do the same, and the traffic at fir- cordance with the engineer's figures — often dic- tated by the promoter, it must be admitted — construction is begun, settlers appear, make im- provements and wait for the water that does not come because available funds are exhausted long before completion. Since the settlers re- ceive no water or an intermittent, insufficient supply, they can pay neither interest nor prin- cipal. Both bondholders and settlers lose hope and the half-finished project is abandoned. Such underestimating of cost is not at all in- frequent. On the Twin Falls South Side project, the largest and most successful Carey Act enter- prise in Idaho, the actual cost exceeded the esti- mate by almost one hundred per cent, and ab- sorbed the entire profit expected from the sale of the water-rights. But the successful colonization of the 200,000-acre tract, together with the activ- ity on nearby projects began under different auspices, raised the value of the townsite to such an extent that the promoters' profits attracted the attention and envy of other promoters and inaugurated the long succession of more or less speculative Carey Act projects whose collapse is largely responsible for the present odium at- tached to irrigation bonds. On nearly all of these projects not only the cost but the quantity of the available water was underestimated. On some of these enterprises the engineers made no measurements, had no records of the run-off. They surveyed the stream's drainage area, esti- mated the average precipitation over the water- shed and from these data computed the run-off which, in turn, determined the area included in the project and the cost per acre. One project upon completion had water for only 36,000 acres, though water-right contracts had been sold to cover 65,000 acres. Upon investigation it was found that the engineer had included in the watershed a large area which drained into an entirely different stream, whose run-off did not reach the project's ditches at all. The bond- holders and settlers paid heavily for this over- sight. A combination of insufficient capital and insufficient water ruined the Carey Act proj- ect which is now being completed jointly by the State of Oregon and the Reclamation Service. Another project in Idaho which had to be taken over and refinanced by the bondholders cost them a million dollars because the pro- moters had included in the total area of 60,000 acres a tract of 20,000 acres consisting of rough, broken lava scab land unsuitable for agri- culture. Since the contract with the state called for $50 per water-right the elimination of these 20,000 acres cost the bondholders a million. IRRIGATION 65 Shoestring promotion played its part in the de- moralization of the irrigation-bond market. The Twin Falls Land & Water Company had its pro- ject eighty per cent completed and paid for out of its funds before it issued bonds, and these bonds, owing to the success of the enterprise, were retired in short order. Several succeeding projects tried to make up for the promoters' lack of capital by financing the enterprise wholly through bonds and through the sale of water- right contracts to settlers almost before construc- tion had begun, with disastrous results, of course. The only large shoestring promotion which suc- ceeded of late in creating a prosperous irrigated district was the California Development Com- pany, and this concern, despite the settlers' suc- cess, is in the hands of the receiver. But the pro- ject it initiated, the Imperial Valley, has added more than 300,000 acres to California's irrigated area in twelve years. Underestimation of cost, overestimation of the available water, engineering mistakes, faulty and sometimes fraudulent financing, poor manage- ment, inflated land prices, higher cost of water- rights and wrong colonization methods are re- sponsible for the present status of irrigation, for the bad odor of its securities and for the decline in the demand for irrigated land. Results from cultivation not at all up to the level of the rosy predictions likewise helped to cut down the num- ber of settlers. The worst has been said. It needed saying. Recognition of past mistakes and a sincere ef- fort to avoid them in the future constitute the only basis upon which to renew building activ- ities. Without this recognition of past errors in methods no correction is possible, and without this correction the task of reassuring investors, of restoring confidence in irrigation securities is practically impossible. That at least some of the lessons contained in past mistakes have been learned is shown by the adoption of model irrigation codes in half a dozen Western states during the last ten years. Insecurity and instability of water titles con- stituted one of the most discouraging features of the situation. So long as no efficient public supervision over water filings, diversions, and dis- tribution was exercised, water titles were in a chaotic condition, sound development was ham- pered and restricted and litigation was encour- aged. During the last ten years Oregon, Washing- ton, Utah, Nebraska, South Dakota have followed the lead of Wyoming and Colorado and adopted comprehensive irrigation codes providing for strict supervision of all water filings, for an effi- cient system of recording priorities and for an in- telligent method of determining the extent and measure of every water-right on all streams. The California legislature likewise adopted a com- prehensive irrigation code at its last session which aimed to place the state's entire water re- sources under the supervision of a special com- mission, but the opposition succeeded in side- tracking the law by means of the referendum peti- tion. The act will be submitted to the voters in November and, if approved, will become opera- tive immediately. Its passage will gradually di- minish the astonishing volume of water litiga- tion that has cost the Californian irrigators mil- lions of dollars, and it will set free for use and development vast amounts of flood water now controlled by riparian owners, as the act makes the common-law doctrine of riparian rights in- operative in the state. The gradual change in the attitude of the pro- moters toward irrigation projects is as important and as far-reaching in its effects as the adoption of comprehensive irrigation codes. In the early period of extensive ditch building, between 1880 and 1890 when English and Scotch capital was freely invested in new enterprises, the irrigation companies endeavored to make a profit both out of the sale of water-rights and of the water it- self ; to retain possession of the ditch system after the water-rights covering its full capacity had been disposed of. The majority of these water companies were disappointed in their expectations of profit from operation. The power to make rates for the delivery of water to the owners of water-rights was vested in local bodies, usually in the boards of county commissioners or super- visors elected by popular votes. The water users had the votes, the water companies did not. As a result rates were fixed at so low a point that the companies, as a rule, were glad to turn the ditch systems over to the farmers. One instance is on record in which the county commissioners fixed a rate of 20 cents per acre for water de- livery despite the vehement protest of the water company. When the farmers took over this sys- tem they found that the actual cost of main- tenance and operation the first year exceeded $1.15 per acre. On the other hand, when the settlers under the Twin Palls South Side project assumed the management of the canal system they cut the water rate the first year from 90 cents to 15 cents per acre. The following year they had to spend $300,000 to put their neglected ditches in order. During the last fifteen years irrigation enter- prises have ceased to expect profit from opera- tion. The sale of the water-right, of the land, or of both, is the only source of profit in the modern undertaking. Hitherto, periods of five to ten years were considered ample for the repayment of cap- ital investment plus profit, but the experience of the last six years has shown the fallacy of this assumption. A twenty-year period instead of five years is now accepted as the minimum. This change will shortly make itself felt in a stimula- tion of the demand for irrigated land, and there are indications showing that this increase in the time of payment will not remain the only conces- sion to the settler. Financial assistance to the colonist, either in the form of improved land or in loans for improvements and the purchase of stock, is gaining favor, but it is always accom- panied by a careful selection of the beneficiaries from the mass of the applicants. A marked tendency toward stricter, more ef- ficient public supervision over private and quasi- public irrigation enterprises is even more import- ant in the ultimate restoration of confidence in 66 IRRIGATION IRRIGATING ORANGES, LOS ANGELES COUNTY, CAL. irrigation securities. A large share of respon- sibility for the failure of numerous Carey Act projects must be placed upon the shoulders of state officials who failed to protect the interests of both investors and settlers ; who lent the name of the state to the enterprises and then allowed the promoters to do as they pleased. Adequate preliminary investigation of the engineering fea- tures; determined, vigilant supervision over both construction and finances; insistence upon ade- quate bonds; refusal to allow the sale of water contracts before water is ready, would have fore- stalled ninety per cent of the failures. Though the collapse of numerous projects has jarred the state officials into action and though a recurrence of the old laissez-faire conditions on a large scale is impossible, the change has come too late. In fu- ture large irrigation enterprises, the state, no mat- ter how efficient its supervision, will have to lend more than its name ; it will have to lend its credit as well and guarantee the bonds of the project to finance the enterprise, for the memory of the investor is longer than is usually supposed. The California legislature in 1887 passed the Wright Act authorizing the formation of irri- gation districts which were given the power to issue bonds for the construction, improvement or enlargement of irrigation systems. Forty-one districts were organized under this law. All of them issued and sold bonds; most of them de- faulted in the payment of both interest and prin- cipal. Inexperience, mismanagement, politics, at- tacks upon the legality of the bonds by the large landholders opposed to the formation of the dis- trict, all brought about the financial fiasco. That was twenty-five years ago. Since then the Wright Act has been strengthened, its weak places have been reinforced, two large dis- tricts have demonstrated the successful work- ing-out of the new law, but nevertheless the mem- ory of the initial failure still lingers and irriga- tion-district bonds are a drug on the market. Though the state has placed the district bond on a legal parity with municipal bonds, still these securities are unsalable except at a heavy dis- count. It is an anomalous situation. In the Turlock- Modesto irrigation district, for instance, the pros- perity, yea the very life of the two thriving towns is based on the success of the water system, on the prosperity of the district. Without the water supplied to the dense rural population by the dis- trict7 the towns would revert to the condition of insignificant hamlets. The municipal and school bonds of these communities have always sold at par or better; the basic securities, the bonds of the district, supported by the power to levy taxes both on city and country property, have gone beg- ging far below par. Despite this deep-seated prejudice the irriga- tion-district plan of financing and carrying out irrigation projects will probably supplant private initiative in the larger enterprises of the future. There are two reasons in favor of the district plan. In the first place it will be impossible for years to come to market bonds issued by private IRRIGATION 67 irrigation enterprises of large size, no matter how strict public supervision over these enterprises may become. Through proper legislation pro- viding for stringent preliminary investigation by competent, non-political commissions of technical and legal experts, unsound district projects can be practically eliminated, and the various West- ern states can well afford to lend their credit to feasible, sound enterprises under the district plan, either by guaranteeing the interest on the dis- trict bonds or by making the issues incontestable before they are placed. This method presupposes rigid state supervision over all district projects from their inception to their completion. The chief irrigation development of the future, however, is predicated upon an extension of Fed- eral activities. It has been shown that the aver- age cost per acre rose from $9 for enterprises initiated prior to 1900 to $37 for the projects com- pleted in the subsequent decade. The bulk of the irrigable land as yet unreclaimed must depend for its water supply upon the West's large rivers ; upon the Colorado, the Green, the Grand and their important tributaries; upon the Sacra- mento and the Columbia. The magnitude of the task involved in storing the flood waters of these rivers, of diverting the storage and placing it upon the high-lying irrigable lands makes the under- taking impossible either for private or state en- terprise. To place water from the deep gorge of the Columbia river upon the two million fertile acres of the Horse Heaven plateau in central Washington, for instance, would require the con- struction of a main canal five hundred miles long. On the Colorado river water must be stored in Colorado and Wyoming for use in Arizona and California. Comprehensive development of the Sacramento river watershed is possible only through state and federal co-operation. It will be some time, though, before the scope of the U. S. Reclamation Service can be enlarged, be- fore a method of co-operation between states, districts and the national government can be worked out. In the meantime the most pressing problem before the irrigated West consists of the coloni- zation and cultivation of the 6,000,000 acres for which water is now ready. Almost $200,000,000 are tied up in these idle parts of the various en- terprises. By extending payments over a mini- mum of twenty instead of five years, by reliev- ing the settler of all charges except for mainte- nance and operation the first four years, by judi- cious loans for improvements or for the purchase of stock, the rate of settlement can be increased materially. The first part of this colonization program promises to be adopted almost generally on new enterprises throughout the West, and the example of the Canadian Pacific Railway is open- ing the eyes of irrigation managers to the need and effectiveness of a first-aid-to-the-new-settler plan. The prospect of a speedy settlement of the fallow, unproductive area under existing ditches is better than it has been for the past two years on account of deflated prices of raw land and a decided drop in speculation and specula- tive values. Compared with the rest of the West, California has always occupied a place apart in its economic development. Two features distinguish the growth and development of Californian irrigation from the development of the industry in other parts of the West. One of the great obstacles in financing irrigation enterprises outside of Cali- fornia has been due to arid conditions and to the public ownership of the land. Arid land with- out water has no value as security, nor can it be given as security for a loan until title has passed from the United States to the entryman, and reclamation by irrigation is a condition pre- ceding the granting of patent. In California, however, by far the largest part of the irrigable area is only semi-arid, will produce grain and forage crops without irrigation and therefore has earning power and value prior to irrigation. Again, the bulk of this land has been in private hands, producing revenue for fifty years. And where the land was both arid and in public ownership, as in the Imperial Valley, construction was so in- expensive that the notes and cash payment of the entrymen, averaging $10 per acre, sufficed to build the canal system. Furthermore, California's climate made possible the cultivation of a tre- mendous range of high-priced products almost from one end of the state to the other, a distance of 800 miles. As a result of these favor- able circumstances, and in the face of the chaotic conditions of water titles, California has been able to finance its irrigation projects without going far beyond its borders. The thousands of mutual water companies, for instance, always find a ready market for their securities within the state. Eastern bond buyers, judging the value of a bond by the net earnings of the concern issuing it, rarely touch these securities because the mutual water companies, being co-operative in their organization, show no earnings, their revenues being raised by assessments upon their shares. Experience has shown, however, that the moral security behind these bonds is excellent; namely, the earning power of fully developed ranches and orchards whose owners know that the mortgaged water is the basis of their prosperity. Still, California has by no means been exempt from loss through speculative promotion of ir- rigation enterprises. It is only necessary to men- tion the Solano project, partially financed with funds taken from the treasury of the United Rail- roads of San Francisco, to illustrate conditions. But whatever loss has been occasioned through irrigation failures in California has fallen largely upon the promoters, their associates, and cred- | itors and upon the purchasers of land; the East- ern market has been in no wise affected. Nor has the Eastern investor been called upon to finance the large area that has been reclaimed by wells during the last ten years. In 1910 13,906 pumping plants and 5,070 flowing wells irrigated a total of 622,025 acres. Since then well irriga- tion, born and perfected in the southern third of California, has made remarkable strides. Where a lift of 30 feet was considered the practicable limit ten or twelve years ago, improvement in the i efficiency of pumps and internal combustion en- 68 IRRIGATION gines, reduction in the cost of liquid fuel, substi- tution of distillate and tops for gasoline, the ad- vent of cheap hydro-electric power in the irriga- tion field have doubled the economic range of the lift even for field crops. Flowing artesian wells were discovered in numerous districts of Nevada, California, Arizona, New Mexico and Washington. Throughout the great interior valleys of Cali- fornia pumping plants began to water areas which, under gravity systems depending upon stored flood water, would have to wait years for their full development. Judging from the performance in the past five years the most profitable employment of capital In irrigation enterprises within the immediate future will be in the outright purchase of water- bearing land, in the installation of well-irriga- tion systems watering small units which, seeded to alfalfa, will be colonized more speedily than large irrigated tracts without improvements. How large this potential field is may be judged from the fact that in India 16,000,000 acres are irri- gated from wells. From the foregoing it appears that the period of private, largely speculative irrigation enter- prises in the West is almost over. The bulk of the new work must in the future be undertaken either by the state and the federal governments or by irrigation districts with federal or state aid and supervision. Not only does the condition of the bond market make such a change necessary in order to give the cautious investor and invest- ment banker a guarantee against default, but the very nature of the work points to the neces- sity of public rather than private enterprise. Most of the remaining large projects will at least be as costly per acre as the works so far put up by the Reclamation Service. Had the Reclama- tion Service work been financed through private channels, the bonds based on the settlers' prom- ise to repay the construction charges in ten years would have been in default long ago. Even admitting that private work can be done at small- er cost than public work, the acre-charge of the greatest remaining projects must of necessity be so high and the unproductive period so long that private capital will hesitate in entering the field except under public guarantees, irrespective of the present position of irrigation securities. And the trend of all the agencies working for the de- velopment of the Pacific Slope's irrigation re- sources is directed toward the harmonizing of federal, state and district activities. It must not be understood that private capital and enterprise without public guarantees wiU cease to participate entirely in future work. Far from it. In California the irrigated area was lifted to 3,250,000 acres without public aid or supervision of any kind and several million addi- tional irrigated acres will be added solely through private undertakings. When it is considered, however, that the total area which will ultimate- ly be irrigated in the state is close to ten million acres it will be seen that the commonwealth must inevitably play a most important role in the work before the task is finished. COTTON IN THE IMPERIAL VALLEY. CAL.. RECLAIMED BY IRRIGATION FROM DESERT WASTE. WATER POWER 69 WATER POWERS OF THE PACIFIC COAST. By W. E. Herring, of Stone & Webster. The Pacific Coast presents many unusual fea- tures in connection with water power develop- ments. The Cascade mountains, starting at the British Columbia line and extending southerly through Washington and Oregon, giving place to the Sierra Nevada mountains extending southerly through California, parallel the Pacific Coast line at a distance of 100 to 125 miles. Streams rising in these ranges of mountains and flowing west- ward are fed by numerous glaciers and snow fields, and fall from average elevations of from six to ten thousand feet to the flat plateau coun- try, the average elevation of which is about 500 feet. This fall takes place within comparatively few miles and an enormous head can be obtained on any of the streams. In the Pacific Northwest there is an average annual precipitation of ap- proximately 100 inches along the Cascade Range, while in California the precipitation is very much less. Owing to topographical and physical condi- tions, the Pacific Coast section naturally divides itself into several entirely distinct territories or zones. At the north end is the Puget Sound country, extending from Olympia on the south to the Canadian line on the north, a distance of ap- proximately one hundred and seventy-five miles, all bordering on Puget Sound, and including the cities of Seattle, Tacoma, Everett, Bellingham and Olympia. To the south, and inland one hun- dred and twenty miles from the ocean, border- ing the Willamette River, a few miles above the confluence with the Columbia, is Portland and the immensely rich land adjacent to it on the south, which supports several good sized cities. Farther south, still west of the mountains but yet not bordering on the ocean, is the famous Rogue River Valley, and to the south of this in California is the Sacramento Valley extending down to Sac- ramento. Beyond is the immense territory ad- jacent to San Francisco, and the San Joaquin Val- ley to the south. Cut off entirely from this sec- tion is the region in and around Los Angeles. Economic reasons require that each of these 3e< lions be treated as a separate entity, and be supplied with its various public utilities, inde- pendent of the other communities. At first these various sections were entirely separated from one another, but as time elapsed, connecting rail- ways were found to be a necessity, and today they are well served in this respect. The distance be- tween the different localities, however, prohib- ited their being served as a whole by any one public utility, and hence the present situation. The Puget Sound country is served by the Puget Sound Traction, Light & Power Company, whose total installation is 107,907 horsepower, of which 73,667 horsepower is produced by water power plants and 34,240 horsepower by steam plants. The total capitalization is approximately $71,000,000. The Portland Railway, Light & Power Company supplies the territory from Port- land to Salem, Oregon. Its total installation is 81,907 horsepower and its total capitalization is approximately $60,000,000. The California Ore- gon Power Company operates in the Rogue River Valley in Oregon, and in the northern part of Cali- fornia, with a total installation of approximately 20,000 horsepower. The Pacific Gas & Electric Company supplies all of central California, its total installation being 233,900 horsepower, of which 123,700 horsepower is generated by hydro- electric plants. The Southern California Edison Company supplies Los Angeles and vicinity and has a total installation of 119,800 horsepower, of which only 42,500 horsepower is generated by water. In California there are also a number of companies which supply power in large quan- tities to distributing companies. Among these are the Great Western and the Northern Cali- fornia Power Companies with plant capacities of approximately 90,000 and 50,000 horsepower; and the Pacific Power & Light Corporation with 156,- 000 horsepower of which 80,000 horsepower is hydro-electric. In addition to these companies there are others which supply both light and power to the smaller communities. Across the western barricade of mountains from the immense territory just described, and reaching back inland to the East are numerous fertile areas, some well populated, others more sparsely settled, which are supplied by various operating companies. The territory in and around Spokane, Washington, is served by the Washing- ton Water Power Company, whose total capacity is 108,250 horsepower, of which 89,250 horse- power is water power. The basin of the Colum- bia River, and the country extending east to the limits of the State of Washington, is supplied by the Pacific Power & Light Company, with a total installed capacity of 22,100 horsepower. Central Oregon is so thinly populated that no large operating company has attempted to supply it. In California, Truckee, and also the neighbor- ing section of the western part of the State of Nevada, is covered by The Truckee River Gen- eral Electric Company. Further south, the Southern Sierra Power Company supplies, from its various plants on Bishop Creek, the adjoining territory in California, and its transmission lines extend to various mining communities and into the Imperial Valley district. The Company has one of the longest transmission fines in the world. The growth of the Pacific Coast States is so well known that not more than passing men- tion need be made of it. In the ten years from 1900 to 1910, the remarkably increasing demand for electric power could not be met by the oper- ating companies. The earlier types of construc- tion for the water power plants are not the recog- nized standard of construction at the present day, but at that time they fulfilled the purpose admir- ably, with exceptions that are now well known. Lack of storage facilities was one of the com- mon causes of inability to supply the constantly increasing demand for electric power. This was overcome, in some measure, by the construction of steam auxiliary plants, to tide over the peak period. The later hydro-electric developments 70 WATER POWER which have been made, have ample storage facil- ities which will obviate, to a great extent, the necessity of these steam relays; particularly is this true where more than one water power plant feeds into a transmission line. With only one such plant, the steam relay is needed to guar- antee continuity of service; but, with several water plants, it is not so essential. In some cases, the expensive steam auxiliary plants provided in the early stages of development are now prac- tically a dead investment so far as present rev- enue producing capacity is concerned ; as a meas- ure, however, of guaranteed continuity of serv- ice they are worth the money invested. The northern portion of the Pacific Coast differs very materially from the southern portion in this re- spect. On many of the streams in the southern portion the run-off is not sufficiently large to pro- vide storage of any size, while on others prior ap- propriation of water for irrigation or for mining purposes prevents storage of any magnitude. In the northern part, however, these conditions do not exist. The run-off in the streams, owing to the fact that the precipitation is very heavy, is much greater. As stated above, up to 1910 the operating com- panies had much difficulty in obtaining capacity needed for the demand upon their plants. Since that time conditions have changed to a certain extent; the markets have become more nearly saturated with power, and there has not been the demand that existed prior to that time. Forecast curves made as late as 1909 and 1910 by various operating companies showed an average annual increment that seemed to prove that much great- er capacities would be needed in the next few years. It is not possible for a public utility com- pany to wait until the demand exists for power before constructing its plant, but it is necessary for it to look ahead a few years, estimate, as closely as possible, the power that will be re- quired, and anticipate the demand. Following this procedure, the various companies provided addi- tional capacities and made arrangements for new plants to take care of the load which they ex- pected to have in the succeeding years. The forecast curves did not follow their upward trend, but flattened out, and practically all of the com- panies on the Coast now find that they have a surplus of power. This condition is not so marked with the companies in California, for the reason that new uses have been found for power which cannot be found in the Pacific Northwest. Pump- ing water for irrigation, dredging, and similar purposes in California has served to consume a large amount of power, which at the time the plants were constructed was not counted upon. So far as the Pacific Northwest is concerned, the three large operating companies find them- selves with an excess in their present operating plants of from thirteen thousand to twenty-five or thirty thousand horsepower. If the capacities of their steam plants are included, their sur- plus power ranges from thirty-five to forty thou- sand horsepower, up to as much as fifty and sixty thousand horsepower. As a result of this condition the largest oper- ating company in the Northwest has attempted by means of a very aggressive compaign, to in- terest manufacturers in other parts of the coun- try in locations in the Pacific Northwest. The result has been rather gratifying. An en- deavor of this kind is entirely new to the power companies, and the results will be noted with interest. In line with all the other public utility corporations operating in this country, the Pa- cific Coast companies are endeavoring at all times to build up the communities which they serve, realizing that upon these communities depends the success or failure of their particular enter- prises. The amount of new capital needed for electrical development in California, Washington and Oregon in the next ten years is estimated at anywhere from $150,000,000 to $250,000,000, de- pending largely upon the number of new indus- tries that can be brought to this section. In practically all of the Coast cities the value of the manufactured products is less than in a majority of cities of smaller size in the eastern part of the country. With a rapidly increasing population, with the opening of the Panama Canal, and with the opening of Alaska, it is be- lieved that this condition will be changed. Local conditions will have to be taken into considera- tion before any prediction can be made as to the extent to which the Coast will become a manufac- turing centre. The four vital elements for in- dustrial pre-eminence are: a market for the prod- uct manufactured, transportation, labor, and raw materials, and, to a lesser extent, the cost of power. The location of the industry naturally depends to a great extent upon the article manu- factured. It is believed that the predominance of raw materials in the Pacific Northwest, the extremely cheap power which can be had there, the splendid transportation facilities offered both by rail and water to all points along the Pacific Coast, as well as to eastern points, will have much to do in influencing large concerns to lo- cate west of the Cascade Mountains. Statistics show that today one-fourth of the entire generating capacity of the United States is used by one-seventeenth of the country's pop- ulation in the West, and that this same popu- lation is contributing one-seventh of the aggre- gate income of the electric lighting industry. On an average, every person in the West uses five hundred and twenty-seven kilowatt hours an- nually, and pays $7.50 for light and power, as compared with the ninety-nine kilowatt hours consumption, and the $3.00 contribution east of the Rockies. California ranks second to New York State in the amount of water power development, there being a total of 432,300 horsepower in water wheels installed; (it also ranks third in total ca- pacity of dynamos, having 817,000 horsepower installed). Washington, with an installation of 269,640 horsepower in water wheels, ranks third, while Oregon, with a total water wheel develop- ment of 105,300 horsepower, also ranks high among the states as a producer of electric power. RIVERS AND HARBORS RIVERS AND HARBORS OF THE PACIFIC COAST OF THE UNITED STATES. Brig. Gen. W. H. Bixby, U. S. A., Retired. Formerly Chief of Engineers. The present extent and the possible future de- velopment of the rivers and harbors of the Pa- cific Coast of the United States can not be fully appreciated without comparison of those of the Eastern United States and of foreign countries. The useful water area of the State of Wash- ington is closely that of the States of Vir- ginia and Maryland. The American half of the Juan de Fuca Strait (whose length is about 80 miles, average width about 14 miles, average depth several hundred feet, with few out- lying dangers) taken in connection with its south- waul prolongation, Admiralty Inlet and Puget Sound (together about 82 miles long, 7 to 1 miles wide— average about 2 miles— great depths as a rule up to within half a mile of the shore or to within reach of modern wharf construction) and the adjoining waters of Washington Sound, on the northeast, and Hood Canal, on the south- west, constitute a single waterway, almost equal in area to Chesapeake Bay, and far surpass- ing it in deep water anchorage and deep water frontage. Such being the case, with their large area of fast-developing back country and their direct connection to four trans-conti- nental railway lines, Tacoma and Seattle, and even Everett and Bellingham, have possibilities greater than those of Baltimore and Norfolk of today. The Columbia River valley is over a thousand miles in length; and its basin, or drainage area, involving about two-thirds of the States of Washington, Oregon, and Idaho, is larger than the valley of the Danube west of the Iron Gates, or than the Ohio River valley. The Sacramento and San Joaquin valleys, form- ing a single continuous valley tributary to San Francisco Bay, form an area greater than the valley of the Rhine or the Rhone, and practically equal to that of the Elbe or the Vistula. In past years, especially prior to 1900, the water borne commerce, and the river and harbor de- velopments, of the Pacific Coast (except at San Francisco) have been comparatively slight, due rather to sparseness of population than to lack of harbors or harbor depths. At present, the Pacific Coast is increasing rapidly in population, and with this increase has come the natural de- mand for better water transportation facilities, and the ability to provide them. The experience of the Atlantic Coast and Europe indicates that the success of a harbor or water terminal depends greatly upon its acces- sibility to and from all its transportation lines, both water and land, at inexpensive rates for transfers between them, and that this condition can rarely be secured except through public con- trol of some sort. It is already known (see House Doc. 492, 60th U. S. Congress, 1st Session) that once loaded into 21ft. draft boats on the Great Lakes, or into 9-ft. draft boats on rivers like the Ohio, heavy bulk cargoes can be transported by water at a cost of less than $.005 per ton mile, a rate which is much lower than rates by rail; but this saving may easily be wiped out by the high transfer rates of poorly arranged, or monopolized, terminals. Within the past few years, the legislatures of California, Oregon, and Washington have passed acts allowing munic- ipalities and other public bodies to own, or to control, the harbor areas, piers, wharves, docks and adjacent properties, and to issue bonds to secure the funds necessary for proper develop- ment of harbors. Realizing further that the chief benefits from such developments are usually local, and that direct federal help must be limited in amount, and be merely supplemental to local expenditures, the larger municipalities (and some smaller ones) of the Pacific Coast are con- tributing liberally to harbor development work, and the counties and states are lending aid in the same, or other equally material, ways. San Diego, which has complete ownership of several miles of harbor front and several hundred acres of tide lands adjacent thereto, is already spending, under the guidance of expert harbor en- gineers, $1,000,000 in commencing the construc- tion of modern terminals for 35 feet draft vessels. The actual depth over the ocean bar is already 30 feet at low water and 35 feet at high water, with an additional 5 feet being dredged by the federal government. The municipal wharves are to be provided with modern loading and unload- ing devices, and the dockage, wharfage and han- dling charges at all wharves receiving mixed or general cargoes are regulated by the Board of Harbor Commissioners. 72 RIVERS AND HARBORS Los Angeles, in like manner, although without complete ownership, is spending $10,000,000 (over half of which has already been voted) upon accommodations for vessels of 35 feet draft. Its existing draft is 30 feet at low water (an in- crease to 35 has been recommended by federal officials) up to 16,000 linear feet of wharf front- age, over 2,600 of which belongs to the city, and a less draft up to about 14,000 more wharfage. The municipal ownership is about one-sixth of the present total wharf frontage, and the charges at all wharves are controlled, as at San Diego. At San Francisco harbor, the State owns about ten miles of water frontage, of which it has im- proved about 4.75 miles with about 10 miles of wharves — exclusive of bulkheads. Moreover, along the entire improved water front of the city of San Francisco, the State controls a public street between the water and the private prop- erty with riparian rights. By popular vote of 1904 and 1910 the State is now spending $12,000,- 000 upon port improvements, all of which, to- gether with operation of existing State wharves and of the State Belt Railroad, are under the direction and control of the State Harbor Com- mission of San Francisco; all being based upon the existing 48 feet depth at low tide on the best ocean bar, and 4 feet tidal range. Portland, Ore., within the past two years has voted $2,500,000 for municipal wharves, and Portland and Astoria have together voted $500,- 000 for channel dredging in the Columbia River, this being in addition to liberal former contribu- tions for similar dredging by the Port of Port- land; all being based upon an actual 26.5 feet depth at low water on the ocean bar and in the river. The federal project, two-thirds completed, is for 40 feet on the ocean bar, at a total cost of about $18,000,000. Seattle and King county in 1912-13 voted $6,300,000 for port improvements to accommo- date vessels of 30 feet draft at low water, a much greater draft being possible at compara- tively slight expense whenever demanded by Pacific vessels. Tacoma, Yaquima, Tillamook, Nehalem, and other lesser municipalities along the seacoast are following these examples, so far as local circum- stances will allow. The Pacific Coast is already reasonably sup- plied with dry docks, stone and floating, and marine railways, for vessel repairs. At San Diego, there is a marine railway of 50 feet length, 50 feet beam, 11.5 feet draft, and 1,000 tons ca- pacity. At Long Beach, adjoining San Pedro, a floating dock of 284 feet length, 76 feet beam, 21 feet draft over keel blocks, and 3,000 tons ca- pacity. At San Francisco, besides the accommo- dations at the U. S. Naval Station at Mare's Island, there are 4 marine railways of 4,000, or less, tons capacity; 3 floating docks of 2,500, or less, tons capacity; and 2 stone docks, the largest (Union Iron Works) having 730 feet bottom length, 74 feet bottom breadth, and 30 feet draft over sills. At Portland, Ore., 5 marine railways and 2 floating docks, the largest (municipal) hav- ing 468 feet length, 82 feet inside breadth, 25 feet draft over keel blocks and 10,000 tons capacity. At Aberdeen, Grays Harbor, a marine railway of 1,500 tons capacity. At Seattle, 3 marine railways of 3,000, or less, tons capacity, and 4 floating docks, the largest (Seattle Construction & Dry Dock Co.) having 468 feet length, 110 feet inside width, 31 feet depth over keel blocks, and 12.000 tons capacity. At Bremerton, the Puget Sound U. S. Naval Establishment, there are 2 stone docks, available to the public when not in use by the federal government, of which the largest has 573 feet length on blocks, 93 feet entrance width, and 28.5 draft over its blocks. At Winslow, Eagle Harbor, there is a marine railway (Hall Bros.) of 325 feet length, 85 feet width, 17-21 feet draft over blocks, and 4,000 tons capacity. At Everett, another marine railway of 1,500 tons. And at Esquimalt, Victoria, and Vancouver, British Co- lumbia, there are 6 marine railways of 3,000, or less, tonnage capacity, and 1 government stone dock of 450 feet length, 65 feet width of gate, 45 feet bottom width and 27-29 feet draft over sills. In connection with the above docks and railways, shipbuilding operations are carried on at San Francisco, at Portland, and at Grays Harbor, Eagle Harbor, and Seattle. Oil docks for general supply purposes exist at San Diego, San Pedro, Redondo Beach, Monterey, San Francisco, Oleum, Stockton and Sacramento, at Astoria and Port- land, and at Seattle. Coal docks for supply in large quantities exist at San Francisco, Portland, Tacoma, and Seattle. As regards existing commerce, the ports of the Pacific Coast are already doing well considering their youth and surroundings. In 1913 (as stated in the An. Report Chief of Engineers U. S. Army, 1914) the total water commerce, exports and im- ports, foreign and coastwise, reached the follow- ing values at the larger ports: At Tacoma, $36,- 000,000, — greater than that of Toledo, Ohio; at Seattle about $115,000,000, — about the same as that of Portland, Me., or Providence, R. I., and more than half that of Baltimore or Buffalo; (the foreign commerce of Puget Sound alone equaling about $114,000,000, or about one-half that of Boston) ; at Astoria and Portland, Ore. (mouth of Columbia River), $102,000,000,— greater than either Cleveland, O.; Mobile, Ala., or Charleston, S. C; at San Francisco, $540,000,000 (of which $183,000,000 was foreign), surpassed in the United States, in both total and foreign com- merce, only by New York City, Boston, Norfolk and Galveston, and in total commerce alone by Philadelphia; at Los Angeles, $94,000,000, greater than Cleveland, Mobile, or Charleston, S. C. ; and at San Diego, $55,000,000, practically equal to Tampa, Fla., and only a little less than Mobile, Ala., and Jacksonville, Fla. In this connection, it is well to bear in mind the rapidity with which all Pacific Coast water-borne commerce is increasing; for example, San Fran- cisco foreign commerce alone increased 33 per cent in the eight years from 1905 to 1913 (of which 20 per cent was in 1912-1913), and Puget Sound foreign commerce alone increased in like manner 50 per cent in the same eight years (of RIVERS AND HARBORS 73 which 12 per cent was in the single year 1912- 1913). In available depths, Seattle, Tacoma, and Puget Sound water fronts in general are equal to those of any parts of the Atlantic coast of America, and better than those of Antwerp, Belgium ; Naples or Brindisi, Italy; Dieppe or Havre, France; Brem- erhaven or Hamburg, Germany. Grays Harbor (21 feet on its bar at low water) and Willapa Harbor (27 feet on bar) north of the Columbia River, and Tillamook Bay (10 feet on bar), Yaquina (12 feet on bar), Sinslaw (7 feet on bar), Umpqua (13 feet on bar), Coos Bay (14 feet on bar), Humboldt Harbor (18 feet on bar), be- tween the Columbia and San Francisco, while not yet fully developed, have natural endowments sufficient in time to enable them to rival Charles- ton, S. C, or Portland, Me., (the shifting and dan- gerous bars are being improved under projects and appropriations made by the federal govern- ment). From the Ocean to Portland, Ore., the Columbia River is, in depth, equal or superior to the harbors of Portland (Me.), Norfolk, Charles- ton (S. C), Jacksonville or Pensacola. Astoria and Portland, which bear to the rich and exten- sive Columbia River basin the same geographical The Columbia, Sacramento, and San Joaquin rivers have large drainage basins and permit of extensive navigation. The Columbia is valu- able for water power and irrigation as well in its middle portions as in its upper por- tion. The Sacramento and San Joaquin are specially valuable for irrigation purposes in their middle portion. The Columbia river, and its tributaries, by the end of 1915 when the 9-mile, 8-feet depth canal is completed at Cellilo, will be navigable from its mouth upward for 114 miles (to Portland) with 26 feet draft, 200 miles with 8 feet draft, 400 miles with 4 feet draft, and over GOO miles with 2 feet draft, into the interior of Oregon, Washington, and Idaho. The Sacramento is already navigable over 100 miles with 7 feet (to Sacramento), and over 300 miles with 2 feet (to Red Bluff). The San Joaquin is already nav- igable 45 miles with 7 feet (to Stockton) ; and the San Joaquin and Mokelumne 88 miles with 8 feet (to Gait-New Hope). So far as these rivers are navigable they are valuable adjuncts to the harbors into which they enter, and the communi- ties served thereby are naturally much interested in the general river and harbor developments to which they are thus affiliated. Aside from these BREAKWATER AT SAN PEDRO— PORT OF LOS ANGELES. relations that Rotterdam and Cologne bear to the Rhine basin, have depths and areas of good water- ways, accessible back country, and trans-conti- nental railway connections sufficient to bring them a population and commerce equal to that of the European cities. San Francisco Harbor (all of San Francisco Bay) with its 36 square miles of anchorage area with depths of 40 to 90 feet, and 200 or more square miles of lesser depths, is already in depths equal to New York Harbor or any other Atlantic or Gulf port of the United States; and in future possibilities it is the equal of any of them. Los Angeles has an available bar and harbor depth equalled by no United States port except New York. San Diego Harbor, with its completely land-locked, half-tide water area of 21 square miles, and its existing inside draft of 21 feet at low water over 9 miles in length, will, when dredg- ing now in progress is completed, have a bar and harbor depth exceeded on the Atlantic coast only by New York, and its commerce should now in- crease with great rapidity. three, Pacific Coast rivers are comparatively small, and their navigable lengths are mainly re- stricted to the portions affected by the tides of the harbors which they enter. All of them how- ever have valuable water powers at or near their head-waters. The opening of the Panama Canal will neces- sarily add considerable impetus to further de- velopment of the Pacific Coast Harbors. With the increased business will come the need for more wharves and improved terminal facilities, such as are already being started at San Diego, Los Angeles, San Francisco, Portland, and in Puget Sound, under municipal ownership or supervision. Full details of past development of individual harbors, and present rules and directions for use of pilots and other navigators of the Coast or its harbors, are published by the War Department (Annual Reports, Chief of Engineers, U. S. Army) and of the Department of Commerce and Labor — now the Department of Commerce — (U. S. Coast Pilot— Pacific Coast, 1909, with annual supplements). 74 SECURITIES SIPHON' ON LOS ANGELES AQUEDUCT. PACIFIC COAST SECURITIES. By G. K. Weeks. The following article, prepared before the cataclysm in Europe temporarily deranged all security markets, undertakes to deal with nor- mal conditions as they have existed. A dis- cussion of the qualities of investment bonds which are common to these securities in all mar- kets is not considered within its scope. Rather will it be the purpose to outline as clearly as may be those conditions governing the issuance of securities or features of the market therefor which have been characteristic of the Pacific Coast. The leading characteristics of the Pacific Coast States which have influenced the issuance and sale of securities are probably the rapid growth of this territory in population and production; the need of outside capital; the exceptional cli- mate, which attracts people accustomed to the luxuries of life; and the original and independent habits of thought which are typical of the sons of pioneers who form the backbone of the popu- lation of this section. The last federal census showed a percentage of increase in population during the 1900-1910 decade as compared with the beginning of that decade amounting in California to 60.09%, in Oregon, to 62.68%, and in the State of Washing- ton to 120.41%, as compared with only 21.02% for the United States as a whole. While the most rapid growth was in the cities, the rural dis- tricts also showed marked increases in population and wealth. Of the eleven counties in California where the population increased over 75'/, be- tween 1900 and 1910, only two contained cities having a population of 50,000 or more. These increases are all the more striking as compared with the small growth or declines in the popula- tion of rural districts in the East and Middle West. Such rapid growth points to a necessity on the part of states, municipalities and public utility corporations alike of raising large amounts of capital for providing the facilities necessary for the adequate public service of these communities. BUILT BY THE CITY. DEADMAN'S CANYON. There are at present evidences of some dis- crimination against Pacific Coast Municipal Bonds, on the ground that these municipalities are putting out "too many bonds." That there is some justice in this criticism the writer would be the last one to deny. However, from 1890 to 1910, Seattle grew in population from 42,837 to 237,194; Oakland from 48,682 to 150,174; Los Angeles from 50,395 to 319,198, and the confident utterances of the various Chambers of Commerce are to the effect that the ratio of growth reflected in the above federal census figures has been more than maintained during the last four years. In contrast, we find that among Eastern cities of similar rank, between 1890 and 1910 Cincinnati increased in population only from 296,908 to 363,- 591; Buffalo from 255,664 to 423,715; Washington from 230,392 to 331,069, and New Orleans from 242,039 to 339,075. This rapid Western growth requires continuous expenditures for new schools, new public buildings, new sewers, new fire pro- tection systems, and, alas, new jails. Also, if the municipality operates its own water system, new capital is constantly required for its enlarge- ment, particularly in "Sunny California," with her dry seasons, where domestic water in many cases is brought at heavy expense from the dis- tant mountains. Likewise, in undertaking the financing of healthy public utilities on the Pacific Coast, it must be realized that success can only be attained by the expenditure of large sums of money year after year to provide necessary increases in plant and equipment, and that if these sums are not supplied, companies cannot give satisfactory service to consumers in their territory and can- not prosper. An illustration of financing illy suited to conditions in this territory is furnished by a traction system in California on which there were placed in the short space of eight and one- half years five successive bond issues, being in turn, first, second, third, fourth, and fifth mort~ gages on the bulk of the system, all because the authorized amount of these various issues was in- sufficient to provide for the growth of the sys- SECURITIES 75 tem for even a moderate period of time. The history of the Pacific Gas & Electric Company, the largest and best known utility on the Pacific Coast, illustrates the growth for which a utility in this territory must be prepared to provide. This company practically doubled the number of it3 consumers in the six and one-half years ending June 30, 1914, the increase being from 183,271 to 359,228, without extending into any new terri- tory of importance. Our first proposition thus is, that the legitimate financing of the Pacific Coast States involves the continued issuance and sale of large amounts of new securities so long as the present ratio of growth continues. The demand for outside capital follows natural- ly, although not necessarily, the rapid growth already outlined. In this matter conditions in the three Coast States have been by no means identical. In California, during a long period terminating about 1906, local capital seemed sufficient for all requirements. Ex- cept for the money brought into the State by the transcontinental railroads, financed in the East, and by Eastern settlers, neither the municipal- ities nor the corporations went outside their own state for funds. Since the bonanza days of '49, the output of the State's mines had been enor- mous, the fertile valleys had rendered ready trib- ute to the agriculturist, and the shipping of the State's chief port, San Francisco, had added not a little to the general wealth. At the beginning of the year 1906 the total of California State and Municipal Bonds held in the East was less than $5,000,000, an amount now frequently exceeded by the shipments during a three months' period. The public utilities of the State were practically all financed at home. The San Francisco earth- quake and fire of 1906 resulted in a tremendous demand for capital for the rebuilding of homes, stores, office buildings and factories. About the same time the subdivision of the great interior ranches, and their irrigation or reclamation to make them suitable for intensive farming, re- ceived a great impetus; interurban railroad build- ing began in earnest; the hydro-electric industry, which had sprung into being half-a-dozen years before, underwent rapid development; and the State came to be one of the greatest petroleum- producing sections in the world. From being self-sufficient in her financial affairs, California has now come to be a very large borrower of Eastern and foreign capital. In Oregon develop- ment has been less rapid. Portland is the most conservative city on the Pacific Coast. The East is constantly buying securities in moderate vol- ume for the financing of Oregon municipalities, utilities and timber enterprises, but the develop- ment of the State has not gone forward with the feverish haste that has characterized California during recent years. Washington has been de- veloped almost entirely by Eastern money, a goodly portion of it coming from New England, and while the forests and grainfields of the State are bringing in increasingly large returns and the Alaskan trade is proving a source of great revenue, municipalities and corporations alike still turn to the Atlantic Seaboard for practically their entire supply of new capital. The effect of the climate and the wealth it at- tracts is to be noted in the $18,000,000 issue of California State Highway Bonds now in process of being marketed, supplemented by county bond issues throughout California aggregating an ad- ditional $12,500,000 for permanent road-building, which have been sold during the last six years. California owns more automobiles per capital than any other state in the country, which prob- ably accounts in some degree for the passion for good roads. Santa Barbara and San Diego are reputed to enjoy an exceptionally equable cli- mate, and have attracted a large number of wealthy Eastern residents. Santa Barbara, in order to assure herself a permanent supply of pure water has tunneled a mountain, tapping a natural reservoir. San Diego, a comparatively small city, has sold during the last five years ap- proximately $6,100,000 bonds for the acquisition and development of a domestic water system, and $4,000,000 additional for parks, schools and other municipal improvements. The effect of the pioneer spirit already referred to is to be found in part in the confident crowd- ing into a few short years of the development and improvements which have occupied prac- tically as many decades in most Eastern commun- ities, — in part in the slashing way in which Pa- cific Coast communities frequently go about rem- edying abuses. If because of improper financ- ing or for other reasons a street railway system fails to give proper service, or to provide the ex- tensions required by the growth of a community, the vigorous Western mind jumps at the solution of municipal ownership, sometimes, it seems, with very little consideration, minding not at all that the careful economist who has worked out these movements to their final conclu- sion may advise that the latter state will be worse than the first. While it is unwise to dog- matize on matters of this kind, it is the writer's judgment that the population on the Pacific Coast contains no greater socialistic element— prob- ably less — than the population of the Eastern states, and that the considerable vogue of munic- ipal ownership is due not to any theoretical con- version to the wisdom of state ownership and operation of utilities, but rather to an ungovern- able determination that the facilities which are believed by the local population to be befitting their ambitious cities, shall be immediately achieved — if private capital does not respond with alacrity, then by the municipality itself. A detailed discussion of the exact market for the various classes of Pacific Coast bonds would be too technical for the purposes of this article. The state bonds and bonds of the cities of Spokane, Seattle, Portland, San Francisco, Oak- land, and Los Angeles, which alone of the Pacific Coast public issues are legal investments for savings banks in New York and Massachus- etts, naturally find their market largely in the East. In the case of none of the municipalities in question are more than 50% of outstanding bonds held on the Pacific Coast, and in the case 76 MINING of some of them practically the entire outstand- ing indebtedness is held outside the home mar- ket. The situation as regards county bonds is somewhat mixed. Many of these issues find their way to the Eastern market, but in California, where county bonds are favored for trust fund investment, even above the bonds of the largest municipalities, the local market absorbs a very fair proportion of county issues. Of all Cali- fornia county bonds outstanding, a majority are today held within the State. In all of the three Pacific Coast states, local municipal bonds are accepted as security for public deposits; in Cali- fornia they are the only legal security. The de- mand for public bonds for this purpose reinforces the demand for savings bank or trust fund invest- ment to a marked degree, in addition to which the state school funds in California and Washington absorb a very considerable amount of local bonds, so that outside of the very high-grade municipals which are legal for savings banks or sought after for insurance company investment in the East, the local market absorbs the bulk of new munic- ipal issues. In the public utility field the movement toward consolidation, so well known in all sections of the country, has gone forward in a rather rapid way. In the State of Washington practically all pub- lic utilities of importance fall within five or six groups, all controlled from the East. The situa- tion in Oregon is similar. In California many of the important interurban railways are under the control of the Southern Pacific Company. In the hydro-electric field eight companies prac- tically dominate this industry throughout the State. These companies are mostly controlled in California, but represent the investment of a large amount of Eastern capital. In the case of bonds issued, the proportion placed in the East is usually in direct ratio to the size and import- ance of the issue, the more important bond issues which come on the market in large blocks being taken principally by Eastern and foreign cap- ital, while the smaller companies putting out bonds in limited amounts from time to time are able to obtain their capital to a large extent in the local market. The railroad commissions of the Pacific Coast states, and particularly the California Commis- sion, bid fair to become large factors in the mar- ket for public utility securities which come under their jurisdiction. The California Commission has adopted the broad principal that no securi- ties, either stock or bonds, may be issued except against an investment in property in an amount fairly comparable to the part value of the se- curities issued. While a strict adherence to this rule may work some initial hardship in the mat- ter of stock issues, it is believed by the writer that its conscientious application to the securi- ties of companies operating in a territory which possesses such great natural resources and such brilliant prospects of future growth as the Pacific Coast states, will insure a class of public utility bonds as safe and ultimately as popular as those originating in any other section of the United States. MINING ON THE PACIFIC COAST. By H. Foster Bain, Editor Mining & Scientific Press, San Francisco. Time is bringing changes in mining along the Pacific Coast. Only in Alaska and Oregon do the gold mines now make the largest contribution to the annual output. In California, petroleum, the wonderful liquid fuel that is transforming the industrial situation on the West coast, now out- ranks it; while in Washington coal takes first place and even in British Columbia, that province of marvelously varied mineral wealth, coal out- ranks not only gold but copper, which there takes second place. Using for convenience the more complete fig- ures for 1912, and following the statistics com- piled by the United States Geological Survey, it appears that the mineral output of the three Pacific Coast states is now as follows: California $92,837,374 Washington 15,347,313 Oregon 2,553,549 $110,738,236 To this may be added the production of Alaska and British Columbia, $22,724,833 and $32,440,800 respectively, making a total of $165,903,869. The present production is at an even larger rate. The total is impressive even in these days of large sums. What is even more significant, however, is the large portion of the total which represents fuels and structural materials; the former ac- counts for $58,322,376, and the latter for $26,276,- 879. Of these the expenditure on structural ma- terials — including clay products, stone, cement, and lime — represents money spent at home large- ly in building up permanent structures. In a sense, it stands for savings of the present for the future. The fuel, too, is largely consumed at home. While California is exporting large quantities of petroleum, the bulk of the oil is burned on the West coast and each barrel of oil or ton of coal represents work done by unseen hands; labor that does not eat and does not con- sume. The waterfalls, oilwells, and coal mines make up in part for the small population in the large area. Ninety per cent of the mineral output of the Pacific Coast is represented by four items : Fuel $58,322,376 Gold 43,416,335 Structural materials 26,276,879 Copper 19,373,233 The remainder of the production is in widely varied form. California is the most important North American producer of quicksilver, and Alaska has the only important tin mine. Silver and lead are not mined in important quantities on the Pacific Coast, though in eastern British Columbia there is a thriving industry and in the Coeur D'Alenes, barely outside the state of Wash- ington, is one of the world's great lead-silver dis- tricts. Almost all the metals and non-metallic minerals of economic importance occur in the region and many of them are produced. It is not likely, however, that within any period of MINING 77 present importance the dominance of fuels, gold, copper, and building materials will be challenged. While the days of gold easily won from shal- low placers have gone, gold mining is still a great industry and it is now based upon deposits that assure it a long life. The dredging fields, it is true will be exhausted in a few years by the great 16-cubic foot buckets used on modern boats, but the quartz mines grow in importance rather than the reverse. The reason is that each new device, each increase in scale of operations, so lowers the cost of production as automatically to convert into ore much that was previously too lean to rank as more than waste. When min- ing began at Juneau, small veins of quartz con- taining gold to the value of $20 per ton or more were worked, just as even richer veins have been, within a few years, opened near Sitka. Such veins are quickly exhausted, but the Alaska-Juneau is now preparing to mine ore worth but $1.35 per ton net, and is counting on treating 12,000 tons per day. On this basis the supply is considered adequate for 300 years. Two neighboring mines are likewise arranging for wholesale production. While the opportunities are exceptional at Juneau, and for some time to come it will be impossible to hope for equally low costs elsewhere, move- ment in the same direction is taking place in all the mining districts on the coast. There can be no such thing as total exhaustion of the mines, even though a mine is a true wasting asset. As the demand for metal grows, any resulting scarc- ity is reflected in price, which in turn, with bet- ter or larger scale operations reducing costs, brings into the field deposits previously un- workable. The great new thing in the Pacific Coast min- eral industry in the last decade has been the opening of the California oil fields. It is diffi- cult to overestimate the importance of this de- velopment in an area relatively barren of fuel. Nowadays not only does California supply more crude petroleum than any field in the world, but its reserve is the largest known; more than half the total for the United States. It is believed that the California oil fields have now been out- lined and that there is comparatively little hope of finding any great productive area outside their limits. While, too, it is hazardous to guess, it is not thought probable that any comparable fields will be discovered upon the Pacific Coast of North America. The reserve, therefore, while large when measured in barrels is small as meas- ured against future demands if oil is to continue to be burned for fuel in all the industries and territory now dominated by it. For the present coal is at a discount on the Pacific, but, meas- ured by long years, the petroleum supply is en- tirely inadequate. Even now, and with the Mex- ican and other Gulf coast fields to reinforce the supply, the Atlantic steamship companies dare not convert their ships to oil burners. It is in- evitable that in a comparatively few years the demand for petroleum will outrun the cheap sup- ply and its use will be restricted. For the pres- ent it is abundant and so cheap that the pro- ducer makes little or not profit. The benefit goes to the transporting and marketing agencies in part, but most of all to the people of Cali- fornia and neighboring states who, by reason of the possession of this marvelously efficient and convenient fuel, have seen industries established and brought to a profitable basis in a few years that would otherwise have had to wait for decades. Time will continue to work changes in the mining industry of the coast. Petroleum will become a precious fuel to be used only for spe- cial purposes. Coal mining in the Northwest and Alaska will grow; improvements in smelt- ing practice will permit the copper industry, now held down by court restrictions on fume emis- sion, to take its proper place; iron and the minor metals will play their part; the output of struc- tural materials will increase with the population; and always the West will furnish, not only the minerals called for by industry, but an appreci- able amount of gold as a basis for the currency with which the business of industry may be transacted. A GOLD DREDGER. AGRICULTURE HARVEST TIME IN THE AGRICULTURE OF THE PACIFIC COAST. By Thomas H. Means, of Symmes, Means & Chandler. Less than one hundred years ago the agricul- tural products of the Pacific Coast country con- sisted of a few cattle raised under the direction of the mission fathers, and of the yields from small orchards, gardens, and grain fields sur- rounding the mission settlements. The country back from the Coast and away from the missions was a wilderness inhabited by Indians. Within this hundred years a population of seven millions has come into the district west of the Rocky Moun- tains; five millions occupying the immediate coast states. The mines first attracted settlement, but agricultural development has gone on so rapidly that today mining is but a small part of the inter- ests of the people. Agriculture has become the great industry, and, though the area of land de- veloped is small as compared with the total area, there are large areas of the highest type of agri- cultural development. One hundred years has seen a change from wilderness to the most sci- entific and highly specialized farming in the world. This settlement and development of so vast a territory is one of the most remarkable events in the history of the world. While the time given above is one hundred years, the real substantial progress has occurred within sixty years. With- in that time the five millions of people who occupy the Pacific Coast states have established 200,000 farms containing 51 million acres, of which 22 million acres are improved. The value of crops raised in 1909 was $345,000,000, and the value of live "stock on farms $360,000,000. A development carried on at such a rapid rate must meet and solve many important problems, and it is natural to suppose that many problems of importance are yet awaiting solution. Taking everything into consideration, however, the devel- opment of agriculture in some parts of this ter- ritory, is superior to that of any similar area in the world. The Pacific Coast region is divided, agricul- turally, into five great districts, each of which has agricultural possibilities peculiar to itself. These are: !, Rocky Mountain Slopes. 2. Great llasin. 3. Sierra Nevada Valleys. 4. Interior Valleys of California and Oregon. 5. Coastal Regions of California, Oregon and Washington. THE INLAND EMPIRE. These five topographic regions merge some- what, but are, in their broad lines, distinct. Each has its crops, its transportation and marketing problems, and each will develop in the future along lines more or less independent of the others. The Rocky Mountain Region. The Rocky Mountain Region of the Pacific Coast includes that part of Montana, Idaho, Wyo- ming, Utah, Colorado and New Mexico draining into, and commercially tributary to, the Pacific Coast. The area includes the mountain slopes and elevated valleys of the states mentioned. A great variety of climates, soils and agricultural possibilities are present. Owing to the distance of the region from large cities and from cheap transportation, the agricul- tural development of an intensive character is confined to small areas around centers of mining activity, and to districts along the transconti- nental railroads and their branch lines. Grain, hay, cattle and sheep are the principal products, but the growing of potatoes for ship- ment and fruit of a superior quality has been de- veloped on a considerable scale at many points. The upper Snake River Valley in Idaho, and the country around Grand Junction, Colo., are ex- amples. Irrigation is necessary in all of these higher valleys. The country can be said to be only opened up, and its possibilities demonstrated, by these developments; the future will see many undeveloped areas brought into a high state of cultivation. Very few localities now have a large area of high class development, but as transportation facilities and population increase larger areas will be improved, and we may expect to see a continued and healthy growth on these regions. A great area in which irrigation cannot be car- ried on will, on account of its roughness, doubt- less be devoted in the future, as it has been in the past, to grazing. The valleys will be devoted to the production of grain and hay for maintain- ing and fattening the cattle grazed on the moun- tains and hills. The local markets in mining camps and cities along the railroads will be sup- plied with produce, and a surplus of high grade fruit, and such commodities as potatoes will be shipped out. AGRICULTURE 79 Freight rates from this mountain region to the markets of the world will always act to prevent the shipping of bulky commodities. The produce will probably be shipped out as meat, wool, or other animal products. The high quality of the potatoes, fruit and canned goods is such that there will always be an outside market for them, and Colorado, Utah and Montana potatoes and apples are likely to be in demand. This region will benefit as little as any from the Panama Canal, except as the opening of the canal will cause great development on the Pacific Coast. The canal will not make the world's markets more available to Rocky Mountain agriculturists. The Great Basin. The great basin is that county between the Rocky and Sierra Nevada mountains, and includes parts of Idaho, Washington, Oregon, Utah, Ne- vada, Arizona, and Eastern California. The region is elevated in Southern Idaho and Nevada, the valleys averaging over 4,000 feet above sea level, but is lower at the north and south ends. In Washington the elevation is generally less than 2,500 feet, and in Southern Arizona less than 3,000 feet. The rainfall varies greatly, from less than 5 inches per annum in parts of Southern California, Arizona, and Nevada, to 25 inches in Washington. Temperatures vary in a similar manner and, while oranges are grown in the south, there are moun- tain ranges covered with perpetual snow. Irrigation is necessary in most parts of the great basin region. The only portions where farming without irrigation is possible are certain parts of Northern Idaho, Oregon, and Washing- ton. A few districts are humid enough to permit of dry farming in parts of Utah, Nevada, and Arizona. The irrigated valleys present highly cultivated and prosperous districts, as is seen in Southern Idaho, and in Utah and Arizona. Much of the land, however, has no available water supply and is used for pasturage alone. Hundreds of square miles are sheep and cattle range, and will always remain so. The soils of the great basin vary greatly, but there are larger areas of soil derived from vol- canic material. Washington, Idaho, and Nevada are regions of lava ash and lava soil. Where rainfall or irrigation water is available, the crops produced are excellent and regular. The crops of the great basin are varied, oranges in the south; fruit in Utah and in the north; po- tatoes in Idaho; and alfalfa, grains, and cattle in all parts. Fruits and vegetables are but a small part of the total produce, but in some districts they become an important item of production. For instance, in certain parts of southern Idaho fruits are important, and potatoes of a high qual- ity are produced. Oranges and grape-fruit, very early in bearing, are grown in Arizona, and there is promise of considerable extension of this busi- ness. In Utah, where farms are small and labor abundant, fruits and vegetables are grown for canning and shipping. Grain and cattle products are, however, the most important items which go into general com- merce. The grain-growing regions of Oregon and Washington now produce fifty million bushels of wheat yearly and are capable of producing more. The other parts of the region do not now produce much more grain than needed for local consump- tion. Cattle and cattle products are everywhere im- portant, and in aggregate these are the most im- portant items of agricultural produce entering the channels of commerce. The wide areas of semi-arid land, too dry for farming, afford con- siderable feed, and cattle and sheep produced under range conditions are fattened for slaughter in the irrigated valleys, or shipped to other feed- producing regions. The opportunities for the future lie in the direction of increasing the num- ber and quality of the cattle and sheep raised. High freight rates will always work against the great basin country and hold down the shipping of bulky produce. It is true that, in special dis- tricts, fruit and vegetables of a high quality will always be produced and, on account of their supe- rior quality, will be shipped long distances, but in the long run sheep, cattle, and their products, will be the staples and the money makers for the farmer. The new lines of commerce introduced by the opening of the Panama Canal will have consid- erable effect upon the great basin region. Freight rates at tide water are low enough to enable these regions to ship into the world's markets, and it is likely that canned foods, potatoes, fruits and grain, as well as animal products, will be shipped. The Sierra Nevada Region. The district designated the Sierra Nevada Re- gion includes the mountain zone from Mexico to Canada which lies between the great basin on the east, and the Interior Valleys of California and Oregon on the west. The width of this great mountain belt varies from fifty to one hundred miles. It includes a large area of fertile valley and hill land, but a great area is too rough for anything but grazing or forestry. Much of the area is now occupied by National Forests, and by forest land in private ownership The lower mountain slopes are well suited to fruit culture, and the valleys for production of all kinds of produce suited to the climate. The east slope is much drier than the west slope and much smaller in area, for the distance between the mountain crest and the great basin region is short. To the west the slope is gradual, and the area of land suited for agriculture is large. Very little of this region is now farmed. Much of it is grazed by cattle and sheep, and it is only where the transcontinental railroads cross the range that the area of farmed land is large. Such a farming area is found along the Southern Paci- fic Railroad from Sacramento to Reno. Large areas of land of great potentiality are found in all three states traversed by this great mountain range and it is likely that future gen- erations will see much of this now undeveloped 80 AGRICULTURE HOPS IN THE SACRAMENTO VALLEY, CAL. land cultivated, irrigated and producing crops. Fruit and fruit products will be the greatest item in production, but cattle and animal products will be important on account of the area of land which is too high and too rough for anything but pasturage. The Interior Valleys of California and Oregon. The Interior Valleys of California and Oregon lie between the Sierra Nevada Mountains and the Coast Range. The San Joaquin and Sacra- mento Valleys in California, and the Willamette Valley in Oregon are the most important regions. These valleys are warm in summer, with very mild winters; have large areas of excellent soil, and quantities of water for irrigation; are sur- rounded by mountains rich in minerals and oil, with tremendous quantities of water power de- veloped and awaiting development. Deep water transportation is available in both valleys, and rail transportation is well developed. The products are varied, almost every crop grown in the United States, with the exception of a few strictly tropical plants, is grown here, and there are such varieties of soils and situations that some spot may be found where each crop can be produced commercially. There is no region in America where a greater variety of products may be found. Grain has long been the staple crop, but as irrigation is developed, grain gives way to horticulture, dairying, gardening, sugar beets and hops. Cotton, tobacco, and rice have been grown on a small scale, and the near future will see these rapidly extended. Cattle and sheep summer in the surrounding mountains, and wint- er in the valleys. Hops, barley, and vines furn- ish the stimulants for the nation and there is the opportunity for great extension of these crops when temperance instead of prohibition becomes the rule in the United States. These valleys are, in many places, highly de- veloped, and support confortably a large popula- tion in a small area. Such regions as those around Fresno and Modesto in California have consid- erable areas where a family is comfortably sup- ported by the produce from ten or twenty acres, and there are, in California and Oregon, several million acres capable of equally high develop- ment. The great valleys of California and Ore- gon could support five million people in comfort. The nearness of these valleys to tidewater is an important factor in their favor. Tidewater en- ters the lower part of the valleys in both cases. Steam roads and electric lines are being con- stantly developed to transport produce to the cities and to tide water. The products of these valleys already enter ex- tensively into the world's commerce. Califor- nia grain, wines, and dried fruits, and Oregon hops, are shipped to Europe in direct competi- tion with European grown produce. These valleys have a variety of soils, and con- ditions which permit regular and heavy crops to be produced. The climate is dry and the sunshine strong in summer, making the harvest- ing of crops sure and the quality good. AGRICULTURE 81 As yet, water transportation, though available, has had a small part in the development of these valleys. The greater part of the higher valued produce goes east by rail, but grain, hops, dried fruits, and wines are sent to Europe and the At- lantic coast by water. The Panama Canal will open the way for more extensive shipments of these commodities, and it is likely that vessels equipped for refrigeration will permit shipment, by the canal route, of oranges, grapes, apples, and other fruits now shipped by rail. Coastal Regions, California, Washington and Oregon. The coastal regions of California, Washington, and Oregon include that portion of the coast which derives its climate directly from the Pa- cific Ocean, where the temperatures are gener- ally low, there is little frost, and more rain than in the interior valley. In southern California, the rainfall varies from 12 to 15 inches. Northward there is a gradual in- crease until, in Washington and Oregon, the fall is from 100 to 120 inches. There is a correspond- ing gradual change in crop possibilities, and in native vegetation. In southern California, the land is scarcely timbered at all, and the agricul- tural products are largely of a sub-tropical na- ture. In central and northern California, grain, beans, alfalfa, truck, and dairying are the rule. In the north, dairying is the greatest industry. These coast regions have a climate which is regarded as superior to any of the interior cli- mates, and for that reason are apt to fill up with a large population. We have today an example of this dense population in southern California. Almost the entire orange belt lies in the coastal region. A similar condition prevails in many of the smaller valleys which open out on the Pacific Ocean, such as the Salinas Valley, and the valleys at each end of the San Francisco Bay. The por- tions of this region in north California, Oregon, and Washington, are now only partially devel- oped, but we may expect a large influx of set- tlers who will farm the valleys and clear the low mountains and foot hills for the planting of fruit. This region will be largely farmed for the purpose of supplying the coast cities; comparatively few products will be grown for shipping or export. There are important excep- tions, however. The citrus fruits of southern California are one of the State's largest export crops, and important fruit centers have been de- veloped in a number of other valleys, such as the Pajaro and Santa Clara valleys, south of San Francisco. Other important centers of fruit growing will later be developed in the north. These fruits will be shipped to eastern markets by rail or the Panama Canal. The Agricultural Problems of the Pacific Coast. The statements above outlined briefly review the physical conditions of each of the important districts of the Pacific Coast, and call attention to the products which these districts grow for shipment. It is easy to see that the development of the Pacific Coast is yet in its infancy, and while no portion of the United States has had more rapid development or greater increase in popula- tion in the last twenty-five years, it is equally true that in the near future we may expect a much greater advance. There are certain prob- lems, however, which must, sooner or later, be settled by the people who come into these regions. The first problem, on the settlement of which will depend the future of the country, is that of markets for produce. The second problem, which has been seriously considered in many regions of the west, is that of the supply of agricultural labor. The third problem is that of securing set- tlers for much of the land which now lies idle, or which is held in large tracts. The Markets for Pacific Coast Products.The mar- kets for Pacific Coast products are to- day well developed, but a large increase in the production of any one crop would cause disaster. For instance, the orange business has been de- veloped from a small beginning to shipments ex- ceeding 40,000 carloads per annum. It happens that Florida is now increasing products of citrus fruits to a great extent, and any further in- crease in the production of the Pacific Coast will have to meet Florida campetition, or seek a mar- ket elsewhere. Again, the apple industry of Washington and Oregon has been developed fast- er than regular markets for the produce have been secured, and there are now years when fruit brings low prices. These low prices are, without doubt, largely due to competition from districts nearer the point of consumption. Until the people of the Pacific Coast have developed and secured a permanent market for their fruit, they will always have this fluctuation in prices. It is thought that the Panama Canal will open new channels of trade and thus enable the people of the Pacific Coast to overcome these difficulties by shipment of their products over a wider area. The fruit business is, however, by no means the only agricultural industry which has prob- lems of marketing. The grain crops are generally sold without difficulty, but there are times when the hay crop exceeds the demand and prices are low. At present this is due to the scarcity of feeding cattle for the consumption of hay, high prices for beef having recently caused large num- bers of young animals to be sold. It will nat- urally come about that the herds of the west will be built up, though this is going to be dif- ficult as long as young cattle continue high in price, but once the industry is re-established, there should be a smaller fluctuation in hay prices. The time will rapidly come when the small farmer who has a few acres of hay will pro- duce a few animals for slaughter and, by thus creating a market for his own forage crops, be independent of the general market prices for such produce. The Labor Problem. Many of the industries of the Pacific Coast are highly specialized and a large amount of labor is, each year, required for short periods; for example, the fruit pick- ing and hop picking seasons. The hay har- vest, which extends over a longer period than in the east, also requires considerable 82 AGRICULTURE extra labor and coincides with the busy- season in the mountain lumber camps. The con- sequence is that there are often periods when labor is scarce In parts of the west, and the farm- er has to put up with very inferior help, despite the fact that prices for agricultural labor in the west are higher than in the eastern states. This condition will slowly right itself as the large holdings are cut up. An increase in the number of small farms results in a large amount of labor being brought into the country. The women and children will be able to do much in the way of fruit and hop picking, leaving the men free for the hay and grain harvests. It is further- more expected that cheap passenger rates will be established via the Panama Canal bringing im- migrants from European countries, who will nat- urally drift to the farms, and much healthier labor conditions will be the result. It is not likely that much of this labor will come supplied with capital sufficient to enable them to buy farms, but, wherever government lands are available, they will settle on them and secure their living, while developing their own farms, by working on adjoining places. It is unfortunate that public sentiment on the coast is now so strongly un- favorable to certain classes of Oriental labor, for no other people have been able to give us the services required at such a low rate of pay. The Settlement of the West. The settlement' of the west has only begun. It will easily be pos- sible to support a population five times as great as that now found there. Climatic conditions are favorable; health conditions are good; the splendid class of pioneers who settled the west have built up social and political insti- tutions which are attractive to thinking people. All of these together are serving to interest people the world over in the Pacific Coast. Now that the Government has undertaken the development of the irrigation resources of the country, and has settled upon a fixed policy re- garding other natural resources, this population is bound to come, and come to stay. It is unfortunate that the real development of the west has been made a business of money making on too large a scale. The sale of land at high prices has been the one great motive which is back of practically all settlement in the west. The rise in land values has been extra- ordinary and to-day, in California, Washington, Oregon, and other states of the west, land is of- fered to settlers at prices ten times its value a few years ago. It is claimed that the prices now be- ing asked are justified by the return that the lands will give, but, whether this is true or not, high prices are discouraging settlers, and the west is suffering in consequence. However, operators are beginning to realize their mistakes, and are taking steps to rectify them, as elsewhere cited in this volume. Natural conditions on the Pacific Coast have made possible a remarkably rapid development of that territory in the last sixty years. Its future development, to which the Panama Canal will contribute, will be even more rapid. The pres- ent tendency is toward development of a con- stantly more intensive character. This, together with an ever broadening market for its products will result in greater prosperity. "f ^ML ALL READY TO PICK APPLES IN OREGON. AGRICULTURE 83 INTENSIVE FARMING ON A LARGE SCALE By S. F. B. Morse The farming industry has not, until within a few years, been regarded with favor by the large investor. Bad seasons, lack of rain, or too much rain have ren- dered the return uncertain and the interest item has been considered hazardous when directly dependent upon crops ; although the fact that principal invested in the industry has been deemed sufficiently secured is evidenced by the enormous aggregate loaned on farm mortgage by such large investors as the Insur- ance companies. That this general attitude on the part of capital has been successfully defied is illustrated by the great fortunes built up in earlier days by the "wheat kings" and other large operators of the Pacific Coast. describe here only such of its phases as bear directly on the subject in hand. Irrigation greatly reduces the uncertainty of farm- ing and, owing to the fact that the Pacific Coast has a wet and a dry season, the danger of injury to crops by summer rains is practically eliminated. It has been the general opinion that irrigated farming, which is of necessity intensive, must be limited to the small farmer, the average size of an irrigated farm in California being twenty acres. The difference be- tween the earning power per acre of dry farmed or grain land, and that of irrigated land, was bo wide that the majority of large investment in agricultural projects up to the present time has been along the lines of acquiring tracts of arid land, developing irri- gation, and offering the land for sale to small farmers or, as they are commonly called, colonists. The most inexpensively developed irrigation project is one where the land is adjacent to a stream, Tractor and 24 disc plows cutting a 16-foot furrow in dry sod land and covering over 4 acres per hour. These men were, almost without exception, "one crop" men. In spite of the large average return that their operations showed, floods, droughts, or other causes of crop damage or failure occasioned them heavy periodic losses — sometimes through a series of years. This fact did not tend to change the attitude of capital toward large single investments in the farming industry. The first primitive experiments in irrigation in California quickly served to demonstrate the eco- nomic error of such operations. The case of the "wheat kings' was analogous to that of Mark Twain's pseudo prince "Tom Canty," who used the Great Seal of England "to crack nuts with." They were raising seventeen bushels of wheat per year, less deductions ior losses and fallow years, on an acre of land which, with the additional investment required for irrigation would, in seven years, yield annually one ton of olives, and in ten years, two tons. Investors were quick to see the obvious and the conversion of great grain farmed tracts to diversi- fied farming under irrigation has since been steadily carried on. As the subject of irrigation is separately treated in another article it is the writer's intention to the flow of which is constant enough to furnish suffi- cient water for irrigating, and where there are no difficult engineering features involved in diverting the water from the stream onto the land. Projects of this type were, of course, the first to be developed. Those who were able to acquire large tracts of land so located, at a price based upon its value when grain farmed, realized enormous profits from its sale in twenty acre tracts under irrigation. The succe.-~ of the early investors gave such an impetus to the busi- ness of developing large irrigation tracts that, at the present time, there remains no arid land capable of simple irrigation, save at a price based upon its pos- sible earning pow r er when irrigated rather than on its present earnings. Furthermore, all of the inex- pensively developed river waters which can be used for direct irrigation have been appropriated. The future irrigation supply must be had by means of expensive storage or pumping stations. Of land and water available by such methods there is still abundant supply. Great as has been the influx of settlers, particularly to California, it is a fact that of the fourteen millions of acres suscept- ible to intensive cultivation in the San Joaquin and Sacramento Valleys alone, there are less than three 84 AGRICULTURE million acres actually irrigated and settled. There is very little agricultural land in the entire state that cannot be supplied with sufficient water for irriga- tion by one of the two methods above mentioned. All of the streams of the semi-arid west have tre- mendous flood discharges in the winter and spring caused by winter rains and melting snows in the mountains. These flood discharges are, for the most part, unused, as they seldom occur during the irri- gating season. It has been estimated that the flood discharges of the streams emptying into the San Joaquin and Sacramento rivers are, if stored, of suffi- cient volume to irrigate every acre of agricutural land in the valleys; and that sufficient practical stor- age sites exist to hold these flood waters. The San Joaquin and Sacramento valleys are the agricultural backbone of California and, as Southern California is already in a high state of development, they will be the field for the greatest development in the future. In an article recently published by the Modesto Chamber of Commerce, certain statistics for the year 1912 were quoted showing that in the Modesto Irri- gation District the average value per acre of all prod- ucts grown amounted to $137.16. After deducting 50% of the gross as ' the necessary cost of caring for the land harvesting crops, water charges, etc., the net production amounts to 6% on a valu- ation of $1,143 per acre. Despite the showing made by these figures a number of the largest agricul- tural projects on the coast have met with severe reverses in the last two years and are now in difficulties and process of re-adjust- ment. The failure of nearly every one of these projects has been due to a mistake in policy or to bad management rather than to any intrinsic fault in the physical property, such as poor land or insufficient water. The increased cost of land and of water, and the large overhead ex- pense entailed by present methods of subdividing and selling, together with the development of a supply of small irrigated tracts actually exceeding the demand and the resulting competition between the selling companies, have reduced the chances of financial success for such companies to a mini- mum. Competition has been so keen that great extremes have been resorted to in connection with the selling of such small irrigated tracts. Many companies maintain extensive offices with- a number of branches throughout the country, pay large com- missions, and indulge in extravagantly expensive and badly planned advertising campaigns. Nearly all are compelled to allow the purchaser several years in which to pay for his property. The basic error in the methods that have been employed is the fact that the developing companies have depended entirely upon the sales of land, not only for the ultimate return of their initial invest- ment, but also for the payment of interest, overhead charges, and their profits. Hard times, over supply, Caterpillar tractor with two-furrow ditching plow building irrigation ditch and levee at the same time. or any one of a number of possible conditions that hinder their ability to make sales, may force the companies to offer their properties in small parcels at far below their real value, in a vain attempt to meet fixed and current charges. Yet these companies have made no expenditures in the actual farming of the land. The majority of the colonists came to the coast from abroad or from the middle west. In most cases they are unfamiliar with local conditions and with irrigation, and have only enough money to make a reasonable payment on their land and equip them- selves to start farming. Generally the colonist is de- pendent upon the immediate success of his operations for his living and for the funds requh*ed to defray the deferred payments on his land, which, as a ride, con- sist of five equal annual payments, with interest on balances at the rate of 7% per annum. Even if the land he purchases is excellent, the climatic conditions good, and the water supply adequate, his success, under this handicap, is problematical ; yet upon his success hangs that of the company from whom he buys if they are depending entirely upon the sale of their lands to meet their financial requirements. If the colonist fails, not only does the land revert to the seller but the reputation of the entire project suf- fers, making future sales increasingly difficult. In view of these facts it is stran.ue that the large in- vestor, in casting about for a more substantial finan- cial plan, has neither contem- plated nor investi- gated the possibil- ities of intensive farming on a large scale as the logical solution of his prob- lems in meeting carrying charges and overhead ex- pense; the items which have been the primary cause of so many failures. If the small farmer with lim- ited means and narrow viewpoint can, in un-num- bered instances, make a success of such farming on a small scale, the business man with adequate capital, scientific management, and labor saving devices, can make an even greater success on a large scale. Broad, axiomatic business principles pertain to this industry as well as to any other, if applied with equal intelli- gence. Farming projects so handled under able manage- ment give the investor a high rate of return and per- mit of his holding developed lands for higher prices and disposing of the property in accordance with the natural laws of supply and demand at an ultimately greater profit. Likewise, when fully developed lands, from which the colonists can be assured of an immediate return, are sold on the partial payment plan, the security to the seller is much greater for the unpaid portions of the purchase price. In the Modesto district above mentioned, land may be pur- chased at $125 yielding a C>% return on a valuation of $1,143. It is obvious that the large investor, pur- chasing land in large tracts at much less than this retail price, and developing his own water supply, is presented with greater possibilities in the develop- AGRICULTURE 85 ment and operation of the land than in the re-sale in small parcels at prevailing values. There are certain crops for irrigated areas that are particnlaly suited to fanning on a large Kale. Perhaps the most important of these is alfalfa, which is, of course, a staple. It is the forage crop of the southwest, being paritcularly valuable in the feeding of all types of work stock and dairy cows, and in fat- tening cattle, hogs or sheep. It is the niost common crop grown by the twenty or forty acre farmer. There are other crops that it is practical to grow- on a large scale under irrigation ; the olive, for which there is a constantly increasing demand, an espe- cially hardy tree bearing for practically an unlimited length of time; the fig, of which much the same can be said; the sugar beet; the onion; the potato (all being among the hardier types of roots). Within the last year or two cotton has been proved to be a profitable crop in certain sections of California. In fact, an eminent authority states that there is no crop grown in the United States which cannot be grown to advantage in California, under irrigation. It i- simply a question of the selection of the crop best suited to the land, which can be handled to ad- vantage on a large scale. The developer of an irrigation project which is to be operated on a large scale has a) distinct advantage in that he can so prepare his land as to make irrigation adequate and inex- pensive, and pro- vide for proper drainage. Under a dis- trict, or co-opera- tive plan, the small farmer must be satisfied with a re- stricted quantity of w a t e r, available only at certain intervals, ami he ordinarily meets with a serious problem in drainage, owing to the fact that his excess water must either remain on his own land, or, in discharging, prove an injury to his neighbor. Of course, in certain districts, such difficulties have been largely obviated, but the fact remains that a large tract operated by one management can be made to yield a return much greater than the same num- ber of acres cut up into small tracts under several hundred individuals. Even if it is the ultimate intention to dispose of the tract in small parcels, it is the course of wisdom to develop all, or a large portion, of it for immediate operation, to provide for interest and overhead ex- penses. The project thus developed is independent of any of the causes of adverse selling conditions. The chance of failure of either seller or buyer is re- duced to a minimum. It is along such lines that the irrigation project of the future musl be handled in order to obtain for the investor the surest and high- est return. There have recently been some projects that have been handled exactly along the lines above outlined. In most instances with which the writer is familiar, the operating returns have been so much greater than was anticipated that it has been deemed inadvisable to market any of the property A tractor pulling a battery of scrapers. Grading and leveling land ready for water. in small tracts at current prices. A fair example of the advantage of intensive farming on a large scale has come to the observation of the writer in the case of a company holding a tract of nearly seventy thou- sand acres in the San Joaquin Valley in Califor- nia. Interesting comparisons are available between its operations and those of the adjoining farmers of small tracts. This company has ample financial back- ing and owns one of the old holdings of the state, to which it has added from time to time as occasion de- manded. From grain farming the company has pro- gressed, step by step, through various phases of oper- ating as experience and conditions have dictated changes. It was one of the first to develop a large irri- gation system, yet for years did little farming on its own account, depending entirely upon the subdivi- sion and sale of its property in small parcels for its revenue, disposing of several thousand acres in this manner. Later it did small development in the line of producing alfalfa, gradually working into the husi- iiess on a larger scale. The company now has nearly three thousand acres in a single tract of alfalfa and in- tends to increase this to ten thousand acres. A direct comparison of the methods and results obtained by the colonists on the one hand and the company on the other are avail- able. The company has taken units of three thousand acres and first plat- ted these lands in twenty acre tracts, then surveyed an ir- rigation system and a drainage in such a manner as to make each unit a block of perfectly drained and irri- gated twenty farms. The pose of first dividing the has been to make it possible, should conditions warrant, to dispose of the property in small blocks in the shape of developed and pro- ducing farms. But the work is done in such a man- ner as not to handicap in any way the ease and economy of operating the property as a whole. The use of tractors and heavy disc gang plows has made it possible for the company to do better, more rapid, and more economical work than can be done by the colonist with small horse-drawn implements. The company has also developed a special type of leveler designed for use with a tractor which reduces the cost of leveling to one-half of what it is when done with horse drawn Fresno scrapers; the only avail- able method for the small farmer. By the employ- ment of these methods the company is independent of unskilled labor. There is but a small and ex- tremely undependable floating supply of such labor in California and it is the cause of one of the most serious problems facing the ordinary developer. On the developed portions of the company's alfalfa fields certain crops are cut and cured. The cuttings are, for the most part, chopped, and blown by machinery into large storage feed sheds for the winter feeding of beef cattle. The food value of chopped alfalfa hay is much higher than that of unchopped hay. Other crops are allowed to mature on the ground and are pastured off by beef steers being fattened for market. acre pur- sub- land 86 AGRICULTURE At first all of the company's fattened cattle were sold on the hoof to large packing establishments. Later, realizing that neighboring communities could be easily supplied with dressed beef, the com- pany installed its own abattoir and cold storage plant which was made large enough to handle much of the live stock produced by small local operators in ad- dition to the entire product of the company's own ranch. Having recently added to their holdings large tracts of grange lands on which cattle are raised to be alfalfa-fattened for killing, this product is con- siderable. So successful has the company been with its dressed beef operations that it now contemplates the purchase of a chain of retail butcher shops. Many of the neighboring colonists, on the other hand, are not in a position to consume the alfalfa that they produce but are obliged to haul it to market and dis- pose of it subject to variations in price. It so hap- pens that in the season of 1914 there has been a large supply of alfalfa hay and small farmers are receiving a low price. On the other hand, while hay is cheap, beef is high and the company, which is marketing its alfalfa in the form of dressed beef, is receiving a handsome price and making a large profit with much less cost of handling. Many of the colonists are fattening beef on a small scale; many are raising and feeding hogs on alfalfa; and many are operating dairies. Here again the large operator has a distinct advantage. The company has control of the dressed meat market over a con- siderable extent of local territory and is independ- ent of the middle man, whereas the colonist is not. In fact the company is in the position of making the middleman's profit on the product of the colonist, a large portion of which the company handles, as well as saving that profit on its own product. In addition to these obvious items there are many ways in which this company, on account of the size of its holdings and the magnitude of its operations, ef- fects minor economies which, in the aggregate, amount to a considerable percentage. For instance, the company breeds, raises, and breaks all of the work stock for its own use and some for market. The company maintains a machine shop of considerable size and not only makes all necessary repairs to its machinery and equipment but also manufactures new parts, thus effecting the saving of a considerable item. The company is in a position where it is making a very liberal return on a valuation ap- proximately double the price at which it disposed of its other holdings to colonists, plus the cost of development. It is able, when it desires, to dispose of its improved holdings to demonstrate its earn- ing power and can afford to be liberal in the terms of payment allowed the purchaser because of the cer- tain knowledge that the property is fully and prop- erly developed and is now producing at a rate suf- ficient to insure the success of purchasers under ordi- nary conditions. As a matter of fact, its success in intensive farming under irrigation on a large scale has been so great that it is not now offering, and cannot afford to sell, any of its irrigable lands at present prices. The facts regarding this company strikingly illustrate the possibilities of this method of handling large projects. The field for investment in this line is tremen- dous and the profits to be realized by the project properly handled are large and sure. The three req- uisites to certain success are these : Proper examination prior to the purchase of the land, taking into consideration soil, climate, water supply, and transportation available. Intelligent planning of crops with a view to what is best suited to the particular soil and general mar- ket conditions. Efficient management, insuring a maximum out- put at a minimum cost. Intensive farming on a large scale offers a most attractive field for investment and its possibilities loom large in the realm of big business. Tractor and scarifier working in an orchard to help the rapid gr OIL 87 THE OIL INDUSTRY OF CALIFORNIA. By Frank J. Silsbee. The beginning of the twentieth century marked the dawn of the era of oil power in industrial and maritime pursuits the world over. Before its span of years is half passed there will have been witnessed the most phenomenal revolution in all history of mechanical engineering through the utilization of oil as a source of energy in place of coal and other combustibles used for steam-mak- ing and other power-production purposes. The development of the internal combustion engine, capable of being operated with crude petroleum and low-grade distillates, and suited to the re- quirements of the world's work on land and sea, will work a marvelous change in engineering standards. No mechanical achievement has made such rapid strides and none has been more revo- lutionary in effect. Oil power is in the ascend- ency. The petroleum industry of California is of great importance to the industrial and commer- cial pursuits of the Pacific coast, on account of the economic change in production and trans- portation costs being brought about by the de- velopment of oil power. The oil resources of the Golden State are destined to have a world- wide influence on industry and commerce. The economic advantages of liquid fuel on land and sea will attract the manufacturer, and, with the Panama Canal, influence the routing of the world's shipping. Petroleum is the natural fuel of the Pacific coast states of North and South America. This territory has no coal deposits of particular com- mercial importance. Aside from deposits in Wash- ington and British Columbia, and the undeveloped resources of Alaska and Peru, there is no satis- factory coal. The coal that is produced does not compare favorably with eastern, Welsh, or Aus- tralian coals, and the cost is considerably higher. The use of California oil is therefore universal on all railroads in the state and its consumption ex- tends into Arizona, New Mexico, Nevada, Oregon and Washington, British Columbia and Alaska. In short, the market comprehends a territory from Alaska to Chile and Hawaii, and inland as far east as Carlin, Nevada, El Paso, Texas and Al- buquerque, New Mexico. Almost all coastwise steamers burn oil, and when the economic in- fluence of liquid fuel with the internal com- bustion engine begins to be felt, the use of oil will extend to the trans-oceanic vessels. The advantages enjoyed in the use of liquid fuel in stationary plants may be summed up briefly as follows: 1. General cleanliness. 2. High boiler and furnace efficiency. 3. Ability to carry overloads and meet, al- most instantly, wide ranges in load. 4. Total absence of smoke when burners are properly handled. 5. Uniform draft and air supply, giving min- imum variation in furnace temperature. 6. No loss when stored indefinitely. 7. Low cost of handling. The advantages of oil being burned under ma- rine boilers instead of coal are enumerated as follows : 1. Ability to raise steam quickly. 2. Rapid bunkering from lighter or shore, day or night, rain or shine, with no dust or dirt. 3. Can be stored in double bottoms and in other spaces on board ship where coal could not be placed. 4. Practically double steaming radius for given storage space. 5. No spontaneous combustion; decreased boiler room force; hardships of stoking re- moved; absence of dust and dirt in the engine room with the consequent reduction of wear on working parts. 6. No ashes to handle; and decreased main- tenance cost through increased life of boilers, etc. For railroad purposes the use of liquid fuel, aside from affording many of the benefits given in the foregoing, has the further advantage of the absence of sparks, thereby eliminating the danger of fires along rights-of-way. In certain forest reserves through which railroads pass, the government requires that oil be burned, to reduce the fire hazard. For metallurgical purposes, fuel oil gives an in- creased capacity to the furnaces, high tempera- tures, absence of soot in dust chambers, ease and range of regulation, and ability to reduce "sows" quickly. The average price for which good steaming coal can be delivered into bunkers of consumers in Pacific coast territory is close to $8 per ton. Records of the Navy Department from 1906 to 1910 indicate that the average price the federal government paid for coal for its war vessels on the Pacific was $8.10 per ton. The average in the Puget Sound country was $8.18 and Mare Island $8.47 per ton. It will therefore be seen that $8 per ton is a fair basis of coal cost in com- parison with liquid fuel. Exhaustive tests by the United States government, and other independent investigations, indicate that from three to three and one-half barrels of oil fuel are equivalent to one ton of good steaming coal. The average price which the consumer of California fuel oil has had to pay for supplies during the past decade is probably less than $1 per barrel; for the pur- pose of comparison, however, that figure will be used. On the basis of three and one-half barrels of oil as the equivalent of one ton of good steam- ing coal, the per-coal-ton-cost of oil figures $3.50. The saving in favor of oil, therefore, is $4.50. To illustrate how this works out, take the case of the Southern Pacific railroad system, the greatest single beneficiary of oil fuel. It uses approximately a million and a quarter barrels per month. The cost of this oil to the railroad is probably close to 75c per barrel, or $2.75 for the combustible equivalent to one ton of coal. If coal were used, approximately 357,143 tons would be required to do the work done by oil. At $8 per ton this coal would cost $2,857,144. 88 OIL Figuring oil at 75c per barrel, the cost for fuel would be $937,500, representing a saving of $1,- 919,644 per month, or approximately, $24,000,- 000 a year. It might be well to point out, at this juncture, the economy of oil trans- portation on railroads. Fuel oil equivalent to one ton of coal weighs 1,139 pounds. One of the ordinary tank cars in use on the railroads will hold 297 barrels of oil, which is equal to 85 tons of coal. It is thus seen that two forty-ton coal cars would be required to transport the fuel equivalent of one tank car of oil. The saving in equipment and transportation costs is readily ap- parent. A gas company in Los Angeles uses approxi- mately 60,000 barrels of oil fuel per month. As- sume that the average cost per barrel is $1, though in fact, this company has long bought fuel below 75c per barrel. The total monthly bill for oil fuel would therefore be $60,000. Sixty thousand barrels of oil is equivalent to 17,143 tons of coal, which figured at $8 per ton, would require an outlay of $137,144, compared to $60,000 for oil; a monthly saving of $77,- 144. Thus the comparisons may be brought down to the smallest consumer, whose saving is proportionate to the amount of oil used. It can readily be seen what a boon oil fuel is to the small user, particularly on account of its ease in han- dling, storage, etc. Interesting and remarkable as these facts are in connection with the use of oil as fuel, they sink into comparative insignificance, in the light of the economies of the heavy oil internal combus- tion engine for land or sea power. Burning oil under boilers must be characterized as criminally wasteful when compared to the new engine. A description of this engine, which is commonly referred to as the Diesel, taken from a paper pre- pared in 1912 by Rudolph Diesel, the inventor, is as follows: "The Diesel engine suffers neither ignition nor carburetion troubles for the same reason that a snake is not troubled with gout. The oil engine does not depend on any sparking device, as does the gasoline engine, nor any red-hot ball, as does the kerosene engine. The Diesel compresses pure air into its cylinders, not an explosive mixture of gas and air. The air is compressed to a de- gree which raises its temperature far above the burning point of oil. Pre-ignition would occur, as in gasoline engines, were it not for the fact that there is nothing to ignite until the piston has fin- ished its upward stroke and is ready to descend. Just at this instant a tiny spurt of oil is injected into the hot compressed air, where it ignites. The result is what the average person would call an explosion. In reality it is not an explosion such as occurs in the gasoline engine, where a mix- ture of gas and oil is fired. The burning of the oil occupies almost the whole time during which the piston is descending. The result is a steady push like steam, instead of the violent blow of a gas explosion." The United States Bureau of Mines, in Tech- nical Paper No. 37, has published some interest- ing facts in connection with some of the advan- tages of the internal combustion engine over steam and other prime movers. It deals partic- ularly with the engine as adapted for marine pro- pulsion, showing such economies and efficiency in its use, as will attract the attention of the world's merchant marine. Reduced to simple terms, one barrel of oil used in the marine internal combustion engine, is equivalent to three or four barrels burned under a boiler. The oil engine re- quires less men than a steam engine of equal power. It is cleaner, and much easier for the men to handle. No fireroom is necessary. No stokers are required and consequently there is no need of quarters for them. The engine dispenses with boilers. It requires no smokestacks — only a small exhaust stack — and no ventilating fans are needed in the stokehold. It develops no smoke whatever. When the engine is running properly, no exhaust is visible. The total weight of the engine is about the same as that of a reciprocat- ing steam engine, not including the boilers and condensers. No fresh water is required; salt water can be used for cooling the cylinders. The engine room is thirty to fifty per cent smaller than that of the steam engine of equal power and more easily kept clean and in order. The thermal efficiency of the internal combustion engine, or heavy oil engine, as it is sometimes called, under full load is thirty per cent, compared to twelve per cent under steam units. Such engines are in use in many types of vessels, ranging from small pleasure vessels to those of ten to twelve thous- and tons displacement, and larger ones are con- stantly being built. A ship of this type visited California ports re- cently. Comparing two vessels of equal displace- ment, one a motor-ship and the other a steamer, it is stated that the motor-ship will carry 10,000 tons of pay freight as against 8,000 tons by the steamer, at 50 per cent of the fuel cost per ton car- ried and with a ship's crew of half the size. The motor-ship can travel one and one-quarter times the circumference of the globe without replen- ishing fuel tanks, whereas a steamer could go no more than a quarter of the distance without coaling. Marine engineers state that, even though the first motor-ships built have cost more than steamers, there is no real reason why the new type of sea transport should not ultimately be built and fully equipped for nearly the same price per ton as a high grade quadruple- expansion-engined steamship, provided the size is at least 10,000 tons. Even though the original cost of the motor-ship exceeds that of the steam- er, its rate of interest return is higher on account of greater earning capacity and smaller operating cost. The petroleum fields, so far discovered in Cali- fornia, are vast in area and remarkable in output, approximating over 150 square miles of proven ground, and with a potential production for 1914 of approximately 112,000,000 barrels. The United States Geological Survey estimates that the Cal- ifornia fields are capable of furnishing a maxi- mum of eight billion barrels of crude petroleum OIL 89 out of twenty-four billion barrels maximum yet available in the United States. It is fair to state, however, that since this estimate was made by the government agents, additional resources have been discovered in Oklahoma, which no doubt will raise considerably the estimate as to the ultimate extractable oil content of this country. The min- imum estimates are about fifty per cent of the maximum in each case. Whether or not the max- imum is reached seems immaterial at this time. Competent petroleum engineers and geologists, on independent investigation, state that it is rea- sonable to believe that the oil fuel of California will dominate the Pacific coast for the next fifty years, and possibly the balance of the present century. The importance of the California petroleum re- sources as compared to the rest of the United duction purposes, for years to come. According to figures published in United States Geological Survey Bulletin No. 442-A, of the year 1910, the cost of delivering Alaskan anthracite and bitum- inous coal to Washington and Oregon ports will approximate $5 per ton, and to California ports 50c per ton additional. By the time the nec- essary arrangements are made to mine and transport this coal, it is possible that progress in the development of the internal combustion engine will have been so great that the Alaskan product will not threaten the supremacy of liquid fuel for some time to come. Furthermore, the growth in ideals of the conservation of our nat- ural resources will ultimately forbid the use of our bituminous coals under boilers, just as this sentiment must eventually force a 'dis- continuance of the wasteful burning of petroleum OIL FIELD NEAR States, and the production of foreign countries is set forth in statistical data accompanying this article. These statistics show that in the year 1901 California produced eleven per cent of the total output of the United States, the proportion growing steadily until the year 1913, when, ac- cording to the United States Geological Survey, the Golden State produced nearly forty per cent of the total petroleum yield of this country. The production of all foreign countries, as compared to California, shows that of the whole, Cali- fornia's output amounted to a little over seven per cent in the year 1901, mounting upward to forty per cent in 1912. The development of Alaskan coal resources will not affect the practical predominance of Cal- ifornia oil for steam-making, and other power pro- LOS ANGELES. in a like manner. The factor of conservation along this line will certainly play an important part in determining the length of time that oil maintains supremacy as a fuel, and this point is taken cognizance of, in estimating the years that liquid fuel will probably predominate. When the oil resources are exhausted, the country will turn to the development of its remarkable shale de- posits, and coal will be coked, and the oil residues, and other by-products, turned into their natural industries, instead of going up the chimney into the air. The shale deposits, existing in conjunc- tion with the oil fields of the state, and the coal measures of Utah, Wyoming and other western states, should yield enough oil to guarantee prac- tically an unlimited supply for the future, par- ticularly when it is considered that by virtue of 90 OIL the internal combustion engine, a price can be paid for oil that will make the mining of these shales profitable. It is to be regretted that so much information has been peddled to the public heralding the oil business as the long-sought way to "get rich quick." It has done inestimable damage to the industry and its legitimate promoters. The pub- lic mind has been educated to believe that the earnings of such corporations as the Standard Oil Company are general in the petroleum in- dustry. This is far from true. The Stand- ard Oil Company is principally a purchaser, trans- porter, and refiner of crude petroleum. The bus- iness of producing oil is totally different. The history of the oil business of California shows that the producer of oil, under a competitive economic system, influenced by considerations of competition, and the diplomacy of rivalry among the marketing factors, in conjunction with the law of supply and demand, can hardly expect sta- ble profits from year to year in an oil region of tremendous potentialities. The writer is not decrying investment in Cal- ifornia oil properties. It is well to point out, how- ever, that the average price per barrel, at the well, for California crude oil during the past four- teen years has been forty-five cents. Competent petroleum engineers estimate that the actual cost of producing oil in California, taking into ac- count depreciation of the producing capabilities of the land, redemption of capital, and develop- ment and operating expense, is not far from that figure. Indeed the statement is made that, con- sidering the hazardous and speculative nature of the business, seventy-five cents per barrel should be the minimum price, at the well, to insure profit. In face of a market with very fixed and definite limitations and production potentialities of enor- mous proportions, millions of barrels of Califor- nia oil are now being marketed annually at a price below the cost of production. It is certain that, for many years to come, California can produce millions of barrels more oil than can be profitably marketed. Under the unrestricted operation of the law of supply and demand, ad- vance in price to the producer only serves to stim- ulate production until returns to the producer again fall back to an unprofitable level. It, logically follows, that if the producer is to receive a profit commensurate with the risk of the business, some regulating influence must be brought into play. Some means must be adopted whereby the producer will receive a just economic price for the product, at the same time taking care of the marketer. The question of declaring oil a public utility to meet the present unprofitable sit- uation is occupying the attention of the leaders of the industry. It is proposed that thorough regula- tion, from producing to marketing, be instituted through the present railroad commission, or some other legally constituted body. The idea is permeating the consciousness of the leaders of the state that, in a higher way, our mineral re- sources should be regarded as property to be used, and to be held in trust, with regard to the present and future needs of the country. It is being realized that neither human labor nor any other human agency has contributed to the origin of oil. Whatever rights the individ- ual may possess have been derived from the gen- eral government and from the state as the origi- nal owners. The men of this generation must not be permitted to dissipate a great state asset at continuous financial loss to themselves, as well as to future generations. There can be no such thing as an oil industry without profit, and when this is more fully and concretely realized suitable regulation will come about to the interest of all concerned, based on the principles of conserva- tion of natural resources, and economic fairness to the producer. Thus, while the present situation from an in- vestment point of view is not encouraging, the future is bright. Well managed and amply financed companies, with reasonably large acre- age, offer attractive speculative and investment possibilities, if judicious selection is exercised. California properties are rapidly going into cen- tralized control. The small operator is at a hope- less disadvantage from a marketing standpoint. The capitalist finds his opportunity in consolida- tion, which reduces the cost of production. Centralization in California has progressed to the point where 65 per cent of the output of the state is controlled outright by the marketers and con- sumers, leaving 35 per cent to be purchased in the open market. Amalgamation of producing properties will assist materially the operation of measures of regulation and work for the best interest of producer and consumer. But the great story of California oil lies in the statistics accom- panying this article. ESTIMATE OP CALIFORNIA'S PROVEN PETROLEUM LANDS AND REMAINING RECOVERABLE OIL CONTENT Counties Fresno Kern Los Angeles . Orange Santa Barbara Ventura San Luis Obispo Santa Clara TOTAL Estimated Proven Oil Acreage 30,000 53,000 17,000 Estimated Production Recoverable to Oil Content Jany. 1, 1915 1.150,000,000 2,375,000,000 775,000,000 154,843,000 397,156,645 192,737,000 million 4,300,000,000 744,736,645 3,555,263,355 Estimated" Remaining Recoverable Oil Content 995,157,000 1,977,843,355 582,263,000 NOTE. — Estimates of additional probable oil lands range from 250,000 to 544,000 acres, the greater part of which, if proven at all, being considered as of low productivity per acre. PRODUCTION IN CALIFORNIA AS COMPARED TO ALL FOREIGN COUNTRIES PREPARED FROM RECORDS OF UNITED STATES GEOLOGICAL SURVEY Foreign California's Year California Countries Total Percentage 1901 7,710,315 96,384,167 104,094,482 7.4% 1902. . '" 13.984,268 96,391,106 110,375,374 12.7 1903 " 24,382,472 94,742,174 119,124,646 20.5 1904 29,649,434 102,170,629 131,820,063 22.5 1905 33,427,473 80,928,598 114,356,071 29.2 FIVE YEARS. 109,153,962 470,616.674 579,770,636 18.8% 1906 33,098,598 86,899,474 119,998,072 27 6% 190?"" ""." 39,748.375 96,533,286 136,281,661 292 1908 44,854,737 105,041,543 149,896,280 2 99 1909 55,471,601 115,155,199 170,626,800 325 1910 73,010,560 117,917,056 190,927,616 38.2 FIVE YEARS. 246,183,871 521,546,558 767,730,429 32.1% 1911 81,134,391 125,062.794 206,197,185 39.4% 1912 86.450,767 129,065,018 215,515,785 40.1 1913 97.764,525 1914 105,000,000 NOTE. — While complete figures are not available, pro- duction in foreign countries will probably show a decline in 1913 and 1914. OIL 91 PRODUCTION AND VALUE OF PETROLEUM IN CALIFORNIA FROM 1876 TO 1914 PREPARED FROM RECORDS OF U. S. GEOLOGICAL SURVEY Year. r Barrels Production 12,000 -Production— Per Cent Gained 'V.3% 17.1 30.4 104.2 Total Yield Series Years 12.000 25,000 40,227 f.lMlV, 100,637 100,637 200,499 329.135 471.992 733.992 1,058,992 Years 1 ... 2 ... 3 ... 4 ... 5 .. 6 ... 7 .. 8 .. 9 ... 10 .. 11 .. 12 .. 13 .. 14 .. 15 .. 16 .. 17 .. 18 .. 19 .. 20 .. 21 .. 22 .. 23 .. 24 .. 25 .. 26 .. 27 .. 28 .. 29 .. 30 .. 31 . . 32 .. 33 .. 34 .. 35 .. 36 .. 37 .. 38 .. 39 .. iction o In, indi >r 1914, $ $ I I I s * 5 Yearly Value 36.000 39.000 45,681 59.574 121,656 301,911 199,724 257,272 285,714 524,000 650,000 1,916,710 754,290 1,357,144 1,380,666 368,048 384,200 4,244,348 401,264 561,333 608,092 1,064.521 1,000,235 3,635,445 1,180,793 1,918,269 2,376,420 2,660,793 4,152,928 Per Cent Gained "8.3% 17.1 30.4 104.2 -Value Average Per Barrel $3.00 3.00 3.00 3.00 3.00 Total Value Series Years $ 36,000 75.000 120,681 180.255 301,911 $ 301,911 $ 501.635 758,907 1,044,621 1,568.621 2,218,621 *\ Per Barrel 1877 1878 1879 1880 13.000 15.227 19.858 40,552 100,637 99,862 $3.66 FIVE YEARS 146.3% 28.8 11.1 83.4 24.0 6.4% 28.8 11.1 83.4 24.0 $3.00 $2.00 2.00 2.00 2.00 2.00 128,636 142,857 262,000 325,000 $2.09 FIVE YEARS 958,355 377,145 852.3% 16.0% 80.0 1.7 •56.0 0.1 534.8% 16.0% 80.0 1.7 •81.5 4.3 $2.00 $2.00 2.00 2.00 1.21 1.25 1,436,137 2,114,709 2,805,042 3,108,262 3,415,622 $ 2.972.911 4,330,055 5,710,721 6,078,769 6,462,969 678,572 690.333 303.220 307,360 $1.89 FIVE YEARS 2,356,630 323,600 145.9% -,.■!■, 18.7 22.1 66.5 Bf.O 121.4% 4.4% 39.9 8.3 74.9 '6.0 $1.S0 $1.24 1.46 1.29 1.36 .80 3,739,222 4,124,271 4,594,450 5,377,528 6,622,867 $ 6,864,233 7,425.566 8,033.658 9,098,179 10,098,414 385.049 470,179 783,078 1,245,339 $1.52 3,207,245 1,257,780 1,911,569 FIVE YEARS 1896 36.1% 0.9% 51.9 17.6 19.0 61.7 14.3% 18.0% 62.4 23.9 11.9 56.1 $1.13 $0.94 1.00 1.06 .99 .96 7,880.647 9,792,216 12,041.304 14,719,179 19,049,129 $ 11,279,207 13,197,476 15,573,896 18,234,689 22,387,617 .... 2,249,088 2,677,875 .... 4,329,950 $1.17 FIVE YEARS 12,426,262 7,710,315 287.4% 78.0% 59.1 74.3 21.6 12.7 S 12,289,203 $ 2,961,102 4,873,617 7,399.349 8,265,434 8,201,846 $ 31,701,348 $ 9,553,430 14,699,956 . 23.433,502 . 30,756,713 . 35,749,473 {114,193,074 .$ 38.719,080 . 39.213,588 . 45,661.400 . 47,250,000 L,oss. f approximate eating a pote figured at the 238.0% 28.7% 64.5 51.8 11.7 0.7 $0.99 $0.38 .35 .30 .28 .25 26,759,444 40,743,712 65,126.184 94,775,618 128,203,091 $ 25,348,719 30,222,336 37,621.685 45,887.119 54,088.965 13,984,268 .... 1903 1904 1905 24,382,472 29,649,434 33,427.473 109,153,962 33.098,598 $0.42 FIVE YEARS 778.4% •0.9% 20.1 12.8 23.6 31.6 157.9% 16.5% 53.8 59.4 31.2 16.2 $0.29 $0.29 .37 .52 .55 .49 161,301,689 201,050,064 245,904.801 301.376,402 374,386,962 $ 63.642.395 78,342.351 101.775,853 132,532.566 168,282,039 39.748,375 1908 44,854.737 55.471,601 73,010,560 $0.45 81,134.391 FIVE YEARS 125.5% 11.1% 6.6 13.1 7.4 estimated bs 000,000 barre nately 112,00 260.2% $0.46 8.3% $0.48 1.3 .45 16.4 .47 3.4 .45 ly 53,000,000 barrels ntial production str same rate of output 455,521,353 541,972.120 639,736,645 744,736,645 sed on a prodi Is were shut 0,000 barrels f< $207,001,119 246,214,707 291,876,107 339,126,107 for the first ength of 56,0 1912 .... 86,450,767 97.764.525 1914 105,000,000 •Loss. NOTE. — Figures for 1914 are the year. In that period fully 3. rels for the six months, or approxii $0.45 half of 00 bar- PRODUCTION AND VALUE OP PETROLEUM IN THE U. S. FROM 1876 TO 1913 INDICATING CALIFORNIA IN COMPARISON TO THE WHOLE PREPARED FROM RECORDS OF UNITED STATES GEOLOGICAL SURVEY -Production- Year 1876 1877 1878 1879 1880 FIVE YEARS. 1881 1882 1883 1884 1885 FIVE YEARS. 1886 1887 1888 1889 1890 FIVE YEARS. 1891 1892 1893 1894 1895 FIVE YEARS. 1896 1897 1898 1899 1900 FIVE YEARS. 1901 1902 1903 1904 1905 FIVE YEARS. 1906 1907 1908 1909 1910 FIVE YEARS 1911 1912 1913 1914 California 12,000 13,000 15,227 19,858 40,552 100,637 99.862 128.636 142,857 262,000 325.000 958,355 377,145 67S.572 690,333 303,220 307,360 2.356.630 323.600 385,049 470,179 783,078 1,245,339 3,207,245 1,257,780 1,911.569 2,249,088 2.677,875 4,329,950 12,426,262 7.710,315 13,984.268 24,382,472 29.649.434 33.427,473 246,183,871 81,134.391 86,450.767 97.764.525 15 Other States 9.120,669 13,337,363 15,381,641 19,894,288 26,245,571 83,979,532 27,561,376 30,221.261 23.306.776 23.956.438 21.533,785 126,579,636 27,687,696 27,604,911 26,921,692 34.860.293 45.516,212 162,590,804 53.969.055 50.129.608 47,960.887 48,561.438 51,646.937 252,267,925 59.702.581 58,563.947 53,115,145 54,392.975 59,290.579 285,065.227 61,678,879 74,782.648 76.078,865 87,431.526 101,290.107 401.262,025 93.395.338 126.346,960 m,<72.61l 127.699.273 136.546.688 617,660,877 139.315.000 135.662,451 150.681.705 Califs Total Per Cent 9,132,669 13,350,363 15,396,868 19,914.146 26,286,123 -Value- Year 1876 1877 1878 1879 1X80 California \ 36.000 :!n. linn 45.681 59,574 121,656 105,000,000 Estimated. 84,080,169 27,661,238 30.349,897 23,449,633 24.218.438 21,858,785 127,537,991 28,064,841 28,283,483 27,612,025 35.163.513 45,823,572 164,947,434 54.292,655 50,514,657 48,431.066 49.344.516 52,892,276 255,475,170 60,960.361 60.475,516 55,364.233 57.070.850 63,620,529 297,491,489 69,389.194 88,766.916 100.461.337 117.080.960 134,717,580 510,415.987 126.493,936 166.095.335 178.527.355 183,170.874 209.557,248 863.844.748 220.449.391 222,113.218 248.446,230 1.3% 2.4 2.5 0.9 0.7 1.4% 0.6% 0.8 1.0 1.6 2.4 1.2% 2.1% 3.2 4.1 4.7 6.8 4.2% 11.1% 15.8 24.3 25.3 24.8 21.4% 26.2% 23.9 25.1 30.3 34.8 28.5% 36.8% 38.9 39.4 FIVE YEARS.$ 1881 $ 1882 1883 1884 1885 301,911 199.724 257,272 285,714 524.000 650,000 FIVE YEARS.$ 1886 $ 1887 1888 1889 1890 FIVE YEARS.$ 1891 $ 1892 1893 1894 1895 1,916,710 754,290 1,357.144 1,380,666 868,048 384,200 4,244,348 401,264 561.333 608,092 1,064,521 1,000,235 15 Other States $ 22,946,822 31,749,566 17,998,839 17,151,134 24,478,982 $114,325,343 $ 23,312,327 23,373,893 25,454.538 19,952,924 18,543,694 $110,637,376 $ 19,274,167 17,499,462 16,569,687 26,595,292 34,980,905 $114,919,513 $ 30,125.289 25.345.130 28,324.234 34,457,574 56.691,044 Calif's Total Per Cent $ 22,982.822 31,788,566 18,044,520 17,210,708 24,600,638 $114,627,254 $ 23,512,051 0.9% 23,631,165 1.1 25,740,252 1.1 20,476,924 2.6 19,193.694 3.4 $112,554,086 1.7% $ 20,028,457 3.8% 18,856.606 7.2 17,950,353 8.1 26,963,340 1.4 35,365.105 1.1 $119,163,861 % 30,526,553 25,906,463 28,932,326 35,522.095 57,691.279 FIVE YEARS.$ 1896 $ 1897 1898 1899 1900 3,635.445 1,180.793 1,918.269 2,376.420 2.660,793 4,152.928 $174,943,271 $178,578,716 FIVE YEARS.$ 1901 $ 1902 1903 1904 1905 12,289,203 2.961.102 4,873,617 7,399.349 8.265.434 8,201,846 FIVE YEARS.$ 31,701,348 1906 $ 9,553.430 1907 14,699.956 1908 23,433.502 1909 30,756.713 1910 35.749,473 FIVE YEARS.$114.193,074 1911 $ 38.719.080 1912 39.213,588 1913 45,661,400 1914 57.337,916 39,011,342 41,816,939 61,943,111 71,599,763 $271,709,071 $ 63.456.233 66,305,293 87.294,701 92,910.021 75.955,553 $385,921,801 $ 82,891.305 105,406.793 105.645,682 97,571.774 92.150,215 $483,665,769 % 95,325,672 124.588.746 191,459,988 58.518.709 40,929.611 44,193.359 64.603.904 75,752,691 $283,998,274 $ 66,417.335 71,178.910 94.694.050 101.175,455 84,157,399 $417,623,149 $ 92.444,735 120.106,749 129,079,184 128,328.487 127.899.688 $597,858,843 $134,044,752 163.802,334 237,121.388 3.6% 1.3% 2.2 2.1 3.0 1.7 2.0% 2.0% 4.7 5.4 4.1 5.5 4.3% 4.5% 6.8 7.8 8.2 9.8 7.6% 10.3% 12.2 18.1 23.9 27.9 19.1% 28.9% 23.9 19.3 92 SHIPPING A BUSY PIER IX SAX FRAXCISCO. THE SHIPPING INDUSTRY OF THE PACIFIC COAST. By Capt. Robert Dollar. This industry is second to none in importance in the Pacific Coast States. It is difficult to get at the exact tonnage owned, as, on account of the high taxes imposed, many coastwise vessels are registered in Minnesota, Maine, New York and New Jersey; and, on account of our unjust and unreasonable laws, a great many large cargo steamers, owned by citizens of the Pacific Coast States, are registered in foreign countries, fly their flags, and are principally engaged in foreign commerce to and from this coast. The approx- imate tonnage of vessels is 1,049,296 gross reg- istered tons. The money value also can only be approximated; it is estimated at sixty million dollars. The vessels engaged in the domestic trade are more than sufficient for present requirements. At this writing some thirty steamers are laid up, bo I think the increase will be gradual and will only come as trade conditions warrant. In the Foreign Trade, we look for very great advance- ment and development. This will be brought about by the great increase of trade that we will get from the opening up and development of China. Thirty-five years ago the Pacific Mail was the only company operating steamers, and the combined cargo capacity, of all their steam- ers at that time, was not as great as is that of one of their large, modern steamers. If the in- crease keeps up at the same rate as during that period, long before this century closes, the cen- ter of the world's commercial activity will be transferred from the Atlantic to the Pacific. It is generally supposed that the opening of the canal will take away a great deal of freight from our ports, but from the line of the great northern circle from Panama to Japan, San Diego is only 225 miles, Los Angeles 245, San Francisco 325, Eureka 430, Astoria 670, the entrance to the Straits of Juan de Fuca 800; so it will be seen that the deviation will be very slight. The Pacific Coast is favored with many good 1 and commodious harbours. In the extreme South is San Diego, having ample accommoda- tions for all the requirements; next Los An- geles with more than they require and by dredg- ing they can extend indefinitely; then San Francisco with sufficient anchorage for all the navies of the world. Eureka has plenty of room for her rapidly growing trade. In Oregon is Coos Bay. As soon as contemplated improve- ments are completed, the largest tramp steam- ers afloat can find berth there. Next comes the Columbia River. When the jetties and dredg- ing contemplated are completed, it can re- ceive vessels drawing thirty feet of water. Wil- lapa and Grays Harbor are rapidly increasing their facilities to receive large vessels. At pres- ent steamers 400 feet long and drawing 20 feet have no trouble going in and out. Puget Sound, unsurpassed for its land locked bays, has suf- ficient water to take at one time all the ships of the world. Seattle and Tacoma are rapidly build- ing wharves to accommodate the great increase expected after the Canal is in operation. Our shipping may be divided into three parts, first, Coastwise, second, Inter-Coast, (via Pan- ama), and third, Foreign. The bulk of the coastwise cargoes carried are from north to south, lumber furnishing more than 95% of the whole. Vessels carry bulk cargoes north, but not to exceed 10% of their capacity. The steamers engaged in carrying lumber on this Coast are constructed specially for this trade and are entirely different than can be seen in any other part of the world. The machinery is placed aft, and from 30% to 50% of the cargo is car- ried on deck and with perfect safety to both the vessel and cargo. The ordinary height of those deckloads are from 12 to 18 feet. The trade that will go from one seaboard of the United States to the other is problematical. The value of commodities carried in 1913 was $80,026,517". This was an increase from 1900 of $73,208,737, although handicapped by having to trans-ship by rail either via Tehantepec or Pana- ma. As to what increase the opening of the Canal will effect we must wait trade develop- SHIPPING 93 ment for a year or two, before we can even make any calculations. That the increase will be gradual, we are sure, although some ex- pect an immediate expansion. In this they will be disappointed, but that there will be a tre- mendous increase of this trade, admits no argu- ment. The difference between rail and all water rates will be sufficient to warrant this pre- diction. For the opening of the Canal the rate of freight has been reduced about 30%. Foreign trade has not been pushed as it should. The local or domestic demand has satisfied all producers, therefore there was little incentive to go farther afield as long as the home consump- tion kept up. Now we see that we must reach out for foreign markets. So far we have only exported the products of the forest, fields and fisheries; now we must reach out for manufac- turies. Up to the present time labor conditions have been such as to effectually preclude the possibility of manufacturing on this coast for export. Now we feel that, with the opening of the canal, a great number of emigrants will reach our shores. Employment must be found for them either in the cultivation of the fields or in manu- facturing as very few will have money enough to take up land. We can expect factories to be built because raw material can be gotten as cheap as in any part of the United States. Iron ore of a better quality can be laid down in Pacific Coast ports at a lower price than the supply is de- livered at Pittsburg. Cokeing coal can be de- livered here at a price that will enable us to pro- duce coke at competitive prices if the most mod- ern by-product ovens are employed. Thus there is no reason why we cannot produce iron and steel, not only for our own requirements, but for export also. Raw cotton and wool can be de- livered at our sea-board as cheap as anywhere , else, as both are grown near by. The opening of markets of China warrants the prediction of an enormous commerce be- tween that country and ours. The Philippine trade that has increased by leaps and bounds and, if political conditions permit, a great trade will re- sult. Japan, India and the East Indies will all in- crease their trade with us. The custom house sta- tistics are extremely encouraging. In 1856 our to- tal exports from this entire coast were $3,460,448, in 1880 $38,888,418, in 1913 $146,856,469. If this same ratio of increase continues for the next 60 years, it can easily be seen that the fulfillment of my prediction will be accomplished, that the Atlantic trade will be superseded by the Pacific, and that the commerce of San Francisco will ex- ceed that of New York of today. A VESSEL ESPECIALLY DESIGNED FOR TIMBER CARRYIXG. NOTE THE LEXGTII OF CLEAR HULL AND DECK ROOM. 94 FISHERIES A SALMON CANNERY IN WASHINGTON SHOWING SOME OP THE TRAPS. FISH FACTS AND FIGURES. Commercial, Financial and Economic Features of the Pacific Coast Fisheries. By Miller Freeman. Editor of "The Pacific Fisherman." Food is the prime requisite of life and where, when and how to get it, how to pay for it, and how much, constitute the vital problem of the race. The traffic in food is the biggest item in the world's commerce. Fish are food — nay more, they are cheap food. As such they are surely entitled to serious con- sideration in this day and age. Americans, it is true, are not, broadly speaking, a fish eating peo- ple and it is in America that the High Cost of Living holds untrammelled sway. These two facts are worth weighing in their relation to one an- other. It seems strange that Americans — not them- selves essentially fish consumers, should have de- veloped, and today control, what is probably the world's most important fishery. It has sprung up upon the Pacific Coast within the past half century and, in spite of the important position it now occupies as demonstrated by statistics, it is still considered in its infancy. So rapid has been the development of the com- mercial fisheries of the West Coast that few peo- ple east of the continental backbone have even an approximate idea of their present size and im- portance. The total fisheries products of the Pacific Coast were worth, last year, about $60,- 000,000 to the producer, or with transportation and distributing costs $100,000,000 to the con- sumer. One reason why, perhaps, so little is understood about the Pacific Fisheries is because they differ so radically from those of the Atlantic coast, upon which most casual observers formulate their opin- ions. On the east coast large fishing banks are located in a position really adjacent to large con- suming centers such as Boston, New York, and Philadelphia, with the result that most of the fish is handled in a fresh state. The Pacific Coast is comparatively lightly populated, and its fishery products must find their chief market in the East- ern states and abroad. Owing to the fact that these fisheries are situated so far from the con- suming centers, the bulk of the product must be prepared, with the result that here we have not only a fishery of unparalleled importance, but a large and thriving manufacturing business. Take, for instance, the example of the salmon canning industry, the product of which comprises three-fourths of the sixty million dollar total. Last year this industry consumed, in raw materials, 575,000,000 pounds of fish; 30,000,000,000 square inches of tin plate; 8,000,000 packing cases; 60,- 000,000 pounds of salt; 4,000,000 pounds each of pig tin and pig lead; 360,000,000 cement coated nails; 400,000,000 lithographed labels, and thou- sands of gallons of gasolene, kerosene, lacquer B'ISHERIES 95 and acids. With this it produced some four hun- dred million sealed packages of nutritious, pal- atable, and economical food. To further show how this differs from the ordinary conception of a fishing business, it might be mentioned that these fish are, in the main, not caught by hook and line, but with such gear as salmon traps and purse seines. In the traps the fish are kept alive in the water until ready for packing, and are not touched by human hands until they are delivered at the packing establish- ment. The fish are handled with large power vessels driven by gas engines, less picturesque, but more practical than the fishing smacks of the Atlantic. From an initial pack of 2,000 cases, the business grew by leaps and bounds, the output of 1913 being 8,000,000 cases of 48 pounds each. This in- dustry employs over 30,000 people and, since the entire pack if made in a few months in the sum- mer season, an enormous equipment is required to handle it successfully. Canned salmon now fills a tremendous domes- tic demand, and may be found on sale in every country in the world. Twenty-five per cent of the output is sold abroad and it is the largest item of canned food exported by the United States. The fish canning activities of the coast are by no means limited to salmon. Within the past few years, there has sprung up the practice of SALMON ON THE FLOOR OF THE CANNERY. The manufacture of engines for the fishing fleet is in itself a large industry on the Pacific Coast. In the canneries, modern sanitary machinery is used throughout and the fish are even butchered by a mechanical device known as the "Iron Chink," which performs this difficult operation without the aid of a human hand. In 1913 this branch celebrated its fiftieth anni- versary with the largest output in its history. It was founded on the Sacramento half a century ago by some pioneers experienced in the lobster canneries of Maine. Today the business finds its principal seat in the state of Washington, and in Alaska. The Columbia River, while not numer- ically a big factor, will always continue to enjoy an enviable reputation for the quality of its fish. canning a species of tuna found on the coast of California and, although only a few years old, this business exceeds a million dollars a year. Besides this there are canned large quantities of clams, crabs, sardines, etc. In the fresh fisheries the halibut is of para- mount importance. As this fish must find its principal market in Eastern States, it must be shipped packed in ice, or frozen. This has neces- sitated the construction, at various points along the coast, of ice making plants and cold storages. The largest fish cold storage plant in the world, is now located at the Pacific Coast and has a ca- pacity of 15,000,000 pounds. The halibut fisheries alone produce about 60,000,000 pounds of fish a year and, in addition to this, there is a consider- 96 FISHERIES able business in fresh salmon, herring, and various kinds of cod. The salt fish business is also an important branch of the industry. This group includes, as its most important branch, the business of pack- ing large, choice salmon in light brine, and ship- ping them to Germany where they are washed, smoked, and canned. The current year's business has of course been disorganized by the war, but last year some 20,000,000 salmon were pre- pared in this fashion. The general salt fish busi- ness includes the packing of salmon and herring in barrels, and salting codfish and herring in bulk. The manufacture of oil and fertilizer, together with miscellaneous chemical by-products from whales, cannery offal and non-edible fish, is also another branch of the fisheries which is increas- ing in importance with the passing of years. It is very fascinating to contemplate the fu- ture of this industry. There are at least 250 va- rieties of edible fish on the Pacific Coast, of which not more than a dozen are being exploited today, and yet these dozen have elevated the fishery to a sixty million dollar business. The finding of a market for California's tuna, which was unutil- ized up to a few years ago, is only one example of the many developments which years are sure to bring. In this instance, we have a case of a million dollar business springing up in a twinkling from a fish which had not been regarded as edible, and southern California ports are the richer by a score of fine food factories employ- ing hundreds. The raw material — the fish— is to be found in these waters in inconceivable quantities, and growth is, at present, limited only by the mar- ket — by the amount of fish that can be packed and sold profitably. With the extension of the markets the industry will logically expand. All eyes are at present turned to the Panama Canal. Its economical altering of trade routes is bound to have a beneficial effect upon Pacific Fisheries, and it may be said that readjustment in accordance with the changed conditions is go- ing on even now. Every few days, large cargoes of canned salmon — a hundred thousand cases and more — leave the Pacific for Atlantic ports. These goods travel under a water rate of thirty cents a hundred pounds, compared to seventy cents present rail rate. As the chief markets, not only for canned salmon but our other fisheries products, lies in the East and abroad, the cost of getting the finished product to consumers is go- ing to be reduced, and this will represent a sav- ing to purchasers which is bound to result in in- creased consumption. Direct benefits will come through a reduction in the cost of materials and equipment to the packers, as a large amount of these goods come from the east. The canal will unquestionably make the Pa- cific Fisheries a bigger figure in the export trade than ever before. A general movement, origin- ated by the writer, to secure a reduction in for- eign duties on canned salmon is beginning to bear fruit and, coincident with the lower cost of getting these goods to foreign ports, this opens up new and rich markets. It will be possible to ship cheap frozen fish direct to Europe, and this branch alone will unquestionably receive a tre- mendous impetus when conditions on the con- tinent have adjusted themselves, as they even- tually must. The business of handling low priced salt fish in barrels and bulk will also expand, as a cheap food is more than welcome in many for- eign countries. Coupled with the natural growth incident to the continued extension of domestic markets, the opening of the canal marks the beginning of a new era in the Pacific Fisheries. The fishing in- dustry of the Pacific Coast is an industrial bene- factor. The money received for its products flows into a hundred trade channels and is an important factor in the general prosperity of the nation. FISHING FLEET OF THE ALASKA PACKERS. THE EXPOSITIONS 98 PANAMA PACIFIC INTERNATIONAL EXPOSITION COMPLETE SECTIONAL PANORAMA OF EXPOSITION. WEST SECTION. llllUflllf THE PALACE OF EDUCATION, SHOWING THE WESTERN ENTRANCE. These photographs copyright 1914 by Pan. Pac. Int. Expo. Co.. SECTIONAL PANORAMA OF EXPOSITION. EAST CENTRAL SECTION. PANAMA PACIFIC INTERNATIONAL EXPOSITION PALACE OF MANUFACTURES FROM THE SOUTH GARDENS. ft I fc» T ■■■■i^ i_«__ .* . ""^^^4* -4afl ""^^^^^^ "r^^""^" "^^^^^ ^^^^^^H L ^^* *~i ltd ^^HPOH 77i« d T3 O V *. d o KM f2K 60 s'5 K 2 d «£« «§ m ~ d a Ob. a <2 also much nearer the east, owing to the curva- ture of the California coast, and, yet again, very much nearer in railroad time and cost by reason of the lower grades which the Southern Sierras offer. . The last two are railroad factors, the first is a water factor. Under the personal direction of H. O. Davis, director general of the Exposition, a corps of statisticians, equipped with the government and state reports, private data and water and rail freight information, has been at work for several months. The figures this corps has prepared are now made public for the first time. The first task was to determine the potential "back country." A carload of steel was brought from Pittsburgh to eastern tidewater, transferred to boat, carried through the Canal and up to San Diego, there transferred to train and carried east- ward. The same theoretical transfer was made with other commodities from various points. Then the same units were shipped to the south- west by all-rail routes. The cost of both routes was kept by zones. The charts completed, the statisticians found a fairly steady line where the cost of the two 26 counties, in Nevada for the southern half 8, and for the southern half of Utah 17 counties. Some of the individual counties contain as many as twenty separate valleys and plateaus, but all of these containing 2,000 acres^or over are item- ized individually. The tabular report shows popu- lation, altitude, water sources, length of grow- ing season, principal farm products, the number of railroads or distance to the nearest road and the principal town. Then comes the statement of development, the acreage of irrigated land in 1913, of other cultivated land, the percentage of increase over 1910, the acreage of other irrigable lands and other arable lands, and the total area of land which has agricultural possibilities. So much as a basis. Certain farmland is of such a character as to make it most profitable in 320-acre units. Other land can be operated to better advantage in 40-acre tracts, even smaller. But for estimate purposes these two classifications have been made and for each river valley or plat- eau there is given the total number of possible 320- acre and 40-acre farms, their total being an ap- proximation of what the agricultural land will have when it is fully developed. Whatever the THE SAN DIEGO EXPOSITION m unit of operation, the average farm population is found to be seven persons, and on this basis the probable population is figured. Then there is a return to the government cen- sus figures, and a citation of the value of all lands, all farm property, and domestic animals, poul- try and bees. From the same source is taken a report on the value of all livestock products in 1909, of all crops, finally of all mineral products. These data have been carefully checked and assembled, by counties, by states, and finally ar- ranged in a single aggregate table for the entire southwest. There is no mention of manufacturing or of cities, the entire tabulation concerning only land development and the potentialities of agriculture. Hence the moderate increase of population, in- asmuch as no allowance is made for municipal growth. It is the agricultural possibilities that demand attention. Southern California is nearly half developed, so far as occupation is concerned. Southwestern Colorado is about a third occupied. But how of Utah and Arizona and Nevada and New Mexico? Or the aggregate for the entire What of the goods which must be purchased by the people who occupy these 742,931 farms? Here are figures which have been compiled by specialists in that field, figures for the lumber that will be needed, the cement, the hardware, paints, farm machinery, house, implements, every necessary article of furniture and furnishings for the farm and the house, 72 items in all, figured separately for the six states, and the totals are most interesting. For present purposes it is suffi- cient to mention only the total, $4,148,378,117. The Exposition's methods of impressing the facts developed by these statistics is unique. For instance, a complete equipment of heavy machin- ery, such as is used in large scale farming, will be in actual operation; in a bearing orchard will be demonstrated the most advanced methods of caring for fruit trees; a model five acre irrigated farm, already in a high state of cultivation, shows what a great variety of fruits, vegetables, and berries may be profitably grown, on a small scale, in the Southwest. A model poultry yard and bungalow complete this exhibit. From the standpoint of settlement, this inten- sive farming display is significant, as it shows Southwestern Colorado 112,526 Population. 1910 l'robable farm population after total number is reached at rate of seven persons per farm Acreage of irrigated lands under culti- vation, 1913 Acreage of other lands under cultiva- tion, 1913 Acreage of other irrigable lands. 1913.. Acreage of other arable hinds, 1913 Total acreage of all agricultural lands. 1913 Possible number of irrigated 40-acre farms Possible number of 320-acre farms of other arable lands Total number of possible farms of all agricultural land Value of all farm property, 1910. Value of all lands, 1910 Value of domestic animals, poultry and bees Value of live stock products and domes- tic animals sold or slaughtered Value of nil crops, 1909 Value of farm products. 1909 19,724,358 Value of mineral products, 1911 9.961,890 399,784 730,533 515,967 1,361,500 1,024,000 3,632,000 52,300 4,812 57.112 . . .MM42.01 I 92,268,698 Southern California 815,452 1,076,978 1,044,894 1,965,694 4,723,527 1,220,550 8,954,665 144,210 9,644 153,854 595.5X0,821 511,420,821 Arizona 204,354 860.195 600,000 27,500 3,919,000 3,143,500 7,690,000 112,975 9,910 122.885 75,123,970 42,349,737 New Mexico 327,301 1,247,554 1,013,777 868,000 4,858,500 9,185,000 15,925,277 146,807 31,415 178,222 159,447.990 98,806,497 South Half Nevada 36,596 730,009 227,000 55,000 3,679,500 2,064,500 6,026,000 97,662 6,625 104.287 15.998.372 10,209,146 South Half Utah 131,079 885,997 613,500 nr,,ooo 3.772,500 5,000,000 9,801,000 109,650 Total Southwest 1,627,308 5.200,517 4,229,704 3,847.161 22,314,527 21,637,550 52,028,942 663,604 16,921 126,571 66,149,538 40,613,771 79,327 742,931 1,021,942,70! 795,668,670 15,219,741 33,800,481 26,050,870 43,494,674 3,750,201 16,415,179 138.731,146 7.164.911 12,559.447 17.223,748 52,749,243 69.972.991 31.400,950 7,206,443 5,496.872 12,703,315 44,157,223 14,969.422 8.922,397 23.891,819 7.230,768 1,555.861 2,028.597 3,584.458 30,424,565 6.124,321 7,727.7:' :i 13,852.050 13,542.842 54,244.706 89,4si,:;isr, 143.728.991 136.718,238 southwest? The total area of irrigated land under cultivation in 1913 was 4,229,704 acres, with 3,847,161 other cultivated lands, a total of 8,076,- 865 acres. The total of irrigable lands other than that was 22,314,527 acres, with 21,637,550 acres of other arable lands idle, a total of 43,952,077 acres — roughly five and a half times as much as is now under cultivation. Skipping the next item, the table shows the value of all farm property in 1910. It figures $1,031,942,705. It shows the output from the farms in crops and livestock products in 1909 as $143,728,991 entirely aside from the $136,718,238 mineral products. There are further figures in the tables that are most impressive. The thirty standard crops of the southwest, fruits, grapes, grains, grasses, vegetables, cotton and nuts, are listed, with the averages for the different sections, price per acre, and price for the total investment in units found operated most economically. On that invest- ment is shown the annual gross, the cost of labor, of water, of team hire, running expense for the family, and interest at 7 per cent. The net results follow naturally. in concrete form the possibilities of the small farm. There are plenty of these small farms in the west. A little distance from San Diego, almost on the border of Mexico, lies an important colony of "little landers," many of them farming in units of less than an acre, and yet selling enough garden truck from that tiny spot to give them a sure living, and a sure, though small, annual profit. A colony of Japanese, situated in the Mis- sion Valley, near the old mission of San Diego de Alcala, demonstrates the efficiency of intensive farming quite as vividly. If any considerable portion of the southwest be settled in this way, naturally the statistics pre- pared by the Exposition will prove underestimates. They are averages entirely, but by far the best figures of the sort prepared up to the present. Also they are ample evidence of why San Diego is holding its Exposition of 1915, regardless of the 1915 program of San Francisco. The smaller city has a most impressive story to tell the world, and incidentally a stage of gorgeous beauty on which to tell it. Three Principal Species of Pacific Coast Timber. SUGAR AND WHITE PINE. || H ifflH ! 1 fl 'p-*M.ft* I'^l . i <2 ' ••11 IN I .Hi •i||H p $ 1 ,'ty | >^fc H ^^^^^^^^ Jr •. i wTBht ■*^^B Ma ' REDWOOD. FIR, Complete Record of All Timber Bonds Handled by CLARK L. POOLE & CO. A. of July 1st, 1914 Of the total $80,483,000 of timber land bonds purchased and sold by Clark L. Poole & Co. during the past eleven years $23,982,500 have matured to date and been paid, or called in prior to maturity at a premium. We give below a COMPLETE tabulated record of ALL of our loans. The last two columns sum up the operation of the sinking fund — showing the percentage of the loan paid off as compared with the percentage of timber cut. Percentage W Percentage of of loan JL timber cut paid off , or released. Names of Lumber and Total amount Now out- Timber Cos. of issue. standing. Hudson River Lbr. Co.$ 560,000 None King- Ryder Lbr. Co.. 360,000 None Rapides Lbr. Co 420,000 None Lufkin Ld. & Lbr. Co. 600,000 None Weed Lbr. Co. (1st issue) 550,000 None C. A. Smith Timber Co. (1st issue) 3,000,000 J. M. Thompson Lbr.Co. 600,000 Westmorel'd Lbr. Corp. 1,094,000 Ky. & Tenn. Ry. Co. 716,500 Silverton Lbr. Co 153,500 Wilson River T'ber Co. 900,000 Camp & Hinton Co... 500,000 Scranton Lbr. Co 1,000,000 Champion Lbr. Co 2 500,000 Cheboygan Tbr. Co... 150,000 Consolidated Land Co. 1,000,000 C. D. Danaher Pine Co. 600,000 Delta L'd & T'ber Co. 4,000,000 Dowling Lbr. Co 1,000,000 Elk Lbr. Co 383,000 Falls City Lbr. Co... 250,000 Fidelity Lbr. Co 250,000 Fourche River Lbr. Co. 230,000 Fresno Flume& Lbr. Co. 1,235,000 Frost-Johnson Lbr. Co. 1,058,000 Grandin Lbr. Co 1,600,000 Great So. Lbr. Co 2,140,000 Hilton-Dodge Lbr. Co. 6,000,000 Jones-Wheeler Co 300,000 F. P. Kellogg Lbr. Co. 250,000 Lagoon Lbr. Co 2,000,000 Long-Bell Lbr. Co 9,000,000 Mendocino RedwoodCo. 500,000 Metropolitan Redwood Lbr. Co 310,000 Miller & Vidor Lbr. Co. 375,000 O. D. McHenry Lbr. Co 150,000 A. J. Neimeyer Lbr. Co. 500,000 N.Y.& P. Redwood Co. 500,000 Nor. Redwood Lbr.Co. 1,900,000 Norton Lbr. Co 100,000 Ozan Lbr. Co 443,500 Pacific Lbr. Co 2,000,000 Parsons Pulp & Lbr.Co. 3,300,000 W. R. Pickering Lum- ber Co 800,000 Pickering Ld. & Tim. Co. 1 ,027,000 Santiam Ld.& Tim. Co. 300,000 Savannah Timber Co. 179,000 Silver Falls Tim. Co. 750,000 C. A. Smith Tim. Co. 4,500,000 So. Pine Lbr. Co 750,000 Spokane Lumber Co.. 500,000 Standard Lumber Co. 360,000 Storey Timber Co 300.000 Temple Lumber . 493,500 Tillamook Tim. & Log. Co 3,100,000 Tremont Lumber Co. 2,500,000 Tidewater M. Co 350,000 Union Lumber Co. . . 3,000.000 Union Saw Mill Co.. 368,000 Weed Lumber Co 1,200,000 Wendling Johnson Lumber Co 1,177,000 Willapa Lumber Co.. 750,000 Wind River Lbr. Co. 250,000 Yosemite Lumber Co. 3,450,000 None None None- None None None None None Called in at 103 & .interest & paid, before maturity failed in at 105. Called in at 102. Called In at 102%. Matured and paid. Matured and paid. ; 2,385,000 150,000 600,000 450,000 3,896,000 405,000 383,000 222,500 180,000 172,500 1,146,000 541,000 1,600,000 1,316,000 5,473,000 300,000 250,000 1,600,000 4,557,500 500,000 290,000 275,000 65,000 212,000 400,000 1,900,000 60,000 102,500 2,000,000 2,468,500 400,000 927,000 300,000 150,000 750,000 4,500,000 200,000 425,000 1 74,000 300,000 286,000 3,100,000 1,450,000 350,000 3,000,000 128,000 850,000 1,177,000 750,000 150,000 3,333,000 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% s%* 5% 40% 40% 25% 13% 2%t 3% 59% 29% ii%° '8% 28% 14% 25%t 19% 7% 5% No timber 49% cut 38% I 8%ll 15% 5% No timber 20% cut. 49% 27% 6% 27%" 19% 57% 15% 58% 42% 20% 9% No timber 40% cut. 61% 13% 35% 6% 77% 25 ■; 50% 10% 16%tt 13% § less y 2 % than 73% 29% 15% 6% 52% 29% 42% 42% \y 25% 66% ,ess 1% I ban ' 29% 18% 40% 3% 1% 2% will make 9% paid off. will make 0% paid off. will make 13% paid off. will make 30% paid off. will make 41% paid off. will make 33% paid off. will make 24% paid off. will make 2% paid off. $80,583,000 $56,600,500 *$107,368 in sinking fund to retire bonds — which t 148.700 in sinking fund to retire bonds — which ° 6,445 in sinking fund to retire bonds — which t 12,140 in sinking fund to retire bonds — which *1 57.595 in sinking fund to retire bonds — which ** 25.307 in sinking fund to retire bonds — which ■H- 14.127 in sinking fund to retire bonds — which § 11,872 in sinking fund to retire bonds — which ||In process of reorganization. Note — Where no figures are shown in the last two columns showing percentages, no timber lias been cut and no bonds matured. WE DEAL EXCLUSIVELY IN TIMBER LAND BONDS Circulars describing Four issues, the unsold portions of which we are now offering, to yield better than 6% per annum, will be sent upon application. CLARK L. POOLE & CO. TIMBER LAND BONDS BANK FLOOR 102 WESTMINSTER BLDG., CHICAGO. Attention is called to the announcement on page n The Pacific Lumber Company Originally Organized February 24th, 1869 Paid-up Capital - - - $9,133,300.00 (Gold) Largest Manufacturers of REDWOOD (Sequoia Sempervirens) Cut 500,000 Ft. Daily Saw Mills, Planing Mills, Factories, Redwood Dryers, Dry Sheds and Air- Drying Yards At Scotia, Humboldt County, Cal. "The Home of Redwood" (Trade Mark Registered) Large Stocks of Air-Dried Redwood Twenty -eight patented Redwood dryers of our own design enable us to specialize in Seasoned Redwood for Eastern and Export shipment. GENERAL OFFICES HOBART BUILDING - SAN FRANCISCO BRANCH SALES OFFICES New York, N. Y. Chicago, III. Saginaw, Mich. Kansas City, Mo. Los Angeles, Cal. EXPORT SALES OFFICES A. F. THANE & CO., General Export Agents, SAN FRANCISCO, CAL. LIVERPOOL, ENG. Correspondents in the principal cities of the world Attention is called to the 104 announcement on page n TIMBER 105 THE REDWOOD OF CALIFORNIA. By Junius H. Browne. The market for Redwood was for many years uncertain and limited, its sale depending chiefly upon the California demand. The development of the Eastern and foreign business was slow, be- cause there was no direct rail connection with the Redwood country, it being necessary to bring all shipments into the harbors of San Francisco or Los Angeles for reshipment. The opening of the Panama Canal and the completion of the Northwestern Pacific Railroad into Humboldt County will mean much to the Redwood industry. With the canal will come the opportunity of mar- keting Redwood throughout the world in parcel lots of twenty-five, fifty, or one hundred thousand feet, where, heretofore, it has been necessary to sell in cargo lots of a million feet or more to ob- tain advantageous freight rates. Direct rail con- nection with the mills in Humboldt County will enable them to market a large quantity of by- products which are now burnt up or sold at cost locally. The earliest logging of Redwood forests was by the Spaniards near San Francisco Bay, but their operations were very small. At the begin- ning of the nineteenth century, a Russian colony near Fort Ross in Mendocino County, cleared a tract of Redwood which has since grown up and again been cut over. It was not until 1850, how- ever, that small sawmills were started at various points along the coast. There are now eighteen or twenty important mills in operation with a total annual output of 550 to 600,000,000 feet. The biggest stands of Redwood timber are in Del Norte, Humboldt and Mendocino Counties, but there are isolated groups as far north as the Chetco River in Curry County, Ore., and as far south as the Santa Lucia Mountains, Mon- terey County. The Redwood belt is from twenty to forty miles wide, the trees growing on the west slopes of the coast range. The enormous size which Redwood attains is due to the heavy rainfall in the autumn and winter, (from thirty to sixty inches) and to the sea fogs which bathe the coast in the summer. On the slopes Red- wood grows mixed with other woods such as Red Fir, Tan Bark Oak and White Fir. As the slopes become moderate, the altitude lower, the soil deeper and the water supply better, Redwood steadily gains on the other species until on the rich flats there is no other tree. The extreme form of the Redwood flat is along the Eel River, and here the trees reach their greatest known height and clear length. Under best conditions these trees grow to be 350 feet high with a diam- eter of 20 feet. Most of the Redwoods cut are from 400 to 800 years old. The oldest tree found during the Government investigation in 1900 was 1,373 years old. The normal tree has a straight, slightly tapered bole clear for more than 100 feet, and a crown of horizontal branches that may occupy from one-third to one-half of its total length. The enemies of Redwood are few and it suffers from them less than other trees. The wind can scarcely uproot it, insects seem to do it little harm, and fungi seldom affect it. Fire occasion- ally kills whole stands of young Redwood growth, but is unable to penetrate the sheathing of shag- gy bark with which the old trees protect them- selves. The yield of Redwood will average from 75,000 to 85,000 board-feet per acre, but some of the flat lands will show a stand of 1,000,000 feet or more j to the acre. It is estimated that there is stand- ing today about 75,000,000,000 feet of merchant- able Redwood timber, so that, at the present rate of production, there is more than a century's I supply in sight. The value of the stumpage varies from $1.50 to $5.00 per thousand feet, depending upon the character of the timber and its location and ac- cessibility. The flat timber is less expensive to log, and produces a greater percentage of upper grade lumber. Redwood logging is expensive and difficult. The average cost is, $5.00 to $6.00 per thousand feet. On the flat lands it will go as low as $3.00 per thousand. The greatest care must be* taken by the choppers in felling a tree so that it will strike throughout most of its length at the same time, otherwise the wood will break and splinter bad- ly. When felled, the tree is barked and cut into lengths from 16 to 40 feet. Skid roads are con- structed over which the logs are hauled to the landings and loaded on cars by donkey engines, on their way to the sawmills. The cost of converting Redwood logs into lum- ber is from $2.50 to $3.00 per thousand feet, this cost being increased because of the waste in man- ufacture, and because of the large amount of small sizes which the market calls for. Some logs are so large that they have to be split before the carriage will handle them in the mills. All machinery must be of the heaviest. ' In this country Redwood is used very largely for exterior finish. It is particularly valuable for this sort of work because of its lasting qual- ities and its resistance to fire. Redwood con- tains a peculiar acid which preserves the wood. Many examples can be given of buildings sided with Redwood boards and covered with Red- wood shingles that are today in firstclass con- dition after fifty or sixty years of continuous use without paint or treatment of any kind. Red- wood contains no pitch, will not ignite easily, and burns very slowly. After the great San Fran- cisco fire in April, 1906, the Building Committee appointed by the Mayor specified galvanized iron and redwood as the only materials from which temporary buildings might be erected without a permit. The United States Government has compiled a list of woods designating the degree of inflam- mability by the position on the list. Redwood heads this list. The better grades of Redwood are peculiarly fitted for the better class of interior finishing. THE REDWOOD FOREST. TIMBER 107 It has an effective natural grain, so that it is not necessary to select special pieces for finish. It is easily worked and takes a beautiful polish. When the wood is once properly dried, it will not shrink, swell, or crack. It is used for all kinds of exterior and interior work. There are various kinds of special work to which this wood is especially adapted on account of its peculiar qualities, such as incubators, bee- hives, pattern stock, tank, pipe and silo staves, cores for veneer work, caskets and casket boxes. The lower grades of Redwood are used for all kinds of foundation work, irrigation work, and for railway ties and tunnel timbers. Red- wood is not only valuable for these purposes be- cause of its durability and freedom from decay or rot, but also because it is not susceptible to the attacks of insects, such as the white ant, that destroy other woods. Notwithstanding the handicaps that have ex- isted in connection with the marketing of Red- wood in the East, the present volume of Eastern shipments is now about 75,000,000 feet annually. This stock is distributed in practically every State, except those in the extreme south. While Redwood is extremely heavy when it is first cut, it dries out very light so that it may be advan- tageously shipped at high freight rates in com- petition with other woods. The foreign market takes even greater quantities of Redwood than the Eastern market. Australia and the United Kingdom are the largest consumers of the Up- per grades, while the west coast of South Amer- ica, India, China, the Philippine and Hawaiian Islands use quantities of Redwood ties. Smaller shipments of Redwood have been made to the east coast of South America, France, Germany and South Africa. Earlier shipments of Clear Redwood to Australia and Great Britain were largely heavy plank in the green state. Recently both of these countries have begun to realize the advantage of purchasing seasoned material in the sizes that are actually going to be used, and as many of the mills are now equipped to han- dle seasoned stock in large quantities, the vol- ume of business has been considerably increased. Australia has already ordered 50,000,000 feet of Clear Redwood in 1914. The problem of drying Redwood properly has been serious because of the large amount of moisture the wood contains. Earlier shipments of kiln-dried material did not give satisfaction be- cause excessive or too rapid drying left the wood brittle and likely to split. Now the manufacturers realize that the best method of artificial drying is the one that approaches most nearly the nat- ural air-drying, namely, a low heat with a big circulation of air to carry off the moisture. The ability to furnish seasoned Redwood in large quantities will undoubtedly open new mar- kets throughout the world, and with the im- proved conditions for marketing their products, the Redwood manufacturers are looking forward to a period of prosperity that will increase rap- idly as the true worth of the wood is recognized in a greater degree. PACIFIC COAST TIMBER By G. X. Wendling. The annual production of lumber is about forty billion (40,000,000,000) feet for the entire United States. Of this, the Pacific Coast now produces over one-fifth, — manufacturing about eight billion two hundred million (8,200,000,000) feet, That this total will be largely increased by the opening of the Panama Canal to commerce, is generally expected by well informed people. This belief is based on the fact that the rail freight on lumber from the Pacific to the Atlantic is approximately seventeen dollars per thousand feet, whereas it is stated by the steamship companies that the present tentative rate of thirteen dollars per thousand by the new water route will later be materially reduced. The present rail rate permits the shipment of only a small amount of the highest grades. A substantially lower rate will allow shipment of even the lowest grades. If we accept the figures given in the report of the U. S. Commissioner of Corporations on the lumber industry published February 13, 1911, the duration of the business on the West Coast is based on a stand estimated at over fifteen hundred billion feet, dis- tributed as follows : Montana 65,600,000,000 Idaho 129,100,000,000 Washington 391,000,000,000 Oregon 545,800,000,000 California 381,400,000,000 Total ,1,512,900,000,000 The length of time necessary to cut this supply will depend on future demand. From year to year, the consumption of lumber is increasing while the supply in the forests is not. Heretofore, many people have hesitated to invest money in the securities of timber and lumber com- panies because ignorant writers and interested parties have spread the idea that twenty years cut would en- tirely obliterate the lumber industry. The business on the Pacific Coast has a good life before it and the present method of issuing serial bonds on timber properties, when bonds are protected by sinking funds collected as the timber is cut, makes timber invest- ments on the Pacific Coast safe and profitable. In earlier years, the fire hazard was viewed as a serious obstacle to investment in timber but the difficulty of protection from fire, — it may be said without fear of successful contradiction, — is no longer a serious matter, for, with the splendid forest protec- tion systems now in operation, timber owners have the fire risk safely underwritten. That there may be, and no doubt will be, forest fires goes without saying, yet the risk of fire is down to a minimum and standing timber is as safe from fire as property in any of our Western cities. In some classes of timber, such as Redwood, there is no fire risk, and in others the danger is so slight as to be negligible from a practical viewpoint. The value of merchantable stumpage on the Pacific Coast is governed largely by its accessibility and ease of operation. It must be within reach of transporta- tion and it must be so situated that the cost of put- ting a road into it will not be a burden on future 108 TIMBER operations. The nature of the country in which the timber grows should be favorable for logging and handling so as to enable the logger to get the logs to the main line of railroad, or to the mill, at a cost that will permit profitable operation. Nearly all the timber on the West Coast is large and the logging equipment must be big and power- ful. The logging cost varies in different localities, but, throughout the Coast, it usually runs from $4.50 to $7 per thousand feet, including the cost of build- ing logging railroads. The construction of these roads may be estimated as costing about one dollar per thousand feet on an average operation. In the region extending from California, to British Columbia, and east to the Rocky mountains, grows the Douglas Fir or Oregon Pine. There are two forms of this tree known as "Yellow Fir" and "Red Fir." Sometimes both grades of lumber are cut from one tree but chiefly the trees of each form grow on different kind of ground. The "Yellow Fir" is found in thick forests on deep, moist soil and the "Red Fir" on the thinner soils with less moisture. The wood of the "Yellow," which is softer than the "Red," is of a light yellow color. The wood of Douglas Fir is beautifully grained, has good ten- sile strength, and comes in long lengths. It is in demand for spars, bridges, and framing timbers. It is also adapted for flooring, inside finish, doors, and other building purposes. It is one of the most valuable all-purpose woods in North America. The size of the trees range from four to twelve feet in diameter and up to two hundred feet to the first limb. The stands of fir run from thirty thousand feet up to a hundred thousand feet per acre. The total stand on the Pacific Coast of the United States is approximately 640,000,000,000 feet, exceeding the stand of any other wood in that region. A strip of territory along the Pacific Coast from California to Alaska, stretching out in places to a width of two hundred miles, produces one of the largest trees in the world, known as Menzies Spruce. This tree yields a wood that does not impart taste or odor, and makes an excellent container. It is also adapted to paper making, car siding, roofing and inside finish. Where soil and climatic conditions are favorable the tree grows rapidly and at times attains a diameter of seventeen feet and a height of two hundred and sixty feet. It is the next largest tree to the Redwood. The approximate stand in California, Oregon and Washington of Menzies or Tideland Spruce is 23,000,000,000 feet. Through the Coast mountains and on the western slope of the Cascade range is found the Western Hemlock, which sometimes grows in almost pure stands. Its wood is free from pitch, of a light color and, w r hen thoroughly seasoned, is a most valu- able lumber. The name "Hemlock" was an unfor- tunate title for this valuable wood which resembles the Hemlock of the East only in such externals as the color and general appearance of its foliage. Owing to the prejudice against the inferior Eastern Hemlock, the Western Hemlock was at first sold under the names of "Alaska Pine," "Mountain Spruce," "Silver Fir," "Gray Fir," "Washington Pine," "Hemlock Larch," and other titles. However its native value and splendid possibilities have forced it into the favor of buyers and users, adjusted the misunderstanding of its qualities, permitted it to discard all disguises and enabled it to enter the mechanical field on a par with most other soft woods, and to sell under its own name. Much of the timely recognition of the superior qualities of West- ern Hemlock has resulted from the thorough tests carried on by the United States Forest Service at the University of Washington. These tests show conclu- sively that, while in its green state, it is, to a slight degree, inferior in strength to some other woods, its power of resisting rupture, crushing, and splitting is increased from 20% to 25% by seasoning. In the process of seasoning, it loses from 15% to 20', in weight and only 3% to 4% in volume. When dry, therefore, it compares favorably with any of the evergreens. Western Hemlock is practically free from "shake," differing greatly in this respect from the Northern and Eastern varieties. The tree is straight and tall, large in size, often growing to six and eight feet in diameter. The total quantity on the Pacific Coast of the United States is about 88,000,000,000 feet. At altitudes of from two thousand to five thousand feet, on the Western slope of the Cascade mountains and also through the Coast Range, is found Larch or Noble Fir. The wood of this tree which is creamy white in color and is free from pitch or resinous mat- ter. The fibre is soft, satiny, and susceptible of a high polish. The lumber is easily worked and valuable for inside finish. This tree attains a height of one hundred fifty to two hundred and eighty feet and a diameter of three to nine feet. The trunks are very erect and smooth, preserving a uniform diameter to a height of one hundred feet. Along the western slopes of the Cascades and throughout the Coast Range grows the Western Red Cedar. Its heaviest stands are in the state of Wash- ington where the abundant rainfall and other cli- matic factors fill its growing needs. Its reddish brown wood is soft, easily worked and very durable. Its wonderful lasting qualities under exposure have led to its use in large quantities for shingles. The state of Washington is the largest maker of shingles, producing about 85% of the total shingle output in the United States. The tree often attains a height of two hundred feet. Its average is more than one hundred feet. Diameter three to nine feet. Some- times trees are found having diameters of fifteen feet. The exact quantity of this timber is not known, but there is a good supply. In the Coos Bay region, in the southwestern part of Oregon, is found the most valuable species of cedar in the state, known as Port Orford, or White Cedar, The yellowish wood of this tree is very durable, easily worked, takes a high polish and contains a large quantity of resin. The odor from the resin is supposed to be offensive to insects, and for this reason the wood is used in large quantities in the manufacture of cedar chests for the protection of all kinds of cloth and fur clothes. The oil of the resin prevents decay, and the wood is extensively used in shipbuilding. The trees grow as high as two hundred feet and have diameters from three up to ten feet, but the latter size is rarely found. The TIMBER 109 stands of this timber run about twenty thousand feet per acre and in isolated cases as high as one hundred thousand feet. The total quantity of Port Orford Cedar is supposed to be about 5,000,000,000 feet Sugar and White Pine grow along the western slopes of the Cascade and Sierra mountains from Central Oregon to Central California. The trees flourish at elevations of fifteen hundred to seven thousand feet, hut the choicest growth is found be- tween three thousand and fifty five hundred feet above sea level. The trees grow iii a mixed forest carrying about an equal quantity of Sugar and White Pine and. generally, other woods such as White and Red Fir. It is a common remark among California lumbermen that our forests run about one-third Sugar Pine, oik -third White Pine and one-third White and Red Fir, with Bome Incense Cedar. Sugar and White Pine are useful mainly foi general building lumber. They make a beautiful house finish and trim, possess exceptional value for doors, windows, blinds. As a veneer material, they have no superior in soft woods, as they are entirely free from face checking. For the manufacture of box shooks, these woods are truly wonderful because the White and Sugar Pine shooks. when ready for use may he shipped to any climate without checking. In California the fruit products are, in the main, packed in White and Sugar Pine boxes. The consumption of raw material for this purpose reaches the generous total of about two hun- dred million feet annually. When thoroughly seasoned, Sugar Pine is not subject to expansion or contraction and. therefore, is superior to all known soft woods for making piano keys and pattern mate- rials. The wood of Sugar and White Pine, which is soft and creamy white, is used for the same purposes as the White Pines of Michigan, Wisconsin and Minnesota. The trees grow 7 up to twelve feet in diameter, and reach a height of two hundred and fifty feet. The total quantity of these woods in California is about 306,000,000,000 feet. PARTIAL VIEW OF A LUMBER MILLING OPERATION IN WASHINGTON. 110 TIMBER SECURITIES TIMBER BONDS. Features Deserving Consideration. By T. S. McGrath. The timber bond issue should be, and generally is, a first mortgage on all the property of the company, but the real security on which the issue is based is the green and growing timber. The margin of safety, as regards principle, is easily determined and is generally ample. Timber is a staple and its products have an established market. The industry pays vast sums to the people in the form of wages, to the governments as taxes, to transportation companies for carry- ing charges, to mill, foundries and supply houses for equipment. The quantity and quality of stump- age on a given area can be examined, estimated, graded and valued with a great degree of accu- racy, and its loan value definitely determined. Timber differs from coal and iron which, once mined, can never be replaced. Timber is a crop, and with care in cutting and some attention to the logged-off land, it will again produce a forest in a reasonable time. When accurately estimated and properly appraised, it is a sound security for loans and a profitable investment, which contains certain basic features of safety not always to be found combined in other classes of collateral. Defaults which occur in timber bond issues do not always come about through insufficient col- lateral security. Frequently they are caused by unwise provisions in the trust deed regarding sinking fund requirements and serial maturities. As timber is cut and removed from the land, a sinking fund of a certain sum per thousand feet is paid to the trustee for the retirement of the principal, which is usually represented by serial fronds, maturing at specified intervals. This sink- ing fund should not be applied to the payment of interest. The heavy cost of building present day mills and constructing railways, make it necessary to provide a supply of timber that will furnish raw material for many years. This involves a large initial investment. This timber can only be cut at a certain rate per month, and the bonds are made retirable every six months in amounts based on the capacity of the mill and the amount to be paid into the sinking fund. The interval allowed before the first serial maturity is a very serious matter. In many instances this interval is too short, and the necessity of meeting a large payment after only a brief period of oper- ation is too great a burden. To provide for early maturities it is necessary to create heavy sinking fund payments, and these factors con- stitute a serious danger. This danger is some- times overlooked or ignored by underwriters be- cause it is easy, in many instances, to sell early maturities, and it has been easier to sell all the maturities if they had a brief life than if they ran for a long period. Buyers of timber bonds have become alive to these dangers and it is safe to say that, hence- forth, the amount paid to the sinking fund will be reduced to a minimum, the first maturity post- poned for a safe number of years, the serial pay- ment made as small as possible, and the life of the loan extended over the longest permissible pe- riod. Provisions regarding these matters must necessarily be regulated according to the particu- lar property under consideration, but safety de- mands their careful adjustment. The amount and kind of timber on a given area, and the cost of manufacturing it determines the loan value or the purchase price of timber land. The quantity and quality of timber is deter- mined by an examination of the land known as "cruise." The cruiser should estimate the amount of each kind and grade of timber on the tract. When timber was very cheap a "rule of thumb" method of doing this was sufficiently accurate. In the old days there were no bonds outstand- ing against the timber and an owner could cruise to suit himself. Today, however, the value of timber land has increased to such an extent that "rule of thumb" estimating should no longer be countenanced. There is no reason why a cruiser should be permitted to place the loan value on the timber, to estimate the logging cost, to lay out the probable railway line, to guess the mill- ing cost, and to appraise mill value. The values should be figured by an expert; the logging cost should be determined by a logging engineer; the railway should be laid out by a civil engineer; the milling cost should be worked out by a millman who is perfectly familiar with the particular kind of timber to be manufac- tured. All these estimates and reports, including the legal opinion of the titles, should be corre- lated by a capable man, and the loan viewed and and analyzed as a whole. There are many able cruising engineers whose men are educated, ex- perienced and capable. There is, therefore, no excuse for the continuance of the antiquated and dangerous methods. The mistakes made through employing them are rarely discovered soon enough to prevent trouble. Recently some cruising firms have been prone to over-estimate the quantity and quality of tim- ber on a tract. This class of cruiser estimates everything that could be profitably taken out in the highest lumber market; and, occasionally, much more. When prices are normal it is impos- sible for the operator to get as much timber off the land at a profit as such a cruiser estimated, and when prices are low the shortage from the cruise is very heavy. The lumberman cannot get cost out of low grade logs or tops, and must leave them in the woods unless lumber prices are high. Thus the supposed security of the bond holder shrinks. Should the operator fail, the hope of the bond holder is in the timber, and if this timber is estimated to show twenty to fifty per cent more on the land than really exists in commercial grades, the bonds may not pay out after deducting court fees, receiver's charges and other expenses incident to foreclosure. There are tracts of timber now under offer in this country and Europe where the cruises have been lifted fifty per cent and the values over one hundred per cent. Such tracts have been sold TIMBER SECURITIES 111 here and abroad during the past six years. Bond buyers should scrupulously guard against excess cruises and valuations by purchasing their bonds through conservative houses and banks. Over-production has always been the bane of the lumber business. In early days the ease of entering the trade and the profits to be derived, in good years, from sawing logs, caused num- bers of small mills to spring up through the tim- ber states. These mills butchered the log as well as the price, and finally raised the production of lumber far beyond the consumption. When this stage was reached the lumber buyer found him- self in a position to insist that proper grades and kinds of lumber be delivered on his or- ders. He also insisted on careful sawing, even widths, uniform thickness and merchantable Quality. These demands the small mills that were only designed to rip the log and butcher the board could not meet, and they gradually ceased to exist. They were succeeded by larger mills, and in recent years, these, in turn have been im- proved, or replaced by large band mills that op- erate with wonderful economy and efficiency. The purpose of the timber bond should be to secure for the existing mills the necessary lands to keep them running and to add the latest improvements as they are perfected and to provide capital for such new enterprises as rigid investigation shows are fully warranted. Bond buyers should learn to recognize promotion enterprises however skillfully disguised, and avoid purchase of their securities. The purchaser of the bonds of public utility or industrial companies insists on the highest oper- ating efficiency in the active management of the company whose securities he holds. The holder of the timber bond, who provides the operating capital, is entitled to the same consideration from the lumber mill man, yet, if the situation is care- fully analyzed, he finds that there is a wide dif- ference between the methods of lumber manufac- turers and those of the manufacturers of many other staple commodities. The bond holder is supposedly secured by the entire contents of the tree, but he finds that only that portion of sufficiently high quality to permit of its being profitably manufactured into lumber, is taken out of the forest. The remainder of the tree is wasted. He finds that the parts of the tree now discarded could be converted into marketable products, but that the skill for do- ing this in commercial quantities is lacking. While he holds the entire tree as security for his bonds he accepts a small portion of it as payment, which is bad practice if his bond has a long life. A large quantity of the timber content of every tree is wasted. Extension of the uses of the vol- ume of the tree and improvements in the manu- facture of wood products have not kept pace with the improvements in the other industries of this country. We have heard a great deal about conservation of our timber resources. True conservation should look to the recovery of the entire merchantable content of the tree — the extraction of all of the wealth that the tree contains, whether in lum- ber or other products. The so called "conserva- tionists" have preached the non-cutting of trees and the non-use of the forest areas. This theory that non-use is conservation is a fallacy that must inevitably be superseded by the practice of com- plete utilization. It is a waste of energy to say that trees in the forest must not be cut, but allowed to die of old age and rot. The over ripe trees make poor lumber, are always in danger of being blown down by the wind, clutter the land and occupy the space that should be devoted to green and grow- ing and living timber. Every tree must die and full. Permitting them to stand until they are downed by decay makes them unfit for lumber, removes that much material from the market and raises the price of wood products. The Bureau of Forestry is not giving the atten- tion and aggressive interest to furthering the uses of the entire tree that the importance of such work demands. The country is in greater need of experts in the manufacture of wood products than in the policing of tracts of growing timber. Trees are a natural crop and if given the right chance will reproduce themselves, but it takes brains, skill and energy to manufacture them into finished materials. We need schools for teaching, and experiment stations and men for directing the utilization of the entire content of a tree, far more than we need instructions on how to grow a tree. Even under the present crude methods of manufacture we have enough timber to last a very long time, and if complete use of the tree was es- tablished our timber resources could be very con- servatively figured as perpetual. The Bureau of Forestry is the arm of the Government that should bear the brunt of working out new uses for wood products. The industry is still in its in- fancy and the present methods so crude and backward that a large part of every tree is wasted. There is today a demand for many products that can be made from this waste. This demand was not recognized a generation ago or the lumber men of that day would have found the means to meet it by utilizing the parts of the tree not now used for naval stores, lumber, lath or shingles. The next step forward in the timber industry should be the addition to the present plants of units for making by-products from all parts now wasted, thus making them complete factories — factories that will convert every part of the tree into useful articles of commerce. This step will be taken and these complete factories for making wood products will come into existence. The possibilities for development in the making of wood products are immense and it is time this large industry was freed from its handicaps and oppressions and permitted to develop into the great institution it is destined to become. 112 Attention is called to the announcement on page n STATE AND CITY SECTION Debts and Resources of States, Cities and Towns in the Pacific Coast States STATE OF CALIFORNIA. ITS DEBT, RESOURCES, &c. Admitted as a State (Act of Sept. 9, 1850) Sept. 9, 1850 Total area of State (square miles) 158,297 State Capital Sacramento Governor (term expires 1st Monday after January 1, 1915) Hiram W. Johnson Secretary of State (term expires 1st Monday after January 1, 1915) Frank C. Jordan Treasurer (term expires 1st Monday after January 1, 1915) Edw. D. Roberts LEGISLATURE meets biennially in odd years on the first Monday after January 1, and sessions are not limited, though members receive only. $1,000 for each regular session and $10 for each day while in special session. HISTORY OF DEBT. — Commercial and Financial Chronicle.— For early history of the State debt, see "State and City Section" of April, 1894, page 142. Harbor-Improvement Bonds. 4s g '11 J-J $8,298,000c.July 2, 1985 (Subject to call after July 2, 1950.) I Highway Bonds. ( $5,200,000c. July 3, '17-'29 l,6qq,000c.july 3, '_30 : '33 Civil War Bonds of 1857. Int. ceased $3,500c Civil War Bonds of 1860. Int. ceased $500c Funded Debt Bonds. 6s g '73 J-J $2,277,500c (») Sea Wall Bonds. 4s '05 )■] $2,000,000c.Jan. 2, 1924 (Subject to call after Jan. 2, 1914.) 4s'll J-J 200,000c 3,000,000c 3,000,000c .July 3, 1 .July 3, 'i • July 3,'- 934 35-'41 42-'49 *Of which $1,526,500 held by State School Fund and $751,000 by University fund. INTEREST is payable at the office of the Treasurer in Sacramento, and Bankers Trust Co., New York City. TOTAL DEBT.— The total bonded debt of the State Sept. 1, 1914, was $25,579,500, including $4,000 civil bonds on which int. nas ceased. The warrant debt on that date was $334,465.20. Cash in treasury on March, 20, 1914, amounted to $22,545,783.09. The $2,000,000 sea wall bonds issued for San Francisco are not included in the. total indebted- ness of the State; these bonds are payable out of a sinking fund_ re- ceiving its revenue from moneys collected by the San Francisco Harbor Commissioners. The bonds of 1873 ($2,277,500) matured in 1893. No sinking fund having been provided for their payment, they were taken over by the State for its school funds and have been so held since 1893. The State Treasurer on Sept. 1, 1914, held bonds aggregating $7,563,375 for the benefit of the State School Fund; this includes $1,526,500 of the funded debt bonds of 1873. The State Treasurer also holds $3,234,125 for the benefit of State funds other than the School Fund. This includes $751,000 of the funded debt bonds of 1873 held in trust for the University Fund referred to above. ASSESSED VALUATION. — The following statement shows the total assessed valuation and the tax rate (per $1,000) for the years indicated. — decrease in 1906 caused by destruction of property by earthquake. Years. Valuation. Tax rate. 1914 $3,202,450,546 1913 3,114,136,640 1912 2,920,400,512 1910 2,471,505,410 1908 1,991,554,603 1906 1,595.897,411 1904 1,545,698,785 None $3.53 4.00 4.76 5.35 Years. Valuation. Tax rate. 1902 $1,290,238,964 $3.82 1900 1,217,648,863 4.98 1890 1,101,137,290 5.80 1880 666,399,985 6.40 1870 277,538,134 8.65 1860 148,193,540 6.00 1850 57,670,689 5.00 •Pursuant to Chap. 335, Laws of 1911, carrying into effect Sec. 14 of Art. 13 of the constitution as amended Nov. 8, 1910 (see below) there is now no general tax, revenue being derived from the taxation of public service and other corporations, banks and insurance com- panies. The amount of tax placed upon these corporations by the State Board of Equalization for 1911 was $10,454,125.46; 1912, $10,- 922,405.72; 1913, $12,971,541.80; and 1914, $13,580,773.44. . CONSTITUTIONAL AMENDMENTS.— Pursuant to a constitu- tional amendment adopted Nov. 8, 1910, the city of San Francisco voted and issued $5,000,000' bonds, the proceeds to be used by the Panama Pacific International Exposition Co. for an exposition to be held in San Francisco to celebrate the opening of the Panama Canal. Another amendment, approved on Nov. 8, 1910, creates a State fund of $5,000,000 for the use, establishment, maintenance and support of the Panama Pacific International Exposition. Still another amend- ment adopted provides for the separation of State and local taxation and for the taxation of public service and other corporations for the benefit of the State. On Oct. 10, 1911, the voters adopted constitu- tional amendments granting equal suffrage to women, allowing the recall of public officials, even the judiciary, and reserving to the people the powers of initiative and referendum. BOND PROPOSITIONS. — Propositions providing for the issuance of $18,000,000 highway, $1,500,000 San Diego sea-wall, $1,000,000 India Basin and $9,000,000 harbor-improvement 4% bonds for the city and county of San Francisco were adopted at the general election on Nov. 8, 1910. This latter issue was declared valid by Superior Judge Seawell on Feb. 2, 1914. On May 23, 1912, Judge Seawell dis- missed an order to show cause why an injunction should not be issued restraining the sale of the $1,000,000 4% India Basin bonds. The offer- ing of these bonds, which was to have taken place July 22, 1912, was indefinitely postponed. DEBT LIMITATION. — The limitations fixed in the constitution of California with reference to the creation of State debt, debts of counties, cities, towns, etc., are as follows: ARTICLE 16. Section 1.— State Indebtedness.— The Legislature shall not in any manner create any debt or debts, liability or liabilities, which shall, singly or in aggregate with any previous debts or liabili- ties, exceed the sum of three hundred thousand dollars, except in case of war to repel invasion or suppress insurrection, unless the same shall be authorized by law for some single object or work to be dis- tinctly specified therein, which law shall provide ways and means, exclusive of loans, for the payment of the interest of such debt or liability as it falls due, and also to pay and discharge the principal of such debt or liability within seventy-five years of the time of the contracting thereof, and shall be irrepealable until the principal and interest thereon shall be paid and discharged, and such law may make provision for a sinking fund to pay the principal of such debt or liability to commence at a time after the incurring of such debt or liability of not more than a period of one-fourth of the time of maturity of such debt or liability; but no such law shall take effect until, at a general election, it shall have been submitted to the people and shall have received a majority of all the votes cast for and against it at such election ; and all moneys raised by authority of such law shall be applied only to the specific object therein stated, or to the payment of the debt thereby created, and such law shall be published in at least one newspaper in each county, or city and county, if one be published therein, throughout the State, for three months next preceding the election at which it is submitted to the people. The Legislature may at any time after the approval, of such law by the people, if no debt shall have been contracted in pursuance thereof, repeal the same. ARTICLE 12. Section 13.— State Not to Loan Its Credit, &c— The State shall not, in any manner, loan its credit, nor shall it subscribe to or. be interested in the stock of any company, association or cor- poration. ARTICLE 4. Section 31. — Legislature Prohibited from Loaning Credit, &c, of State, City, County, &c. — The Legislature shall have no power to give or to lend, or to authorize the giving or lending of, the credit of the State, or of any county, city and county, city, town- ship or other political corporation or sub-division of the State now existing, or that may be hereafter established, in aid of or to any person, association or corporation, whether municipal or otherwise, or to pledge the credit thereof in any manner whatever for the pay- ment of the liabilities of any individual, association, municipal or other corporation whatever; nor shall it have power to make any gift, or authorize the making of any gift, or any public money or thing of value to any individual, municipal, or other corporation whatever; provided, that nothing in this section shall prevent the Legislature granting aid pursuant to section twenty-two of this Article; and it shall not have the power to authorize the State or any political sub-division thereof to subscribe for stock or to become a stockholder in any corporation whatever. The exception provided in Section 22 of Article 4 (refererd to in the last clause of the above) permits merely the granting of aid by the State and by cities, &c, to institutions for the support and main- tenance of minor orphans, or half-orphans, or abandoned children, or aged persons in indigent circumstances. By an amendment adopted Nov. 8, 1910, further provision is made for creating a fund of $5,000,000 for the use, establishment, maintenance and support of the Panama Pacific International Exposition. See constitutional amendments given in preceding column. ARTICLE 11. Section 18. — Counties, Cities and Towns, &c, Debt Restrictions. — No county, city, town, township, board of education or school district shall incur any indebtedness or liability, in any manner, or for any purpose, exceeding in any year the income and revenue provided for it for such year, without the assent of two-thirds of the qualified electors thereof voting at an election to be held for that purpose, nor unless, before or at the time of incurring such indebted- ness, provision shall be made for the collection of an. annual tax sufficient to pay the interest on such indebtedness as it falls due, and also provision to constitute a sinking fund for the payment of the principal thereof on or before maturity, which shall not exceed forty rears from the time of contracting the same; provided, however, that the City and County of San Francisco may at any time pay the unpaid claims, with interest thereon at the rate of five per cent per annum, for materials furnished to and work done for said city and county during the forty-first, forty-second, forty-third, forty-fourth and fiftieth fiscal years, and for unpaid teachers' salaries for the fiftieth fiscal year, out of the income and revenue of any succeeding year or years, the amount to be paid in full of said claims not to exceed in the aggregate the sum of five hundred thousand dollars, and that no statute of limitations shall apply in any manner to these claims; and provided, further, that the City of Vallejo, of Solano County, may pay its existing indebtedness incurred in the construction of its water-works whenever two-thirds of the electors thereof voting at an election held for that purpose shall so decide, and that no statute of limitations shall apply in any manner. Any indebtedness or liability incurred contrary to this provision, with the exceptions hereinbefore recited shall be void. The Citv and County of San Francisco, the City of San Jose and the Town of Santa Clara may make provision for a sinking fund, to pay the principal of any indebtedness incurred, or to be hereafter incurred, by it, to commence at a time after the incurring of such indebtedness of not more than a period of one-fourth of the time of maturity of such indebtedness, which shall not exceed seventy-five years from the time of contracting the same. Any indebtedness in- curred contrary to any provision of this section shall be void. COUNTY DEBT RESTRICTIONS. — By a State law passed March 24, 1893, all counties are restricted to the issuance of bonds running not longer than twenty years. A new law regulating indebtedness for public improvements was enacted in 1901. Section 4 of this law establishes a limit for such indebtedness, and is as follows: LIMIT OF INDEBTEDNESS. SECTION 4. No city, town or municipal corporation shall incur an indebtedness for public improvements which shall in the aggregate exceed 15% of the assessed value of all the real and personal property of such citv. town or municipal corporation. TAX EXEMPT AMENDMENT.— At the November 1902 election the follownig amendment to Article 13 of the State constitution was favorablv voted upon. . „ ,. SECTION 1?4. All bonds hereafter issued by the State of Cali- fornia, or by any county, city and county,. municipal corporation. or district (including school, reclamation and irrigation districts) within said State shall be free and exempt from taxation MORTGAGES EXEMPT FROM TAXATION.— Among the amendments voted Nov. 8, 1910, is one repealing Section 4 of Article 13 of the State constitution, changing Section 1 so that hereafter a mortgage deed of trust, &c., together with the money represented by such debt, shall be exempt from taxation. ™,recTMlrHT5_ IRRIGATION BONDS AS SAVINGS BANK INVESTMENTS — The legislature in 1911 passed an Act (Chapter 157, Laws 1911) allowing investment by savings banks in bonds of irrigation districts. ufo^^TEK ST f Jo E S ;r30|,870 560.2471,850 92,597 1900'..::1,485:053|1S80.... 864,694|1860 ; .. v .379 9941 The number of Chinese in the population in 1900 was 45,753, 72,74^! in 1890 and 75,132 in 1880. CITIES. COUNTIES AND TOWNS IN THE STATE OF CALIFORNIA. Many of the counties in this State levy a special tax on property outside incorporated cities and towns for . making repairing and sprinkling of roads, and the tax rate as given below under these counties is made up of the State tax rate and the county tax rate including special road tax. (.Compiled by the Commercial and Financial Chronicle.) CALIFORNIA CITIES AND TOWNS 115 ALAMEDA. This city is in Alameda County. City was incorporated 1854 ; re-incorporated 1872. Spe- cial charter adopted April, 1907. For pro- posed purchase of certain water properties, Population 1910, 23,382. City Hall. 5s '94 J-D $ 26,250c Dec 1 M4'34 School. Ss '94 J-D $ 21,525c Dec 1 M4-'34 4s '01 i-D 70,000c Dec 1 M4-'41 4J^s '10 J-D 135,600 June 1 '15-'50 Municipal Improvement Bonds. 4'As '08 A-O $259,250c Apr 1 M5-M8 Electric Light & Police Department Bonds. 5s '12 M-N $150,100 Nov 1 M5-'52 Sewer Bonds. 4J4s '10 I-D $26,400 June 1 '15-'50 BOND DEBT Apr 1914 $693,075 Assessed valuation '13 (657o act.). .$20,971,561 City tax rate (per $1,000) '13 $10.30 INTEREST payable at City Treas. office. ALAMEDA CO. UN. H. S. D. NO. 3. Building Bonds. 5s g '12 J-D $80,000c June 1 '18-'47 BONDED DEBT Nov 1913 $ 80.000 Assessed valuation '12 (3-5 act) 7,449,900 Population in 1912 (estimated) 5,000 INTEREST payable at County Treasurer's office in Oakland. ALAMEDA CO. UN. H. S. D. NO. 4. High-School Building Bonds. 5« '06 J-J $79,858 1914-1926 Assessed valuation '12 (3-5 act) . .$17,490,027 INTEREST at County Treasurer's office. ARMIJO UNION HIGH S. D. A district in Solano County. Building Bonds (Tax-free). 5s '13 J-J $70,000c Julv I M4-'49 BONDED DEBT Mar 1914 $ 70.000 Assessed valuation '13 (60% act.).. 4,272,867 School tax (per $1,000) 1913 3.80 Population in 1914 (estimated) 4,380 INTEREST at Treasurer's office. BAKERSPIELD. This city is in Kern County. Incorporated Jan. 11, 1898. Town of Kern annexed July 19, 1910. Population 1910 12.729. Improvement Bonds. 4s '04 $23,000c Pt yly July 1 Fire-Department Bonds. 5s '12 A-O $57,000 Oct 1 M5'52 Library Bonds. 5s '12 A-O $26,650 Oct 1 '15-'52 Sewer Bonds. 4'Asg '07 M-N $ 99,000 May 1 M5-M7 5s '12 A-O 204,225 Oct 1 M5-'52 5s '12 15,200 Oct 1 M5'52 City-Hall Bonds. 5s '12 AO $145,875 Oct 1 M5-'52 School Bonds. 4!4s $30,000 Part yly July 1 BONDED DEBT Mar 1914 $ 606,425 A-^,vsed valuation '13 ('A act.) 7,885.000 Total tax (per $1,000) 1913 19.00 INTEREST payable at City Treas. office. BAKERSFIELD SCHOOL DISTRICT. Building Bonds. S'As '14 $40,000 1918-1927 BONDED DEBT July 1914 $ 231,000 Assessed val. '13 (abt 3/5 act.) 8,852,594 BERKELEY. This city is in Alameda County. Incor- porated April, 1878. New charter adopted March 5, 1895. Commission government adopted July I, 1909. Sewer and Fire Equipment. 5s '13 J-J $555,OOOc July 15*51 School Bonds. 4}4s '00 J-J $65,OOOc July 10 M5'40 Munic. Improvement Bonds (Tax exempt). 4'As'g FA $245,932.50 BONDED DEBT Sept 21 . . .Feb l 'l5-'47 , 14....$ 865,933 Sinking funds 5,938 Assessed valuation '14-' 15 42,706,510 Total tax (per $1,000) M2-M3 24.10 Population in 1910 (Census) 40,434 INTEREST on fire-equipment and sewer bonds at office of City Treasurer or at N. \Y. Halsey & Co.. N. V. ; other bonds at City Treasurer's office. BERKELEY SCHOOL DISTRICT. 4'As '06 J. J. $118,500. 4'As '07 J. J. 186,750. 4/ 2 s " 4'As BONDED DEBT June 30 '14 $562,700 INTEREST payable at County Treasurer's office. Is '07 J. J. 82,450 Is '08 J. j. 175,000 1NDED DEBT June 30 '14. BRAWLEY UNION HIGH S. D. A district in Imperial County. 5s '13 $50,000 1933 TOTAL DEBT Oct 14 '14 $ 50,000 Assessed valuation '14 4,286,669 School tax rate (per $1,000) '14 6.00 CENTRAL UNION HIGH S. D. A district (P. O. El Centrol in Imperial County. Population '14 (estimated) 8,000. Building Bonds. 5s '11 J-J $75,000 1927-1951 7s J-J 15.000r 1914-1919 BONDED DEBT Oct. '14 $ 90,000 Sinking fund Mar. 24 '14 10,000 Assessed valuation '13 (3-5 act.)... 6,500,000 High school tax (per $1,000) "14 3.40 INTEREST payable at County Treas. office. CHAFFEE UN. HIGH SCHOOL DIST. A district in San Bernardino County. Building Bonds. 5s g '11 Sept $100,000 Sept 11 '17-'S1 Ss g Ml Sept 100,000 Sept 1 "20-'51 BONDED DEBT Mar 1913 $ 200,000 Assessed valuation 1912 5,458,439 Real valuation (estimated) 12,000,000 INTEREST at County Treas. office. CHICO. This city is in Butte County. Sewer Bonds. 5s '02 J-J $31, 500c Jan 1 '15-'42 Municipal Improvement Bonds. 5s '10 J-J $l38,750c July 1 M4'50 BONDED DEBT Oct 31 '13 $ 171,375 Assessed valuation '13 3,004,003 Tax rate (per $1,000) M2-M3 15,50 Population in 1910 3,750 INTEREST at office of City Treasurer. CHICO GRAMMAR SCHOOL DIST. 4s $5,000 Building Bonds. 5s '13 $47,000 1915-1938 TOTAL DEBT Sept '14 $57,500 Assessed valuation '13 ('A act.) 5,130,000 Population in 1914 (est.) 14,000 COLTON This city is in San Bernardino County. Water Bonds. 6s '85 J-J $33,600c 1925 6s '99 J-J 12,500c 1939 Electric-Light Bonds. 6s '96 J-J $3,300c 1936 Refunding Bonds. 6s '01 J-J $3,800c 1941 Sewer Bonds. 5s '10 J-J $57,000c 1941 BONDED DEBT Apr 22 '14 $ 110,200 Assessed valuation '13-'14 ('A act) 2,105,965 Value of corporative and operative property (additional) 695,610 Total tax rate (per $1,000) '13 33.35 Population in 1910 (Census) 4,852 INTEREST payable at First Nat. Bank, Colton, or at Colton Nat. Bank. COLUSA COUNTY. Colusa is the county seat. Hall of Records Bonds. 5sg'14 J-D $60,000c yly on June 15 Bridge and Culverts Bonds. 5s R '14 J-D $140,000c yly on June 15 BONDED DEBT Apr '14 $ 452,000 Assessed valuation 14,150,781 Population in 1910 7,732 CONTRA COSTA COUNTY. Martinez is the county seat. Bonds are tax-exempt. Population, 1910, 31,674. Court-House and Jail Bonds. 4s g '03 J-J $161.000c 1943 BONDED DEBT May 1 '14 $ 161,000 Assessed valuation '13 ('A act.).. 47,731,341 State & County tax ( Inside 12.00 (per 1,000 1913 (Outside '16.00 INTEREST payable at County Treasury. CORONA. This city is in Riverside Countv. Incorpo- rated July 19, 1896. Population, 1910, 3,550. Sewer Bonds. 5sk'09 A-O $26,250c Aug 1 '15-'49 Street Bonds. 5sg'09 A-O $ 12,687.50c Aug 1 M5-'49 5sg'12 130,625c Jan 1 '15-'52 Drainage Bonds. 5s g '09 A-O $79,625c Aug 1 '15-'49 Municipal Improvement Bonds. 4'As & 5!4s Ml $95,950 1915-1952 BONDED DEBT Sept 1 '14 $ 249,188 Assessed valuation '14 (2-5 act.) 4,021,500 Total tax rate (per $1,000) '14 38.60 INTEREST payable at City Treas. office. CORONADO. This city is in San Diego County. Incor- porated 1890. Population, 1910, 1,477. Seawall Bonds. F-A $108,000 Seawall and Street Improvement. A-O $143,000 Sewer and Fire Improvement. FA $42.550 BONDED DEBT Apr M4 $ 293,500 Assessed valuation '14 (4s '09 25,000 June 28 Coldwater Sch. Bonds (Assumed). 5s '06 $1,000 June 25 '15-'16 Colegrove S. D. (Assumed). 4J4s'09 $13,000 Sept 7 '15-'27 Gardena School Bonds (Assumed). 5s '04 $1,000 Sept 26 '15-'16 Hollywood Sch. Bonds (Assumed). 5s '04 $38,000 May 23 '15-'43 5s, '05 5,000 Aug 22 '15 4As '09 29,000 Dec 6 '15-'43 Lankershim S. D. Bonds (Assumed). 5s '05 $1,000 July 10 '15 Las Feliz S. D. Bonds (Assumed). 5s '03 $4,500 June 29 '15-'23 5s '07 3,000 Mar 25 '15-'17 Miramonte S. D. Bonds (Assumed). 5s '08 $10,000 May 18 4Hs '09 5,000 July 26 5s '11 13,000 Sept 1 Mt. Washington S. D. (Assumed). 5s o '12... $9,000 Jan 1 '15-'32 San Pedro Sch. Bonds (Assumed). 6s '03 $2,700 Nov 9 5s '05 6,000 Oct 10 Sunnyside Sch. Bonds (Assumed). 5s '06 $6,000 Sept 30 '15-'20 5s '06 2,000 Nov 5 '21-'22 Terminal Sch. Bonds (Assumed). 5s '04 $1,500 June 21 '15-'18 The Pass Sch. Dist. (Assumed). 5s '04 $5,000 June 13 '15-'24 Washington Park Dist. (Assumed). 5s '11 $5,000 Aug 1 '27 5s '09 7,500 April 19 '15-'29 BONDED DEBT July 1 '13 $ 2,049,800 Assessed valuation 1913 413,420,613 Real value (est.) 825,000,000 School tax rate f Elementary .... 4.90 (per $1,000)) ] High school 3.00 1913 \ Elem'ty & high. .50 LOS ANGELES CITY HIGH S. D. Polytechnic High School Bonds. 4s '06 $156,000 Jan 1 '15-'36 4s '09 420,000 April 1 '15-'49 4'As'U 518,000 Sept 1 '15-'51 Hollywood H. S. Bonds (Assumed). 5s '04 $ 32,500 May 23 '15-'24 4'As'09 12,000 June 7 '15-'20 5s '10 100,000 Jan 27 '15-'34 Jewell School Bonds (Assumed). 4'As '06 $12,000 July 2 '15-'26 San Pedro City S. D. (Assumed). 5s '04 $20,000 Dec 27 '15-'24 5s '05 6,000 Oct 3 '15-'20 BONDED DEBT July 1 '13 $ 1,294,500 Assessed valuation 1913 413,420,613 Real value (est.) 825,000,000 School tax (per f Elementary .... 4.90 $1,000) 1913 \ High school.... 3.00 I Elem'ty & high. .50 LOS ANGELES COUNTY. County seat is Los Angeles. Highway Bonds. 4Msg09 F-A $3, 500,000c Feb 1 '15-'49 BONDED DEBT Sept 22 '14....$ 3,500,000 Assessed valuation '14 (3-5 act.).. 849,991,595 State & Co. tax rate ( Inside . . . 8.50 (per $1,000) (Outside... 12.50 Population in 1910 504,131 INTEREST at Kountze Bros., N. Y. C. MENDOCINO COUNTY. County seat is Ukiah. Refunding Bonds. 4s '01 J-J $62,500c July 1 '15*39 BONDED DEBT July 1 '13 $ 65,000 Assessed valuation '13 ('A act.)... 18,147,700 State & Co. tax (per ( Inside 12.00 $1,000) '13 I Outside 18.00 Population in 1910 23,920 MERCED COUNTY. County seat is Merced. Bonds are exempt from taxation. Refunding Bonds. 4s g '03 Dec $30,000c Dec 1 '14'16 BONDED DEBT Sept 25 '14 $ 30,000 Assessed valuation '14 (M act.)... 25,144,757 State & Co. tax rate (Inside 13.00 (per $1,000) (Outside 19.00 Population in 1910 15,148 INTEREST at County Treasurer's office. MODESTO. This city is in Stanislaus County. Incor- porated 1884. Re-incorporated in 1911. Op- erating under commission form of government. Population 1910, 4,034. Fire, Water, Sewer and Street Bonds. 5s g '09 J-D j $3O,000c Dec 1 '14-'2S ( 18,000c Dec 1 '26- '28 5s '10 J-D 87,500c Dec 1 '15-'49 Street Bonds. 5s '11 J-J $27,7S0c Jan 2 '15*51 Water Bonds. 5s '12 J-J $77,500 Jan 2 '15-'45 BONDED DEBT Sept 28 '14 $ 249,250 Assessed valuation '14 ( 'A act.).... 4,389,270 City tax rate (per $1,000) '13 16.00 MODESTO IRRIGATION DIST. This district (P. O. Modesto) is in Stanis- laus County. Bonds are tax-free. 5s J-J $l,010,511c Jan *23-'42 5s J-J 332,000c Jan '25-'44 6s g J-J 17,100c Jan '15-'23 5s '09 J-J 244.000c 1929-1939 BONDED DEBT Oct 7 '14 $1,593,611 Warrants outstanding Jan 1 '14.... 11,970 Assessed valuation '14 6,960,870 Tax rate (per $1,000) '14 25.00 INTEREST payable at Treasurer's office and First National Bank at Modesto. (Compiled by the Commercial and Financial Chronicle.) CALIFORNIA CITIES AND TOWNS 117 ..July 1 M5'34 ..July 1 '15-'38 .Mar 12 M5-'40 MONROVIA. Monrovia is in Los Angeles County. Incor- porated December, 1887. Pop'n 1910, 3,576. Water Bonds. 6s '94 July $20,000 6s "98 July 15,000 6s '00 Mar 13,135 5s '05 ID 3,400 1930 5s '07 Mar 25,500 1947 5s '07 Mar 3,500 1927 5s '09 Mar 15,000 1943 5s '10 Ian 47,500 Fire Apparatus Bonds. 5s '05 Mar $400 1915 Library Bonds. 5s '05 J-D $400 1915 Sewer Bonds. 5s '10 Jan$114,000 Park Bonds. 5s '05 J-D $14,000 1945 Building Bonds. 5s '05 J-D $6.600 1941 BONDED DEBT June 1 '13 $ 282.050 Assessed valuation M3-'14 (Vi act.). 4,000.733 Tax rate (per $1,000) '13 15.00 INTEREST at City Treasurer's office. MONROVIA CITY SCH. DIST. BONDED DEBT April 20 '14 $ 57,750 Assessed valuation '13 4,150,000 MONROVIA HIGH SCH. DIST. 5s g '10 Sept $121,700c Sept 12 M4-'S0 BONDED DEBT April '14 $ 125.000 ted valuation '13 4,150,000 INTEREST at County Treasurer's office. MONTEREY. This city is in Monterey County. Incor- porated as a city of sixth class in 1889. Com- on government went into effect July 1, 1911. Municipal Impt. Bonds. 5s g '09 J-J $131,448c Jan 2 M5-*51 BONDED DEBT Sept 23 '14 $ 131.448 Assessed valuation '14 (Vi act.) 2,650.496 City tax (per $1,000) '13 14.50 Population in 1910 4,923 INTEREST at City Treasurer's office. OAKDALE IRRIGATION DIST. This district is in Stanislaus County. 5s MO J-J $1, 600.000c ...July 1 *31'40 5s '13 J-J 400.000c ...Jan 1 '34-'43 BONDED DEBT Sept 21 '14 $2,000,000 Assessed valuation '14 (1-3 act.)... 3,183.660 Total tax (per $1,000) '14 (est.)... 60.00 Population in 1914 (est.) 4,500 INTEREST at District Treasurer's office. OAKLAND. Oakland is the county seat of Alameda County. Incorporated 1854. Commission gov- ernment adopted Dec. 8, 1910. Refunding Bonds. 4s g'97M-S $17,5O0c Sept 1 M5-M9 McElroy Bonds. 4Vis g '09 J-J $3.016,700c Jan 1 M5-'50 Municipal Improvement Bonds. 5s '13 F-A 725,000c Aug 1 '1S-'4J 5Vis '13 F-A $ 986,000c Aug 1 '15-'4J 4Vis "13 F-A 1.131,000c Aug 1 M5'43 Refunding Bonds. 4s g '97 MS $80.500c Septl'15-'37 Sewer Bonds. 4Vis g '07 J-J $485, 512.50c... Jan 15 '15-'47 Park Bonds. 4J4s g '07 J-J $818,400c Jan 15 M5'47 School and Auditorium Bonds. 4Vis Ml J-D $l,009,357.50c.June 15 M5-'51 Clawson School Bonds. 5s '14 F-A $26,000c Aug 1 M5-'29 Auditorium Bonds. 4Ke '14 F-A $104,000c Aug 1 M5'39 BONDED DEBT Sept 19 '14 $ 8.319,470 Total assessed valuation M3-M4. . .'153.845,660 Real value (est.) 307,691.840 Total tax (per $1,000) M3-M4 30.80 Population in 1910 (Census) 150,174 Population in 1914 (est.) 215,000 •Of the total valuation, $451,400 is exempt from taxation in accordance with State laws and $15,666,510 is taxed by the State only, but on this last-named amount the State reim- burses the city for taxes on interest and re- demption on bonds sold prior to Nov. 10, 1910. INTEREST on all bonds payable at City Treasurer's office. The McElroy bonds,_ School and Auditorium bonds and the municipal im- Ement, Clawson School and Auditorium onds of 1914, can also be paid at National City Bank, New York City. ORANGE UNION HIGH S. D. Building Bonds. 5s '12 MS $46,000r Septl'15-'37 BONDED DEBT April '14 $ 68,000 Assessed valuation '13 4,398,02s School tax (per $1,000) '13 6.70 INTEREST at County Treasurer's office. ORANGE COUNTY. Santa Ana is the county seat. 4s $40.000 Bridge Bonds. 5s g '12 MS $90.000c 1915-1932 Hospital and Almshouse Bonds. 5s g M2 MS $54,000 1915-1932 Highway Bonds. 5s '13 $1,270,000 BONDED DEBT July 1 '13 $ 1.457,000 Aueued valuation '13 41,887,23s State & Co. tax (Inside 10.50 (per $1,000) '13 (Outside 14.50 Population in 1910 34,463 OROVILLE. This city is in Butte County. Incorporated Jan. 3, 1906. Population 1910, 3,859. Levee Bonds (Tax Exempt). 5s J-J $68,000c ($2,000 payable annually on July 1.) Sewer Bonds (Tax Exempt). 5s J-J $108,000c $3,000 annually BONDED DEBT Oct M4 $ 176,000 Assessed valuation '14 (3-5 act.) 1,820.263 City tax (per $1,000) '14 18.50 INTEREST payable at City Treas. office. OXNARD. This city is in Ventura County. Incor- porated in 1901. Water-Works Bonds. 5s '12 M-N $100,000c May 1 '22-'46 Sewer bonds $ 33,625 BONDED DEBT Sept 11 '14 133.625 Assessed valuation '14 2,370,687 Tax rate (per $1,000) '14 1100 Population in 1910 2.555 INTEREST on water-works bonds payable at City Treasurer's office. PALO ALTO. This city is in Santa Clara Co. Incor- porated July 1, 1909. Population 1910, 4,486. Sewer Bonds. 5s A-O $24,000c Oct 1 M5-'38 Improvement Bonds. 5s A-O $28,000c Oct 1 M5'42 5s A-O 60,000c May 1 M5-'47 5s g '09 JJ 12,600c July 1 M4'50 5s Ml J-D 27,500c July 1 M4'3 OAKLAND SCHOOL DISTRICT. 4Vis '04 JJ $720,000 1944 4.8s "06 J-J 224.000 1946 BONDED DEBT Oct 6 M4 $ 994.000 Aueued valuation M4 (VS act.).. 135,591.670 School tax (per $1,000) '14 8.60 Population in 1914 (est.) 225,000 Bonds are exempt from taxation. INTEREST at County Treasurer's office. ORANGE. This city is in Orange County. Water Works Bonds. 5s Ml J-D $48.750 1951 4tfs '05 40,000 1945 Sewer Bonds. Ss MO $14.000 1926 Paving Bonds. 5s M0 $4.000 1920 Fire Dept. Bonds. 5s Ml $4.500 1921 TOTAL BOND DT. April 20 M4..$ 106.650 Assessed valuation '13 2.179.451 Real value (est.) 5,000.000 Total tax (per $1,000) M3 13.00 Population in 1910 2.920 .1954 Jan 2 M5-M2 4VSs Ml 75,000 19171931 5s '14 F-A 90,000 (Due $5,000 yrly. for 15 yrs. beg. after 4 years from issue.) High-School Building Bonds. 4Vis Ml M-N $475,OOOc May 1 M9'42 BOND DEBT [une 1 "14 — City School District $ 548,000 High School District 475,000 Assessed raL '14 (33 to 40% act.). .46,632,150 Tax rate (per $1,000) 1 Gram. sch. bds.$1.10 M4-M5 ( High sch. bds. .50 Total tax (per $1,000) M4-M5 8.60 INTEREST at County Treasurer's office. PLUMAS COUNTY. Quincy is the county scat. All bonds are tax-exempt. Refunding Bonda. 4s A-O $35, 100c 1934 Bridge and Highway Bonds. 4s g '07 A-O $100,000 Oct 1 M7'32 (Part every 5 years.) BOND DEBT Sept 22 '14 $ 135,100 Assessed val. '14 (3-5 act.) 9,3')K.X11 State & Co. tax rate 1 Inside (?) (per $1,000) (Outside $16.00 Population in 1910 5.259 INTEREST at County Treasurer's office. POMONA. This city is in Los Angeles County. In- corp. Jan, 1888. All bonds tax-exempt. Popu- lation 1910, 10,207. Special Fire Bonds. 5s '13 M-N $15,000c (Part yearly beg. Nov 1, 1914.) Special Street Bonds. 5s M3 M-N $75,OOOc (Part yearly beg. Nov. 1, 1914.) Sewer Bonds. . 4s '00 J-D $20,250c 1940 Park Bonds. 4s '().) J-D $43, 500c 1943 School Bonds. , 4Vis '07 J-D $33,OOOc July 1 '15-'47 City-Hall Bonds. 4Vis *09 J-l $46.37Sc July J '15- 49 BOND DEBT June .10 '14 $ 235,450 Assessed valuation 1914 < V, act.).. 8,490.301 Tax rate (per $1,000) M4 16.M) INTEREST at City Treasurer's office. 27,500c. Subway Bonds. 5s '14 J-J $9,500.. Street Paving Bonds. 5s '14 J-J $25,000 1954 Water Bonds. 5s A-O $22,000c July 15 M5'36 Light and Water Bonds. 5s '12 $19,000c 1952 Power-Plant-Impt. Bonds. 5s '12 $1 1,200c 1927 Oil Pipe Line Bonds. Si '12 $2,800c 1927 BOND DEBT Sept. 21 '14 $244,600 Assessed valuation M4-M5 $9,009,572 (Assessment 3-5 on real estate and 2-5 on personal property.) City tax (per $1,000) M2-M3 $9.50 INTEREST payable at Bank of Palo Alto. PASADENA. This city is in Los Angeles County. In- corp. June 14, 1886. Resilient districts of San Rafael Heights and Linda Vista annexed to this city Aug. 12, 1914. Electric-Light-Extension Bonds. 4s '06 J-J $100,000c July 1 M4-'46 4Vis '08 A-O 42,500c Apr 1 M5-'48 4s '09 MS 131,250c Mch 1 M4'49 Street-Machinery Bonds. 4s '02 J-J $12,250c... City Hall and Jail Bonds. 4s '02 J-J $34,650c Jan 2 M5-'42 City Hall Bonds. 4Vig'll J-D $21,275c June 1 M5-'51 Park Bondt. 4s g '02 JJ $50.000c&r Jan 2 M5-'22 4s P 02 /J 10,000c Jan 2 M5'22 Water Bonds. , 4s '05 M-N $19,375c May 1 M5'45 4s '02 JJ 4,200c Jan 2 M5-'42 Water-Plant-Purchase Bonds. 4Vis '12 A-O $1,250.000 (Due $50,000 yearly beginning Oct 1 17) Sewer Bonds. 4Vis '08 A-O $42,500c Apr 1 M5-'48 4s '02 j-J 24,500c Jan 2 M5-'42 Sewer Farm Bonds. .. '02 $3,500 Jan '15-42 Fire-Department Bondt. 4s '02 J-J $14.000c 4s '06 J-J 60.000c 4Vis g '11 J-D 16,650c Bridge Bonds. 4Vis g Ml J-D $92.500c June 1 M5-'31 Garbage-Incinerator-Plant Bonds. 4Ki k M 2 M-N $52.O00c May 1 M5-'52 BOND DEBT Sept 1 M4 $1,981,950 Cash on hand 303.439 Assessed valuation '14 (2-3 acct.). .57,551.665 City tax (per $1,000) M3-M4 11.40 Population in 1910 (census) 30,291 INTEREST at City Treasurer's office. PASADENA SCHOOL DISTRICT. Includes the City of Pasadena and North and East Pasadena, Altadena, La Manda Park and Linda Vista School Districts. School Bonds. 4Vis '02 Sept $45,000c Sept 15 M5'22 4s '03 Sept 46,000c Sept 8 M4'37 4 Vis '04 Oct 20.000c Oct 24 M4-M8 4s '06 M-N 125.000c Mch 12 M5-'39 4 Vis '08 140,000c Apr 27 1915 Department Bonds. J J $14.000c Jan 2 M5-'42 JJ 60,000c July 1 M4'46 Ml J-D 16,650c June M5-'51 POMONA CITY SCHOOL DISTRICT. 4 Vis '09 $77.000 1949 Building Bonds. 5s '1J $27,000 1914-1923 BOND DEBT Apr 1914 $77,000 POMONA CITY HIGH SCHOOL DIST. 4'/is '03 $27.000 J923 4 Vis '09 57,000 ivJSJJ BOND DEBT Apr 1914 $84,500 REDLANDS. This city is in San Bernardino County. Incorporated Nov. 1888. Pop. 1910, 10,449. Water-Works System. 5s g '12 M-N $600,000c Nov 15, '22-'51 Municipal Improvement Bonds. 4Vi g '05 J-J $77,500c July 15 M5'45 Special Improvement Bonds. ...... 5s g '07 J-J $32,500c Jan 15 M5'27 Public Park" Bonds. 4Vis g '07 F-A($ 9,000c Aug 1 14-22 ) 10,000c Aug 1 '23 '27 5s Ml MS 74.000c Mch 1 M5-'51 BOND. DEBT Tan 1 M4 $ 610,000 Sinking fund July 1, '14 .J, 3 ,' 4 * , Assessed valuation '13 ( V$ act.) 9,192.300 Total tax rate (per $1,000) '13... 42.20 INTEREST at office of City Treasurer. REDLANDS SCHOOL DISTRICT. Grammar School Bonds. 5s '02 $10,000 1915-1919 S S '02 9.000 Sept 15 M5'23 5s '03 16,000 May 26 M5-M9 5s '04 9,000 Mch 8 '15- 23 5s '07 5,000 Apr 13 '20-'21'22 5s g '08 Aug 50,000c Aug 24 '23'32 High School Bonds. 5s '03 $36,000 July 7 M5'23 5s g M0 Apr 85,000 1915-1935 BOND. DEBT Sept M4 — Grammar School District $loo.cci) High School District 121.000 Assessed val. M3 ( V, act.) 7.719,021 School tax rate (per $1,000) '13 $12.50 INTEREST at County Treasurer's office. REDWOOD CITY. This city is in San Mateo County. Street Light Bonds. ...... 5VisM3 A-O $5.700 Apr 7 Mj-'33 Water Works Bonds. 5Vis'00 .... $5,600 1940 Water Works Extension Bonds. 5Vis'09 $17.000 1929 Municipal Improvement Bonds. 4 Vis '04 ... . $82,500 1944 5s M0.... 40,375 1950 Paving Bonds. 5VisM2.... $30.000 BONDED DEBT July 1 '12 $ 150.154 Assessed valuation '12 2,081,965 Tax rate (per $1,000) '12 16-70 Population in 1910 2,442 RICHMOND. This city is in Contra Costa County. In- corporated Aug. 7, 1905. Population, 1910, 6,802. Harbor Bonds. 5s M3 JJ $290.000 1914-1952 Improvement Bonds. 5s '13 JJ $270,OOOc Jan 1 M5'23 BONDED DEBT Mar 20 M4 $ 560.000 Assessed valuation '13 15.235,860 (Assessment about 60' i act. value.) Total tax (per $1,000) M3 26.65 Citv tax rate (per $1,000) '13 10.00 INTEREST at City Treasurer's office. (Compiled by the Commercial and Financial Chronicle.) 118 CALIFORNIA CITIES AND TOWNS RIVERSIDE. This city is the county seat of Riverside County. Incorporated 1883. Street Improvement Bonds. 5s '95 s.-an. $47,250c Aug 1 '15-'35 Electric-Light Improvement Bonds. 5s '95 F-A $21,000c Aug 1 '15-'35 Steam Power Plant Bonds. 4s g '00 J-D $26,000c June 1 '15-'40 Fairmont Park Bonds. 4Ksg'll MS $25,500c Mch 1 *15-'31 Fire Department Bonds. 4j4sg'll M-S $17,000c Mch 1 '15-'31 Water-Works-Purchase Bonds. 5s '13 J-D $1. 131,000c June 1 *15-'53 BONDED DEBT Sept 30 '14 $ 1,271,000 Floating debt July '14 13,690 Assessed valuation '14 (30% act.).. 10,264,999 Total tax rate (per $1,000) '14 43.50 Population in 1910 15,212 INTEREST at City Treas. office & in N. Y. RIVERSIDE CITY SCHOOL DISTRICT. All bonds are tax-exempt. 4s g '01 F-A $ 24,000c 1915-1920 5s 'OS Feb 32,000c 1915-1922 4Ks'10 F-A 250,000c Aug 3 1920-M9 5s '14 M-S 50,000 $2,000 annually BONDED DEBT Sept 21 '14 $ 356,000 Assessed valuation '13 (30% act.) 9,659,735 School tax (per $1,000) '13 11.20 Population in 1914 (estimated) 17,000 INTEREST payable at County Treasury. RIVERSIDE COUNTY. Riverside is the county seat. All bonds are tax-exempt. Highway Bonds. 5g'14 M-N $1, 125,000c May 1 *25-'54 Court-House Bonds. 4sg'02 M-S $14S,000c Sept 1 '14-'42 BONDED DEBT May '14 $ 1,270,000 Assessed valuation '13 (1-3 act.).. 31,984,516 State and cotintv tax j Inside .... 13.00 (per $1,000) '13 ) Outside 19.00 Population in 1910 34.696 INTEREST on highway bonds at County Treasurer's office or at Hanover National Bank, New York; on other bonds at County Treasurer's office. .July 1 '15-'S3 Jan' 1 '15-'41 SACRAMENTO. County seat of Sacramento County and cap- ital of State. Re-incorporated April 23, 1863. Delinquency in payment of original debt. Commission government adopted Nov. 7, 1911 and went into effect July 1, 1912. Levee and Sewer (red. any time). 4sg'05 J-J $120,000c Tan '15-'38 4sg'08 J-J 170,000c Jan 1 '15-M8 Sewer and Drainage. 4^s'13 $185,600 July 1 '15-'53 Electric Distribution. 4J4s'14 $9,600 Jan 1 '15'54 Levee Bonds. 4^s'13 J-J $751,825 Jan l'15-'53 4s '08 J-J 60,000c July 1 '15-'38 High-School Bonds. 4s '05 J-J $155,000c Jan 1 '15-'45 4s '08 J-J 38,000c July 1 '15-'33 City-Hall Bonds. 4s '07 J-J $247,500c July 1 '15-'47 Water-Main Bonds (red. anv time). 4^s'13 $ 35,500 4s '03 J-J 106,000c River Improvement Bonds. Ayis $67, 500c Jan 1 '15-'41 Old bonds outstanding $ 7,100 BONDED DEBT Oct '14 1,953,625 Sinking fund 3 1 ,607 Assessed valuation '14 (72% act.) . .74,163,100 City tax (per $1,000) '14 14.60 Population in 1910 (Census) 44,696 Population in 1914 (estimated) 75,000 INTEREST on 4J49S levee bonds at City Treasurer's office or at. Bank of New York, N. B. A. ; other bonds in Sacramento at Cap- ital National Bank. SACRAMENTO CITY SCHOOL DIST. 4Ms'll J-J $2000,000 (Maturity 20 bonds in 6 years and 10 bonds every six months thereafter.) BONDED DEBT Mar '14 $ 200,000 Assessed valuation '13 (3-5 act.).. 56,869,230 Population in 1914 (estimated) 71,000 INTEREST at County Treasurer's office. SACRAMENTO CITY HIGH S. D. Building Bonds. 4^s'll f-J $100,000 (Maturity $4,000 in 16 years and $2,000 every 6 months thereafter.) BONDED DEBT Mar '14 $ 100,000 Assessed valuation '13 (3-5 act.).. 56,869,230 INTEREST at County Treasurer's office. SACRAMENTO COUNTY. County seat is Sacramento. Bridge Bonds. 4^s'08 J-J $225,000c Jan 1 *17-'48 Court-House and Tail Bonds. 4^s'08 j.j $660,000c Jan 1 '17-'48 Road Bonds. 4Hs'08 J-J $600,000c Jan 1 '17-'48 BONDED DEBT Apr '14 $ 1,485,000 Floating debt 66,825 Value of county property '13 1,221,234 Assessed valuation '13 (3-5 act.).. 80,057,358 State and county (Inside 12.23 tax (per $1,000) (Outside 16.70 Population in 1910 67,806 SALINAS CITY. This city is in Monterey County. Incorpo- rated Feb. 11, 1903. Population, 1910, 3,736. Sewer Bonds. 5s '97 J-J $23,000c Jan 2 '15-'37 City Hall Bonds. 5s g '06 J-D $41, 250c Dec 31 '14-*46 School Bonds. !is'09J-J $18,750c Jan 2 12,375c Dec 31 5s '06 J-D 15 -'39 14-'46 BONDED DEBT Sept 23 '14 $ 95,375 Assessed valuation '14 (3-5 act.).. 2,502,394 Total tax rate (per $1,000) '14 28.70 INTEREST at City Treasurer's office. SAN BENITO COUNTY. Hollister is the county seat. High-School Bonds. 5s $24,000 $3,000 yearly Road Bonds. 5s '12 J-J $280,000 July 1 '15-'42 BONDED DEBT Sept 22 '14 $ 304,000 Assessed valuation '14 (3-5 act.) 9,091,200 County tax (per (Inside 27.00 $1,000) '14 (Outside 29.00 Population in 1910 8,041 INTEREST at Holister. SAN BERNARDINO. This city is located in San Bernardino Coun- ty. Incorporated 1886. An amendment to the city charter was adopted on April 18, 1913 and subsequently approved by the Legislature, increasing the borrowing capacity to 15% of the assessed valuation. Population 1910, 12,779. Water Bonds. 4s '03 A-O $118,1 75c Apr 1 '15-'43 4s '03 A-O 48,300c Apr 1 '15-'43 Improvements Bonds. — (Tax Bxgmpt.) 4yi s '08 A-O $93, 500c 1915-1948 BONDED DEBT Sept '14 $ 262,725 Assessed valuation S Non operative. . 4,686,885 '13-'14 (Operative 1,258,731 Total tax (per $1,000) '14-'15 32.00 INTEREST is payable at City Treasurer's office and in New York. SAN BERNARDINO HIGH S. D. This district not only includes the city of San Bernardino, but also adjacent territory. 5s g '14 A-O $250,000 (Due $5,000 yearly from 6 to 25 years in- clusive and $10,000 yearly from 26 to 40 years inclusive.) BONDED DEBT May '14 $ 250,000 Assessed valuation \ Xon operative. . 5,648,275 '13-'14 (Operative 1,393,052 Real value (estimated) 12,000,000 INTEREST at County Treasurer's office. SAN DIEGO This is the county seat of San Diego Co. Incorporated Jan. 1, 1835. All bonds are tax- exempt. All bonds due part yearly. Popula- tion 39,578. Reservoir Bonds. 4>4g'07 J-D $123,933c June 1 '15-'45 Sewer Bonds. 4;4s'03J-J $101, 500c July l'15-'43 4Ks'05A-O 58,125c Oct l'15-'45 4^s'07 J-D 42,394c June 1 '15-'43 4^s'07 J-D 1,148c June 1 '15-'17 4^s'07 J-D 9,334c June 1 '15-'33 4^s'07 J-D 889c June 1 '15-'16 4^s'07 J-D 27,112c June 1 '15-'42 4^s'04 85,000c 1948 4>4s 24,050c 1950 4^s 2,000c 1918 4^s 5,900c 1926 4J^g'll J-J 68,500c Jan 1 '15-'4S 4J/is'13 114,000 1952 Refunding Bonds. 4J^s'98 J-J $156,000c Jan 1915-'38 Fire Department Bonds. 4!4s'03 $26, 000c July l'15-'40 4|/Ss'07 52,000c June 1 '15-'40 4^s'12 .... 75,000c 1952 Water Bonds. 4!4s'01J-J $ 406,000c July 1 '15-'41 4>4s'03J-J 144,275c July l'15-'43 4j4s'05 A-O 41,850c Oct 1 '15-'45 4^s'07 J-D 48,608c June 1 '15 '47 4}4s'07 J-D 216,891c June 1 '15-M5 4J4g'llJ-J 313,000c Jan 1 '15-MS 4J4s'12 275,000 1952 4!^s'12 J-J 323,000c 1952 4^s'13J-J 2,437,500c Jan 1 '15-'52 5sg'14A-0 705,000 Apr 1 '15-'54 4>fs'14J-J 1,500,000c July l'15-'54 Street Bonds. 4K»'12 $51, 250c 1952 Boulevard and Road Bonds. 4^g'07J-J $56,O0Oc June 1 '15-M2 Cemetery Road Bonds. Ayis'07 J-D $l,500c June 1 '15-'17 Concrete Culvert Bonds. 4J^s'07 J-D $39, 500c June 1 '15-'41 Park Bonds. 4!/ iS g J-J $925,0O0c 1950 5s g'13 M-S 828,750c Sept 1 '15-'53 Playground-Purchase Bonds. 4^s'13 $71,250 1952 Wharf and Harbor Bonds. 4j4g'll J-J $950,OOOc Jan 7 '15-'51 Municipal Improvement Bonds. 4*4l'12 J-J $9,000c 1932 TOTAL DEBT Sept 1 '14 $10,341,734 Assessed valuation r 14 VA act.) 84,993,931 City tax rate (per $1,000) '14 15.70 INTEREST at City Treasurer's office and at National Park Bank, New York. SAN DIEGO SCHOOL DISTRICT. 4s g '06 July? 72,000c July '15-'26 5s '07 July 130,000c July 5 '15-'27 4V4s '09 s-an 45,000c 1921-1929 5s '13 A-O 350,000c 1919-1953 BONDED DEBT Sept '14 $ 597,000 Assessed valuation '13 (2-3 act.).. 50,356,208 School tax rate (per $1,000) '13.. 8.00 INTEREST at County Treasurer's office. SAN DIEGO HIGH SCHOOL DISTRICT. 5sg'05 M-S $ 99,000c Sept '15-'25 5s '11 Feb 200,000 Feb 6 '17*51 BONDED DEBT Sept '14 $ 299,000 Assessed valuation '13 (2-3 act.).. 50,356,280 School tax rate (per $1,000) '12.. 8.00 INTEREST at County Treasurer's office. SAN DIEGO COUNTY. San Diego is the county seat. Highway Bonds. 4^K 09 A-O $l,095.000c Oct 1 '15-'49 BONDED DEBT Oct '14 $ 1,095,000 Sinking fund Sept "14 50,329 Assessed valuation '14 (40% act.) 75,780,118 State and county tax J Inside 11.90 (per $1,000) '14.. .( Outside 18.50 Population in 1910 61,665 INTEREST at County Treasurer's office. SAN FRANCISCO., San Francisco is in San Francisco County. Financial statement given below is for both city and county. At an election held Dec. 10, 1912, 17 amend- ments to the city charter were adopted. An, agreement has been reached between the city and the Spring Valley Water Co. on a plan of condemnation proceedings. The Board of Supervisors on Jan. 5, 1914, passed an ordinance formally accepting the water supply and power rights in the Hetch- Hetchy Valley, granted in the bill passed by Congress in 1913. The $5,000,000 5% exposition bonds given in table below are not figured in the 15% debt limit. These bonds were voted Nov. 15, 1910. See remarks under State of California for con- stitutional amendments giving authority to issue these and other bonds. On Aug. 26, 1913, the voters authorized the issuance of $3,500,000 municipal-railway-system bonds. Up to March 20, 1914, $1,802,500 had been disposed of. Golden Gate Park Bonds. 3>4s'04 J-J $246,000c July 1 '15-'44 Library Bonds. 3J4s'04 J-J $328,800c July 1 '15-'22 Mission Park Bonds. 3^s'04J-J $219,000c July 1 '15-'44 Playground Bonds. 3^s '04 J-J $555,OOOc July 1 '15-'44 Hospital Bonds. 5s '08 J-J $1,800,000 July 1 '15*32 Hospital-Jail Completion Bonds. 4'/i '13 A-O $629,00(1 Apr 1 '16-'37 Sewer Bonds. 5s '08 J-J $3,629,000c July 1 '15-'54 3>/ iS '04 .... 8,000c Polytechnic High-School Bonds. 4>4s'10 J-J $575,000c July 1 '14-'37 Fire-Protection Bonds. 5s '08 J-J $5, 200,000c July 1 '16'55 Garbage Disposal Bonds. 5s '08 J-J $672,000c July 1 '15-'30 School Bonds. 3J4s'04 J-J $ 785,400c July 1 '14*16 5s '08 J J 4,800,000c July 1 '15-'38 Street Bonds. 3'As '04 J-J $506, 250c July 1 '15-'19 City Jail and Hall of Justice. . 3'4s'04 J-J $104, 400c July 1 '15-'20 is '08 J-J 850,000c Julyl'15-'31 Water-Supply Bonds. 4'/fis'10 J-J $ 100,000 Jan 1 1915 4J4s'10 J-J 1,212,000c 1920-1964 Geary Street Ry. Bonds. .,..,», 4"4s'10 J-J $l,900,000c July 1 '15-'34 Market Street Ry. Bonds. Ayis '10 $69,000 Union Street Ry. Bonds. 5sg'13 J-D $l,802,500c Dec 1 17-51 Exposition Bonds. 5s '12 M-N $5,000.000 (Payable $200,000 yearly beginning May 1 17) City-Hall and Civic-Centre Bonds. 5s '12 J J $7,480,000c July 1 '17-60 Special bonds made payable by statute from taxes on lands benefited : Montgomery Ave. bonds $1,579,000 Dupont Street bonds, 7s, amount outstanding 285,000 Both the Dupont St. and the Montgomery Ave. bonds have long been in default, but they were not obligations of the municipality. Holders of Montgomery Ave. bonds brought suit against the State to recover the face value and interest aggregating $2,000,000. The Su- perior Court holds that the State is not- liable. Appeal was taken, which up to March 25, 1914, was still pending. INTEREST is payable in gold in San Fran- cisco. TOTAL DEBT. SINKING FUNDS, etc. Mar. 20 '14 Oct. 31 '13 Total bonded debt. .$39,485,100 $34,997,600 Sinking funds 592,433 36,488 Net debt $38,892,667 $34,961,112 CITY PROPERTY.— The following is a description of the property owned by the City and County of San Francisco, as trans- mit'ted to the State Comtroller by direction of the Board of Supervisors Oct. 13, 1913. The water, gas and electric-light plant are not owned by the city: Park reservations, public squares and improvements $33,543,000 Fire department, lots and improve- ments, apparatus, etc 3,930,130 Police department, lots, improve- ments and furnishings 342,100 Auxiliary fire-alarm system 5,496,000 City Hall, Hall of Justice, county jails, hospitals, amshouses, lots and improvements and furniture 5,751,300 Channel St. lots from 9th to 18th streets : • • 610,000 School lots, improvements, libraries, furniture, etc 12,963,520 Garbage system 684,756 Hetch-Hetchy lands 1,240,440 County-line Water Co., lands and property 30,000 Geary Street railway 1 ,61 6,625 Civic Centre lands 5,700,000 Total $71,907,871 {.Compiled by the Commercial and Financial Chronicle.) CALIFORNIA CITIES AND TOWNS 119 SAN FRANCISCO— Concluded. ASSESSED VALUATION AND TAX RATE. — Property is assessed at about 50% of its actual value. Assessment decreased in 1906, owing to earthquake. 1913-14. 191213. Real estate $461,282,132 $447,777,237 Personal 64,965,404 62,652,079 Total $526,247,536 $510,429,316 Tax (per $1,000)... 22.42 20.50 Tax rate for city and county purposes for 1913-'14 is $20.20 and for State purposes $0.42 per $1,000 of valuation. The amount of taxes levied in 1913-M4 for city and county purposes was $11,577,445.79; (or State purposes, $221,023.96; total amount of taxes. $11,798,469.75. POPULATION— In 1910 (Census), 416.- 91 J; in 1900 (Census), 342,782; in 1890, 298,997; in 1880, 233,959; in 1870, 149,473. SAN JOAQUIN COUNTY. Stockton is the county seat. Highway Bonds. SsgW j.J ; DED DEBT Mar '14 $ 1,750,000 I- J $1.750,000c 1949 Assessed valuation '14 (3-5 act.).. 60,638,988 State and County tax f Inside .... 14.50 (per $1,000) '14 (Outside.... 18.50 Population in 1910 50,731 INTEREST at County Treasurer's office or at office of Kountze Bros., New York. SAN JOSE. This city is in Santa Clara County. In- corporated 1850. Bonds tax-free. An elec- tion held November 2, 1911, favored annexing East San Jose to this city. In December, 1912. Port San Jose was annexed. Municipal Improvement Bonds. 4sg - 06 A-O $172,000c Apr 1 '15-'46 High School Bonds. 4*4sg J-D $43.125c June 1 '15-'37 Sewer Bonds. 454s g J-D $23,000c June 1 '15*37 4J4s'12 F-A 95.000 Feb 1 '15-'52 City-Hall and Fire Bonds. 4J4sg F-A $123, 750c Aug 1 '15-'47 Park Bonds. 4*/Js '12 F-A $104,500 Feb 1 '15-'52 Fire and Police Department Bonds. 45-is'12 F-A $57.000 Feb 1 '15-'52 Incinerator Bonds. A'As'U F-A $47,500 Feb 1 '15-'52 Bridge and Creek Bonds. 4^s '12 F-A $52,250 Feb 1 '15*52 Station Bonds. _ 4!^s'12 F-A $1,900 Feb 1 '15*52 East San Jose Bonds (Assumed). 5s '09 $54,000 (Payable part yearly for 40 years.) BONDED DEBT Jan 1 '14 $ 772,525 Total assessed valuation M3-'14 24,177,405 ment 60-70<7' actual value.) City tax rate (per $1,000) '13 12.40 Population in 1910 28,946 INTEREST at City Treasurer's office. SAN JOSE SCHOOL DISTRICT. 4s g '07 Jan $189,26Sc Tan 1 '15-'47 5s '08 M-N 29.000c Mav 1 M5'43 BONDED DEBT Apr '14 $ 219.000 Assessed valuation '13 (3-5 act.).. 23,640,756 INTEREST at County Treasurer's office. SAN JOSE HIGH SCHOOL DISTRICT. 4s Ian $127,000 Tan 1 1927 5s '08 M-N 14.000c May 1 *15'28 BONDED DEBT Apr '14 $ 33.000 Assessed valuation '13 (3-5 act.).. 23,640,756 School tax rate (per $1,000) '12.. .65 INTEREST at County Treasurer's office. SAN LUIS OBISPO. This city is in San Luis Obispo County. Water Bonds. Ss '99 $56.000 1939 Sewer Bonds. 5s '99 .... $26.100 1939 Improvement Bonds. 5s "09 $171,000 1949 BONDED DEBT May 15 '13 $ 142,000 ed valuation 3,382,243 Tax rate (per $1,000) '11 23.30 Population in 1910 5,157 INTEREST at City Treasurer's office. SAN LUIS OBISPO COUNTY. San Luis Obispo is the county scat. Bonds tax-free. Population, 1910, 19.383. Wharf (Red. after 10 yrs. from issue). 5sg'06 Tulv $32.000c July 1 *15-'30 5sg'06Julv 42,000c July 1 *I5'35 BONDED DEBT Sept 24 '14....$ 74.000 Assessed valuation '14' 15 18,338,866 State and countv taxi Inside .... 16.20 (per $1,000) '14.. I Outside 22.00 INTEREST at County Treasurer's office. SAN MATEO COUNTY. Redwood City is the county seat. Highway Bonds. Ss'lf J-J $1,250.000 July 1 '17-*42 Court-House Bonds. 4s g '06 MS $135. 397c Sept 1 '14*46 BONDED DEBT July 1 '13 $ 491,500 Assessed valuation '13 29,479.940 State and county tax J Inside 10.50 tax (per $1,000) ....\ Outside 16.50 Population in 1910 26,585 -INTEREST at County Treasurer's office. SANTA ANA. This city is in Orange County. Incorpo- rated Tune 1, 1886. Bonds tax-free. Popula- tion 1910, 9,800. Water Bonds. 5s '05 FA $77,500r Feb 1 *15-'45 4Ms'll MS 18.000 Mar 1 1931 5s M4 s-a 63,000 19151954 Sewer Bonds. 4J4s'98 .... $40,625c Apr 1938 City Hall. 4J4s'04 $ll,000r Nov 1924 School Bonds. 4"/5s'04 .... $3,000 Nov 1915 Fire Bonds. 5s '14 s-a $12.000 19151938 BONDED DEBT Apr 28 '13 $ 152,625 Assessed value (35% act.) '12 6,417.800 City tax (per $1,000) '12 12.00 INTEREST payable at Treasurer's office, SANTA BARBARA. Santa Barbara is in Santa Barbara County. Incorporated March 9, 1874. Main Sewer Bonds. 4Msg'03 F-A $10,150c Aug 1 '15-'43 Bridge Bonds. 4!4g'03 F-A $14, 500c Aug 1 *15-*43 High-School Bonds. 5s '01 Jan $40,500c Jan 10 '15-'41 Oak Park Bonds. 4>4s'04 F-A $1 1,250c Aug 15 '15-'44 Water Bonds. 4J^s "01 T-J $ 42,000c July 1 '15-'41 44s'05 % 8,000 Nov 7 1915 4!4s'06 8,000 June 21 1915 5s '08 M-N 30,000 1918-1932 5sg'll A-O 25.000 Apr 1 '17-'29 5s '12 80,000 Oct 1 '17-'52 BONDED DEBT Sept 21 '14 $171,000 INTEREST at County Treasurer's office. SANTA MONICA HIGH SCHOOL DIST. Polytechnic High-School Bonds. Ssg'll A-O $200,000 Apr 1 '17-'51 High-School Bonds. 5s '12 A-O $70,000 Oct 1 *17-'52 TOTAL DEBT Sept 21 '14 $ 270,000 Assessed valuation 11,342,155 INTEREST payable at County Treasury. SANTA ROSA. This city is in Sonoma County. Incorpo- rated in 1872. Water Bonds. 4s '95 Tan $82, 500c 1915-1925 4s'05 Jan 62,500c 1915-1925 Sewer Bonds. 4s'05 Jan $56.O0Oc 1915-1925 Fire-Engine Bonds. 4s*05 Tan $l,000c 1914-1925 BONDED DEBT March '14 $ 242,100 Assessed valuation *13'14 (3-5 act.) 6,429,885 Total tax rate (per $1,000) "13 14.00 Population in 1910 7,817 INT. at Cy. Tr. of. and Un. Tr. & Sgs Ilk. SANTA ROSA— COURT HOUSE SCHOOL DISTRICT. High School Bonds. 5s'll A-O $80,000 1951 Grammar School (Part yearly). 4!4s $24,000 July 1 1925 BONDED DEBT April 28 '14— High School District $80,000 Grammar School District 24,000 SAUSALITO. This town is in Marin County. Water Bonds. 5s '09 J-J $87.500c Jan 15 *15-'49 BONDED DEBT Jan '14 $ 87,500 Assessed valuation '13*14 (3-5 act.) 2,061,150 Total tax rate (per $1,000) '13 13.70 Population in 1910 2,383 SIERRA MADRE. This city is in Los Angeles County. Water-Works Bonds (part yearly). 5s '10 s-an $ 40,000c 5s'll s-an 111,000c 5s'12 s-an 75,000c 1929-1953 5s '13 s-an 20,000c 5s'13 J-D 111,000c 5s '13 s-an 20,000c 5s 36,000 BONDED DEBT April '14 % 171,000 Assessed valuation '13 (V, act.) 1,575,000 City tax rate (per $1,000) '13 15.00 Population in 1910 1,303 INTEREST at City Treasurer's office. SOLANO COUNTY. Fairfield is the county seat. Court-House Bonds. 5sg'09 $200,000c Dec 1 '15-'34 BONDED DEBT March '14 $ 210,000 Assessed val. '13 (65% act.) 25,406,952 State & Co. tax rate ( Inside 13.00 (per $1,000) '13 (Outside 17.00 Population in 1910 27,559 INTEREST payable at County Treas. office. SONOMA COUNTY. Santa Rosa is the county scat. Court-House Bonds (Tax-Exempt). 4*4 g'07 June $268,000c June 30 '14-'42 BONDED DEBT March '14 $ 268,000 Assessed valuation '13 40,781,686 State & Co. tax (Inside 12.00 (per M) in '13 ) Outside 16.00 Population in 1910 48.394 INTEREST payable at County Treas. office. SOUTH PASADENA. This city is in Los Angeles County. Bridge Bonds. 4yis 'II . . . $28.000 Fire Prot., Paving and Cy.-Yard Bonds. 5sg*14 J-T $50,000c Jan 2 '15*54 Sewer Bonds. 5sg'14 J-J $120,000c Jan 2 '15*54 BONDED DEBT Sept 21 '14 $ 198,000 Assessed val. '14 ( Non-operative. .. 5,792,415 1 Operative 644,720 Tax rate (per $1,000) "14 15.00 Population in 1910 4,649- INTEREST at City Treasurers office. (Compiled by the Commercial and Financial Chronicle.) 120 CALIFORNIA— OREGON SOUTH SAN JOAQUIN IRR. DIST. A district in San joaguin County. The bonds of 1914 are part of an issue of $790,000. Irrigation Bonds. 5s'10 J-J $l,875,000c July 1 '31-'40 5s'13J-J 1,170,000c Apr 18 1943 (Bonds are subject to call at any interest time by mutual agreement.) Reservoir-Construction Bonds. 5s '14 JJ $790,000 July 1 '34-M3 BONDED DEBT April '14 $3,835,000 Assessed valuation, real, '13 3,000,000 (Assessment about 30% actual value.) Total tax rate (per $1,000) '12 $40.00 INT. at Dist. Treas. office in N. Y. STOCKTON. Stockton is in San Joaquin County. Incor- porated Aug. 5, 1850. Population 1910, 23,253. Sewer Bonds. 4s $35,100 Sept 1 '40 4s 31,000 Nov 1 '46 Street-Improvement Bonds. 5sg'06 F-A $154,275c Feb 1 '47 BONDED DEBT April 1 '14 $ 222,375 Assessed valuation '13 (2-3 act.).. 26,269,804 City tax rate (per $1,000) '14 15.00 INTEREST at First National Bank. STOCKTON SCHOOL DISTRICT. (Part due each year.) 6s '11 M-N $72,000c 1936 5s July $52,500c July 1 '15-'21 (Part due yearly on July 1.) High-School Bonds. 5s '13 J-J $98,000c Grammar-School Bonds. 5s '13 J-J $498,000c (Part due yearly on July 1.) TOTAL BOND. DT. March '14...$ 720,500 Assessed valuation '14 (3-5 act.).. 22,177,155 School tax (per $1,000) '14 9.00 INTEREST at Stockton Savings Bank. SUTTER CO. LEVEE DIST. No. 1. This district (P. O. Yuba City) is in Sutter County. 6s '08 s-a $230,000c 1933 6s '10 s-a 100,000c 1935 BONDED DEBT March '14 $ 330,000 Assessed valuation '13 (40% act.).. 3,105,220 Tax rate (per $1,000) '13 45.00 TULARE. This city is in Tulare County. The _ voters in February, 1913, defeated a proposition to purchase local water company for $44,000. Water Bonds. 5s gr '12 J-D $100,000c Dec 1 '17-'49 Municipal-Improvement Bonds. 5sg'12 J-D $7,500c Dec 1 '14-'28 5sg:'12J-D 1,900c Dec 1 '14'32 BONDED DEBT May '13 $ 186,000 Assessed valuation '12 1,407,620 Tax rate (per $1,000) '12 16.00 Population in 1910 2,758 INTEREST at City Treasurer's office. TURLOCK. This city is in Stanislaus County. .$25,650 1949 . 9,750 1920 Sewer Bonds. 5s '09 Ss'10 Water Bonds. 5s '09 $24,700 1949 5s '10 14,625 1920 Water and Sewer Bonds. .. '12 $25,000 BONDED DEBT April 1 '12 $ 74,725 Assessed valuation '12 1,113,045 Total tax rate (per $1,000) '12 13.70 Population in 1910 1,573 TURLOCK IRRIGATION DIST. This district (P. O. Turlock) is in Stan- islaus County, 5s '02 J-J $1, 156,000c July 1 '22-'41 5s '05 J-J 200,000c Jan l'26-'35 5s '10 J-J 100,000c July 1 '31-'40 5s '11 JJ 1,040,400c 1932-1941 BONDED DEBT May '14 $ 2,396,400 Assessed valuation '13 (45% act.). 10,099,470 District tax rate (per $1,000) '13.. 35.50 Population in 1913 (est.) 16,000 INTEREST at Commercial Bank, Turlock. VALLEJO. This city is in Solano County. Incorporated March 30, 1868. Commission government adopted Feb. 21, 1911. Refunding Bonds. 5s '95 F-A $16,800c Aug 1 '15-'35 Water Bonds. 5s '02 M-N $36,000c May 1 5s'05M-N 49,500c May 1 5s'08 M-S 55,000c Sept 1 '15-'25 5sg'll... 76,053c Jan 1 '15-'31 Harbor-Improvement Bonds. 5^s'14 M-N $142,000 May 1 '15-'35 BONDED DEBT April 23 '14 $ 248,600 Assessed valuation '13 (3-5 act.)... 5,525,108 City tax rate (per $1,000) '13 17.50 Population, 1910 11,324 INTEREST at City Treasurer's office. '15-'22 '15-'25 VALLEJO HIGH SCH. DIST. 5s '10 s-an $54,000c 1914-1935 BONDED DEBT March '14 $ 54,000 Assessed valuation '13 (65% act.).. 4,425,672 School tax rate (per $1,000) '13 5.70 Population in 1913 (estimated) 13,000 INTEREST at County Treasurer's office. VAN NUYS GRAM. SCH. DIST. A district in Los Angeles County. Building Bonds. 5s '12 Feb $50,000 TOTAL BOND. DT. April 1 '14...$ 50,000 Assessed valuation '13 4,486,340 VAN NUYS HIGH SCH. DIST. 5^s'14 s-an $120,000 1915-1954 VENICE. This city is in Los Angeles County. In- corporated Feb. 17, 1904. BONDED DEBT March '14 $ 68,000 Sinking fund 2,136 Assessed valuation '13-'14 11,716,659 (Assessment about 60% actual value.) City tax (per $1,000) '13 $10.00 Population in 1914 (est.) 6,500 INTEREST at First National Bank, Venice. VENICE CITY SCHOOL DIST. Building Bonds. 5s $92,000 BONDED DEBT April '14 $ 102,000 Assessed valuation '13 7,334,000 INTEREST at County Treasurer's office. VENICE UNION HIGH S. D. Building Bonds. 5s '13 F-A $250,000 Aug 1 '19-'52 VENTURA COUNTY. Ventura is the county seat. Court-House Bonds. 5sg'12 F-A $140,000c Feb 1 '15-'42 Bridge Bonds. 5s '11 F-A $252,000c Feb BONDED DEBT Sept 20 1914...$ Assessed valuation '14 (3-5 act.)... 30,971,620 State & Co. tax J Inside 13.00 (per $1,000) '13 | Outside 16.00 Population in 1910 18,347 INTEREST at County Treasurer's office. 1 '15-'42 392,000 VENTURA UNION HIGH S. Building Bonds. D. 5s g '11 J-J $66,000c 1915-1936 BONDED DEBT Sept 20 '14 $ 66,000 Assessed valuation '14-'15 (3-5 act.) 7,455,535 School tax rate (per $1,000) '14-'15 3.40 Population in 1913 (est.) 6,000 INTEREST at County Treasurer's office. VISALIA. County seat of Tulare County. Incorporated Feb. 27, 1874. Bonds are taxable. School Bonds. 6s July $5,750c 1937 Sewer Bonds. 5s J-T $54,000c 1940 Sewer, Bridge and City-Hall Bonds. 5s J-J $128,100c 1948 BONDED DEBT Sept 21 '14 $ 187,850 Assessed valuation '14 (3-5 act.)... 3,608,335 Total tax rate (per $1,000) '14 14.40 Population in 1910 4,831 INTEREST at First Nat. Bank, Visalia. VISALIA HIGH SCHOOL DIST. 5s '12 $19,000 6s '10 50,000 WHITTIER. City is in Los Angeles County. Incorporated Feb. 21, 1898. Water-Works Bonds. 5s g J-J $25,OOOc Jan 5s g '05 J-D 85,250c June 5s M-S 3,250c Mch Sewer Bonds. 5s '09 A-O $96,250c , June 1 '15-'49 Fire and Reservoir. 5s A-O $3, 500c Apr BONDED DEBT Sept 30 '14 Floating debt Sinking fund 1 '15-'39 1 '15-'45 1 '15-M0 1 '15-'42 213,250 5,126 21,539 Assessed valuation '14 (y 2 actual).. 3,986,631 City tax rate (per $1,000) '14 16.10 Population, 1910 4,550 INTEREST at City Treasurer's office. STATE OF OREGON. ITS DEBT, RESOURCES, ETC. Organized as a Territory (Act Aug. 14 1848).. Aug. 14 1848 Admitted as a State (Act Feb 14 1859) Feb. 14 1859 Total area of State (square miles) 96,030 State Capital Salem Governor (term expires in January 1915) Oswald West Secretary of State (term expires Jan. 2 1917). B. W. Olcott Treasurer ( term expires Jan. 2 1915) T. B. Kay LEGISLATURE meets biennially in odd years on the second Monday in January, and there is no limit to length of sessions ; but members of the Legislature can draw pay only for 40 days' services in the aggregate. HISTORY OF DEBT. — For the early history of Oregon's State debt see Commercial and Financial Chronicle's "State and City Sup- plement" of April, 1893, page 146. Today Oregon has no bonded debt. On Jan. 1, 1914, the amounts held in the irreducible trust funds were as follows : School fund, $6,405,950.64 ; Agricultural College fund, $202,113.99; and University fund, $103,635.96. On the same date the cash on hand amounted to $710,314.14. VALUE OF TAXABLE PROPERTY AND TAX RATE — Taxable Tax per| Taxable Tax per Years Property 1913 $954,282,374 1912 905,011,667 1911 890,644,164 1910 844,887,708 1909 694,727,632 1908 598,133,963 1907 581,558,918 1906 427,379,978 1904 188,058,281 $1,0001 Years $4.36 1.20 3.44 Property $1,000 $7.06 5.13 5.70 4.80 4.34 3.10 7.00 1903 $173,559,889 1902 148,099,602 1900 117,804,874 1.64|1895 144,445,426 2.2011890 114,077,788 2.13|1885 77,188,694 1.98|1880 48,483,174 2.39|1875 41,436,086 5.45| DEBT LIMITATION.— Constitutional inhibitions as to the crea- tion of debt are all found in Article XL, sections 5 to 10 inclusive, of the Constitution of 1857. We quote these sections in full. SECTION 5. — Restrictions upon Municipal Corporations. — Acts of Legislative Assembly incorporating towns and cities shall restrict their power of taxation, borrowing money, contracting debts and loaning their credit. SECTION 6.— State not to be Stockholder in Company.— The Stat< shall not subscribe to or be interested in the stock of any company, association or corporation. SECTION 7. — Credit of State not to be Loaned — Limitation upon Powers of Contracting Debts. — The Legislative Assembly shall not lend the credit of the State nor in any manner create any debt or liabilities which shall singly or in the aggregate, with previous debts or liabilities, exceed the sum of fifty thousand dollars, except in case of war or to repel invasion or suppress insurrection, or (according to an amend- ment of 1912) to build and maintain permanent roads; and the Legislative Assembly shall not lend the credit of the State nor in any manner create any debt or liabilities to build and maintain permanent roads which shall singly or in the aggregate, with previous debts or liabilities incurred for that purpose, exceed two per cent of the assessed valuation of all the property in the State; and every contract of indebtedness entered into or assumed by or on behalf of the State in violation of the provisions of this section shall be void and of no effect. SECTION 8.— State not to Assume County Debt, Except in What Case. — The Slate shall never assume the debts of any county, town or other corporation whatever, unless such debts shall have been created to repel invasion, suppress insurrection or defend the State in war. SECTION 9. — Prohibition upon Municipal Corporations. — No county, city, town or other municipal corporation, by vote of its citizens or otherwise, shall become a stockholder in any joint-stock company, corporation or association whatever or raise money for or loan_ its credit to, or in aid of, any such company, corporation or association. SECTION 10 — Limitation upon Powers of County to Contract Debts. —No county shall create any debts or liabilities which shall singly or in the aggregate, with previous debts or liabilities, exceed the sum of five thousand dollars, except to suppress insurrection or repel invasion, or (according to constitutional amendment of 1910) to build and main- tain permanent roads within the county; and debts for permanent roads shall be incurred only on approval of a majority of those voting on the question, and (according to an amendment adopted in 1912) shall not either singly or in the aggregate with previous debts and liabilities incurred for that purpose, exceed two per cent of the assessed valuation of all the property in the county. It will be seen from the above that the power to limit the indebted- ness of municipalities has been relegated to the Legislative Assembly. In 1903 the Legislature, acting under this authority, passed the follow- ing Act, Section 2722 of Bellinger & Cotton's Annotated Codes and Statutes : The common council (of cities and towns) shall not in any manner create any debt or liability which shall singly or in the 4 aggregate exceed the sum of two thousand five hundred dollars without first obtaining authority from the Legislative Assembly of this State to contract a debt or liability in excess of said sum. The above limitation does not apply to bonds issued in anticipation of the collection of street and sewer assessments under the authority of any charter of any city of 2,500 or more inhabitants. See sections 2727 to 2735 of the Annotated Codes and Statutes. As regards school districts, the general school law as amended by the State Legislature in 1901 (Bellinger & Cotton's Code, section 3389, paragraph 31) gives permission to school boards to issue bonds (pre- scribing the method) without special legislation, but stipulates that "in no case shall the aggregate of bonded debt in any school district exceed five per centum of the value of the taxable property of any such district." Further provision is made (Section 3415 of the Code) that the indebtedness of districts of the first class (those having over 1.000 children of school age) located in cities of over 75,000 inhabitants shall never exceed $100,000 — the 5% limit mentioned above applying to all districts of under 75,000 inhabitants. TAXATION OF MUNICIPAL BONDS.— No legislation has been enacted, we were advised Dec. 12, 1911, by the Board of State Tax Commissioners, exempting from taxation bonds or other obligations of the State or its counties and municipalities. POPULATION OF STATE.— The population of Oregon has been as follows in the years named: 1910 672,765fl890 313,76711870 90,923(1850 13,294 1900 413,53611880 174,768|1860 52,465| (Compiled by the Commercial and Financial Chronicle.) OREGON CITIES AND TOWNS 121 ALBANY. This city is in Linn County. 6s j-D $20,000 June 1 1915 Refunding Bridge 4 Sewer Bonds. 5s A-O $75,O00c 1923 Sewer Bonds. 5s '13 J-J $18,000 Jan 1 1928 (Subject to call after Jan 1 1923.) BONDED DEBT July 1913 $ 113.000 Paving bonds (add'l) 123,043 Warrants outstanding 46,642 Sinking fund 7,200 Assessed valuation 1912 3,527,850 Real value (est.) 7,000,000 City tax rate (per $1,000) 1911 8.00 Population in 1910 4.275 INTEREST at fiscal agency in New York. ASHLAND. This city is in Jackson County. Bonds are tax-cxenu>t. Sewer Bonds. 4^s '04 A-O $13,000c Apr 1 '15-'27 Fire Protection Bonds. $5,000 Refunding Water Bonds. 5s '09 J-J)$10.000c July 1 M5'16 (30,000c July 1 1929 (The $30,000 is subject to call after '19.) Water Bonds. 4'As '05 J-J $23,000c July 1 1920 Street (Red. after 1 year from issue.) 6s '11 A-O $15, 500c Apr 11921 6s '09 MS 12.000c Sept 1 1919 6s '10 J-J 24.000c July 1 1920 Electric Light Bonds. 4J4s'08 MS $40,000c Sept 1 '14-'29 4tfs '09 J-J 30,000c Jan 11929 (Subject to call after Jan 1 1919.) 5s g '10 J-J $25,OOOc July 1 1930 (Subject to call after July 1 1920.) Septic-Tank Bonds. 6s g '11 M-S $7,000c Mch 10 1921 (Subject to call after March 1 1912.) GEN. BD. DT. June 15 '14 $ 76.500 Water and light debt (add'l) 163,000 Assessment debt (add'l) 204,298 Assessed val. '13 (3-5 act.) 2,880,640 Total tax rate (per $1,000) '13 38.50 Population 1910 5,020 INTEREST payable in Ashland at Granite Sav. Bank, Citizens' Hanking & Trust Co., U. S. Nat. Bank and First Nat. Bank. ASHLAND SCHOOL DISTRICT No. 5. 5s s-a $7.0O0r Sept 1 1919 (Subject to call Sept 1 1909.) 5s J-J $10,000r 1924 (Subject to call any time.) 5- '11 J-J $75,OOOr Jan 11931 (Subject to call $25,000 in 10 years and $25,- 000 in 15 years.) BONDED DERT Sept 21 '14 $ 97.000 Assessed valuation '13 (3-5 act.) 3,488.165 School tax (per $1,000) 1913 8.70 Population in 1914 (est.) ,. 7,000 INTEREST payable at Nat. Park Bank, N. Y. City, or in Ashland. ASTORIA. Astoria is in Clatsod County. Incorporated 1865. Commission government rejected Dec. 13, 1911. Funding Bonds, (x) 6s g A-O $90.000c Apr 1917 Refunding Bonds, (t) 5s 'II M-N $50,000c Nov 1 1931 Water Bonds. (•) 5s&6s J-J $300,000c 1922 & 192S 5sg'll s-a 45,000c 1931 Bulkhead (Red. beg. Dec. 1923). 5sg'13 J-D $100,0O0c Dec 1 1953 Dam and Reservoir Bonds. (*) 5sg'12 J-J $80,OO0c Jan 1 1932 BONDED DEBT Sept 19 '14 $ 665,000 Assessed valuation '14 7,566,019 Total tax (per $1,000) '13 44.00 Population in 1910 9,599 INTEREST on bonds marked (*) at Chase National Hank. N. Y.j (.r) at Kountze Bros., N. Y. City; (t) at National Park Bank, N. Y. ASTORIA SCHOOL DISTRICT NO. 1 6s '91 J-J $ 5.000c July 1 1921 5s '10 J-D 75,000 June 1 1930 I Subject to call after June 1 1920.) Building Bonds. (Red. beg. July 1 '24.) is '14 J-J $20,000 July 1 1934 Refunding Bonds. 5s '03 FA $27,000c 1923 (Subject to call after Aug 1 1913.) 5s '04 A-O $12,000c Apr 1 1924 (Subject to call after April 1 1905.) BONDED DEBT Sept '14 $ 120,000 Assessed valuation '13 (3-5 act.).. 5,154,968 School tax (per $1,000) '13 8.50 Population in 1914 (estimated) 15.000 INTEREST on issues of 1891 and 1910 payable in New York; on refunding bonds at office of County Treasurer. BAKER CITY. County seat of Baker County. Incorporated 1874. Commission government was adopted Oct. 3, 1910. All bonds are tax-exempt. Sewer Bonds. 5s '03 J-J $12.000c July 1 1923 Water Bonds. 5s g '00 J-J $100,000c July 1 1920 5s '01 M-S 20,000c Sept 3 1921 5s '02 A-O 45,200c Apr 2 1922 ^5s '05 A-O 10,000c Apr 30 1927 Ssg'll J-J 90,000c July 1 1921 5s '14 M-S 98,851c Mar 1 1934 Refunding Water Bonds. 5sM0 A-O $25,000c April 4 1930 Reservoir Bonds. 5sg'll J-J $25,000c July 1 1921 New City Hsll Bonds. 5s '03 J-J $46,000c July 1 1923 5s g '04 J-D 12.000c Dec 21 1924 Street Intersection Bonds. 5sg'll J-J $23,500c July 1 1931 5s '12 .. 5,503.72 5s '13... 8,826.36 Electric-Light Bonds. 5sg'13 J-D $25,000 Dee 1 1933 GEN. BONDED DEBT July 1 '14$ 546,830 Assessment debt (additional) 200,103 Sinking Fund 45,000 Assessed valuation '13 (abt. act.).. 5,768,060 Population 1910 6,742 INT. payable in Baker City and N. Y. BAKER CITY SCHOOL DISTRICT NO. 5 ..s'88 ... $20,000 ..s'99 ... 15,000 ..s'01 ... 15,000 School Bonds ( Red. begin in 1916). 5sg'08 J-J $20.000c 1926 Heating and Sanitary Plant Bonds. 5s '09 s-a $25, 000c 1929 (Subject to call after 1919.) Ref. Bonds (Red. beg. in 1921). 5s '11 J-D $45,000 June 1 1931 BONDED DEBT Apr 1 '14 $ 92,000 Assessed valuation '13 (30',i act.). 6,362,000 School tax (per $1,000) '13 7.00 Population in 1910 (estimated) 8,000 INTEREST payable in Baker City or N. Y. CLATSOP COUNTY. Astoria is the county seat. Bonds below declared valid by State Supreme Court. Road Bonds. 5s'14AO $400.000 Apr 1 1934 BONDED DEBT Sept 19 '14....$ 400,000 Assessed valuation '13 (equalized) 35,019,969 Population in 1910 16,106 INTEREST at State fiscal agency in N. Y. City or at County Treasurer's office. COLUMBIA COUNTY. St. Helens is the county seat. Road Bonds. 5s g '14 A-O I $ 60.000c Apr 1 1919 1_ 300,000c Apr 1 '24-29-34 BONDED DEBT Apr '14 $ 360,000 Assessed valuation '13 18,067,830 Total cash valuation 24,086,677 Population in 1910 10,580 INT. at offi. of Co. Treas. or in N. Y. City. CORVALLIS. This city is in Benton County. Water Bonds (Red. beg. in 1916). 5s '06 J-J $75,000 Jan 2 1936 5s '14 A-O 7,000 Apr 1 1954 Sewer Bonds. 5s '10 J-J $144,000 July 1 1950 Fire-Department Bonds. 5s '10 J-J $16,000 July 1 1950 Street-Improvement Bonds. Ss'10'11 $28,746.51 40 years Bridge Bonds. 5s '13 J-J $2,500 Jan 1 1953 Refunding Bonds. 5s '13 J-J $51,397.08 1953 GEN. BONDED DEBT Jan 27 '13.$ 242,644 Water debt (additional) 75.000 Assessment bonds (additional) 135,515 Warrant debt 51,397 Assessed valuation '13 2,273,749 Actual value (estimated) 4,500,000 Tax rate (per $1,000) '12 35.70 Population in 1910 4,652 While the water bonds are direct liabilities of the city, provision is made in the law for fixing the rate annually at a sum sufficient to cover the expenses, pay interest on bonds and provide a sinking fund that, by annual retire- ment, will pay the bonds in full at maturity. DALLES CITY This city (P. O. The Dalles) is in Wasco County. Sewer Bonds. 5s '12 J-J $65,000c July 15 1933 6s M-N 8,250c 1924 Sidewalk and Improvement Bonds. 6s J-D $6,700 1924 Water Bonds. 6s '91 J-D $25,000c 5s '03 M-N 50,000c Refunding Bonds. 4s '95 M-N $54,500c May 1 1920 City Hall Bonds. 6s '08 M-N $28,900c May 1 1918 General Improvement Bonds. 5s'13 12,000 1933 Street Bonds. 6s F-A $ 9,000C 1920 6s M-S 16,000c 1920 6s J-D 8,400c 1920 Street and Sewer Bonds. 6s M-N $45,OOOc 1924 GEN. BD. DEBT Sept 24 '14 $ 156,650 Water bonds (additional) 75,000 Assessment debt (additional) 85,100 Sinking fund Aug 31 '14 95,887 Assessment valuation '13 (70',r act.) 4,211,000 Total tax (per $1,000) '13 25.25 Population 1910 6,834 INTEREST on bonds of 1912 payable at State fiscal agency in N. Y. ; other interest at San Francisco, Cal., N. Y. Security & Trust Co., N. Y., and at City Treasurer's office. ..June 30 1916 .Nov 1 '17'26 EUGENE. The city is in Lane County. Incorporated in 1864. The city owns property valued at $842,000. Refunding Bonds. t.Mfi |$50,000c Aug 1 1915 £• ii in' 100.000c Aug 1 7 20&'30 5s 11 J-" I uo.OOOc Dec 1 1936 Sewer Bonds. 4s '03 $ 6.000c Oct20'15&*18 4s'05 5,000c Oct20'15&'18 5s'12 M-S 183,500c Sept 1 1942 Paving Bonds. 5s 12 s-a 50,000c Tune 1 1922 6s'13J-J 25,000c July 11923 6s 14 F-A 43.950c Feb 1 1924 (Subject to call after Feb 1 1915.) 6s '14 J-D $20,100c June 1 1924 (Subject to call after June 1 1915.) Water Bonds. 5s '08 .... $300,000c Jan 1 1948 5s'10 60,000c '20, '30 & '40 5s '14 100,000c 1939 Electric-Light Bonds. 6s '11 s-an $25,000c Oct 1 1921 Light, Power and Water Bonds. S'As^H J-D $57,000c Dec 1 1926 City-Hall-Site Bonds. 5s '12 $15. 500c July 1 1922 Armory Building Bonds. 5s '14 July $25,000. July 1 1924 TOT. BD. DEBT July 19 '14 $ 1,185,430 Bancroft bonds (incl ) 153,430 Water and power bonds (incl).,.. 442,000 Floating debt Apr 1 '14 46,523 Sinking funds and cash 135,295 Assessed valuation '13 (equalized) 9,347,813 Real value (estimated) 12,000,000 City tax rate (per $1,000) '13 12.50 Population 1910 9,009 EUGENE SCHOOL DISTRICT NO. 4. Site and Building Bonds. 4s s-a $18,500r 1921 4s s-a 32,OOOr 1924 4^s s-a 40,000c 1929 5s '13 J-J 20,000c tan 1 1933 (Subject to call beginning Jan 1 1923,) 5s '14 M-N $110,000 May 1 1934 (Subject to call after May 1 1924.) BONDED DEBT May '14 $ 220,500 Assessed val. '13 (real & pers.)... 9,347,813 Real valuation (estimated) 1 1,684,760 Population in 1914 (estimated) 14,000 INTEREST on 1914 bonds at State fiscal agency in New York City. GRANT'S PASS. This city is in Josephine County. $200,000 railroad bonds given below upheld by State Supreme Court on April 28, 1914. Sewer Bonds. 5s ... $19,000 1940 Fire Auto Bonds. 6s ... J5.500 1921 Warrant-Funding Bonds. 5s '12 A-O $80,000 Apr 1 1932 Municipal R. R. Bonds. [ $ 15,000 1939 6s '14 J-J { 100,000 1940-1943 1 85,000 1944 BONDED DEBT Sept 22 '14 $ 304,500 Warrant debt Sept 1 s 14 2,392 Assessed valuation '13 3,000,000 Real valuation 6,500,000 Population in 1910 3,980 INTEREST payable at City Treas. office. HOOD RIVER This city is in Hood River County. Water Bonds. 5^s'12 J-J $36,000c July 1 1922 Street-Improvement Bonds. 6s '13 J-D $10,805.36 Dec 22 1923 (Subject to call any interest paying period after one year.) GEN. BD. DEBT Sept 19 '14 $ 126,000 Assessment debt (additional) 110,420 Sinking fund (cash) 13,419 Assessed valuation '13 2,184,151 Approximate value 3,375,626 Population in 1910 2,331 HOOD RIVER IRRIGATION DISTRICT. A district in Hood River County. Completion Bonds. 6sg'll $170,000c 1922-1931 BONDED DEBT Apr 26 '12 $170,000 Assessed valuation ( f$ act.) '11 950.000 District tax (per $1,000) '11 13.00 INTEREST in Portland, Chicago or N. V. City at National Park Bank. JACKSON COUNTY. Jacksonville is the county seat. Road Bonds. Ss'13 M-N $500,000c Nov 1 1933 BONDED DEBT Sept 1 '14 $ 500,000 Warrant debt 473,720 Assessed valuation '14 (estimated). 36,000,000 Tax rate (per $1,000) '13 15.00 Population in 1910 25,756 INTEREST payable at fiscal agency of State of Oregon in N. Y. City. KLAMATH FALLS. This city is in Klamath County. First incorporated in 1889. City Hall Bonds. 5s '14 A-O $50,000c Apr 1 1934 BONDED DEBT Mar '14 $ 176,793 Sinking fund 3,000 Assessed valuation '13 (abt. act.).. 2,906,893 City tax (per $1,000) '13 13.25 Population in 1910 2.758 INTEREST on bonds of 1914 at fiscal agency in N. Y. City. LA GRANDE. This city is in Union County. Incorporated Feb. 23, 1885. Commission government ap- proved Oct. 1, 1913. 5s '08 F-A $160,000c 1929 (Subject to call after 1918.) City Hall Bonds (Red. beg, in 1914). 5s '04 J-J $25,000c 1924 Sewer (Red. after 10 vears from issue). 5s'10 ... $40,000c Feb 1 1930 5s '11 J-J 10,000c Jan 1 1931 Ref. Water (Red. beg. in 1920). 5s '10 s-a $49,000c Jan 1 1930 GEN. BONDED DEBT Mar '14..$ 284.000 Assessment debt (additional) 328,311 Floating debt 109.000 Sinking fund 40.000 Assessed valuation '13 ()i act.).... 3,500,000 City tax rate (per $1,000) '13 18.50 Population 1910 4,843 (Compiled by the Commercial and Financial Chronicle.) 122 OREGON CITIES AND TOWNS LA GRANDE— Concluded. INTEREST on refunding water bonds is >ayable at A. B. Leach & Co., N. Y. ; on city- lall bonds in Portland, and on sewer bonds at E. H. Rollins & Sons, Boston. I LA GRANDE SCHOOL DISTRICT NO. 1. Bonds all subject to call 10 years before maturity. High-School Bonds. 5s g J-D $ 8,000c 1919 5s g A-O 4,000c 1920 5sg ID 12,000c '1955 5sg'10 M-N 75,000c May 2 1930 School-Site and Building (Tax-exempt). 5s g '13 A-O $30,000c Apr 1 1933 BONDED DEBT Sept 19 '14 $ 127,000 Assessed valuation '12 (H act.) 3,279 930 School tax rate (per $1,000) '13 12 00 INTEREST on bonds of 1913 is payable at National Park Bank, N. Y. City ; on other bonds at County Treasurer's office in La Orange. . McMINNVILLE. This city is in Yamhill County. Incorp. 1882. City owns and operates local water and light plant. Bonds are exempt from city tax. Park Bonds. 5s 'OS J-J $9,400c Jan 11928 (Subject to call after Jan. 1 1913.) 5s '10 J-D $3,000c June 1 192S Street Bonds (General). 6s '14 J-J $27,00Oc July 1 1924 6s '14 12,500 1924 (Subject to call after one year.) Water-Main Bonds. 6s '12 J-J $13,000c July 1 '14-'28 Water and Light Bonds. 4J4s'04 M-N $20,000c Nov 1 1924 (Subject to call Nov. 1 1919.) 5s '06 J-J $45,S00c Jan 1 1931 (Subject to call Jan. 1 1921.) 5 s '08 A-O $20,000c Oct 11928 5s '08 M-N 10,000c Nov 1928 5s '10 M-S 30,000c Mar 1 1930 6s '12 J-J 25,000c Jan 1 1932 (Subject to call after Jan. 1 1927.) BOND DEBT Sept 1914 $ 194,100 Assessment debt (add'l) 28,500 Floating debt 5,000 Sinking fund (conditional) 10,000 Assessed val. '13 (>/ 2 act.) 1,402,000 Total tax (per $1,000) 1913 38.00 Population in 1910 2 400 INTEREST on 4J4s at office of City Treas. ; on 5s at U. S. Nat. Bank in Portland ; on bonds of 1912 at fiscal agency of Oregon in New York. MARSHFIELD. This city is in Coos Co. Inc. 1874. TOTAL DEBT Apr 1 '14 $ 156.778 Spec. impt. bonds (incl.) 102,778 Sinking funds 15,570 Assessed valuation 1913 2,602,259 Population in 1910 2,980 MEDFORD. Tins city is in Jackson County. Incorpor- ated as a town Feb. 24, 1885, and as a city Feb. 6, 1901. Re-incorporated (new city charier) Feb. 7, 1905. Water Bonds (Tax-exempt). 5s '07 M-S $45,000c Mar 1 1917 5s '08 J-J 355,000c July 1 '23-'38 City Hall, &c, Bonds (Tax-exempt). 6s '08 F-A $25,OOOc Feb 1 1918 Refunding Bonds (.Tax-exempt). 5s '10 F-A $30,000c Aug 1 1930 Fire Apparatus, &c, (Tax-exempt). 5s '11 A-O $38,000c Apr 1 1921 Bridge Bonds (Tax-exempt). Ss '12 A-O $20,000c Oct 1 1932 GEN. BD. DEBT Sept 1 '14 $ 513.000 Water debt (included) 400,000 Assessment debt (add'l) 780,000 Sinking fund 44,892 Assessed val. '13 (60% act.) 5,608.090 Total tax rate (per $1,000) '13.... 37.00 1XT. on water bonds due 1917 in Medford ; bridge, city-hall and refunding bonds in N. Y. ; all others in Chicago. MORROW COUNTY S. D. No. 1. P. O. Heppner. S'As '12 J-J $40,000c July 1 1932 (Subject to call beginning July 1, '22.) BONDED DEBT Mar 20 '13 $ 48,000 Cash in sinking fund 2,777 Assessed valuation 1911 1,123,693 INT. at State fiscal agency in N. Y. NEWBERG. This city is in Yamhill Co. Inc. Feb. 21, 1889. Water Bonds. 6s '97 $15,000 Jan 1 1917 4/iS '06 15,000 June 1 '21 & '27 Sewer Bonds. 5s '11 $80,000 Jan 11931 Improvement Bonds. 6s '13 M-N $38,489.48 Nov 1,1923 (Subject to call after Nov. 1 1914.) Water and Sewer Bonds. 5s '12 $22,000 Jan 1 1932 GEN. BONDED DEBT Jan '14 $150,000 Assessment debt (add'l) 64.902 Floating debt 17,010 Assessed valuation 1913 921,989 Tax rate (per $1,000) 1913 13.00 Popn'ation in 1910 2,260 INT. at First Nat. Bank, Newberg. OREGON CITY. This city is In Clackamas County. Refunding Bonds. 5» $30,000 1925 5s 20,000 1933 5s 50,000 1933 BONDED DEBT Sept 1914 $ 100.000 Assessed valuation 1911 2,608 000 Tax rate (per $1,000) 1913 10.00 Population in 1910 4 287 1929 1929 1943 1944 PENDLETON. This city is in Umatilla County. Incorp. Oct. 25 1880. All bonds are tax-exempt to residents of State. Commission government defeated Dec. 1, 1913. General Bonds (Red. beg. after 20 years from date). 5s '99 J-J $75,000c Julyl Water-Works Bonds. 5s '99 J-J $45, 000c July 1 5s '13 J-J $200,000 July 1 5s '14 J-J 40,000 July 1 Levee Bds. (Red. after 20 yrs. from issue). 5s '06 M-N $10,000c Nov 30 1936 5s '07 F-A 67,000c Aug 1 1937 Sewer (Red. after 20 years from issue) 5s '03 J-J $30,000c July 11933 5s '08 F-A 10,000c 1938 Street Bonds. 5 s '08 F-A $18,000c 1938 City-Hall and Jail Bonds. 5 s '08 F-A $40,000c 1938 BONDED DEBT Mar 1914 $ 495,000 Assessed valuation '13 5,024,386 Total tax rate (per $1,000) '13 25.00 Population in 1910 4 460 INT. at City Treas. office, Harris Tr. & Sav. Bk., Chicago, and Kountze Bros., N. Y. PENDLETON SCHOOL DISTRICT No. 16. 4{4s '11 A-O $100,000 1931 (Subject to call after 1921.) Building Bonds (Tax-exempt). 4'As J-J $60,000c 1924 BONDED DEBT Sept 19 '14 $ 160,000 Assessed valuation '13 (3-5 act.) 5,582,250 School tax (per $1,000) 1913 9.00 Population in 1911 (est.) 5,000 INTEREST at Nat. City Bank, N. Y. PORTLAND, A. L. Barbur, Auditor. Portland is the county seat of Multnomah County. Commission government adopted May 3, 1913, and upheld by State Supreme Court on May 28, 1913. The cities of Port- land, East Portland and Albina were con- solidated in June, 1891. Attempted consoli- dation of Portland and St. Johns held illegal by State Supreme Court, March 26, 1912. Dock Bonds. 4^s g '11 M-N $500.000c Novl (Subject to call after Nov 1 1941.) 1961 $2,150,000 May 100,000 Oct 1943 1939 4s g '04 T-T 4s g '09 l-l 4s g '10 l-l 4s g '11 l-l 4s g '11 M-S 4s g '12 A-O 4s g '13 1 1922 1 1925 1 1934 1 1939 1 1940 2 1941 1920 1922 5s g '87 FT 5s 6 '93 -r 4s g '09 11 4s 5 '10 id 4s g '10 M-S 4s g 4s g '11 '11 M 4s g '11 A-O 4s g '12 M-S 4s g '12 M-N 4s g '13 M-N 4s g '13 F-A 4s g '13 4s g '14 F-A 1921 1935 1935 1936 1936 1936 4^s g '13 M-N 4"^s g '14 A-O Bridge Bonds. 5s g '92 J-J $500,000c Jan 5s g '95 A-O 200,000c Apr 400,000c Jan 450,000c Tan 250.000 July 500,000c jan 600,000c Sept 1 1941 315,000c Oct 1 1942 55,000c 1943 City Hall Bonds. 5s g ^90 J-J $175, 000c Tan 1 5s g '92 J-J 500,000c July 1 General Bonds. 6sg'9I J-D $40, 000c June 1 Park and Boulevard Bonds. 6s 6 '91 J-D $ 50,000c June 1 1921 4s g '08 J-D 500,000c Dec 11933 4s g '11 J-J 250,000c Tuly 11936 4s g '12 A-O 250,000c Oct 1 1937 Water Bonds. 6s g '91 M-N •$250,000c May 1 1921 ' 700,000c Jan 1 1917 2,200,000c July 1 1923 250,000c Jan 1 1934 500,000c June 1 500,000c Sep 1 *500,000c Jan 2 *500. 000c Mch *500,000c Oct 1 *500,000c Mch 1 1937 *200,000c Nov 1 1937 100,000c May 1 1938 75,OOOc Aug 1 1938 250,000c 1938 175,000c Feb 2 1939 Boulevard Bonds. 6s g '91 J-D $50,000c June 1 Ferry Bonds. 5s g '93 A-O 5s g '03 J-D 4s g '04 J-J Funding Bonds 5s g '98 J-D $430, 000c Dec 1 1928 Electric Light Bonds. 6s g '91 M-N S50,000c May 1 1921 Crematory Bonds. 5s g '10 M-S $35,0O0c Septl 5s 52,200 Refunding Bonds. 4s g '03 M-N $56,500c Mayl Fire-Boat Bonds. 4s g '11 J-J $125, 000c July 1 Municipal Jail Bonds. 4s g '11 M-N $200,000 Nov 1 1931 Auditorium Bonds. 4s g '13 ... $35, 000c 1943 GEN. BONDS Sept 1 '14 $16,074,100 Improvement debt 15,177.932 TOTAL DEBT Sept 1 '14 31,252,032 Water debt (included) 7,699,000 Warrants outstanding June 1 '14.. 682,610 Assessed valuation, real 241.678.410 Assessed valuation, personal 45,383,580 Assessed val., pub. serv. cor 27,043,787 Total val. '13 (yi, actual) 314,105,777 City tax rate (per $1,000) '13 7.70 Population in 1910 207,214 "These bonds are payable, principal and interest, from the water rates, not from taxa- tion. $50, 000c Apr 15,000c Dec 50,000c Jan 1921 1 1923 1 1933 1 1934 '14-'20 1928 1936 The improvement bonds are issued on ac- count of street improvement, sewer, street ex- tension and water-main assessments and, ac- cording to the city charter, are not included in the 77c debt limit. INT. on dock bonds of 1913 at City Treas- urer s office or at fiscal agency of city in «■ Y. City; on others at Chase Nat. Bk., N. Y., with exception of one issue, which is pay- able at Chemical Nat. Bank, N Y CITY PROPERTY.— The city owned prop- erty on Sept 1 '14 valued at $26,338,068, in- cluding the water works, which are valued at $13,682,696. Receipts of water works from Dec 1 '13 to Aug 30 '14 $1,087,364; operating expenses (including interest), $1,104,276. PORTLAND SCHOOL DISTRICT No. 1. District No. 31 Bonds. 6s .'91 J-D $10,000c June 11916 District No. 1 Bonds (All redeemable 10 years before maturity). 4Hs '08 A-O $250,000c Oct 1 1928 4'As g '10 A-O 350,000 Oct 1 1930 4!^s '12 J-D 150.000 Dec 2 1932 District No. 12 Bonds. 6s '05 M-S $6,000c Septl 1915 BONDED DEBT Sept '14 $ 770,000 Sinking fund 55,044 Assessed valuation '13 ('A act.).. 316,180]443 School tax (per $1,000) '14 7 50 Population in 1914 (estimated) 247,000 INTEREST is payable in N. Y. City or Portland. THE PORT OF PORTLAND. Incorporated in 1891. Limits include con- solidated City of Portland and appioxim?leIy half area and 97% of valuation of the territory of Multnomah Co. Bonds are tax-exempt to residents. River Improvement Bonds. 5sg J-J $350,000c Jan 11922 Dry Dock Bonds. 4s g J-J $185,000c July 1 1933 4s g J-J 215,000c Jan 1 1934 BONDED DEBT Sept '14 $ 750,000 Sinking fund Mar 18 '14 207,290 Assessed valuation '13 (70% act.) 333,452,492 Tax rate (per $1,000) '13 1.85 Population of district '14 (estimated) . .270,000 INTEREST at U. S. Nat. Bank, Portland. PORT OF ASTORIA. A district (P. O. Astoria) in Clatsop Coun- ty. The bonds below are part of an issue of $800,000. Municipal Harbor Bonds. f $150,000 1924 & 1929 5sg'14 J-J{ 150,000 1934 & 1939 I 100,000 1944 TOTAL DEBT Sept 23 '14 $ 400,000 Assessed valuation '13 (3-5 act.).. 35,019,969 Population in 1910 16,106 INTEREST at State fiscal agency in N. Y. City. PORT OF COOS BAY. P. O. Mavshfield. Series *'A" Improvement Bonds. 5s g '13 J-J $600,000c Jan 1933-1956 BONDED DEBT Mch 1 '14 $ 300,000 Assessed valuation '13 9,140,749 (Assess, abt. 1-5 to 1-4 act. value.) District tax (per $1,000) '13 3.00 Population in 1914 (estimated) 15,000 INTEREST at Oregon fiscal agency in N. Y. (National Park Bank.) PORT OF NEHALEM. A district in Tillamook County. Harbor Improvement Bonds. 6s g '10 J-J $ 30,000c July 1 '15-'20 6s J-J 235,000c 1927-1937 6s J-J 25,000c 1921-1926 BONDED DEBT July 1 '14 $ 290,000 Assessed valuation '13 (35% act).. 3,810,000 Population in 1913 (estimated) 2,500 INTEREST on first two issues payable at Kountze Bros., N. Y. ; on third issue at Nat. Park Bank, New York. PORT OF SIUSLAW. A district (P. O. Florence) in Lane County. Organized June 15 1909. Harbor-Improvement Bonds. 5s '09 J-J $ 85,000c July 1 '19-'29 6s '11 J-J 115,500c July 1 '21'31 BONDED DEBT Sept 22 '14 $ 200,500 Assessed valuation '13 (A act.) 4,300,000 INTEREST pay. at Kountze Bros., N. Y. PORT OF TILLAMOOK. A district in Tillamook County. Organized in 1899 by the Legislature. Water-Front and Channel Bonds. 6sg'll J-J $214,000 July 1 '21-'31 Bar-Improvement Bonds. 6sg'll T-J $236,000 July 1 '21-'31 TOT. B'D. DEBT May '13 $ 450,000 Assessed valuation ('A act.) '11 7,270,000 Population 1912, (estimated) 3,000 INTEREST payable in Tillamook or at of- fice of State's fiscal agent in N. Y. PORT OF TOLEDO. A district in Lincoln County. Improvement Bonds. 6s'10g J-J $50,000c Nov 1 1930 (Subject to call after Nov. 1 1920.) BONDED DEBT Oct 16 '14 $ 50.000 Assessed valuation '14 (J^act.) 1,388,246 INT. at Lincoln Co. Bk., Toledo, Ore. ROSEBURG. This city is in Douglas Countv. Incorporat- ed Oct. 3, 1872. Population, 1910, 4,387. Street and Bridge Bonds. 5s '09 $35,000 1929 Street Bonds. 4^s'10 $40,000 1930 (Compiled by the Commercial and Financial Chronicle.) OREG ON— WASHINGTON 123 ROSEBURG — Concluded. Refunding Bonds. 5s'10 $25,000 1930 GEN. BD. DEBT Sept 21 '14 $ 100,000 Improvement bonds (additional). .. 202,307 Assessed valuation '13 3,258,490 City tax (per $1,000) '13 8.00 INTEREST on street and bridge 5s and street 4J4« at Douglas Nat. Bank, Roseburg; refunding bonds at Roseburg Nat. Bank, Rose- burg and on improvement bonds at City Treasurer's office. ST. JOHNS, is in Mult tnomah County. This city City-Hall Bonds. 6i'i'-> $10,000 July 9 1916 City Dock Bonds. 6s '08 $60,000 Apr 21,1928 Ferry Bonds. 6s '11 $6,000 Mch 21 1921 GEN. BD. Debt Mar 18 '14 $ 76,000 Improv. bonds (additional) 270,287 Assessed valuation '13 3,933,650 City tax (per $1,000) '13 9.00 Population in 1910 4,872 SALEM. This city, the capital of the State, is in Marion County. Incorporated Jan., 1857. are tax-exempt. City owns property valued at $350,000. Refunding Bonds. 5s '10 J-J $63,050r Jan 20 1920 (Subject to call after 1911.) 5sg'14 J-J $60,000 Jan 1 1934 5sg'14 A-O 30,000 Apr 1 '15-'24 Sewer Bonds. Ss'10 J-J $19,000r Jan 20 1920 (Subject to call after 1911.) Ssg'13 M-N $456,000 May 1 -'15-'33 Refunding Bridge Bonds. 6s '10 A-O $20.000c Oct 8 1920 GEN. BD. DEBT Sept 19 '14 $ 648,050 Improvement bonds (additional).. 485,226 Warrants outstanding 88.626 Cash on hand 125,133 Assessed valuation '13 (.H act.).. 12,435,345 Total tax (per $1,000) '13 33.20 Population in 1910 14.095 INTEREST on sewer bonds of 1913 at City Treasurer's office or at fiscal agency in N. .\ . ; on refunding 6s at Fourth National Bank, N. Y. ; others in Salem. SALEM SCHOOL DISTRICT NO. 24. Bonds all redeemable 10 years before final maturity. 5s A-O $35,000r Oct 1 1930 5s M-N 15,225r Nov 1 1930 5s J-D 4,400r Dec 11930 Refunding Bonds. 5s '11 A-O $49,650r Apr 1 1931 BONDED DEBT Sept 21 '14 $ 104,275 Note debt (additional) 25,000 Cash on hand 9.297 Assessed valuation '14 13,306,240 School tax (per $1,000) '14 7.30 INTEREST at Nat. Park Bank, N. Y. TILLAMOOK SCHOOL DISTRICT. A district in Tillamook County. Building ( Redeemable beginning in 1922). 6s '12 A-O $35.000 Apr 1 1932 BONDED DEBT Sept 22 '14 $ 35,000 Sinking fund 2,000 Assess, val. '14 (7u<; act.) est 3,000,000 School tax (per $1,000) '14 5.00 Population In 1914 (estimated) 7,500 INTEREST at Nat. Park Bank, N. Y. WASCO CO. SCHOOL DISTRICT NO. 12. P. O. The Dalles. Building (Red. beginning Mar. 1, 1924). 5s '14 MS $100,000 Mar 4 1934 BONDED DEBT Oct 14 '14 $ 120,000 Cash on hand (general fund) 15,632 Building fund 65,149 Assessed valuation 5,328,049 INTEREST at County Treasurer's office or at State fiscal agency in N. Y, City. WASHINGTON CO. S. D. NO. 7. Building Bonds (Red. beginning 1922). 5s'12 J-J $35.000 July 1 1932 BONDED DEBT Nov '13 $ 45.000 Assessed valuation '12 1,556,545 Real value (estimated) 2,500,000 Population in 1912 (estimated) 3,500 INTEREST at Equitable Trust Co., N. ¥., or at County Treasurer's office, Hiltsboro. STATE OF WASHINGTON. ITS DEBT, RESOURCES, ETC. Organized as a Territory (Act March 2 1853).. March 2 1853 Admitted as a State (Act Feb. 22 1889) Nov. 13 1889 Total area of State (square miles) 69,180 State Capital Olympia Governor (term ends Wed. aft. 2d Mon.Jan.'17) Ernest Lister Secretary (term ends Wed. aft. 2d Mon. Jan. '17) I M Howell Treasurer (term ends Wed aft. 2d Mon. Jan. '17).. Ed. Meath Auditor (term ends Wed. aft. 2d Mon. Jan. T7) C. W. Clausen I.ECrsr.ATt'RE meets biennially in odd years on the second Mon- day in January. Sessions are limited to sixty days. TOTAL DEBT — The State has no bonded debt against the general mod. There are outstanding, however, $206,024 Normal School Fund bonds and $87,000 Public Highway Fund bonds shown in detail below. Normal School Fund Bonds. 3s '09 J-D $206,024. June 10, 1924 (Subject to call after June 10 1914. •Public Highway Fund Bonds. 4s '11 F-A $87,000 Feb 1 1923 (Subject to call on any interest date, 10% ($12,500) annually.) •If not paid by highway fund in 12 years from their date, these bonds will be paid out of general fund. INTEREST is payable at the office of State Treasurer in Olvmpia. ASSESSED VALUATION.— The following statement shows the total assessed valuation of the State for the years indicated. Real estate is valued only every two years. The State tax rate (per $1,000) for 1913 was $8".81. Years, Assessment. Years. Assessment. Years. Assessment. 1914 $1,031,901,773 1907 $573,070,528 1900 $237,576,523 1913 1,014,475,027 1906 530,209,882 1890 217,595,569 1912 1,005,086,251 1905 328,542,525 1880 23,708,587 1911 955,125,934 1904 298,460,979 1870 10,642,863 1910 906.247,944 1903 276,988,569 1860 4,394,735 1908 748,593,942 EXEMPTION FROM TAXATION.— Act of Legislature, approved Feb. 28 1907, exempted mortgages, credits, notes, municipal securities, &c, from all taxation as personal property. Act upheld by State Supreme Court in 1908. DEBT LIMITATION. — The State may, to meet casual deficits or failures in revenues, or for expenses not provided for, contract debts ; but such debts in the aggregate shall not at any time exceed $400,000. The State may also incur debts to repel invasion, suppress insurrection or to defend the State in time of war. Otherwise the State shall not contract any debt except the same shall be authorized by law, and provision must be made for the payment of the annual interest on the same and also for the payment of the principal within 20 years. All such propositions must first receive the approval of the voters. As regards counties, cities, towns, school districts or other municipal corporations, no debt is to be incurred by them in an amount exceeding 1 Vi % of the taxable property without the assent of 3-5 of the voters therein, nor in cases requiring such assent shall the total indebtedness at any time exceed 5% of the taxable property. It is further provided that any city or town," with the required assent of the voters, may be allowed to become indebted to a larger amount but not exceeding 5% additional for supplying such city or town with water, light and sewers, when the works for the same shall be owned and controlled by the municipality. The provisions in full will be found in Section 6 of Article 8 of the Constitution. POPULATION OF STATE— 1910 1,141,990 1 1890 357,232 1870 23,955 1900 518,103|1880 75,116 I I860. 11,594 CITIES, COUNTIES AND TOWNS IN THE STATE OF WASHINGTON Equitable Trust Company of New York City is the fiscal agent for the State of Washington. ABERDEEN. This city is in Chehatis County. Incor- porated, _ May 12, 1890. Commission govern- ment rejected Nov. 20, 1911. Funding Bonds. S^s'll J-D $120.000c June 1 '22-'31 Refunding Bonds. 5' :•- ID $40,000 June 1 '22-'31 GEN. Bb. DEBT Oct 8 '14 $ 160.COO Warrant debt 145,498 Cash on hand 11,557 Assessed valuation '14 (2-5 act.)... 7,552,017 Total tax rate (per $1,000) '13 47.81 + T..| ilation in 1910 13,660 INTEREST at Equitable Trust Co., N. Y. BELLINGHAM. This city is in the county seat of Whatcom County and was organized Dec. 28, 1903, by the union of the cities of Fairhaven and What- com. Bonds Issued by Bcllingham to Refund Bonds of Former Cities. New Whatcom — Series A — Funding Bonds. Ssj A-O $18.000c Oct 1 1926 Series B — Funding Bonds. 5s g A-O $39,000c Oct 1 1926 Series C — Funding Bonds. 5sg A-O $237,000c Oct 1 1926 Series D — Funding Bonds. 5s k A-O $183,000c Oct 1 1926 Series E — Funding Bonds. 5s g A-O $225,OOOc Oct 1 1926 BONDED DEBT Sept 1 '14 $ 702.000 Cash in treasury 97,722 Assessed Valuation for 1913. District A (former old Whatcom).. 2,110.978 District B (former new Whatcom).. 6,515,075 District C (former Kecslingville) . . 431,097 District D (former Fairhaven) 1,490,339 District E (former Silver Beach).. 101.256 District F (water-front) 533,022 Total for all Bellingham $11,181,767 City Tax Rate (per $1,000), 1913. District A $12.75 District B 12.55 District C 10.50 District D 18.30 District E 9.00 District F 9.00 Population in 1910 24,298 INTEREST at Equitable Trust Co., N. Y. BELLINGHAM SCH. DIS NO. 301. This district was formed by the consolida- tion of Whatcom County School Districts Nos. 1, 4, 37 and 81. Building Bonds (Red. aft. June 1, 1918.) 454s '08 June $70,000 June 1 1928 Refunding Bonds. 5s'13 ami $35,000 Old District No. 1 (Whatcom). 4^8 '01 J-J $13,000 Jan 2 1921 4"4s'03 MS 65,000 Mch 10 1923 Old District No. 4 (Fairhaven). 3*Js'03 June $25,000 June 15 1923 BONDED DEBT Oct 16 '14 $ 208,000 Assessed valuation '14 (2-5 act.)... 12,222.495 School tax (per $1,000) '14 9.75 INTEREST on building and 3H% bonds payable at State Treasurer's office in Olym- pia ; on refunding bonds at Bellingham Na- tional Bank; on 4;4s and bonds of 1901 at Equitable Trust Co., New York City. BENTON COUNTY S. D. No. 16. Building (Redeemable beg. in 1922). 5s '12 Sept $50,000 Sept 1 1932 TOTAL BONDED DT. July 1 '13.$ 96,000 Assessed valuation 1,897,097 Actual valuation 4,000,000 INTEREST at County Treasurer's office in Prosser. CENTRALIA. This city is in Lewis County. Incorporated in 1890. Electric-Light Bonds. 6s $11,000 Mar 1 1915 Trunk Sewer Bonds. 6s $22,150 Oct 22 1917 ♦Water Revenue Bonds. 6s g '13 semi-ann. $300,000 1919-1938 Funding Bends. 5s '14 M-N $1 18,891.01 May 1934 GEN. BD. DEBT Sept 20 '14 $ 152,041 Water bonds '300,000 Assessment debt (add'l) 135,000 Warrant debt 88,000 Assessed val., '13 2,405,783 Real value (estimated) 5,000,000 Total tax rate (per $1,000) '14.... 54.00 Population in 1910 7,311 INT. on electric-light, water and funding bonds at fiscal agency (Equitable Tr. Co.) in N. Y. City; other bonds at Centralia. •The water bonds are not a direct obliga- tion of the city, but against the water system and its income. The total issue of $300,000 is being delivered in installments from time to time to take up the monthly estimates of work done on the system. CHEHALIS. This city is in Lewis Co. Incorporated Sept. 22, 1890. State Supreme Court upholds city's right to issue bonds for gravity-water system. 6s J-J $23,000 Jan 1 1915 Ccn. bonded debt Dec 31 '13 $ 23,000 Impt. bonded debt (add'l) 146,926 Impt. warrant debt (add'l) 16,975 Warrant debt (add'l) 74,575 Assessed valuation 1913 1,517.000 Real value (est.) 3,000,000 Population in 1910 4,507 CHEHALIS COUNTY. Montesano is the county seat. Funding Bonds. S'As '13 J-D $180,000 Dec 1 1924 (Red. $18,000 yearly beg. Dec. 1, '14.) BOND DEBT Sept '14 $ 180,000 Assessed valuation '13 34,305.328 Population in 1910 35,590 INT. at fiscal agency N. Y. CHEHALIS CO. S. D. No. 5. Building Bonds. 5s '02 J-J $8,000 July 31 1922 (Subject to call after July 31, 1903.) 4s '06 Aug $20,000 May 1 1926 (Subject to call after May 1, 1907.) 4s '09 Sept $80,000 Sept 11929 (Subject to call after Sept. 1, 1910.) Warrant Funding Bonds. 4s '05 Aug $11,000 Feb 25 1925 (Subject to call after Feb. 25. 1906.) 4s '09 July $70,000 July 1 1929 5^s'14 M-S 86,000 Mar 1 '20-'34 BONDED DEBT Oct '14 $ 275,000 Assessed valuation '13 7,480.223 School tax rate (per $1,000) '13... 11.30 I NTEREST at State Treasurer's office in Olympia. — CHEHALIS CO. SCH. DIS. No. 28. Building Bonds. 4)|s'07 $40,000 Aug 1 1927 Warrant Funding Bonds. 5s'll F-A $60,000 Feb 15 1931 (Subject to call after Feb. 15, 1912.) 4j4s'13 s-a $90,000 1933 (Subject to call beginning 1915.) BONDED DEBT Oct '14 $ 190,000 Assessed valuation '13 (3-5 act.)... 4,485.586 School tax rate (per $1,000) '13 10.45 INTEREST at State Treasurer's office in Olympia, CHELAN CO. SCH. DIST. No. 46. Building Bonds (.T ox-Exempt). 4s '06 June $12,000c June 23 1926 (Subject to call June 23, 1907.) 4^s'07 T-J $10,000c July 1 1927 (Subject to call July 1, 1922.) 4s'09 Feb $80.000c Feb 15 1929 (Subject to call Feb. 15, 1910.) 5j4s'10Dec $15,000c Dec 1 1930 (Subject to call Dec 1, 1911.) 5s '11 July $50.000 July 1 1911 (Subject to call.) {.Compiled by the Commercial and Financial Chronicle.) 124 WASHINGTON CITIES AND TOWNS CHELATIS CO. SCH. DIST. No. 28— Con- tinued. BONDED DEBT Oct 1 '13 $ 167,000 Floating debt 33,452 Sinking fund 8,190 Assessed valuation '13 (2-5 act.).... 5,125,335 School tax rate (per $1,000) '13..,. 14.00 Population in 1913 5,000 INTEREST at County Treasurer's office. CHELAN COUNTY S. D. No. 49. Building Bonds (Tax-Exempt). S'As'07 Apr $18,000c Apr 15 1922 (Subject to call beg. April 15, 1908.) 5s '11 Nov $35,OOOc Nov 1 1926 (Subject to call beg. Nov. 1, 1912.) BONDED DEBT Oct 1 '13 $ 53,000 Floating debt 6,268 Sinking fund 5,560 Assessed valuation '13 (2-5 act.)... 1,306,591 School tax rate (per $1,000) '13 15.00 Population in 1913 4,000 INTEREST at County Treasurer's office. CHELAN CO. SCH. DIST. No. 56. Building Bonds (Tax-Exempt). 5s '07 Aug $14,500c Aug 1 1927 (Subject to call beg. Aug. 1, 1908.) 5s '11 July $35,000c July 1 1931 (Subject to call beg. July 1, 1912.) BONDED DEBT Oct 1 '13 $ 49,500 Floating debt 999 Sinking fund 1,711 Assessed valuation '13 (2-5 act.)... 1,645,068 School tax rate (per $1,000) '13 .. 11.25 Population in 1913 2,000 INTEREST at County Treasurer's office. CLALLAM COUNTY. County seat is Port Angeles. All bonds are tax-exempt. Refunding Bonds. 4'As M-N $90,000c May 15 1921 Road and Bridge Bonds. 5s '13 F-A $300, 000c Aug 1 1933 (Subject to call Aug. 1, 1914.) BONDED DEBT Sept 1 '14 $ 390,000 Warrant debt (additional) 44,648 TOTAL DEBT Sept 1 '14 434,648 Sinking fund 4,684 Assessed valuation '13 (A act.).. 12,440,420 State and Co. tax (per $1,000) '13 23.00 Population in 1910 6,755 INTEREST at Equitable Trust Co., New York. CLALLAM COUNTY SCH. DISTS. School District No. 3 Bonds. 514s J-D $4,000c Dec 1 1929 (Subject to call after 1919.) 5s Nov $6,000c Nov 1 1931 (Subject to call after 1912.) School District No. 301 Bonds. S'/is Aug $4,000c Aug 1 1932 (Subject to call beg. 1913.) School District No. 5 Bonds. 6s J-J $2,000 Jan 1 1924 (Subject to call Jan. 1, 1914.) School District No. 7 Bonds. 6s'98 F-A $21,000c Feb 1 1918 5s '12 J-J 51,200 July 1 1922 (Subject to call after July 1, 1917.) School District No. 27 Bonds. 4!^s s-an $2,000 Jan 1 1922 (Subject to call June 12, 1912.) TOTAL BOND. DT. Sept 23 '14...$ 90,200 1 Dist. No. 5.... 88,898 Dist. No. 7 1,501,478 Dist. No. 28 617,249 Dist. No. 5 4.00 Dist. No. 7.... 10.00 Dist. No. 27 2.00 Population in 1912 (est.) 3,500 INTEREST on 6% bonds payable at Equit- able Trust Co., New York. CLARKE COUNTY. County seat is Vancouver. Bonds are tax- exempt. Population 1910, 26,115. Funding Bonds. 6sg J-D $61,000c Dec 1 1916 4s J-J 40,000c July 2 1921 BONDED DEBT Sept '14 $ 101,000 Assessed valuation '14 (45% act.) 15,167,342 State and Co. tax (per $1,000) '13 29.00 INTEREST at Equitable Trust Co., New York. CLARKE CO. SCH. DIST. No. 6. 4Vis $25,000 July 1 1929 S'As .... 11,475 Apr 1 1931 5J4s 5,000 Sept 1 1933 5s 20,000 Sept 1 1931 4'As'12 100,000 Feb 3 1932 BONDED DEBT April 20 '14 $ 165,475 Assessed valuation '13 5,139,224 INTEREST payable at County Treas. office. CLARKE CO. SCH. DIST. No. 58. Building Bonds. 5s '13 Nov $29,000 1933 TOTAL DEBT Sept 19 *14 $ 29,000 Assessed valuation '13 687,203 INTEREST payable at County Treas. office. COWLITZ COUNTY. Kalama is the county seat. Funding Bonds (Series "C"). 5s '11 FA $22,000c Aug 1 1931 (Subject to call Feb 1, 1927.) '11 M-N $S0,000c May 15 1931 (Subject to call after May 15, 1926.) '11 J-J $14,000c July 1 1931 (Subject to call after Jan. 1, 1927.) TOTAL DEBT April 1 *14 $ 97,021 Assessed valuation '13 9,267,086 Population in 1910 12,561 INTEREST payable at Equitable Trust Co., New York; Harris Trust & Sav. Bank, Chi- cago; Harris, Forbes & Co., New York City, and at N. W. Harris & Co., Inc., Boston. ELLENSBURG. This city is in Kittitas County. Electric-Light Bonds. 5s J-D $44,000c June 1 1931 Sewer Bonds. 5s J-D $26,000c June 1 1931 *Electric-Light and Power Bonds. 6s M-S $110,000c Mar 1 1927 *Water Bonds. 6s A-O $99,748.35c Oct 1 1934 Refunding Bonds. 5s J-D $29,000c Dec 1 1931 Funding Bonds. 5s $20,000 Feb 1 1934 6s fl8,000 May 10 1920 GEN. BONDED DT. Sept 19 '14.$ 119,000 Light and water debt (add'l) *209,748 f Current expenses 15,467 Floating debt -{Electric light... 90,811 (.Water 15,007 Assessed valuation '14 ('A act.)... 2,284,585 Total tax (per $1,000) '13 49.94 Population in 1910 4,209 *The electric light and _ power and water bonds are not a direct obligation of the city, but against the. electric light and water sys- tems and their incomes. tThis $18,000 issue was never approved by the voters, so the city has always considered it as floating indebtedness, but the same is not included in such indebtedness given above. ELLENSBURG SCH. DIST. No. 3. Refunding Bonds. 5s A-O $40,000c Oct 1 1931 High-School Bonds. 4'As Dec $90,000c Dec 11932 BONDED DEBT March '14 $ 130,000 Assessed valuation '14 3,236,869 (Assessment about 40 to 50% actual value.) Population in 1913 (est.) 5,500 INTEREST at County Treas. office. EVERETT. This city is in Snohomish County. Incor- porated May 4, 1893. Sewer Bonds. 5sg F-A $60,000c Feb 1 1920 Funding Bonds. 6s J-D $61,900c Dec 1 1915 Warrant Funding Bonds. 5sg'll J-J $613,000c July 15 1931 GEN. BOND. DT. Jan 1 '14 $ 764,900 Assessment debt (add'l) 731,842 Floating debt 55,198 TOTAL DEBT Jan 1 '14 1,551,940 Sinking fund 80,339 Assessed valuation '13 (2-5 act.).. 13,457,336 Total tax rate (per $1,000) '14... 43.50 Population in 1910 24,814 INTEREST at Equitable Trust Co., New York. EVERETT SCH. DIST. No. 24. 3J4s'07 $150,000c Mch 1 1927 334s '07 50,000c May 1 1927 3J4s'07 50,000c July 1 1927 4^s'08 50,000c Oct 1 1928 4^s'09 25,000c Jan 1 1929 4i/Js'09 25,000c Apr 1 1929 4"4s'09 50,000c June 1 1929 BONDED DEBT Jan 1 '13 $ 400,000 Floating debt Oct 21 '12 111,550 Sinking fund and cash Oct 21 '12 19,180 Assessed valuation '12 (3-5 act.).. 13,586,246 School tax (per $1,000) Ml 12.80 INTEREST at County Treas. office. OPTIONAL. — All the above bonds are sub- ject to call after 1 year from issue. FRANKLIN COUNTY. Pasco is the county seat. Fund. Bonds (Red. beg. Dec. 1, 1921.) 5s '11 $40,000 Dec 1 1931 Court-House and Jail Bonds. 5s '12 A-O $85,000 Apr 1 1932 BONDED DEBT May 1 '14 $ 135,000 Assessed valuation '13 8,670,008 Population in 1910 5,153 FRANKLIN CO. SCH. DIS. No. 1. 5s'll $40,000 1931 (Subject to call after 1921.) BONDED DEBT April '14 $80,000 HOQU1AM. This place is in Chehalis County. Commis- sion government adopted June 5, 1911. Refunding Bonds. 5J4s J-D $115,000 1922-1931 GEN. BONDED DT. March '14...$ 115,000 Local impt. bonds (add'l) 239,565 Warrants outstanding 157,115 Cash on hand 63,305 Assessed valuation '13 3,973,699 Tax rate (per $1,000) '13 17.10 Population 1910 8,171 INTEREST at Harris Tr. & Sav. Bk., Chicago. , , JEFFERSON COUNTY. County seat is Port Townsend. Refunding (Part every 5 years). 5J4sg'll J-J $133,000c Jan 1 '16-'31 BONDED DEBT April '14 $ 133,000 Floating debt 91,000 Sinking fund 16,000 Assessed valuation '13 (2-5 act.) 6,839,800 State and county tax (per $1,000) '13 28.24 Population in 1910 8,337 INTEREST at Equitable Trust Co., New York. JEFFERSON CO. S. D. No. 1. Treasurer ; on 5s at State Treasurer's office. Fund. Bonds (Red. beg. in 1905). 6s '95 M-N $24,000 Nov 1 1915 Refunding Bonds. 5s '11 A-O $82,000 Apr 1 1931 BONDED DEBT April '14 $ 103,000 Assessed valuation '13 (2-5 act.)... 1,508,342 School tax rate (per $1,000) '13... 10.00 INTEREST on 6s at office of County Treasurer ; on 5s at State Treas. office. KING COUNTY. County seat is Seattle. The State Supreme Court on Dec. 6, 1913, declared valid the court-house bonds given below. The road bonds given below are part of an issue of $3,000,000, the legality of which has been upheld by State Supreme Court. 5s'08 M-S $1, 500,000c Mar 1 1928 Court-House Bonds. 5s '13 May $950,000c Mav 1 1933 (Opt. beg. May 1, 1923, $95,000 yearly.) Refunding Bonds. 4^s'll F-A $170,000c Feb 1 '15-'31 4^s'll F-A 98,000c Feb 1 '15-'31 Harbor Bonds. 4^sg'll Nov $l,750,OOOc Nov 1 '31 (Subject to call $175,000 yearly Nov. 1, 1921, to 1930.) Road Bonds. 5s'13 M-S $300,000c Sept 1 1933 5s'14 M-N 500,000c' May 1 1934 BONDED DEBT Sept 23 '14 $ 5,268,000 Assessed valuation '13 ('A act.).. 264,287,057 State and Co. tax (per $1,000) '13 18.01 Population in 1910 284,638 Population in 1914 (est.) 350,000 INTEREST on 5s payable at Equitable Trust Co., New York ; on refunding bonds at Harris Trust & Savings Bank, Chicago ; on bonds of 1911 and 1913 at Equitable Trust Co. or at County Treasurer's office. KING COUNTY COMMERCIAL WATER- WAY DIST. No. 1. P. O. Seattle. Bonds are tax-exempt. 7s '13 J-D $500,000 Dec 1 1923 (Subject to call after Dec. 1, 1918.) BONDED DEBT Sept 23 '14 $ 500,000 Assessed valuation '13 (real) 10,056,599 Real value (estimated) 25,000,000 Population of district (est.) 20,000 INTEREST at County Treasurer's office. KING COUNTY SCH. DIST. No. 7. Building Bonds. 5s '07 June $ 1,500c Tune 15 1917 5s '09 Sept 2,000c Sept 1 1919 5s '11 Feb 65,OO0c Feb 1 1931 (Subject to call after Feb. 1, 1912.) 5^s'14ann $9,000c April 11934 BONDED DEBT Sept 23 '14 $ 77,500 Assessed valuation '13 (A act.)... 2,026,949 School tax rate (per $1,000) '13... 10.00 Population in 1914 (est.) 3,750 INTEREST on 5s due 1917 payable in New York at Equitable Trust Co. ; other bonds at State Treasurer's office. KING COUNTY S. D. No. 51. Building Bonds (Red. beg. in 1918). 5s '13 Sept $45,000c Sept 15 1933 BONDED DEBT Sept 23 '14 $ 45,000 Assessed valuation '13 1,595,103 (Assessment about A actual value.) School tax (per $1,000) '13 $7.00 Population in 1913 (est.) 2,500 INTEREST at office of State Treasurer, Olympia. KING CO. SCH. DIST. No. 162. Building (Subject to call). 4^s'10 Aug $55,OOOc Aug 1 1925 4s '05 May 12,000c May 15 1920 BONDED DEBT Sept 23 '14 $ 67,000 Floating debt 8,193 Sinking fund 1,286 Assessed valuation '13 (A act.)... 2,185,464 School tax rate (per $1,000) '13... 12.00 Population in 1914 (est.) 3,200 INTEREST payable at State Treas. office. KING CO. SCH. DIST. No. 170. Building (Subject to call). 4Vis'10 July $46,000c July 11920 BONDED DEBT Sept 23 '14 $ 46,000 Assessed valuation '13 (A act.)... 1,564,469 School tax rate (per $1,000) '13... 11.00 Population in 1914 (est.) 2,600 INTEREST payable at State Treas. office. KITTITAS COUNTY. County seat is Ellensburg. Chelan County's portion of the bonded debt is $16,513. County Bonds, 1895. 6s M-N $117,000c Nov 1 1915 School No. 22 (Subject to call). 5s'13 aim $ll,000c Sept 1 1933 School No. 25 (Subject to call). 4i4s'llann $8,000c Oct 2 1919 School No. 200 (Subject to call). 5VSs'12 ann $10,000c Dec 11932 CO. BONDED DT. Sept 21 '14..$ 117,000 Cash in county funds 17,179 Chelan County's portion 16,513 Assessed valuation '13 (2-5 act). 16,669,448 State and Co. tax (per $1,000) '13. 21.04 Population 1910 18,561 INTEREST at Equitable Trust Co., New York. LEWIS COUNTY. County seat is Chehalis. Refund. (Red. aft. 10 years fr. issue). 4Ks'05 J-J $10,000c Jan 1 1925 4J4s'06 J-J 10,000c Jan 1 1925 Funding Bonds. 5s '12 M-S $300,000 Mar 1 '23-'32 BONDED DEBT Jan 1 '14 $ 330,000 Floating debt 75,524 Sinking fund 38,815 Assessed valuation '13 (60% act.). 20,177,489 County tax rate (per $1,000) '13.. 14.59 Population in 1910 32,127 INTEREST at office of County Treasurer. LEWIS CO. SCH. DIST. No. 9. 5s '96 M-S $ 2,600 Mar 15 1916 5s '06 J-J 15,000 ;••■.••:■• (Subject to call $3,000 each year beginning 1918.) (.Compiled by the Commercial and Financial Chronicle.) WASHINGTON CITIES AND TOWNS 125 LEWIS CO. SCH. DIST.— Concluded. Refunding {Red. beg. in 1912). 454s '11 June $50,000c June 5 1931 Building {Red. beg. in 1912). 454s '11 July $43,OOOc July 1 1931 BONDED DEBT Jan 1 '14 $ 112,600 Floating debt 82,470 Sinking fund Jan 1 '14 2,939 Assessed valuation '13 (60% act.).. 3,011,065 School tax rate (per $1,000) '13... 15.00 INTEREST at State Treasurer's office. LEWIS COUNTY S. D. No. 211. Building (Red. begin. July 1, 1914). 554s '13 July i25,000 July 1 1918 BONDED DEBT Jan 1 '14 $ 25,000 Floating debt 5,995 Sinking fund 697 Assessed valuation '13 (60% act.).. 807,863 School tax (per $1,000) '13 12.00 LINCOLN COUNTY. Davenport is the county seat. All bonds are taxable. Refunding Bonds. 4\is'02 June $54,000c June 2 1922 Court-Mouse (Red. beg. in 1916). 454s '06 Apr 5 $41,000c Apr 5 1926 BONDED DEBT March 20 *14..$ 95,000 Assessed valuation '13 (54 act.).. 24,177,168 State and Co. tax (per $1,000) '13. 16.80 Population in 1910 17,539 INTEREST at Equitable -Trust Co., N. Y. MIDDLE KITTITAS IRRIG. DIST. A district in Kittitas County. 6sg'10 J-J $103.O00c 1940 BONDED DEBT Sept 21 "14 $103,000 Assessed valuation '13 (40% act.).. 673,274 Tax rate (per $1,000) '13 9.40 INTEREST at County Treasurer's office. NORTH YAKIMA. This city is situated in Yakima County. Incorporated May 14, 1894. Commission gov- ernment went into effect September, 1911. Sewer Bonds. 4s '06 M-S $48,000c Mar 1 1926 454s '11 A-O 50,000c Oct 1 1931 5sg '11 J-D 60,000c Dec 15 1931 (Subject to call after Dec. 15, 1912.) Refunding Bonds. Dec 1 1928 Dec 1 1930 5s '12 F-A 30,000c Feb 1 1932 (Subject to call after Feb. 1, 1913.) TOTAL DEBT March 18 '14 $ 298,000 Assessed valuation '13 (3-5 act.)... 8,450,645 City tax (per $1,000) '13 20.94 Total tax rate (per $1,000) '13 43.86 Population in 1910 (Census) 14,082 INTEREST on sewer 454s and refunding 5s of 1910 at fiscal agency (Equitable Trust Co.), New York: the sewer 4s at Chicago; sewer 5s and refunding 454s at City Treas- urer's office ; others at State Treasurer's office. Ketunding ttonos. 454 s '08 ID $80,000c. 5s '10 J_-D 30,000c. 5s '12 F-A 30,000c. NORTH YAKIMA S. D. No. 7. 454s '00 May $1 1,000c May 1 1920 4s '03 Aug- 22,000c Aug 8 1923 (Subject to call after Aug. 1, 1904.) 4s '05 Feb $25,OOOc Feb 11 1925 (Subject to call after Sept. 11, 1906.) 4s '07 Apr $150,000c April 1927 (Subject to call after 1908.) 5s '11 Feb $75,000c Feb 1931 (Subject to call after 1912.) BONDED DEBT Sept 19 '14 $ 303,000 Sinking fund 13,780 Assessed valuation '13 (45% act.).. 9,766,600 School tax (per $1,000) '13 6.22 INTEREST at New York, Chicago and in Olympia, Wash. OLYMPIA. Olympia is situated in Thurston County. Incorporated as a town 1859: as a city 1881. Bonds below all owned by State Permanent School Fund. Refunding Bonds (Red. beg. in 1911). 3 Ws '06 J-J $200.000c 1926 BONDED DEBT Sept 24 '14 $ 200,000 Assessment debt (est.) 357,463 Floating debt (est. ) 65,886 Assessed valuation '14 (3-5 act.)... 3,271,435 Total tax (per $1,000) M3 48.00 Population in 1910 6,996 INTEREST at office of State Treasurer. OLYMPIA SCHOOL DIST. No. 1. Refunding Bonds. 5s '10 J-J $25,000c July 1 1930 (Subject to call beg. July 1 1912.) 554s '13 Oct $10,000c Oct 15 1933 (Subject to call beg. Oct. 15, 1914.) Funding Bonds (Red. beg. in 1912). 454s '11 s-an $78,000 Jan 2 1932 BONDED DEBT Sept 18 '14 $ 113,000 Floating debt 6.237 Assessed valuation '13 (3-5 act.)... 3,432,107 School tax rate (per $1,000) '13... 13.00 Population in 1914 (est. 1 9.000 INTEREST at State Treasurer's office. No. 36. PACIFIC COUNTY. South Bend is the county seat. Building Bonds (Red. any time). 5s '13 $10,000 1933 Court-House i Red. beg. in 1911). 5s '10 J-J $150,000 July 1 1920 Refunding (Red. beg. in 1911). 5s '01 M-N $33,000 Not 2 1921 Road and Bridge (Red. beg. in 1912). 5s Ml JJ $100,000 Jan 2 1926 BONDED DEBT April 26 '14...$ 283,000 Warrants outstanding 200,000 Assessed valuation '13 17.979,788 State and Co. tax (per $1,000) '12 12.65 Population in 1910 12,532 PACIFIC COUNTY S. D. High-School-Building Bonds. 454g 13 ann $75,000 (Red. beg. '23) 1933 "ONI" (Red. BONDED DEBT Sept '13 $ 105,000 Assessed valuation 2,219,919 PEND OREILLE COUNTY. Newport is the county seat. Warrant-Funding Bonds. 454g'12M-N $72,OO0c May 1 1932 (Subject to call after May 1, 1922.) BONDED DEBT May '14 $ 72,000 Warrants outstanding 56,152 Sinking fund 10,000 Assessed valuation '14 (54act.)... 6,550,382 Population in 1910 6,660 PIERCE COUNTY. The county scat is Tacoma. Refunding Bonds. 5s '05 A-O $268,000c Oct 2 1925 (Subject to call beginning Oct. 2, 1915.) 3«s'06 J-D $8,000c June 1 1926 (Subject to call beginning June 1, 1907.) 4s '06 M-S $150,000c Sept 1 1926 BONDED DEBT Jan 1 '13 $ 426,000 Assessed valuation, real 81,082,429 Assessed valuation, personal 17,514,757 Assessed valuation, railroads 10,146,457 Total valuation '12 (3-5 act.) 108,743,643 State and Co. tax (per $1,000) '12 13,000 Population in 1910 120,812 Interest on 3fjs is payable at State Treas- urer's; on other bonds in N. Y. City. PORT ANGELES. This city is in Clallam County. Incor- y orated as a city of the third class about une, 1891. Refunding Bonds (Red. Oct. 1, 1923). 554s'12 .... $50,000 Feb 1 1932 6s '13 A-O 36,000 Oct 1 1933 GEN. BD. DEBT Oct 1 '14 $ 86,000 Assessment bonds (additional) 223,121 Warrants outstanding 59,298 Assessed valuation '14 2,020,060 Population in 1910 2,286 PORT OF SEATTLE. P. O. Seattle. East Waterway Improvement District No. 1. 454s g '13 J-J $494,000 Jan 1'15-'S5 454sg'13M-N 348,000 May 1 M5-'55 5s g '13 M-S 436,000 Sept 1 '15-'55 East Waterway Improvement No. 2 Bonds. 5sg'13 M-S $554,000 Sept 1 '15'55 5s g '14 J J 40,000 Jan 1 "15-'56 Salmon Bay Improvement Bonds. 454s g '13 J-J $347,000 1915-1955 5sg s-a 197,000 Part yearly West Seattle Ferry Bonds. 5s g '14 J-J $200,006 Jan 1 '15'55 Central Water Front Improvement Bonds. 454sg M-N $745,000 Part yearly Smith's Cove Improvement Bonds. 4J4 sg s-a $996,000 Part yearly Lake Washington Improvement Bonds. 454g'13 J-J $149,000 July 1 '15*55 BONDED DEBT Sept 1 '14....$ 4,712,000 Assessed valuation '13 (45% act.) 263,611,027 Population in 1910 284,638 Population in 1913 (estimated) 338.500 INTEREST at Equitable Tr. Co., N. Y. PORT TOWNSEND. This city is in Jefferson County. Incor- porated Dec. 8, 1881. Funding Bonds. 6s M-N $29,100c Dec 1 1915 "Water Bonds (Red. any time). 6s M-N $185,000r Nov 1925 Refunding Bonds. 554s '11 \f $75,OOOc July 1931 (Subject to call after 1921.) GEN. DEBT Jan 1 '14 $ 104,100 Assessment debt (additional) 28,983 Sinking fund and cash 11,643 Water bonds (not included above) 180,000 Water sinking fund 8,929 Assessed valuation '13 1,387,239 City tax (per $1,000) '13 17.00 Population 1910 4,181 'These bonds are not a city obligation. SEATTLE. Situated in King County. Incorporated as a town Jan. 14, 1865 and as a city Dec. 2, 1869. Proposed new city charter rejected June 30, 1914. An issue of $800,000 munici- pal-electric-railway system bonds was voted Mar. 7, 1911, and validity subsequently up- held. Up to Aug. 1, 1913, $300,000 had been issued. Building Bonds. 4s '02 A-O $I00,000c Oct 15 1922 4s '05 JJ 175,000c July 1 1925 454s'10 J-J 50,000c July 1 1930 454s'10J-D 300,000c Dec 11930 Funding Bonds. 5s '11 J-D $46,000c June 1 1931 General Improvement Bonds. 454g'll J-D $136,000c Dec 1 1931 Sewer Bonds. 454s '07 M-S $l,650,OO0c Mar 1 1927 Refunding Bonds. 5sg'U J-J $391,000c July 1 '15'31 5sg'12A-0 699,000c Apr 1 '14-'32 5sg'12 J-J 376,000c July 1 '14'32 5s '13 J-J 780,000 July 1 '15-'18 Light Plant Extension Bonds. 4s '05 J-J $250,OOOc July 1 1925 4s '09 A-O 500,000c Apr 11929 454s "10 M-S 200.000c Mch 1 1930 4 54g '12 J-J 1,000,000c Jan 1 1932 Park Bonds. 4s '07 M-S $500,000c Mch 1 1927 4s '09 A-O 500,000c Apr 11929 454s'10M-S 500,000c Mch 1 1930 454s '10 J-D 500.000c Dec 1 1930 454s '11 J-D 1,000,000c June 1 1931 454g'12J-J 500.000c .Jan 1 1932 454s'12J-J 500,000c July 11932 Municipal Light Plant Bonds. 3Us '04 J-J $400,000c July 27 1923 3Ms'04A-O 190,000c Apr I 1924 3Ks'07J-J 200,000c July 11927 3Ms'08 J-J 400,000c J&J 1 1928 454s '11 J-D 100,000c June 11931 454s '14 75,000 Jan 11934 Refunding Water and Sewer Bonds. 5s g '10 J-I $814,000c July 1 '14-'30 Water-Works-Extension Bonds. 454s '10 J-J $500,000c July 1 1930 454s'llJ-J 580,000c July 1 1931 454g'12 J-J 500,000c Jan 11932 Water Tunnel Bonds. 454s g '14 J-J $300,000 July 1 1934 Refuse Disposal Plant Bonds. 454s '10 J-J $32O,0O0c July 1 "15-'30 City Electric Ry. Bonds. 454g'l3 M-N $300,000c May 1 1933 BALLARD— Annexed Jan. 29, 1907: Refunding Bonds. 6s '95 j-D $24,500c Dec 1 1915 Funding Bonds. 454s '05 F-A $75,OOOc Aug 1 1925 5s '10 M-S 65,000c Mar 1 1930 Water-Works Bonds. 6s '95 J-J # $42,000c Jan 1 1915 454s '02 F-A *10,000c Aug 1 1917 454s '04 A-O *25,000c Oct 1 1924 COLUMBIA— Annexed May 3, 1907: General Municipal Bonds. 6s '04 F-A $3,900c Aug 27 1924 In addition to the bonds given above, there are also outstanding $1,767,000 5% (J. -J.) coup. Cedar River water bonds due Jan. 1, 1915'26. These bonds are a lien on a cer- tain portion of the revenues of the_ Water Dept., and are not a general municipal in- debtedness. There also remain outstanding $510,000 from an issue of $1,250,000 Cedar River water-supply warrants payable at the rate of $100,000, principal and interest yearly from water revenues only. •Issued in payment for water systems by their respective cities prior to annexation. They were then made part of the water plant of this city, and although they are a general indebtedness, and interest is being paid from the water fund. INTEREST is payable as follows: Fund- ing bonds of 1891 and funding bonds of 1893 (first and second series) at Seattle or at Harris, Forbes & Co., N. Y. City; funding bonds due 1931 and 1933 at fiscal agency in N. Y. City or at City Treas. office; sewer tunnel bonds of 1893 and sewer bonds of 1893 at City Treasurer's office or at Blair & Co., N. Y. City ; library-site bonds at City Treas- urer's office or fiscal agency, N. Y. City; Municipal-light and power-plant bonds (series A and B), State Treasurers office; municipal- light and and power-plant-extension and park bonds due July 1, 1932, at City Treasurer's of- fice, and fiscal agency. New York City; park bonds due 1931, the refuse-disposal-plant bonds and bonds of 1912 at fiscal agency in N. Y. City (Equitable Trust Co.). All the other bonds, except those of the annexed cities, at City Treasurer's office or at fiscal agency in New York. Interest on the annexed cities' bonds is payable as follows: On refunding bonds, the water-works bonds due 1917 ana 1924 and on the general municipal bonds, at the fiscal agency in N. Y. City; on the fund- ing bonds at the Harris Trust & Savings Bank, Chicago; on the water-works bonds due 1915 at the Chemical Nat. Bank, N. Y. City, and on the water-works bonds due 1922 at the State Treasurer's office. TOTAL DEBT, etc. — Cash in treasury Apr. 1, 1914 $1,330,721.05 Apr. 1 '14 Apr. 1 '13 Bonded debt $15,440,400 $15,258,400 Floating debt None None Total $15,440,400 $15,258,400 Water debt (inclu.).. 2,572,241 2,625,827 In addition to the above debt, the city had outstanding March 1, 1914, $8,762,680.99 of assessment bonds and $2,316,162.53 of as- sessment warrants, both a lien only against benefited property. DEBT LIMITATION.— The limitation of bonded indebtedness is 10% of the assessed valuation, of which 5% is for water, light and sewers and 5% for general purposes. CITY PROPERTY— Jan. 1, 1914, the city owned personal property, real estate and se- curities valued at $29,735,473. This total is exclusive of highways, sewers and cash. ASSESSED VALUATION. — Assessment about 45% actual value. — 1913 1912 Real estate $178,468,225 $176,975,528 Personal 36,893,926 35,953,520 Total $215,362,151 $212,929,048 Tax (per $1,000).. 543.87 34.57 ■CITY TAX RATE (per $1,000) for 1913 in the "old limits" was $19.86; in the "new limits" it was $19.31 and in South Seattle $17.63. The total tax rate for 1913 was $43.87, incl. State, county, city, school and Port of Seattle. POPULATION in 1910 (Census) was 237,- 194; in 1900 (Census), 80,671; in 1890, 42,- 837; in 1880, 3,533. SEATTLE SCHOOL DISTRICT NO. 1 This school district is in King County, and includes the city of Seattle. School Bonds. 5s '95 J-J $400.000c July 1 1915 4s '02 M-S 275,000c Mar 1 1922 454s '03 A-O 100,000c Oct 1 1923 454s '04 M-N 300,000c May 1 1924 454s '00 M-S 200,000c Sept 1 1920 4s '06 J-J 500,000c Jan 1 1926 454s '08 M-N 300,000c May 1 1928 4s '08 M-N 200,000c May 1 1928 (Compiled by the Commercial and Financial Chronicle.} 126 WASHINGTON CITIES AND TOWNS SEATTLE— Concluded. 4s 09 M-N 400,000c May 1 1929 4'As'U M-S 400,000c Mch 1 '15-'30 4^s'12 M-S 510,000c Mch 1 '15-'31 4}4s'll M-S 100,000c Mch 1 1931 4Hs'13 M-S 200,000c Mar 1 '15-'33 5s '13 M-S 437,000c Mar 1 '15-'33 5s '14 A-O 361,000c 1916-1934 4'As '14 A-O 152,000c So. Park District No. 9 (Annexed). 5s '01 M-S $3,000c Sept 1921 Rainier Val. District No. 18 (Annexed). 4s '03 July $15,000c July 1923 W. Seattle District No. 73 (Annexed). 4'As '08 J-D $55,OOOc June 1928 Bullard District No. 50 (Annexed). 4^s'03 F-A $20,000c Feb 11923 4Hs'99 M-S 10,000c Sept 11919 4As'09 J-J 400,000c July 1 1929 5s '06 M-N 10,500c Nov 1 1926 (Subject to call after Nov 1 1916.) 6s '04 F-A $3, 000c Aug 1 1919 (Subject to call after Aug 1 1914.) 5^s'04 $4,000c Aug 1 1924 (Subject to call after Aug 1 1914.) 4"^s'll M-N $500,000c May 1 1931 4Ks'12 J-J 250,000c Julyl 1932 Refunding Bonds. 4Hs'10J-J $250,O00c Julyl 1930 BONDED DEBT Sept 1 '14 $ 2,197,500 Floating debt 227,512 Assessed valuation '13 ('A act.)... 90,192,565 School tax (per $1,000) '13 5.50 Population in 1913 (estimated) 110,000 INTEREST on bonds due Aug. 1, 1924, payable at County Treasurer's office; on 4^2S due March 1, 1924 at County treasurer's of- fice or at State fiscal agency in New York City (Equitable Trust Co.) and on bonds of 1907 and 1912 in N. Y. City at Equitable Trust Co. SPOKANE SCHOOL DISTRICT NO. 122. School-Building Bonds. (Tax-Exempt). 5s '07 J-D $25,000c June 1 1922 (Subject to call after Tune 1, 1917.) 5s '12 A-O $20.000c Apr 1 1932 BONDED DEBT Sept 1 '14 $ 45,000 Floating debt 5,656 Sinking fund 2,753 Assessed valuation '13 (A act.) 1,772.862 School tax (per $1,000) '13 38.00 Population in 1913 (estimated) 5,000 INTEREST on 5s at fiscal agency in N. Y. City (Equitable Trust Co.). SPOKANE COUNTY. County seat is Spokane. Refunding Bonds (Red. beg. in '11). 4s '01 J-D fl29,000c Dec 2 1921 Court House and Jail Bonds. 4^s'03 A-O $270,000c Oct 1 1923 (Subject to call after Oct 1 1913.) BONDED DEBT Sept 19 '14...$ 399,000 Warrants outstanding 34,499 Cash on hand 196.300 Assessed valuation '13 (about 42% actual) 122,492.478 State and Co. tax (per $1,000) '13 16.00 Population in 1910 139,404 INTEREST at fiscal agency in New York. (Compiled by the Commercial and Financial Chronicle.) EYMAN & CO. INCORPORATED INVESTMENT BANKERS SEATTLE, WASH. Specialists in HIGH GRADE TAX SECURED BONDS originating in the Pacific Northwest. Investments suitable for Banks, Insur- ance Companies, Estates and Individuals — Exempt from Income Tax — To net 6% to 1%. Correspondence invited. John E. Price & Co. INVESTMENT BANKERS ESTABLISHED 1902 Transact a general investment banking business. Purchase outright entire issues of Mu- nicipal, Local Improvement District, Corporation and Timber Bonds of the Pacific Northwest The great strides in growth of popula- tion and wealth of Washington, Oregon, Idaho and Montana are making availa- ble millions of dollars of excellent securities of the character indicated above. Lists of bonds which we have purchased for our own account and can recommend for their security and high income yield gladly furnished. Hoge Building, Cor. Second Ave. and Cherry St. SEATTLE Attention is called to the announcement on page II WASHINGTON CITIES AND TOWNS 1-27 STEVENS COUNTY. County seat is Colville. A portion of this county has been taken to form the new Ferry County. Refunding Bonds. 4>/ 1 s'0> I -J $35,OO0c Mar 1 1922 Refunding Bonds. 4J4s'02 M-N $184.000c Nov 1 1929 (Subject to call after Nov 1 1919.) BONDED DEBT Sept 19 '14 $ 239,000 Assessed valuation '14 8,910.941 State and Co. tax (per $1,000) '14 28.00 Population in 1910 19,270 INTEREST payable in N. Y. City. TACOMA. Tacoma is the county seat of Pierce County. Incorporated Nov. 8, 1883. Bridge Bonds. 4J4s'09 J-D $300,000c July 1 1929 4Kis'l»J-J 543,000c Jan 11932 4>4s'13 MS 35,000c Mar 15 1928 Refunding Bridge Bonds. "13 s-an $90,000c June 1 15-'17 1920 Funding Bonds. Ssg'OO VA $1, 093,000c Feb 15 Refunding Bonds. 4j4s'll A-O $518,000c Apr 1 1931 Surface Water Drainage Bonds. 4!4s'09J-J $ 75,000c July 1 1929 4Kg'10 FA 100,000c Aug 1 1930 Green River Gravity Water Bonds. 4^s'10 J- J $500,000c July 1 1930 Refunding Light Bonds. 5s '13 s-an $250,OOOc June 1 '18-'21 Refunding Water Bonds. 5s '13 s-a $l,75O.0OOc June 1 '22-'33 Light and Power-Plant Bonds. 4J4s T 09 JJ $300,000c Jan 1 1929 Wharf and Dock Bonds. 4!4g'll J J $405,000c Jan 1 1931 Road Bonds. 4J4s'13 M-S $117,000c (Due $8,000 yearly for 15 years and $5,000 in 16 years.) GEN. HD. DEBT Sept 1 '14 $ 6.076,000 Water and light debt (additional. "3,507,904 Improvement debt (additional).... 1,617,913 TOTAL DEBT Sept 1 '14 11,201,817 Sinking fund assets 300,319 NET DEBT Sept 1 '14 10,901,498 Assessed valuation, real 48,396,653 Assessed valuation, personal and public service corporation 25,892,923 Total valuation '13 (3-5 act.) 73,298,458 Total tax (per $1,000) '13 36.20 Population in 1910 83,743 Population in 1914 (estimated) 110,000 This debt consists of water and light and power plant bonds maturing from 1 to 20 years. These are not payable from the gen- eral tax levy, but are paid out of revenue of water and light plant*, INTEREST City on local improvement bonds at Treasurer's office ; other interest at Equitable Trust Co., N. Y. TACOMA SCHOOL DISTRICT NO. 10. Building Bonds. 4 'is '05 MS $200,000c Sept 1 1925 4'..s'llann "290,000c July 11931 4J4s'12 ann "200,000c Dec 31 1932 4J4s '13 July "200,000 July 1 1933 Refunding Bonds. 4^s '00 FA $100,000c Feb 1 1920 BONDED DEBT Mar 1 '14 $ 990,000 Sinking fund 33,243 Value school property '13 2.644.522 Assessed valuation '13 (>A act.).. 77,892,299 Tax rate (per $1,000) '13 5.15 Population in 1913 (estimated) 100,000 "Redeemable beg. 1 year after date. INTEREST Equitable Trust Co., N. Y. WALLA WALLA. This city is in Walla Walla County. In- corporated in 1862. Water and Sewer Bonds (Tax-Exempt). 5s '99 Jan $159,0O0c 1926 Refunding Bonds. (Tax-Exempt). 4J4sg'12 J-J $40j000c Tan 1 1932 City-Hall and Fire-Station Bonds. Ssg'08 J-J $100,000c Jan 1 1928 Municipal Improvement Bonds. 5s & 6s $41,403.54c Water-Works Bonds (Tax-Exempt). AYit'99 M-S $133.000c 1919 5sg'06 Nov 213,000c 1936 (Subject to call.) GEN. BONDS Oct '14 $ 686,404 Assessment debt (additional) 236,797 Floating debt 90,042 Cash on hand 22.042 Assessed valuation "14 (40% act.). 9,359,712 Tax rate (per $1,000) '14 13.00 Population 1910 19,364 INTEREST in W. W. and N. Y. City. WENATCHEE. This city is in Chelan County. Incorpo- rated Dec 26, 1892. Warrant Funding Bonds. 5s '12 $9,500 1932 Municipal Purpose Bonds. 5s '09 $40,000 1924 5s '10 50,000 1930 General Bonds. S'As'U J-D $15,000 Dec 15 1932 Water Bonds. 6s '01 $ 7,500 1921 4}are Cohen, Vice- M. Farnham, Sec. Pres. A. C. Bakh, Vice-Pres. L. A. E. Peat, Treas. & Comp. Soerrv Flour Co- San Francisco, Cal. Established, 1852; Incorporated, 1892. The company maiufactures and sells flour, cereals and feeds, operating several mills in California, and one in Tacoma, Wash.; and maintains offices in 17 cities in Cali- fornia, in Tacoma, Wash., in Portland and Marshfield, Oregon, and in Honolulu. The company does a large export business which is handled by W. R. Grace & Co. Capitalization. Stocks — Authorized. Outstanding. Preferred (7%) $ 600,000 $ 600,000 Common 3,600,000 3,378.300 Funded Debt — Bonds 500,000 500,000 Physical Property. The company owns mills at Stockton (2), Vallejo, Fres- no, Chico, Los Angeles, Marysville, Paso Robles and Salinas, Cal., and at Tacoma, Wash. On June 30, 1914, its real estate holdings, machinery, equipment, etc. (including new construction), were valued at $1,935,793 after deduc- tions for depreciation. Grains and manufactured goods on hand inventoried $1,300,110. The surplus on that date was $422,566. Officers. John H. Rossiter, Pres. B. H. Ames, Sec'y. S. B. McNear, V.-P Win. Thompson, Treas. Spokane & Inland Empire Railroad Co., Spokane, Wash. The company operates electric railway lines in Spokane and thence east to Coeur d'Alene and Hayden Lake; Col- fax and Palouse, Wash., and Moscow, Idaho, on the south, with an extension from Greenacres (on the eastern divi- sion) to Spokane. Outside of Spokane the road is in ac- cordance with standard steam railroad specifications and the company transports all kinds of freight, light and heavy, exchanging with steam roads. Capitalization. Stocks — Authorized Preferred rights (5% cum.) $10,000,000 < ommon 10,000,000 Funded Debt — Bonds 15,000,000 •Control owned by the Great Northern R. R. Co. em Pacific Ry. Co. Physica | p roper ty. The company owns and operates 290.94 miles of track (single, sidings and spurs); 124 passenger and 36 other motor cars, 493 miscellaneous cars; 10 electric and 4 steam locomotives; valuable passenger terminal and office build- ing in the heart of Spokane and freight terminal between the terminals of the Great Northern and Northern Pacific railroads, and has physical connection with all railroads entering Spokane. Also owns a hydro-electric plant 9 miles below Spokane, capable of developing 20,000 horsepower. The company owns a franchise to sell electric light and power in Spokane. Outstanding $ 6,409,100 10,000,000 3,913,000 and North- 1888 1914 American Real Estate Company THIS Company has been one of the leading factors in the development of New York real estate. Its operations during the twenty-six years of its existence have been in sections now marked by prosperity, activity and permanence. It has operated extensively along rapid transit lines in the northern part of New York City and in the city of Yonkers, immediately adjoining New York City on the north. It has acquired and holds for investment many high grade business and apartment buildings in the best sections of Manhattan, New York City. The Company's business has been conducted for more than a quarter of a century by experts in the New York real estate field. From a foundation capital of $100,000 it has grown steadily and con- sistently until now it has net assets exceeding $17,000,000, with a capital and surplus of $3,247,789.13. In the further extension of its business of real estate operation (to which it is limited by charter) along these well established and conservative lines, the Company offers its 6% Bonds to investors. These b% Bonds are issued in Coupon form in denominations of $100, $500, $1000 and up- ward, and mature in ten years. The i>% interest is payable by coupons semi-annually. They provide an attractive investment for small or large amounts, and offer a most satisfactory combination of the three essentials of an investment — safety, yield and cash convertibility. Descriptive booklets and Twenty-sixth Annual Statement will be sent on request. ^ meriran $bU fl fetafr (font p \my 527 Fifth Avenue NEW YORK Attention is called to the announcement on page II 146 CORPORATIONS Earnings. Deficit reduced from $131,701 in 1911 to $78,529 in 1913. Operating ratio reduced in the same period from 68.22 per cent to 68.06 per cent. Officers. L. C. Gilman, Pres. W. F. Turner, Comptroller. Waldo G. Paine, V. P. W. D. Scott, Gen. Mgr. W. G. Davidson, Sec. & Treas. Spring Valley Water Co., San Francisco, Cat. The company furnishes water to the city of San Fran- cisco. Capitalization. Stocks Authorized Outstanding Common $28,000,000 $28,000,000 Funded Debt — Bonds 28,000.000 21,277,000 Notes, 2 yr. 5%%. due Dec, 1915 2,000,000 1,000,000 Physical Property. The company owns 14 pumping plants in San Francisco, San Mateo and Alameda counties, of a capacity of 75,000,000 gallons; eight city distributing reservoirs and 3 tanks. City system consists of 460 miles of pipe and 63,000 service connections. Properties in San Francisco, San Mateo, Alameda, Santa Clara and San Benito counties, 102,082 acres, and riparian rights on 51,558 acres. Reservoirs have a capacity of 32,100,000,000 gallons. The system, as at present developed, delivers approximately 40,000,000 gallons daily. Real estate water rights were appraised January 1, 1914, $65,840,485. On December 31, 1913, a condemna- tion suit was commenced by the city of San Francisco to acquire the greater portion of the property owned by the company. Earnings. Gross "Net Year Revenue Earnings Interest Balance 1910 $2,898,963 $1,798,898 $714,360 $1,084,568 1911 2,993,336 1,936,149 714,360 1,221,789 1912 3,195,377 1,197.547 756,304 2,149,856 1913 3,400,680 2.149,856 714,971 1,434,885 "Net earnings are shown after deducting operating expenses and taxes. Officers. W. H. Bourn, Pres. J. S. Behan, Sec. A. H. Payson, Vice-Pres. T. M. Edmunds, Asst. Sec. S. P. Eastman, V.-P. & Gl. Mgr. Benj. Bangs Treas. Standard Gas & Electric Company Delaware The Standard Gas & Electric Company owns stocks, bonds and other securities of public utility corporations serving over 200 cities and towns, with a total popula- tion of approximately 1,656,000, situated in the states of Minnesota, Kentucky, Washington, Oklahoma, Alabama, Colorado, California, Arkansas, Iowa, North Dakota, Oregon, Illinois, Montana, Idaho and Wisconsin. Subsidiary Companies. Ark. V. Ry.Lt.& Pr.Co. Muskogee Gas ft EI. Co. *San Diego Consol. Gas Enid Elec. & Gas Co. No.Ida.S Mont. Pr.Co. ft Elec. Co. Everett Gas Company. North. States Pr. Co. Southwestern Gen'l Gas Ft. Smith Lt. & Tr. Co. Okla. Gas ft El. Co. Co. Louisville Gas & El. Co. Consumers Power Co. Tacoma Gas Company. Miss. V. Gas & El. Co. Ottumwa Ry. & Lt. Co. "Western States Gas & Mobile Electric Co. Olympia Gas Co. Electric Co. "See information below. Capitalization. Stocks — Authorized Outstanding $11,784,950 preferred (8%) $30,000,000 $11,784,950 Par $50. Common 15,000,000 9,343,150 Funded Debt — Conv. S. F. 1926 bonds (6 per cent).. 30,000.000 9.969,500 Coll. Trust Gold Notes (6 per cent).. 3.000,000 2,446,000 Physical Property. All of the public utilities in which Sandard Gas & Elec- tric Company owns stocks, bonds and other securities have been thoroughly maintained in first-class physical condi- tion. They operate under satisfactory franchises, serving communities which in the past have shown favorable in- creases in population, business importance and financial stability and offer every expectation of prosperous growth in the future. These companies operate in widely sepa- rated parts of the country and variously serve cities and towns of greatly diversified commercial and manufactur- ing interest. Earnings. i*ear Gross Revenue *Net Earnings 1911 $11,939,999 $5,727,794 1912 13,194,804 6,029,583 1913 14,060,442 6.316.448 *Net earnings are shown after deducting operating expenses and taxes. Dividends. 1910 1911 1912 1913 1914 Preferred (per cent) S% 1 7%» 8 8 3 6* 1 Initial dividend, 1% per cent, Sept. 15, 1910. ' Initial dividend, 2 per cent. Sept. 15. 1911. 3 Dividend last 6 months 1913 and 1914, payable in scrip, due Sept, 1922, Interest 6 per cent. 4 Nine months. Statistics. 1913 Electric Consumers. . .149,225 Gas Consumers 132,474 Water Consumers.... 2,290 Steam Consumers.... 883 Telephone Subscribers. 2,660 1912 130,946 129,158 3,145 826 2,473 1911 1910 110,166 88,582 120,897 106,534 2,702 1,626 835 755 2.138 2,385 Totals 287,532 266,548 236,738 199,882 1913 1912 1911 1910 Kwt. Hour Output 339.977,796 291,366,636 251,728,523 210,841,243 Motors .... 18,784 15,890 13,069 9,758 H. P. Pr. in Motors.. 160,856 133,328 108,793 84,254 16 c. p. Eq. 2,727,970 2,441,758 2,082.932 1,658,576 City Arcs.. 10,854 10,146 9,529 8,816 City Inc's. 12,761 9,390 6,996 5,478 Gas Output (cu. ft.) 9,122,718,102 9,824,253,465 9,316,453,927 8,108,788,459 St. Railway Receipts.. $828,168.25 $801,963.25 $757,204,50 $704,639.01 Officers. II. M. Byllesby, Pres. J. J. O'Brien, Vice-Pres. F. C. Gordon, Vice-Pres. M. A. Morrison, Sec. & Asst. Treas. Herbert List, Asst. Seretary. R. J. Graf, Treas. & Asst. Sec. Herbert List, Asst. Treasurer. WESTERN STATES GAS & ELECTRIC COMPANY (Delaware) (The Company owns entire capital stock of Western States Gas & Electric Co. of California.) This Company operates gas works and steam electric power house with distributing systems in Eureka, hydro- electric power plant on Trinity River, near Junction City, and electric distributing systems in Areata, Blue Lake, Fields Landing and Fortuna ; electric distributing sys- tems in Richmond; gas works and steam electric power house with distributing systems in Stockton, and electric distributing systems in Elk Grove, Florin, Gait, Lockeford, etc.; also hydro-electric power plant on American River near Placerville and electric distributing system in Placerville, and appurtenant transmission lines and other properties. Population served app. 78,750. Capitalization. Stocks Authorized Outstanding Conv. cumulative, pref. (7%) $10,000,000 $2,125,000 Common 5,000,000 3,503,000 Funded Debt — Bonds 10,000,000 4,737,500 Physical Property. Hydro-electric developments include 4,500 K. W. ; steam electric stations 5,250 K. W. 1,118,000 cu. ft. holders gas. Company at Stockton owns 16 gas wells and supplies mixture of artificial and natural gas. Richmond division purchases electric energy at wholesale from Pacific Gas & Electric Company and distributes through Richmond and vicinity. Statistics. 1910 1911 1912 1913 Miles of Pole line 563 635 811 923 Electric customers 6,573 10,622 12,893 15,019 Motor load h. p 10,737 12,382 15,070 21,581 Miles gas mains 65 102 123 123 Gas customers 5,239 5,940 6,862 7,463 Earnings. Gross *Net Year Revenue Earnings Interest Balance 1910 $750,696 $417,815 $143,429 $274,385 1911 866,399 498,067 209.982 288,085 1912 978, S62 515,786 196.479 319.307 1913 1,085,647 488,764 259,149 229,615 *Net earnings are shown after deducting operating expenses and taxes. Officers. H. M. Byllesby, President. F. C. Gordon, Vice-Pres. Otto E. Osthoff, Vice-Pres. E. J. Graf, Sec. ft Treas. M. A. Morrison, Asst. S. ft T. Herbert List, Asst. S. & T. SAN DIEGO CONSOLIDATED GAS & ELECTRIC CO. This Company operates a gas and electric plant in city of San Diego and serves both gas and electric energy to the following: San Diego, La Jolla, Pacific Beach, Old Town, Ocean Beach and Point Loma, Chula Vista, East San Diego, Encanto, La Mesa, Lemon Grove, Normal Heights and National City; elec- tricity only to Bostonia, El Cajon, Foster, Imperial Beach and South San Diego, Lakeside and Lakeview, Nestor, Palm Station, Otay, Santee, San Ysidro and Helix, Del Mar; gas only to Coronado. Capitalization. Stocks — Authorized Outstanding Preferred $ 500,000 None Common 3.000,000 $2,715,000 All common owned by Standard Gas & Electric Co. Funded Debt — Bonds $9,000,000 $4,199,000 Physical Property. Gas — Holder capacity, 2,650,000 cu. ft.; annual output, 733,293,000 cu. ft. Miles of mains, 420; combined daily capacity water and oil gas plants, 4,375,000. CORPORATIONS 147 Electric— 8,470 K. W. power station; 12,350 H. P. in engines and turbines; 5,494 H. P. in Babcock & Wilcox boilers; miles of pole line, 401; annual output, 18,931,466 K. W. H, Oil is used as fuel, and boilers are equipped with grates for burning lamp black, being a by-product of gas plant. During present year company will install additional 4,000 K. W. General Electric turbo-generating unit. The charter of the Company for both gas and electric lighting is for a period of 50 years from March 29, 1897. Statistics. 1910 Electric consumers 7,139 Gas consumers 10,155 City arcs 369 Motors 648 H. P. motors 2,835 Earnings. Gross *Net Year Revenue Earnings 1910 S 548.061 $277,314 1911 753,820 387,714 1912 1,019,471 511,767 1913 1,326,970 625,768 1911 9.885 13,061 425 904 5,024 1912 14,321 17,864 621 1,284 8,117 1913 17,199 20,348 707 1,633 13,678 Interest ? 91,028 111,573 165,140 223,129 Balance $186,286 276,141 346,627 402,639 ♦Net earnings are shown after deducting operating expenses and taxes. Dividends. 1905 1906 1907 190S 1909 1910 1911 1912 1913 1914 Preferred .. 1 % 5 5 5 6 & 7 7 None outstanding Common 5 6 >4 7 7 &% 10 Officers. H. H. Jones, Pres. A. H. Sweet, Vice-Pres. H. M. Byllesby, Vice-Pres. M. B. Fowler, Sec. & Treas. F. C. Gordon, Vice-Pres. R. J. Graf, Asst. T. & S. Herbert List, Asst. T. & S. TACOMA GAS COMPANY. Capitalization. Stocks — Authorized. Preferred 1% cumulative $5,000,000 Common 2,500,000 Funded Debt — Bonds 3,000,000 EVERETT GAS COMPANY. Capitalization. Stocks — Authorized. Preferred 7% cumulative $1,000,000 Common 1,000,000 Funded Debt — Bonds 2,000,000 Outstanding. $ 750,000 1,550.000 2,095,000 Outstanding. $ 310,000 1,000,000 762,000 Standard Oil Co. of California, San Francisco, Cat. The company operates extensive oil producing properties in Southern California, pipe lines, three refineries, can plant, a fleet of steamers and barges, and other equipment. It distributes and sells petroleum and its products; operat- ing 135 stations in California, '21 in Oregon, 42 in Wash- ington, 14 in Arizona, 7 in Nevada, 6 in Alaska and 1 In the Hawaiian Islands, 9 additional stations in course of construction. Capitalization. Stocks — Authorized Outstanding Common $100,000,000 $49,814,000 Physical Property. The company owns extensive oil producing properties with an average daily production of 26,575 barrels, in the Kern River district and had recently acquired the holdings of the Murphy Oil Co. in the Fullerton field. It owns refineries at Richmond, El Segundo and Bakersfield, with daily capacity of 65,000, 20,000 and 25,000 barrels re- spectively, and a can manufacturing plant with daily capa- city of 30,000 one and five-gallon cans. The company owns 386 miles of pipe lines, storage tanks and other equip- ment; a fleet of steamers as follows: coastwise and for- eign, 9 steamers (American flag), aggregate capacity 275,- 000 barrels; 3 barges, aggregate capacity, 95,000 barrels, and 13 river and harbor boats with aggregate capacity of 35,350 barrels. On December 31, 1913, the total plant in- vestment of the company was $50,268,456. Its inventories amounted to $21,724,390, which included 24,310,310 barrels of crude oil in storage; the balance being stocks of all products on hand in its various sales stations. Dividends. •08 '09 '10 '11 '12 '13 '14 Per cent 10 46 2 10 "10 10 Officers. D. G. Scofield, Pres. F. H. Hillman, Vice-Pres. K. R. Kingsbury, Vice-Pres. W. S. Miller, Vice-Pres. VV. S. Rheens, Vice-Pres. R. J. Hanna, Treas. U. il. Storey, Sec Union Oil Co. of California, Los Angeles, Cat. The company is engaged in producing, transporting, manufacturing and marketing crude petroleum and its SEATTLE'S rapid and sustained growth in population and in commercial and indus- trial progress is accurately reflected in the de- velopment of the artificial gas business. Since 1904, gas has been supplied to this city by the Seattle Lighting Company, and during that time the gross revenues of the company have increased more than fourfold. Today the an- nual revenues are approximately one million dollars, and showing steady increase, notwith- standing the low price at which gas is sold, the rate schedule beginning at $1.00 for the first 5,000 cubic feet monthly consumption and going as low as 60 cents on larger quantities for industrial purposes. These rates, put in force a little over a year ago, have had the effect of stimulating the Bales oi gas very materially and contributing to the general industrial development of the city. It is fair to say that no city in America, or elsewhere, possesses a more complete, more mod- ern or more efficient gas-making establishment than the Lake Union Station of the Seattle Lighting Company. Tt is generally believed that almost no other city has so large a mileage of mains for the population served. In both respects, therefore, the gas company is admir- ably situated to meet and take care of the con- tinued growth which all authorities unite in asserting is assured. The accompanying photograph gives an ex- cellent idea of the extent and capacity of the Lake Union works, though the large retort house, the principal building of the group, is not shown. This plant contains complete coal gas and water gas equipment, and within the past year there has been added to it, necessi- tated by the growing demand for gas and the expected large increase in population during the next few years, a chamber-oven coking plant of the most modern and most efficient typo known, built on the lines of the Klonne ovens, a German system. The builders are the National Chamber Oven Co., of Cincin- nati, Ohio. Besides giving the gas company full capacity to meet any emergency, this addition to its works will give to Seattle a supply of home-manufactured metal- lurgical coke adapted to the most exacting demands of domestic and Industrial use. It is the intention of the company to give such close attention to the selection of coals for use in this plant that the coke by-product will be superior, for the various purposes for which it will be used along the coast, to any coke that can be imported and sold here. Adv. Attention is called to the announcement on page 11 148 CORPORATIONS products throughout a large part of the Pacific Coast ter- ritory of the United States, Canada and South America. Subsidiary Companies. Mis. Tr. & Ref. Co. Union S. S. Co. Prod.Trans. Co. Union Trans. Co. United S. S. Co. Union Tool Co. Newlove Oil Co. Claremont Oil Co. So. Cal. I. & S. Co. Outer Harbor Dock and Wharf Co. S'ta Maria O. & G. Co. Capitalization. Stocks — Authorized Outstanding Common $50,000,000 $31,312,900 Bonds 20,000,000 8,348,000 Notes, collateral trust 6s 4,000,000 3,095,000 Physical Property. Figures are as of June 30, 1914. The company owns oil lands aggregating slightly more than 240,000 acres, but a small fraction of which is being utilized; 319 wells being in active production. These lands with leases and mineral rights owned by the company are valued at 122,831,758; the wells, development and equip- ment at $22,278,822. The company owns or controls more than 718 miles of pipe line extending from three tidewater ports to the four great oil-producing sections of California. Its storage system has a capacity of 13,043,450 barrels. The pipe lines and storage systems owned are valued at $4,338,721. The company owns a large fleet of vessels with a total carrying capacity of over 500,000 barrels, and others are in course of construction. The fleet, together with the tank cars owned by the company, are valued at $3,159,730. The company owns and operates four modern refineries and a compressor plant valued at $2,639,355, and its market Stations are valued at $3,617,381.90. The company owns or controls 24 subsidiary companies, these holdings aggre- gate $13,213,179. The inventory of crude oil and refined stocks on hand totals $5,666,932. Sources of Gross Revenue. Crude oil Refined oil Tear S.il s Sales Total 1910 $7,376,840 $3,218,049 $10,594,889 1911 10,109,563 5,746,310 15,855,873 1912 11,600,261 6,563,293 18,163,554 1913 13,494,240 6,449,201 19,943,441 Officers. W. L. Stewart, Pres. E. W. Clark, V. P. Alex. Sclater, V. Pi Giles Kellogg, Sec. John Garrigues, Treas. Gross Year Profit 1910 $5,162,092 1911 4,227,093 1912 5,329,131 1913 4,803,537 Balance $3,307,146 2,072,490 2,839,738 3,597,512 UNION OIL CO.— Continued. Earnings. *Net Earnings Interest $3,625,133 $317,987 2,438,401 365,911 3,511,338 671,599 4,246,254 648,742 •Net earnings are shown after deducting operating expenses, and taxes. United Railroads of San Francisco, San Francisco, Cal. The company operates the entire street railway system of San Francisco, with the exception of the California Street Cable Railway Company and the Municipal Railway, the latter being owned by the city. The company also operates a suburban line to San Mateo, San Mateo County. Capitalization. *Stock — Authorized 1st Preferred (7% cum.) $ 5,000,000 Preferred (4% cum.) 20,000,000 Common 18,800,000 Funded Debt — Bonds f60,725,000 Equip, trust cert $700,000 5 % gold notes 1,000,000 7% notes to Cal. Ry. & P. Co 2,000,000 •All stock controlled by California Railway & Power Co. tRetired and cancelled, $4,055,000. JRetired and cancelled, $260,000. §Includes $151,000 held as sinking fund investments. Physical Property. The company controls and operates 260.02 miles of elec- tric street and suburban railway in San Francisco and San Mateo counties, all of which is overhead trolley. It also owns and operates 14.70 miles of cable line on Castro, Powell, Sacramento, Clay, Washington and Jackson streets, San Francisco. Total 274.72 miles of single track. Cars — electric passenger 703, cable passenger 57, and work 76; total 836. Outstanding $ 5,000,000 20,000,000 17,948,600 §36,474,000 440,000 1,000,000 2,000,000 Earnings. •Net Earnings Interest Balance $3,133,525 $2,042,410 $1,091,115 3,443,792 2,095,213 1,348,579 3,878,416 2,071,099 1,807,317 3,559,768 2,036,518 1,523,250 •Net earnings are shown after deducting operating expenses and taxes. Officers. J. W. Lilienthal, Pres. A. M. Dahler, Treas. Chas. N. Black, V.-P. & Gl. Mgr. Geo. B. Willcutt, Sec. & Comp. Thornwell Mullaly, Asst. to Pres. Gross Year Revenue 1910 $7,862,796 1911 8,150,763 1912 8,756,998 1913 8.723,464 Merchants Exchange Bldg., San Francisco, Cal. 60 Broadway, New York, N.Y. Byrne & McDonnell Members New York Stock Exchange San Francisco Stock and Bond Exchange Gov't Municipal Railroad and Public Utility Bonds. Pacific Coast Securities a spe- cialty. Correspondence invited. Private wire Coast to Coast. Sherman R. Hall C. H. Lewis Hall & Lewis Investment Bonds Local Securities PORTLAND, OREGON Lewis Building Attention is called to the announcement on page Ji CORPORATIONS 149 United Railways Investment Co., J erse v OUg. The company is a holding company and does not operate any properties. Subsidiary Companies. Philadelphia Co. United R. R.'s of San Francisco. California Ry. & Power Co. San Francisco Electric Railways. Sierra & San Francisco Power Co. The Railroads & Power Develop- Coast Valleys Gas & Electric Co. ment Co. Capitalization. Stocks — Authorized Outstanding Preferred (5% cum.) $25,000,000 $16,000,000 Dividend certificates 1,462,500 Common 31,000,000 20,400,000 Funded Debt — Bonds 26.250,000 *18,960,000 Notes, 6 per cent sr., "08 3,500,000 1,100,000 •$752,000 Coll. Trust 5s held by trustee in sinking fund. Physical Property. The company owns $24,200,000 of the $39,043,000 com- mon stock of the Philadelphia Co., located at Pittsburgh. "It owns, directly or indirectly, all the preferred and com- mon stocks of its California subsidiaries. For the purposes of this issue the operating California companies will be separately considered. Earnings. Gross Year Revenue 1911 $2,136,536 1912 2.260,250 1913 2,134.224 •Net Earnings $2,065,999 2.181.1S2 2,070,497 Interest $1,225,172 1,191,537 1,164,159 Balance JSIH.M'T 989,645 906,338 •Net earnings are shown after deducting operating expenses and taxes. Officers. Mason B. Starring, Pres. Geo. W. Bacon, Vice-Pres. Beni. S. Guinness, Treas. P. M. W. T. Duane, Sec'y & Asst. Treas. M. V. R. Weyant, Asst. Sec'y and Asst. Treas. Hoskins, Auditor. U. S. Smelting, Refining and Mining Co., Boston. This company and its subsidiaries are engaged in min- ing copper, lead, gold and silver ores on their various properties in Utah, Nevada, California and Mexico. They operate smelters, refineries and reduction plants; a large lime quarry and coal mines in Utah; and are building a railroad to provide outlet for their product to the lines of the Denver & Rio Grande and the San Pedro route. Subsidiary Companies. United States Metals Refining Co. Mammoth Copper Mining Co. United States Smelting Co. Gold Road Mines Co. United States Mining Co. Needles Mining and Smelting Co. Real del Monte y Pachuca Mines Richmond Eureka Mining Co. Capitalization. Stocks — Authorized Outstanding Preferred (7% cum.) $37,000,000 $24,313,725 Common 37,500.000 17,553,787 Notes, 4-year gold, due 1918 6,000,000 4,000,000 Utah Co. 6% coll. Tr. due 1917 10,000,000 10,000,000 Physical Property. The company and subdiaries own a large group of mines, a lime quarry and smelter at Bingham, the Centennial Eureka Mine at East Tintic, the Mammoth Mine and Smelter at Kennet, Cal., a lead refinery at Chicago, and a controlling interest in the U. S. Metals refinery at Chrome, N. J. The company owns large coal properties in Utah aggregating 11,226 acres of which 7,526 acres are coal lands, which in 1913, produced 869,522 tons of coal. The company is now constructing 80 miles of railroad con- necting these fields with the D. & R. G. and U. P. systems. The company owns the entire capital stock of its subsi- diary companies with the exception of $1,031,324 par value. Dividend Record. April, 1906, to October, 1914 — Preferred $14,667,4 4 4.75 Common 6,362,ls9.1S Officers. VV. G. Sharp, Pres. & Ch'nm of Bd. S. J. Jennings, Vice-Pres. C. G. Rice, Vice-Pres. Frederick Lyon, Vice-Pres. F. Winthrop Batchelder, Sec'y & Treas. Washington Water Power Co., Spokane, Wash. The company operates a street railway system in Spo- kane, Wash., with connecting suburban and interurban lines. It owns and operates the electric light and power systems in 30 towns in Washington, including Spokane, and in 4 towns In Idaho. In addition it furnishes the power to systems not owned by it in 4 towns In Washing- ton, and in 11 towns in Idaho. Capitalization. Stocks — Authorized. Common $20,000,000 Funded Debt — .. „„„ Bonds 15,000,000 Notes Physical Property. The company's railway system consists of 112.30 miles of track. Its city lines occupy 49.51 miles of streets. The Outstanding. $15,490,000 5,073,000 2.274,000 John Perrin Daniel K. Drake James Sheldon Riley Perrin, Drake & Riley (Incorporated ) 210 West Seventh Street (I. N. Van Nuys Building) Los Angeles California Municipal and Corporation Bonds have Higher Income Yield than Eastern bonds of equal grade Special prices on entire issues of Municipals (in amounts from $10,000 upwards) Ask for our offerings We are In the market at all times for entire issues of Municipal, Railroad, Public Service Corporation and Timber Bonds and invite cor- respondence from those in- terested in the purchase or sale of such securities. DEVITT. TREMBLE & COMPANY Investment Bonds Ford Bldg. DETROIT lirst National Bank Bldg. CHICAGO Morris Bldg. PHILADELPHIA Attention is called to the announcement on page n 150 CORPORATIONS company owns and operates 627 miles of transmission lines and the following hydro-electric plants: Spokane, 12,000 H. P.; Post Falls, Idaho, 15,000 H. P.; Little Falls, Wash., 27,000 H. P. All of its water power is on the Spo- kane River. It owns a 19,000 H. P. steam turbine plant at Spokane and is constructing an additional hydro-elec- tric plant of 66,000 H. P. at Long Lake, Wash. The com- pany's franchises for light and power business run to 1944 and the street railway franchises run for an average of 20 years. Statistics. Electric Light & Power System. Comparative Statement. Inc. over 1912 6% 4f 1907 1908 1909 1910 1911 1912 1913 Mai. Station Load, H. P 22,400 26,800 30.200 34.873 37,155 38.312 40,521 H. P. of motors in Spokane.. 6.S63 8,506 9.SS0 15,692 16.224 17,970 18,609 H. P. of mot. on trans, lines.10.569 14.176 16,652 17,824 18,735 20.992 25.244 20% •Number of accounts 10,330 12,684 15,584 18.080 19,105 20,222 22,640 12% •Number of meters In use... 10,503 12,843 15,502 17.852 18.850 19.965 22,244 11% •Not Including meters and accounts in towns recently acquired. Earnings. Gross Year. Revenue. 1910 $3,155,223 1911 3,264,158 1912 3,170,246 1913 2,914, 950t •Net Earnings. Interest. Balance. $1,476,683 $241,144 $1,235,539 1.611,177 312,494 1,298,683 1,567,892 276,648 1,291,244 1,623,277 259.219 1,363,958 tThe apparent loss in gross due to change in methods of ac- counting. •Net earnings are shown after deducting operating expenses and taxes. Dividends. 1905 to 1910 inc. 7% 1911 to 1913 inc. 8% Officers. D. L. Huntington, Pres. Y. M. White, Treas. H. L. Bleecker. V.-P. W. J. C. Wakefield, Ch. of Ex. C. S. MacCalla, V.-P. & G. Mgr. Committee & V.-P. A. F. S. Steele, Sec'y. Weed Lumber Company, San Francisco, Cat. The company is engaged in logging pine timber in Siskiyou County, Cal., and in the manufacture and sale of lumber, sashes and doors, boxes, etc. Capitalization. Stocks — Authorized. Outstanding. Common $2,000,000 $1,950,000 Funded Debt — Bonds 1,200.000 850,000 Physical Property. The company owns 50,000 acres of timber land in Siski- you county with 670,245,884 ft. of standing timber which they value at $1,675,615; railroad and logging equipment, and 3 mills at Weed, California. They also own logged off and ranch land and townsite properties aggregating $134,553. Earnings. 1913. 1912. 1911. Gross earnings, all oper $501,506.43 $380,540.48 $322,853.04 Less int., taxes, misc. losses. 208,134.53 115,881.83 122,414.12 Net earn., exclus. of deprec. .$293,371.90 $264,658.65 $200,438.92 Less res. for plant deprec. . 76,594.46 91,755.07 83,857.64 Net Earnings $216,777.44 $172,903.58 $116,581.28 Officers. G. X. Wendling, Pres. H. Fleishhacker, V.-P. S. O. Johnson, V.-P. H. Nathan, Sec'y & Treas. Yukon Gold Co., New York, N. Y. The company is engaged in the mining of gold by dredg- ing, hydraulic, and other methods of operation on land owned or leased in Alaska and California. Capitalization. Stocks — Authorized. Outstanding. Common $25,000,000 $17,500,000* •Controlled by Guggenheim Exploration Co. Physical Property. The company owns and operates hydraulic properties in the Klondike region in Alaska, and dredging properties at Dawson and Iditarod, Alaska, and at Oroville and on the American River in California. Earnings. Gross *Net Year. Revenue. Earnings. Dividend. Balance. 1911 $1,462,042 $1,316,733 $1,312,500 $4,233 1912 2,721,419 1,072,592 1,050,000 22,592 1913 2,583,837 1,130,300 1,050,000 60,300 •Net earnings are shown after deducting operating expenses and taxes. Sources of Gross Production. Dredges. Hydraulics. Miscel. 1911 $2,671,845 $434,382 1912 3,346,026 629,043 1913 4.347,111 256,491 $185,800 Officers. S. R. Guggenheim. Pres. C. K. Lipman, Sec'y. Dan'l Guggenheim, V.-P. Morris Guggenheim, Treas. O. B. Perry, Gen'l Mgr. The Union Bank of Australia. Limited ESTABLISHED 1837 INCORPORATED 1880 AUTHORIZED AND ISSUED CAPITAL £6,000,000 Paid-up Capital, £2,000,000 1_ ., _. , OCft ... Reserve Fund, £1,960,000 (Together £3,960,000 Reserve Liability of Proprietors £4,000,000 Total Issued Capital and Reserves £7,960,000 DIRECTORS: HENRY P. STURGIS, Esq., Chairman CHARLES A. GALTON, Esq. WILLIAM O. GILCHRIST. Esq. ARTHTTt P. BLAKE. Esq. CHARLES E. BRIGHT. Esq.. C. M. G. The Rt. Hon. THE EARL OF CHICHESTER. JOHN DUnnSTOCN, Esq. HUGH 1). FLOWER. Esq. WILLIAM R. MEWHURN, E»q. The Hon. O. T. MILLS. M. P. CHARLES PARISl RY. Esq. Sir WESTBY B. PERCEVAL. K.C.M.G. Head Office: 71 CORNHILL, LONDON, EC. Manaaer-A C. WILLIS Assistant Manager — W. J. ESSAME Branches throughout Australia and New Zealand, viz.: In VICTORIA Melbourne and 39 Branches. " SOUTH AUSTRALIA Adelaide and 13 " NEW SOUTH WALES Sydney and 36 '• WESTERN AUSTRALIA Perth and 22 " QUEENSLAND Brisbane and 20 " " PAPUA Port Moresby — " " TASMANIA Hobart and 2 " NEW ZEALAND Wellington and 41 " 173 Drafts upon the Branches are issued by the Head Office, and may also be obtained from the Bank's Agents throughout England, Scotland and Ireland. Commercial and Circular Traveling Credits issued — available throughout the World. Telegraphic Remittances are also made. Bills on the Australian States and Dominion of New Zealand are purchased or sent for collection. Deposits are received at the Head Office at rates of interest and for periods which may be ascertained on application. WALKER'S Manual of California Securities and Directory of Directors Price, $4.00 1914 Edition Issued July 27 Walker's Manual of California Securities is in- valuable to bankers, bond dealers, brokers and all those interested- in California securities. It gives particulars of the bonded debt of the State of California, San Francisco, Oakland and Los Angeles, with full particulars of interest to in- vestors of the leading public service and indus- trial corporations operating in California, San Francisco Stock and Bond Exchange sales each month from January 1, 1905, to April 30, 1914. The Directory of Directors gives an alphabetical list of all the directors of the corporations con- tained in the Manual with the other corporations of which they are directors. It is the only man- ual published entirely devoted to California cor- porations and is complete, accurate and up to date. Copies will be sent on approval to responsible parties H. D. WALKER, Editor and Publisher 454 Montgomery St. SAN FRANCISCO, CAL. Attention is called to the announcement on page II PUBLIC SERVICE COMPANIES Pacific Gas and Electric Company 445 SUTTER STREET SAN FRANCISCO, CALIFORNIA A Letter from the Treasurer to One of Our Stockholders Dear Sir: In your letter of August 28th, you express yourself as being very much interested in our offering of First Pre- ferred Cumulative 6% Stock, and have asked me to give you an analysis of this security from an investor's standpoint. As a purchaser of corporate securities, with many years of experience, you have undoubtedly trained yourself to look for certain fundamental requirements in deciding whether a security is worthy of your confidence. I be- lieve, therefore, you will agree with me that every cautious investor should satisfy himself as to the following points which, to use your expression, "constitute the essential features of a sound and conservative investment." 1st. WELL DEMONSTRATED AND INCREASING EARNINGS WHICH SHOULD BE NOT ONLY SUFFICIENT TO PAY THE ANNUAL DIVIDENDS ON THE SECURITY, BUT SHOULD HAVE A MARGIN OF SAFETY, OVER AND ABOVE THE DIVIDEND RE- QUIREMENTS, TO INSURE THE REGULAR PAYMENT OF THE DIVIDENDS UNDER ALL CIRCUMSTANCES. The annual reports of the Pacific Gas and Electric Company, particularly the report for the year 1913, have made the earnings of the Company since its organization in 1906 available to the public in detail, and, for the past three years, over the certificate of independent auditors, namely Messrs. Price, Waterhouse & Company, certified public accountants. The following statement, which is a compilation for each of the past five years ended Sept. 30, 1914, will indi- cate to you very clearly that the earnings of the Company have not only grown steadily from year to year, but that in each one of these years the revenue available for dividends on the new preferred stock has been largely in excess of the required amount. Generally speaking, a bond is regarded as a safe investment if the issuing corporation can show that it is earning at least twice its bond interest. In fact, a great many bond issues which are regarded as high-class investments have a smaller margin of safety, with respect to earnings, than this. You can readily see from an examination of this earnings statement how much stronger even than this is the protection which our first preferred stock has with respect to earnings. Year Ended Septem- ber 30th Gross Revenue Net Revenue Net Revenue After Bond Interest and Discount Annual Dividends on New Preferred Stock Balance Available for Dividends on Junior Stock Issues and for Depreciation or other Reserves 1910 1911 1912 1913 1914 14,122,173.46 14,519,411.09 14,718,797.16 15,725,537.27 17,066,906.77 6,110,917.48 6,375,093.78 6,361,581.78 6,453,422.60 8,093,271.59 3,128,876.84 3,191,806.45 2,813,574.31 2,551.069.43 4,083,570.04 750,000.00 750,000.00 750,000.00 750,000.00 750,000.00 2,378,876.84 2,441,806.45 2,063.574.31 1,801,069.43 3,333,570.04 2nd. INTRINSIC PROPERTY VALUE WELL IN EXCESS OF THE TOTAL OF THE SECURITY ISSUE. Before authorizing security issues, the Railroad Commission of the State of California requires proof to be submitted to it of the intrinsic value of the property back of the security for the issuance of which authority is sought by the utility. The Commission, as you may know, not only has authorized the issuance of this stock, but took occasion to commend our plan of junior financing as being worthy of emulation by other utilities. For your information I may add that the appraised value of our property is substantially in excess of the full liquidation value of $100 per share of this new stock. 3rd. FRANCHISES EXTENDING WELL BEYOND THE MATURITY OF THE SECURITY ISSUE. The following paragraph from our 1913 annual report will show you that for all practical purposes the franchise question may be regarded as non-existent with respect to this Company: "By its unanimous decision of April 6, 1914, inthe case of Russell v. Sebastian, in the argument of which counsel for this Company participated, the Supreme Court of the United States established the fact, beyond any further question, that the franchises secured under the authority of the State Constitution prior to its amendment on Ocober 10, 1911, under which this Company is supplying gas and electric light and water in the large number of municipalities served by it, are vested property rights of perpetual duration and include the right of making all necessary extensions within such municipalities upon the terms of the original grant. By a general law of the State, no franchise of any description may now be granted except upon condition that the purchaser pay at least two per cent of the gross annual receipts derived from its exercise. In the case of cities governed by freeholders' charters, the conditions upon which franchises are granted, are in general more onerous than those prescribed by this general law of the State. The importance of this decision will, there- fore, be more fully appreciated when it is considered that the above mentioned franchises of this Company are not only without time limit, but are also not subject to any specific rental, charge or burden of any kind. iro • /frfFi 4th. EARNINGS DERIVED FROM A GROWING AND DIVERSIFIED BUSINESS AND WHICH WILL CONSEQUENTLY NOT BE MATERIALLY AFFECTED BY DE- PRESSION IN ANY ONE INDUSTRY. The following statement will show you the diversified character of the Company's business: DEPRIVATION OF GROSS REVENUES PAST SEVEN FISCAL YEARS. SOURCES OF GROSS REVENUE PERCENTAGE OF TOTAL GROSS REVENUE FROM Year 1 Electricity Gas Railway All Other Total Elec- tricity Gas Rail- way All Other Total 1907 1908 1909 1910 1911 1912 1913 $6,316,629 ' $4,086,372 7,059,088 4,494,945 7,678,665 4,860,034 7,899,224 5,202,284 7,823,903 5,735,219 7,672,570 5,805,865 8,230,782 6,547,595 $431,800 414,326 452,396 509,152 533,520 547,187 572,913 $507,339 688,946 500,193 433,936 511,967 719,029 851,047 $11,342,140 12,657,305 13,491,288 14,044,596 14,604,609 14,744,651 16,202,237 .56 .56 .57 .56 .54 .52 .51 .36 .36 .36 .37 .39 .39 .40 .04 .03 .03 .04 .04 .04 .04 .04 .05 .04 .03 .03 .05 .05 100 100 100 100 100 100 100 Gain 6 years $1,914,153 | $2,461,223 $141,113 $343,708 $4,860,197 There has been a very satisfactory growth in each line of activity, and at no time has it been a case of having to rely for the payment of charges and dividends upon one department to offset deficiency in another, although from the standpoint of the security purchaser the ability to maintain the stability of revenues in this way is a fac- tor of much importance. During the nine months ended Sept. 30, 1914, our electric business increased $400,919 and our gas business increased $423,991. I merely mention this to lend point to the statement that while the possibilities of the future development of the electrical industry are universally recognized, no such general recognition has ob- tained with respect to the gas industry. In my opinion, which is supported not only by the foregoing figures, but by daily observation, the possibilities of the growth of the gas business are fully as great as in the electrical department. This is largely due to the increasing use of gas for cooking and industrial purposes, but more particularly to its use for heating of homes, apartment houses and other buildings in their entirety. Two things are responsible for this. One is our moderate California climate, which brings this method of heating within economical limits, and the other is the development of convenient and economical gas heating systems and devices. It may be of interest to you to learn that a large number of the buildings on the Exposition grounds are being heated, or will be heated, entirely by means of gas. As already stated, our climate is largely responsible for this, and where such a system in colder localities would be a luxury which very few could afford, it is within the reach of people with moderate means in California. 5th. A GROWING TERRITORY FOR THE COMPANY'S BUSINESS FIELD AND ONE WHICH IS SUFFICIENTLY EXTENDED AND DIVERSIFIED SO THAT EARNINGS WILL NOT BE MATERIALLY AFFECTED BY DEPRESSION OR BY SOME CATASTROPHE IN ANY PARTICULAR CITY OR OTHER LOCALITY. The Pacific Gas and Electric Company operates in a territory approximately 37,000 square miles, and in this territory serves a very large number of cities and towns, as shown in the following table: SERVICE FURNISHED NUMBER OF CITIES AND TOWNS SERVED BY THE COMPANY TOTAL Directly Indirectly Total POPULATION Electricity 152 49 14 1 62 2 14 214 51 28 1 1,221,123 Gas 1,124,893 58,905 75,602 That the business field of this Company is one which has in the past grown steadily in population and in the development of new industries is known to you not only from personal observation of central and northern Cali- fornia, but is also attested by the growth in our gross revenues from year to year and by the large numbers of consumers added to our system. In the seven years from 1906 to 1913, our business increased $7,255,175, or at the annual rate of $1,036,453. In the last fiscal year the increase was $1,457,686, and in the nine months ended Sept. 30, 1914, it was $876,297. In the last seven years (ended Sept. 30th) the number of our consumers has grown from 172,938 to 368,498, an increase of 195,560, or an average annual increase of 27,937 customers. During the last of these years the growth was close to 30,000. 6th. SAFEGUARDS TO INSURE ADDITIONAL ISSUANCE OF SECURITIES ONLY FOR PURPOSES THAT WILL ADD TO THE VALUE AND EARNING CA- PACITY OF THE PROPERTY. One of the things that has given investors confidence in bonds as an investment has been the vigilance of bank- ing houses handling bond issues in properly safeguarding future issues. What the bankers have done in the past for bonds in this respect is now being done by the Railroad Commission. Under the Public Utilities Act of Cali- fornia, issues of this First Preferred Stock can be made only with the authority of the Railroad Commission for acquisitions, extensions, betterments and the refunding of existing obligations. The Commission also fixes the price at which this stock may be sold, and not only requires information to be presented to it as to the purposes for which the money realized from the sale of this stock will be used, but also requires monthly reports to be rendered to it showing in detail for what purposes the money has been expended. This insures to the investor the continu- ance of a safe and conservative relation of property values to any additional issues of preferred stock which may be put out. Trusting that the foreging will satisfactorily answer your inquiry, I am, Adv. Attention is called to the announcement on page II Very sincerely yours, 153 A. F. HOCKENBEAMER, Second Vice-President and Treasurer. Pacific Light and Power Corporation Los Angeles, California An H. E. Huntington Property Supplies Electricity for Power, Light and Heat in Southern California SECURITIES Stocks $23,591,500 Bonds 20,508,000 OPERATES 8 Hydro-Electric Plants of 99,631 H. P. 3 Steam Plants of 55,919 H. P. 25 Substations. 1450 Miles of Transmission Line. 1971 Miles of Distributing System. 58 Miles of Railroad. SUPPLIES CURRENT FOR 36 Cities and Towns. 750,000 Population. 945 Miles of Electric Railway. 35,000 H. P. in Motors. 500,000 Lamps, 16 c. p. Equivalent. ' SOOfifOjM Installed Capacity .... 155,000 H. P. Undeveloped Water Power . 325,000 H. P. 154 Attention is called to the announcement on fage u Los Angeles Railway Corporation Los Angeles, California An H. E. Huntington Property Street Railway System operating in and about Los Angeles, Cal. SECURITIES Stocks $20,000,000 Bonds 20,000,000 Operates > 383 Miles of Track 874 Modern Street Cars 10 Sub Stations Power furnished by the Pacific Light & Power Corporation Serves The City of Los Angeles and five other Towns with a population of 516,000. Average increase of population now 15%. 1900 1913 Gross Income, - $835,627.35 $7,005,433.26 Miles Road Operated, - 74.85 383 Cars Operated, - - 110 874 Passenger Carried, 17,874,308 145,105,239 Attention is called to the announcement on page II 155 JOHN B. MILLER, PRESIDENT, Upon Southern California it may be truly said the eyes of America are focused. The heart of this great domain is extensively served with electric energy for light, heat and power. Among the many reasons why this region is attracting world-wide attention are the wonderfully sa- lubrious climate, the great agricultural and mineral wealth of the ter- ritory and the possibilities for the development of an empire where a few years ago there existed only what seemed to be arid deserts and waste plains. Added to this, Southern California has attracted a class of men who by their ability, perseverance and foresight have been able to understandingly grasp the conditions and spread the news to the world beyond the confines of the state of what has been done and what may yet be done in the way of development. The census figures demonstrate that California is the second State in the Union in kilowatt rating of stations and in kilowatt hour output. It is the third state in the Union in aggregate income and twelfth State in the Union as regards population. The Southern California Edison Company is the second largest electric company on the Pacific Coast, and the seventh largest electric company in the United States in rela- tion to gross earnings. The company's lines cover seven counties em- bracing an area of approximately 45,000 square miles, which contains a population of 1 ,030,000. The company has in operation hydraulic and steam generating plants with a total capacity of 119,- 800 horse-power, and has hydraulic plants un- der construction of a total capacity of 116,- 000 horse-power, making a grand total of 235,- 800 horse-power. Southern California Edison electric service is supplied in THE CITY OF LOS ANGELES and about one hundred cities and towns and the intervening rural commu- nities. Hh K(ft te Gst •J UN 13 1962 LD 21-60m-8,-82