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3 1223 90149 3032 


330,979 G581E 




FORM 3427 SOOO 10-48 

of m 

£ano of 








MRS. HARE, Santa Clara WATKINS, San Francisco 

HILL, san Jose WATERS & CO., San Francisco 

half-tones by 


San Jose, Cal. 

copies mailed on the receipt of one dollar 

<3 3 0.111 

Copyright, 1903 











*¥N presenting this book to the public it is not intended 
■ for the desidtory reader, but for those who are in a 
greater or lesser degree familiar with the principles of 
political economy and with industrial widertakings . 

It is in no sense a directory of the industrial under- 
takings of the Pacific or of the Eastern States; neither is 
it aimed to show the successes or failures of individual 
concerns in either section, but to set forth the existing 
natural advantages and conditions of California, irrespec- 
tive of any effort or undertaking in the development of 
her vast resources. 

The reader will please bear in mind that many 
staunch supporters of California who recognize her as a 
barometer of mining and agricultural interests, assert 
that she can never hope to attain an industrial standard 
sufficient to supply even her own meagre requirements. 
The answer to this is, that such assertions are uttered 
without being grounded in fact. This statement is made 
by one who has had many years of actual experience 
in industrial utidertakings, about fourteen of which have 
been from time to time divided between the Pacific and 
the Eastern States, and who has made a carefid study 
of political economy with special reference to the industrial 
development of the manufacturing world. 

To answer a presupposed question, why one particu- 
lar party should openly dispute a current phrase, the 

answer is: not that greater ability is possessed by the 
author, but that had others of average ability, and with 
equal special training, devoted the same time a?id atten- 
tion to investigation and study, they could but render the 
same verdict. 

The matter being presented to the public as it is, 
siipported by authenticated letters and statistics, will 
appeal to all who read with a desire to understand the 
true conditions of our great country, and to benefit them- 
selves. T/iey may each render judgment by referring to 
the latest census bulletins for verification of all statistics 
quoted herein, which are tlie premises upon which this 
book is principally based. These may be found in any 
library in the land. 

From a patriotic feeling , not for a section but for the 
whole country, it is hoped that these words may open the 
way which will enable us to forever be victorious in the 
great industrial warfare with which the natural evolu- 
tionary stage seems to have supplanted zvarfare of arms. 

San Francisco, Cal., 

August 24., iqoj. 


Striking Comparisons 

Per-operative Output of United States and European 
Countries — Per-operative Output of California and Con- 
necticut, in Particular of Los Angeles and Bridgeport, 
Specializing Foundry and Machine Shop Productions — 
Number of Establishments — Number of Wage Earners 
— Investment in Buildings, Machinery, Tools and Land 
— Output per $1.00 Invested in Land in Los Angeles and 
Bridgeport — Percent, of Advantage of Los Angeles over 
Bridgeport — Cost of Fuel and Comparative Fuel Values 
— The Heating of Buildings — Cost of Raw Materials 
Compared — Inferiority of Los Angeles Equipment as 
Compared with that of Bridgeport — Relative Cost of 
Raw Materials to the Finished Product — General Manu- 
facturing Industries Compared — Comparative Industrial 
Population of the Two Cities — Original Expenditures — 
Difference in Efficiency between Operatives, Due to 


California's Fuel 13 

Deductions showing the Presence of Bituminous and 
Anthracite Coal in California — Methods of Manufac- 
ture of More Importance than Fuel — California's Oil 
Fields — Use of Oil as Fuel — Comparative Values of Oil 
and Other Fuels — Use of Oil Fuel in the East for Steam- 
Raising and Metallurgical Purposes — Increased Produc- 
tion of Oil and New Geographical Discoveries of Oil 



Machine Work and Castings 17 

Interchangeability in Manufacture of Machinery and 
Production by the Single Piece — The Antiquated Ma- 
chine Shop the Typical California Machine Manufactur- 
ing Establishment — Industrial Conditions in California 
Chargeable to the Obsolete Equipment of her Ma- 
chine Shops — Ability of California Foundries to Fur- 
nish Castings at New England Prices — Comparative 
Detail Cost of the Production of 100 lbs. of Machine 
Castings in California and Connecticut — Industrial Pos- 
sibilities Overlooked, due to Exclusive Attention being 
given to Mining and Agricultural Undertakings — In- 
competency in Administration of Industrial Affairs — 
Establishment of Concerns of Lesser and Greater Mag- 


California and Connecticut 25 

The United States once an Agricultural Country only; 
now the Greatest Manufacturing Country — California 
as great Industrially as Agricultural^ — Why Agricul- 
tural California may become Industrial California — 
Invested Capital of Connecticut and California Manu- 
facturing Establishments — Wages and Wage Earners of 
Connecticut and California — Salaries and Salaried 
Officials of Connecticut and California — Wages and 
Wage Earners of the Central States and California — 
Comparative Cost of Heat and Power. 

California's Possibilities 31 

Weighed in the Balance with the World — Geographical 
Area ; Comparison with Connecticut — Inactivity in Use 
of her Vast Resources — Her Incomparable Resources 



and the Greatness of Great Britain — As California 
Became Great in Agriculture, so with like energy 
can she become Great in Industrial Undertakings. 


Eeonomieal Location fop Manufacturers . 35 

Definition of the word "Economy" — Full Industrial 
Economy Not Possible without Careful Consideration 
of Location — Suburban Residences for the Employer 
and Employee; their Advantages — Doing Away with Old 
Methods and Principles ; Establishment of the New — 
Disposition of Old Factory Sites ; Location on New — 
Transportation a Secondary Question ; the All-im- 
portant Question the ability to keep in the World's 


Building's and Locations 39 

Monumental Follies done away with — Near Railroad 
Lines — Nature of Lands for Manufacturing Sites — Con- 
ditions in San Jose and the Santa Clara Valley, Cali- 
fornia — Composite Construction of Buildings — Lumber 
Market ; Size of Timbers and Building Materials. 


San Jose and the Santa Clara Valley > 
as a Manufacturing- Center \ 

San Francisco, Los Angeles and San Jose — San Fran- 
cisco as an Industrial City — San Francisco and San Jose 
compared — Energy of Los Angeles — The Value of 
Artesian Water for Economical Steam Power — Climatic 
Conditions of San Francisco, Los Angeles and San Jose; 



Influence on many lines of Manufacture — The Pro- 
ductiveness of the Santa Clara Valley — Cost of Homes; 
Educational Advantages — Conditions of Surrounding 
Country — Sprinkled Rural Highways — Street Car Ser- 
vice and Railroad Transportation. 

New England and California .... 49 

Greatness of New England and California Compared — 
Why California may unite New England's Greatness 
with her own — Why California as a Manufacturing 
Section could Defy the World in Competition during 
Periods of Depression — The Over Development of New 
England, Industrially — Population of New England 
Drifting Westward — Remarkable Development of Los 
Angeles by Easterners — Los Angeles a Forceful Ex- 
ample of what is possible in Other Sections of Califor- 
nia — How people first came to California — National 
Result of Immigration to California — What Stands to 
California's Credit — What Stands to her Discredit — 
Instruction Californians are in Need of — California's 
Greatness and Shortsightedness of her own Welfare. 

California's Gold 53 

Result of the Discovery of Gold in California — The 
part California's Gold Played in our National Finance 
—The Gold Output of California— California's Gold 
primarily the cause of the Greatest Railroad Construc- 
tion in the World — Origin of Stock Gambling and the 
Lesson it Teaches — The Truth concerning the Corpor- 
ation Laws of California — Effect of the Production of 
Gold in California upon Eastern Enterprises — Califor- 
nia's Generosity and Future Development. 




tnpincr •» 



Gold Opened California— Manufacturing ) 
Will Populate Her S ' 

Gold Discoveries caused thousands to Flock California- 
wards — The Discovery of her Incomparable Industrial 
Resources will cause Millions to come here for Indus- 
trial Undertakings — San Jose and Santa Clara Valley's 
Industrial Advantages exceed the riches of California's 
Greatest Mining Sections — Disadvantages of Mining — 
Permanent Advantages of establishing Manufacturing 
in a Rich Agricultural Belt — Results from Banking and 
Manufacturing — Manufacturing King of All Under- 
takings — Rambling and Antiquated Manufacturing 
Buildings should be Abandoned. 


California's Natural Abilities . . . 61 

New England's Inefficiency in Food-Stuff Supplies — 
Great Britain's Food-Stuff Supplies Greater than New 
England's — New England's Supremacy in Manufac- 
tures over the World — Wonderful Advancements of 
New England's Industries compared with Great Britain 
— The Wage Conditions of New England and Great 
Britain — What must be the Marked Change in Cali- 
fornia in the near future — How much well directed 
Energy in Industrial Undertakings can Accomplish 
in the Santa Clara Valley, California. 

Farming and Manufacturing . . . . 63 

The Farmer of Olden Times and the Industrial Organ- 
izations of To-day — As California Was in 1850— Possi 
bilities of Over-Production of Food-Stuffs — Dependence 



of the Manufactured Output upon Money in Circula- 
tion — Some of the Riches of California — Notwithstand- 
ing beliefs to the contrary, People may here Engage 
in Industrial Enterprises. 


Rural and Urban Wealth 67 

Comparison of Wealth as Accumulated by the Rural 
and Urban Worker since 1860 — Comparison of Increase 
in Rural and Urban Wealth — Vastness of California's 
Agricultural Areas compared to that of the Union — 
Conditions of Agricultural Greatness beyond compre- 
hension — Greatness of the Union Agriculturally — Im- 
portant part European Settlers took in the Union's 

Agriculture 71 

California's Markets for Fruit — Comparative Cost of 
Labor in Production — A Supposed Impossibility Ac- 
complished by California — Successful Competition in 
the World's Markets for Fruit not due solely to Soil 
and Climate — Ingenuity of Californians — The " Cheap 
Labor " Cry a Farce — Comparative Influence of Market 
Fluctuations on Agricultural and Manufacturing In- 
terests — Ability to meet a change in Market Demands 
in Agricultural and Industrial Undertakings — Cali- 
fornia's Industries aud Agricultural Pursuits. 

Light and Heat 75 

Eastern Requirements in Construction of Manufactur- 
ing Buildings — Proof that the East Must Pay for Sun- 


light and Fresh Air — The Important Item of Heating 
the Manufacturing Buildings— Open Construction in 
Santa Clara Valley, California — Roof Construction for 
Manufacturing Buildings — Location of Plumbing in 
Manufacturing Buildings in California — Special Ad- 
vantages Favorable to Operatives in the Santa Clara 
Valley— Labor always more Costly in America; Wage 
Cost of Articles Much Less — Possibilities of Santa Clara 
Valley with Eastern Methods Employed in Industrial 


Ventilation 79 

Health — Atmospheric Conditions Prevalent in the East 
— Heating and Ventilation of Foundries — Sickness 
among Foundry Workers of the East — Good Light and 
Good Air Synonymous with Health and Great Productive 
Power — Conditions in European Countries in Heating 
of Foundries — Deleterious Effects of Cold and Heat 
other than upon the Workers — Necessity of Good 
Environment as well as Good Equipment. 


Inflation Process in California .... 83 

Inflation a Common Practice — The Reckoning Sure to 
Follow — Industrial Prosperity Hindered Thereby — 
Need of the Awakening of Legislative Common Sense — 
No Protection of Minority Investors under California 
Laws — No fully Paid-up Non-assessable Stocks ; result 
— The Necessary and Only Safe Procedure. 

Corporation Laws 87 

Adoption of the Joint Stock Act as enacted by Connec- 
ticut — Results of its Adoption — Aims of the Corporation 


Laws of Principal Manufacturing States — Announced 
and Settled Policy of these States — Modern Legis- 
lation as applied to Corporations — Privileges given 
to Incorporators — Stockholders Delegate Powers of Di- 
rectors — Experience Valuable to California. 

Circulation of Wealth 91 

Banking Discounts of New England and California — 
Result of the Heavy Savings Banks Deposits of Cali- 
fornia — Financial Inactivity due to Industrial Stagna- 
tion — Difference in Values of Securities of New 
England and California — Per Capita Wealth of Cali- 
fornia and New England — Lack of Business Methods 
Prevalent in California as compared to New England 
— Money in Vaults a Menace to Progress of any char- 


Training for Industrial Success . 95 

Natural Resources of California compared with Dor- 
mant Neglected Industrial Possibilities — Understanding 
of Political Economy Necessary to Economic Pros- 
perity — Possibility of the Establishment of Industrial 
Standards Here leading the World, just as do Califor- 
nia's Mining and Agricultural Standards — California 
Awakening to the Great Necessity of Industrial 
Training — What Constitutes Industrial Training — Man- 
agement must be Grounded in all Minor Details. 

Polytechnic Schools 99 

Advantages to Manufacturing if Properly Conducted 
— What should be the Standard — Damaging Results of 
Improper Instruction — Necessary Qualifications of the 



Polytechnic Student — A Forceful Example Requisite 
to Polytechnic Training — Principles of Milling and its 
Broad Scope — Result of Lack of Proper Equipment in 
Polytechnic Schools of California — Inability to Prop- 
erty Train Mechanics on the Pacific Coast. 


Profit-Sharing' 103 

Upon what the Success of a Business Depends — Atti- 
tude of Employees — Great Problem between Employer 
and Employees — Lessons of Profit-Sharing — Some of 
the Plans of Profit-Sharing — Pioneers of Profit-Sharing 
and their Success — Evident and Satisfactory Proof — 
Profit-Sharing the undeniably True Solution of all 
Problems between Employer and Employees. 


Description of the Factory Buildings of > 10 _ 

The Goldy Machine Company \ ' 

Construction and Arrangement an Improvement over 
all Predecessors — Construction with a view to Future 
Enlargement Without Change in Present Arrangement 
— Economical Arrangement for present and future needs 
— Second Handling of Materials Avoided Throughout 
the Establishment — Direct Unloading and Loading of 
Cars by Cranes of the Foundry and Machine Shops — 
Facilities for the Distribution of all Fuels — Disposition 
of Materials to the Hands of Workmen by Power 
— All Interior Pillar and Post Obstructions Avoided — 
Arrangement such as to Prevent Injury to the Equip- 
ment from Dust — Centrally Located Tool-Rooms — 
Convenience of Laboratory to Superintendent's Office 
— Superintendent's Office Accessible to All Depart- 
ments — Core Ovens and Oil Fuel — General Descrip- 
tion of Foundry Equipment — Smith Shop, Convenient 


Location and General Equipment — Power Plant, 
Location with view to Enlargement of the Works — 
Availability of Artesian Water for Condensing Pur- 
poses — Construction Avoiding Excessive Friction and 
Loss of Power — General Description in reference to 
Future Enlargements — Construction as compared with 
Eastern Requirements — Cost of Building Materials. 

Some would think this to be a great geyser, but it is a 

California Artesian Well, steadily flowing about 

2,000,000 gallons daily. 


Striking- Comparisons. 

A stereotyped phrase has been passed from mouth 
to mouth to the effect that California could never be- 
come a manufacturing state or section for want of 
coking coal and pig iron and on account of the cost 
of labor, etc. This irrational statement has been her- 
alded over the United States and the manufacturing 
world, the incongruity of which, however, must be ad- 
mitted upon examination of the census returns of the 
manufactured products of the several manufacturing 
sections of the world. 

In round numbers, the average gross manufac- 
tured product of the United States, per operative, 
represents a value of $1900 ; of France, $650; of Eng- 
land, $485 ; and of Germany, but $450. These figures 
show a most extraordinary ability on the part of the 
American worker, being nearly three times that of the 
ablest European operative. 

This marvelous difference in output between 
the United States and the countries of Europe is 
principally due to the universal application of auto- 
matic machinery, ingenious appliances, and improved 
methods, which, in turn, are mainly due to the ade- 
quate and superior educational advantages of the 
United States. More startling, however, is the enor- 
mous difference in efficiency between the workers of 
California and those of an Eastern section of the 
United States, and of Europe ; for example, the value 


of the average gross manufactured product of Califor- 
nia, per worker, is $3328, and of Connecticut, $1997. 
This shows the Connecticut worker to be nearly $100 
in efficiency above the average of the whole Union, 
while the California worker has to his credit, in effi- 
ciency, the almost incredible amount of $1428, or one 
and three-fourths times the average of the whole 
Union, and nearly seven times that of the English 
worker. This is practically incomprehensible, but is 
a fact nevertheless, and ought to be quite sufficient to 
satisfy the most incredulous that the climatic influ- 
ence, together with the general natural advantages 
of the state, enables California to accomplish this. 

However, it would be well to particularize by 
comparing the foundry and machine shop production, 
an old established industry of Bridgeport, Connecti- 
cut, widely known as a manufacturing city, with that 
of Los Angeles, California, a city famous as a health 
resort. This comparison, though it may seem ridicu- 
lous in the extreme on account of the amusingly ab- 
surd equipments of Los Angeles as compared with 
those of Bridgeport, will, however, suffice to show 
that the efficiency of California workers over those 
of the East must be due to climatic advantages, and 
furthermore, that this efficiency is, in reality, even 
greater than shown by the census, as no account is 
taken therein of the differences of equipments in dif- 
ferent sections. 

The census returns show that there were 31 
establishments in Bridgeport, with an invested capi- 
tal of $2,319,172, and a value of products of $2,412,- 


796, produced by 1,540 wage earners, whose total 
wages were $832,534. In Los Angeles there were 
34 establishments, with an invested capital of $1,021,- 
034, and a value of products of $1,545,406, produced 
by 55 2 wage earners, whose total wages were $359,- 
920. The average investment per establishment was 
respectively $74,812 for Bridgeport, and $30,030 for 
Los Angeles, which shows an average of nearly two 
and one-half times as much invested in the Bridge- 
port establishments. The amount invested in ma- 
chinery and tools in the Bridgeport establishments 
was $582,882; in Los Angeles, $285,143, or an aver- 
age per Bridgeport establishment of nearly two and 
one-fourth times that of Los Angeles. The invest- 
ment in buildings in Bridgeport was $367,600, and in 
Los Angeles $51,992, an average of seven and three- 
fourths times as much invested in Bridgeport per 
establishment ; while the investment in land for the 
Bridgeport establishments was $193,800, two and 
three-fourths times greater than the investment of 
$76,891 in land in Los Angeles. - 

It is interesting to note that the net value of the 
products of Bridgeport per $1 invested in buildings 
was $4.20, while for Los Angeles the net value of 
production was $15 per $1 invested; this difference 
is due to California's climatic advantages, no pro- 
vision for heating, or guard against frost being re- 

By subtracting the cost for materials used from 
the full value of products there remains the net 
value produced by the wage earners ; the cost of 


materials used in Bridgeport was $876,527, leaving 
to the credit of the Bridgeport wage earners a net 
value of $1,536,269, or $998 per worker; the cost 
of materials used in Los Angeles was $770,371, leav- 
ing to the credit of the Los Angeles wage earners a 
net value of $775,035, or $1,404 per worker, a most 
astonishing production of 40 per cent more in value 
than the Bridgeport worker ; this shows that the 
Bridgeport concerns with their workers could have 
produced their product in Los Angeles with a saving 
in efficiency of $251,118, which, when taken together 
with interest and taxes on the difference of cost of 
land and buildings, and the saving in fuel of $36,716, 
hereinafter shown, represents over 13 per cent on the 
total capital of the Bridgeport establishments, one-half 
of which would pay the freight to any section of the 
Union, t 

The cost of fuel, rent of power, and heat in 
Bridgeport was $61,038, and in Los Angeles $24,- 
248. In reality the cost of coal in Los Angeles 
should be divided by two, as the price of coal in Cali- 
fornia having about the same calorific power as that 
used in Connecticut, is double the Connecticut price ; 
and even then there would remain a difference in 
favor of the California city of 38 per cent on account 
of the relative value of oil to that of coal, for the 
census report is based on coal for both places, whereas 
oil fuel is now extensively used in California for vari- 
ous purposes, and the California oil fuel is 38 per cent 
cheaper at 70 cents per barrel than the best bitumin- 
ous coals at $3.60 per ton ; but since oil is not used in 


the cupola furnace, no consideration of the 38 per 
cent will be taken in showing the cost of fuel for the 
respective values and comparisons of the two cities. 
On this basis a saving of $36,716 would have been 
the result had the Bridgeport products been pro- 
duced in Los Angeles. Does not this prove, beyond 
peradventure, that the climate of California is a saver 
of money as well as of life and health, and a creator 
of energy, thereby enabling operatives to acomplish 
a much greater amount of work than is possible in 
the Eastern climate of extremes ? , 

The difference in cost of labor and raw ma- 
terial does not affect this question of the efficiency 
of the worker. It matters not if a worker receive 
$10 per day in the one section and but $1 per day 
in the other; it is merely in this instance, how much 
a worker can do in either section. The cost of raw 
materials and the cost of the freight thereon do not 
signify in this question of efficiency, and both have 
been deducted from the total value. Therefore the 
only significance is the market price of the products 
in the different sections, and the appliances with which 
the worker produces his output. The market price is 
as much higher in the one section than in the other 
as would be the cost of freight on the products, or on 
the raw materials necessary to produce them, other 
things being equal as to equipments ; hence, a higher 
market rate of products in Los Angeles, California, 
than in Bridgeport, Connecticut. 

It is also true that Connecticut and her sister 
states must pay freight on raw materials from various 


sections of the United States, and from other coun- 
tries, and on practically all that they require, while, 
on the other hand, California has within her borders 
a greater variety of raw materials than known in any 
other section of the world ; and, together therewith, 
these Eastern states are obliged to obtain food sup- 
plies from outside in large quantities and pay freight 
thereon in order to support their workers, while Cal- 
ifornia's fertile acres are able to support more than 
one-half the population of the whole Union. 

The average freight charge paid by California 
is 35 cents per $i in value on the raw materials for 
machine construction, average price 2 cents per lb., 
while on machinery with an average value of 25 
cents per lb., it is 5 cents per $1 in value. In the 
present existing conditions in California, however, 
in this particular class of industries, the freight 
must be paid on all materials used, which would, in 
reality, in part balance the freight on the manufactured 
product, and therefore shows a still greater efficiency 
for the Los Angeles worker. 

And together therewith, a much greater and 
an all important factor must be recognized, namely, 
the Los Angeles equipment as compared with the 
most modern and extensive Bridgeport equipments, 
which, if in the hands of the Los Angeles workers, 
would enable them to at least double their output: 
for it is a well known fact that one machine of a 
kind cannot be built with ordinary methods so 
cheaply as can several machines, especially where 
special tools and appliances are employed, as in 


Bridgeport, with which an operative in many classes 
of machine work may accomplish several times 
more than would be possible with ordinary facili- 
ties. Now, therefore, it is evident that the effi- 
ciency of the Los Angeles operator would be greatly 
augmented, were the establishments there equipped 
with a complete series of machine shop and foundry 
appliances, and on the same large scale as in the East- 
ern shops, where many machines of a kind are built 
in one order, with the before mentioned special appli- 

In consideration of the above, it seems but rea- 
sonable to believe that California will, at no very dis- 
tant day, be able to supply Eastern markets with the 
products of her machine shops. And, the wider the 
difference between the cost of the raw materials and 
the cost of the labor required in the production of 
products, the greater will be the ability of Califor- 
nia to compete in the Eastern markets. For, it is 
a well recognized fact, that the greater the amount 
of labor required to produce articles, the greater 
their cost or value, although the cost of the materials 
from which they are made is practically the same 
in all cases ; for example, there is but a very small 
fraction in the difference of cost of the materials 
per lb., in the first stage, necessary to construct 
type-writers and sewing-machines, machine tools, 
and engines, though the market values of the finished 
products are materially different, in the case of 
type- writers, the value being about $5 per lb., of 
machine tools about 25 cents per lb., and of engines 


and the like 8 cents and less per lb. This, there- 
fore, shows that the more labor required to produce 
a given article, the greater would be the economy of 
production if constructed in California, since, as be- 
fore shown, the efficiency of operatives is much 
greater in that section. It may be well here to call 
attention to the relative cost of a pound of wool, about 
15 cents, and the same weight of manufactured cloth, 
from $2 to $8. , 

In connection with the foregoing, a reviewal of 
the total and general manufacturing industries of 
these two cities is of considerable interest. The 
number of establishments in Bridgeport was 832, 
with a total capital of $33,066,890, and with a total 
or gross value of production of $37,883,721 ; the 
total cost of materials was $19,133,236; the number 
of wage earners was 19,301, producing a net value 
of $972 per worker. The number of establishments 
in Los Angeles was 1,415. with a total capital of 
$11,742,838, and a total or gross value of produc- 
tion of $21,297,537; the total cost of materials was 
$10,572,660; the number of wage earners was 8,044, 
producing a net value of $1,333 P er worker, which 
shows 38 per cent greater value of output for the 
Los Angeles worker, and therefore a saving of $2,- 
470,920 had the Bridgeport product been produced 
in Los Angeles. The total wages paid to the 
Bridgeport workers were $9,123,790. The number 
of officials and clerks in Bridgeport was 1,163, witn 
an average salary of $1,288. The total wages paid 
to the Los Angeles workers were $3,992,733. The 


number of officials and clerks in Los Angeles was 
939, with an average salary of $895. These wages 
and salaries, taken together as wages, are two and 
one-half per cent higher in Los Angeles, a very 
low wage rate, considering the class of industries, 
the number of employees, and the average invested 
capital, together with the very limited output per 
establishment. This truly signifies that some con- 
trolling influence, other than is to be found in the 
East, enables operators to establish a high and eco- 
nomic efficiency, f 

The population of Bridgeport, Connecticut, ac- 
cording to the census of 1900, was 70,996, and the 
total number of wage earners 19,301. The popula- 
tion of Los Angeles was 102,479, an( ^ tne total num- 
ber of wage earners 8,044. From this it is seen that 
the industrial population of Los Angeles is very 
small, and that, in order to bear the same ratio to 
the total population as in Bridgeport, it should be 
27,290 instead of 8,044. 

A reduction in original expenditures of $1,614,- 
638 in buildings, and of $153,035 in land, and a yearly 
reduction in cost of fuel of $174,265 based in part on 
oil as fuel for Los Angeles against coal for Bridge- 
port, represent, as gathered from the census report, 
the advantages in fixed charges that would have been 
derived by the industrial undertakings of Bridgeport 
had they been operated in Los Angeles. A saving in 
original expenditure of $1,767,673 for buildings and 
land is no inconsiderable sum, the interest and taxes 
on which, together with the amount of saving effected 


by the operatives, and the saving in fuel, represents 
an annual reduction in outlay of $2,768,921 on the 
total products of Bridgeport if produced in Los Ange- 
les. The invested capital per Bridgeport establish- 
ment is, on an average, nearly five times that of Los 
Angeles, indicating an important economic factor 
by a large output per establishment, and the Bridge- 
port equipments are very superior for the economical 
expenditure of the energy of the operatives; yet, in 
the face of these facts, strange as it may seem, 
the artisans of the renowned manufacturing city are 
outclassed by those of a health resort. * 

This remarkable difference in efficiency between 
the operatives of Los Angeles in the one instance and 
those of Bridgeport in the other, is clearly and most 
emphatically not due to the most modern machinery 
and appliances and economic principles, but to Na- 
ture's bounty the credit must be given. That it is 
largely the latter which assures the industrial success 
of California it may be well to admit, but with the 
hope that the former also may yet reach a striking 
supremacy equal to Nature's endowment, thereby 
enabling her to become a benefactor to herself and to 
the World, as a leader in new industrial methods. 

As a Nation, or section, that which we really 
have to sell, and which, in reality, we are selling, 
is labor; and since an artisan can do more work per 
day, and, on account of the equable temperature, 
more perfect work, and at a minimum cost, in Cali- 
fornia's climate than in New England's, it follows 
that, were the equipments of California on a par with 


those of New England, she could manufacture at a 
much less cost than New England ; enough less, in 
fact, and to spare, to prepay the freight on manu- 
factures to the Eastern markets and those of the 

Eastern equipments may be established in Cali- 
fornia, but the California climate cannot be had in 
the East. 


California's Fuel. 

Numerous deposits of coal have been found in 
California, but it is of poor quality. Nevertheless, 
it is reasonable to assume that beds of bituminous 
and anthracite coals are within the State, i. e., judg- 
ing from the geographical formation. 

Lignite is the first formation which passes into 
semi-bituminous, bituminous, semi-anthracite, and 
anthracite coal, followed by graphite, the last and 
oldest of the coal formations. It is known that there 
are deposits of graphite in Fresno and Tulare coun- 
ties ; therefore the extremes, namely, lignite coal and 
graphite are within the State, and in conse- 
quence thereof, it is reasonable to assume that the 
means are here, namely, the bituminous and anthra- 
cite coals. It does not follow, however, that the 
deposits are necessarily near each other. The graph- 
ite mines at Ticonderoga, N. Y., are about two hun- 
dred and fifty miles from the anthracite coal fields of 
Pennsylvania, and one hundred and fifty from the 
Rhode Island anthracite coal deposit, the latter being 
so hard that it is of no value. 

The lack of a good and cheap coal has been one of 
the chief arguments against the development of man- 
ufacturing in California. It is true that it is an import- 
ant item, nevertheless, the equipment of, and the 
methods employed in the manufactory, are more im- 
portant. It is a fact that the difference between the 


cost of coals in California and New England is bal- 
anced by the difference in climate; while coal is 
cheaper in New England, much larger quantities must 
be consumed for heating than in California. But Cal- 
ifornia to-day has oil fuel as cheap as, and equal to 
any in the Union, and therefore has a cheaper fuel 
than New England, which, with the vantage-point in 
climate, gives California two points over that section 
in favor of manufacturing. 

Oil fuel is used for many purposes and quite 
extensively in the East in preference to coal as fuel. 
The comparative value of oil to coal by test for steam- 
raising at the South Chicago Steel Works, shows that 
with coal 14 tubular boilers required 25 men to oper- 
ate them, while with oil fuel 6 men were required, a 
saving of 19 men at $2 per day each, or a total saving 
of $38 per day. 

For one week's work 2731 barrels of oil were 
used, against 848 tons of coal required for the same 
work, showing 3.22 barrels of oil to be equivalent to 
one ton of coal. Oil at 70 cents per barrel is equiva- 
lent to coal at $2.25 per ton. Indiana block coal was 
used, one of the best varieties, and nearly equal to 
Cumberland bituminous coal, the average price of 
which is $3.60 per ton. With coal at $3.60 per ton 
and oil at 70 cents per barrel, the oil is thirty-seven and 
one-half per cent cheaper than the coal. 

Crude petroleum as metallurgical fuel is supe- 
rior to coal. In a run of six weeks the consumption 
of oil in heating 14-inch ingots in Simens furnaces 
was about six and one-half gallons per ton of blooms. 


In melting in a 30-ton open-hearth furnace 48 gal- 
lons of oil were used per ton of ingots. More than 
ten years ago some of the leading manufacturers of 
bronzes adopted petroleum as a fuel. Also very satis- 
factory results have been obtained in smelting iron 
ore with oil fuel. 

Incredulity exists in the minds of some as to 
dependence upon the oil supply, which would be well 
founded were only a limited number of wells to be 
depended upon, but the fact that the petroleum prod- 
uct of California is to be defined by oil fields instead 
of wells, eliminates the question of doubt as to the 
ever and over-abundant supply, which is now so far 
in excess of the demand that many of the larger wells 
are capped, in consequence whereof activity and fur- 
ther development have, for the present, at least, been 
very materially lessened. Furthermore, there are 
many regions showing superior oil indications where 
no development has been undertaken at all. 

Those holding pessimistic views pertaining to 
the possible reduction of the petroleum supply, 
would do well to note the surprising results in the 
increased supply by various discoveries geographi- 
cally, and together therewith observe the great 
geographical area of California, with oil deposits 
from the Northern central to the Southern sections, 
as compared to the lesser areas of the deposits in the 
Ohio region. The accidental discoveries of petro- 
leum in Texas certainly are entitled to at least pass- 
ing attention in support of the theory that there is 
practically an inexhaustible supply, at least suf- 


ficient to warrant the expenditure at the present day 
of any sums of money necessary for its employment 
for such purposes as may be found convenient or de- 

The lack of the development of industrial enter- 
prises in the past is due more to the lack of proper 
method and energy in man than to the lack of 
energy in the fuel. Let us hope that the new fuel will 
evoke the latent genius and wealth of California. 

Oil City, Fresno County, Cal 

Oil Wells in the Ocean, Summerland, Cal. 


Machine Work and Castings. 

It is not the purpose or intention herein to set 
forth what an ideal foundry should be, nor even to 
intimate that there is such a foundry in California, 
the all important question being, the ability to pro- 
duce medium and light weight castings in California 
at New England prices, the conditions being the same 
as to quality of castings and quantity per order. 

The comprehension and adoption of the eco- 
nomic principles of standardization and inter- 
changeability in the manufacture of engines, wood- 
working and metal-working machinery, and the like, 
are practically the result of recent experiences, and 
to this is mainly due the great industrial success of 
the leading manufacturing states where large orders 
of standard sizes and designs, constructed with special 
equipments, is the general rule. The small machine 
shop or foundry, which has been accustomed to pro- 
ducing work by the single piece, or at most a few 
pieces at a time, and with worn out methods, finds 
business passing the door. 

The small and antiquated machine shop, with 
its obsolete equipment, is the typical California 
machine manufacturing establishment. The claim 
is made by such establishments that they are un- 
able to obtain castings at New England prices, and 
therefore their inability to compete with Eastern 
manufacturers. This without question is in part 


correct, but it is also true that the machine build- 
ing establishments are responsible for this existing 
condition and not the foundries, as no foundry, re- 
gardless of its geographical position, can furnish a 
small order of single castings, as is done in Califor- 
nia, for the price of the large orders filled in the 
foundries of New England ; nevertheless, in the face 
of these facts, California foundries can furnish and 
have supplied castings at New England prices, as will 
be hereinafter shown. Therefore, a radical change in 
the administration and equipments, together with the 
employment of the latest economic methods in these 
machine building establishments, is first necessary in 
order that standard work may be turned out in large 

This change would in effect be cumulative, since 
the result would correspondingly warrant the adop- 
tion of the highest economic methods in the foundry, 
whereby the cost of castings would be very materially 
reduced, and in consequence thereof it logically fol- 
lows that other undertakings in various manufactur- 
ing industries which heretofore have been prohibited 
on account of the lack of available means for equip- 
ments, cheap mill supplies, and general repairing, 
upon which their economic operation is dependent 
would accompany this reform. As all industries are 
dependent upon the machine shops, and since the ma- 
chine shops can be independently successful in them- 
selves, by manufacturing specialties, and successfully 
competing in Eastern markets, and can, at the same 
time, with their improved equipments, supply the de- 


A. J. DOANE, Proprietor. 

General Iron Founders, 

And Manufacturers of 



(fa /sr-w<j /o<f .^^^C, /G-t^Coc-y 2y£ Q -<^ ^o-^ 


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350 /\ain St cor Harrison 

. /-/^//^////y/^'Eec. 9th, 1001 _../_ 

Mr. S. W. C-oldy 

| 8 Stevenson 8t. City 

Dear Sir 

We vflJI jaake Iron Castings for your wood working machine as 
shown to us, at the rate of Three Cents per pound. This price is for 
quantity orders and patterns to be furnished by you. It is understood 
that the patterns will be made according to our instructions so that 
molding may -be simplified, the smaller pieces to be gated if necessary. 
Yours truly 


bought of ARNOLD & COMPANY, 


i LSu !.: TER MS Stable nxtures, " Giant " Truck Castors, Stoves, Ranges, Etc. 

7K<i£ n / $ * 

tup /u- 


v*- / 



sired requirements of neighboring industries, while 
not dependent upon them, with perfect satisfaction 
and at a much less cost, it follows that they are the 
first to inaugurate this reform. 

It will be of interest here to observe that the 
foundries of California are able even under the pres- 
ent conditions to furnish castings at New England 
prices ; therefore with special equipments to fill 
large orders the New England prices could be cut, 
which conclusion is reasonably substantiated by the 
following facts : Castings were furnished for the 
Spreckels Sugar Refinery, Salinas, California, for 
from one and seven-eighths cents to two and three- 
fourths cents per lb., and in recent bids for first- 
class standard light weight machine castings in 
orders of twenty-five at a time, total weight about 
35 tons, the price was three cents flat, while the 
price in Connecticut for the same work was from 
three to three and one-half cents per lb. These results 
were attained by such ordinary methods as are em- 
ployed in the general jobbing foundry, and together 
therewith it may be asserted without fear of substan- 
tiated denial that the iron foundries of San Fran- 
cisco rarely if ever receive "gated" patterns. 

And again, it is of still greater interest to note 
in connection herewith, that the cost of the raw ma- 
terials is much higher in California, the average cost 
of pig iron being $26, and of coke $12 per ton, as 
compared with $17 for iron and $6 for coke in Con- 
necticut. The following analysis of these prices 
shows in a marked degree the greater efficiency, and 


the lesser manufacturing expense in the cost of 
buildings, heat, etc., in California than in Connecti- 
cut, from which facts it is apparent that large 
orders and the employment of modern methods for 
rilling them, would result in as low prices in Cali- 
fornia, as are quoted on special castings in the 
most favorable Eastern sections, castings varying 
in price in the East, low grade and very heavy be- 
ing cheaper in the smelting districts, while the price 
of high grade and gray iron castings, is not affected 
geographically, but by method of production and 
amount of output. 

In giving the aforesaid bid the Connecticut 
foundrymen were aided by inspecting the patterns, 
while the California foundrymen examined the ma- 
chine, and in both cases the contract stipulated that 
the patterns were to be altered regarding the molding 
thereof, to the satisfaction of the foundrymen. 

Considering 8 lbs. of iron a fair average to be 
melted in the cupola furnace with i lb. of coke, the 
cost of the coke for melting ioo lbs. of iron in San 
Francisco would be six and six-tenths cents, the 
cost of the iron being $1.16. The cost of the coke 
for melting ioo lbs. of iron in Connecticut is three 
and three-tenths cents, and the cost of the iron 76 
cents, making a total cost of 79 and three-tenths cents 
for iron and coke in Connecticut, and of $1.22 and 
six-tenths cents in California. Taking the price of 
castings in the two places at $3 per 100 lbs., and as- 
suming one-half cent per lb. to be a fair profit, there 


is left $2.50 for the total cost of labor, materials, 
manufacturing, and other expenses. 

By subtracting the cost of iron and coke in the 
respective places from the total cost, $2.50, the cost 
of labor and the miscellaneous expenses for the 
production of 100 lbs. of castings, are found to be 
$1.70 and seven-tenths cents in Connecticut, and 
$1.27 and four-tenths cents in California, showing 
an efficiency of nearly one-half cent per lb. greater in 
California, than in Connecticut, or 34 per cent, 
which, it is definitely certain, is due to sectional ad- 
vantages, products of Nature which cannot be trans- 
ported, and hence, the ability of California to lead in 
this important branch of manufacture were the 
methods of Connecticut transported thereto. A 
marked difference in efficiency in California's favor, 
is indicated in all undertakings, but in some it is not 
so apparent, notably in the machine establishments, 
which are too glaringly behind the times for Nature 
to close the gap for them. 

This condition of things may be accounted for 
by the fact that the people were at first engrossed 
in the development of their vast mining regions, 
followed by the most phenomenal prosperity in the 
unfoldment of their spacious horticultural domain, 
and, intoxicated with this success, seemingly dis- 
regarded their future welfare by treating with in- 
difference the economic foundation of industrial 
undertakings, and more especially have the finer 
aspects of industrial life been allowed to pass un- 
noticed in California. 


Master mechanics and heads of departments, 
not grounded in the details of industrial work, are 
chosen to determine the expenditure of the corpor- 
ate funds, while the standards of excellence, and the 
selection and adoption of economic methods, both 
in original execution and in administration and 
maintenance, are regulated, if at all, without regard 
tc specific training as a prerequisite to industrial 
success. To unqualified and inexperienced men, 
and to listless indifference and incompetence, are 
mainly due the disgraceful conditions and shiftless 
methods, that are wholly uncalled for, inexcusable, 
and unworthy, in a section so rich in resources and 
intelligence and per capita wealth as is California. 
Only when the officials demand and insist on the 
highest standards of economic thrift, will those in 
the executive departments of industrial enterprises 
realize the necessity of a change in their ingrafted 
habits and customs, and the acceptance of newer 
methods and later standards of excellence. 

The iron foundry industry may be regarded in 
some respects as the crown of industries ; the abil- 
ity to produce good castings at satisfactory prices, 
has its influence upon machine building, which, in 
turn, has a wider influence and greater prestige than 
all other industries combined, and therefore should 
receive more, not less attention, than those of lesser 
magnitude, of which no universal recognition was 
taken until associated with California's fame. 

Many small foundries and machine shops are 
useless and worse than useless, for thev create 


standards of damaging comparisons, and if not 
greater evils, they at least do nothing towards over- 
coming them. The recognition has become general 
that a high order of equipment, and a high order 
of intelligence controlling it, represent the best 
conditions for great industrial success, and it is also 
recognized that the establishment and management 
of the high order of equipments are much more 
costly ; nevertheless, with this, is the realization of 
the necessity of the higher cost of equipments, with 
the certainty that in these days of economic strife, 
this greater cost is the only avenue to success. 

The establishing of machine works and kindred 
undertakings with small sums of money, is worse 
than wasteful; many fail, others become discour- 
aged and abandon their effort, a few "stick to it," 
waiting for "something to turn up," all of which re- 
sults are damaging in the extreme ; capital becomes 
timid in investing in like larger undertakings, and 
a damaging reputation is established for a section 
which otherwise would have been a most prosper- 
ous one. On the other hand, the greater the under- 
taking, the less the liability of failure ; a higher order 
of intelligence is employed in the administration, 
extravagances are more easily checked, market con- 
ditions are better understood, and the directors are 
among the ablest and most trustworthy citizens of 
the community. 

Great undertakings become the determining 
barometers of the affairs of the world, not merely 
of a section. This is exemplified by California's 


mining, lumbering, agricultural, horticultural, and 
ship-building interests, and these will be followed 
by general industrial undertakings of like magni- 
tude in this Land of Incomparable Possibilities, 
when the realization of her overpowering advant- 
ages are grasped by Eastern people engaged in 
kindred undertakings. 

Old Water Mill, Napa Valley — now restful and beautiful. 


California and Connecticut. 

It appears that in the iron trades manufactures 
the pre-eminence of the United States over other 
nations is most decided. It is within the remem- 
brance of the present generation that the statement 
was adhered to that we were an agricultural coun- 
try, and would never become a manufacturing 
country, much less a leader therein. Now, how- 
ever, 'and for several years past our supremacy in 
this most important branch of all manufactures is 
established over all nations. 

It has been and is now asserted mat California 
is an agricultural state, and can never successfully 
compete with the eastern United States in the 
markets of this and other nations in general manu- 
facturing. No particular attention has been given 
in California to manufacturing for the world's mar- 
kets, and, in the true sense of the meaning of the 
word, there is not a machine manufacturing con- 
cern on the Pacific Coast ; in other words, there 
is not a concern having a full complement of im- 
proved machine tools and up-to-date methods, such 
as a complete system of milling machines, grinding 
machines, including electric chucks, monitor lathes, 
multiple-spindle drilling machines, gear cutters, 
automatic tappers, key-way cutters and key-seaters, 
profilers, drop-hammers, standard measuring and 
testing machines, and furnaces for annealing, hard- 


ening and Harveyizing steel, together with a liberal 
supply of small tools, gauges, etc. Other manufac- 
turing industries, as well, are away below par when 
compared with those of the East; there are factories 
but no manufactories in California. 

It is definitely certain that neither California 
nor any other section of the United States, in these 
days of progress, could successfully conduct manu- 
facturing on such pettifogging basis ; neither could 
California successfully compete in the world's mar- 
kets with her agricultural products were they pro- 
duced on such a basis. 

An interesting fact is, according to the census 
report of 1900, that workmen employed in the 
manufacturing industries in the temperate climate 
of California, produce 32.9 per cent more in value 
of product, and with less fatigue, than do the work- 
ers in the climate of extremes of the Eastern states. 
This is accomplished in face of the fact that con- 
cerns are at least twenty-five years behind the 
equipments of the latter mentioned states, and are 
producing work on a retail basis, while concerns of 
the Eastern sections are manufacturing on the most 
gigantic scale in the world. 

According to the census reports of 1900, Con- 
necticut approximates California in value of manu- 
factures more nearly than does any other Eastern 
state, the number of establishments in Connecticut 
being 9,128, representing an invested capital of 
$314,696,736; while in California there were 12,582 
establishments, with an invested capital of $205,- 


395,205. Though Connecticut is known as the 
manufacturer of "Yankee notions," (light manu- 
facturing), she has 47 per cent more invested per 
establishment than California, which shows the in- 
significance of the individual manufacturing con- 
cerns of California. 

The number of wage earners in Connecticut was 
176,694, producing a value of manufactured prod- 
ucts of $352,824,106, and in California 91,047 oper- 
ators were employed, producing a value of products 
of $302,874,761. The cost of raw materials used in 
Connecticut was $185,641,219, and in California 

Deducting the cost of the raw materials from 
the value of the manufactured products of either 
slate, and dividing the remainder by the number 
of operatives employed, a value of output per 
operative of $940 is represented for Connecticut, 
and $1,260 for California, or 32.9 per cent more in 
favor of California. The California operative, how- 
ever, receives 8 per cent higher wages than the Con- 
necticut operative ; nevertheless the salaried offi- 
cials, clerks, etc., of Connecticut receive 16 per cent 
more than do those of California. This difference 
in salaries is somewhat surprising, and, in part, bal- 
ances the higher wages paid in California, which 
latter, however, are low in consideration of the 
fact that where light manufactures, such as type- 
writers, bicycles, clocks, watches, pins, buttons, cot- 
ton and woolen goods, and general notions, are ex- 
tensively manufactured, as in Connecticut, boys, girls, 


and other low wage operatives may be employed for 
the attendance of the automatic machinery. 

The census shows that the wage earners of the 
Central states, where heavier manufacturing is 
largely carried on, receive but 2 per cent less than 
the California workers, and this difference can cer- 
tainly be accounted for by the fact that the equip- 
ments of the California concerns are much below 
par when compared with those of the Eastern and 
Central states. It is, however, irrefutable that the 
United States is able to successfully compete with 
countries in which far lower wage rates prevail, 
the controlling economic question being, not the 
daily wage of the operatives, but the wage cost of 
the articles. This, therefore, as well as the inflex- 
ible law of supply and demand, dissolves the ques- 
tion of difference of wages in Connecticut and Cali- 

It is of interest to note that the census returns 
show that the cost of heat and power in Connecti- 
cut was 13 per cent more than in California for the 
same value of manufactured product, the report 
being based on coal, and of still greater interest is 
this as the cost of coal in California is double the cost 
in Connecticut. Oil fuel is now extensively used in 
California; pipe lines are as yet laid but short dis- 
tances, nevertheless oil is delivered in San Francisco 
and vicinity by tank cars for 70 cents per barrel, which 
gives California a fuel 38 per cent cheaper than the 
best bituminous coal used in Connecticut at $3.60 per 
ton. According to the census report, the cost of fuel 


in Connecticut was $5,090,746. Now, therefore, if 
these concerns of Connecticut were located in Santa 
Clara County, California, a saving in fuel alone of 
$3,502,514 would result, representing- a saving- of over 
1 per cent on the invested capital, certainly a most 
remarkable showing for a lesser factor. 

With but a moment's consideration of this and 
the previously mentioned greater factors, together 
with the fact that in California less capital is re- 
quired to be invested in buildings, it is self-evident 
that were manufacturing engaged in with the same 
degree of enterprise, steadfastness of purpose, and 
understanding as in Connecticut, California could 
prepay freight and place the manufactures of Con- 
necticut within that state at a cost several per cent 
lower than it would be possible for Connecticut to 
produce them for at home. 

Independent Electric Power Plant — thousands of 
horse power of energy. 


California's Possibilities. 

There is no section of the world when weighed 
in the balance with California that equals her in 
her advantages of location, resources, raw materi- 
als, fertility of soil, and climate. Political economists, 
statisticians, and historians, agree that California 
is an "empire within herself," and that she could 
support the population of France, which is 38,514,- 

The area of California is thirty-two times that 
of Connecticut. A population thirty-two times as 
large would be 29,069,440. The value of California's 
manufactures in the same proportion to area and 
population, and at the present value of the manu- 
factured product of Connecticut, would be $11,- 
290,371,392, which is nearly forty times greater than 
the present manufactured product of California. 

California could do this and yet not be over 
developed. But the point has been reached when 
the more she adds to her agricultural population 
without industrial enterprises, the essentially weaker 
she grows. There is but one remedy, and that is 
to develop the industrial force of the people, and en- 
courage others to locate within the State for the 
same purpose. 

If the present conditions of inactivity continue, 
and California does not use her vast resources, she 
will advance but slowly. While she is as she is, 


better organized sections have nothing to fear from 
her trade competition, and they will continue to use 
her as their "dumping ground." She can, of 
course, bar out agricultural products; but she can 
win but a small share of the world's trade, and can- 
not apparently build up domestic industry and trade 
of much importance. She has a large and fertile 
area, is rich in minerals, and has a great variety 
of natural products, all of which represent a great 
force of the future; but all of this latent force is 
useless unless grasped by the people with modern 
appliances and improved methods, that the results 
of her energy may be distributed in generous quan- 
tities over the world. 

Observe the greatness of Great Britain, with an 
area 34,000 square miles less than that of Califor- 
nia, and with a population of 40,906,000, and is it 
unreasonable to assume that California, with her 
incomparable resources, will reach even beyond 
the mark above indicated for her? 

The work of husbandry and the ability to de- 
velop mines and mining, in which directions the 
people of California have shown themselves masters, 
and a patient, obstinate adhesion to present matured 
methods, can do much, can make California as they 
have made her, formidable to all as a land of gold 
and fruit. But further than this she cannot go, no 
position of a greater magnitude can she fill, until 
the energies of her people are called forth to encourage 
industrial development. 

These energies, once set free to hope and to 


strive, will prove capable of high economic develop- 
ment, and California will then win a position as a 
world-power, commensurate with her vast resources, 
formidable, indeed, but with kindliness to all who 
come within her borders. 


Economical Location for Manufacturers. 

The word economy is one which permits of a 
broad application, but in the general sense of the 
word it should be taken as the careful and judicious 
use of anything, such as money, time, material, 
labor, etc., and in industrial undertakings location 
is an important factor in the economical question. 

Usually in the management of any class of 
manufacturing industry or business, economy and 
energy are essential to success, but the degree of 
success is largely dependent upon the form of eco- 
nomical principles employed. For instance, there 
are many examples of men who, regardless of their 
very evident economy, make little success, and who 
seem to possess, and to be able to acquire, none of 
that energy and understanding so necessary to real 
success. True economy must be broad ; the look- 
ing to the immediate present is important, but, if 
without provision for any possible contingency which 
may arise, it is certainly false economy. While it is 
apparent that methods of management, the working 
over of refuse as by-products, and improved ma- 
chinery and appliances have an important effect on 
the quality and cost of production, yet, without care- 
ful consideration of the most advantageous location 
of the works from every standpoint, full economy 
has not been reached. 

The overcrowding of cities has grown to be a 


serious question, and though means have been taken 
to remedy the evils of congestion, efforts have 
not been general. Is it not eminently proper in these 
days of electric traction to encourage suburban resi- 
dence, not only for the well-to-do, but for those of 
moderate incomes, in order that families may enjoy 
perfect health, which is synonymous with happiness, 
and therefore with contentment and increasing abil- 
ity and understanding? This is clearly and definitely 
true if the centre of the metropolis, with all its at- 
tractions at night, were quickly, cheaply, and com- 
fortably reached from many neighboring settlements. 
A section possessing the foregoing conditions is in- 
deed an important factor in economy of location, for it 
insures law-abiding, painstaking, steady, and ener- 
getic workers. 

Practically in every instance in manufacturing, 
the question of installing a new system is not alone 
a technical problem, but is also an economic one; 
what is discussed is not the cost of the new system 
so much as the enormous sum involved in the 
throwing away of the old, and, together with that, 
the deterioration of the new. This consideration 
can but in a small degree be taken into account in 
a change of location, and in fact in many cases not 
at all. The new location may possess advantages 
whereby the increased net returns for the yearly 
output would more than equal the expense of re- 
moval, in which case there would be no paramount 
question of throwing away the old principle, but 
merely the moving of the established methods to a 


more advantageous location. An old factory site, in 
many cases, is more valuable as office or warehouse 
property, and it is the exception to the rule if the prop- 
erty has been occupied for ten or fifteen years and 
has not sufficiently increased in value to defray the 
cost of the new location and the expense of moving. 
A new location, unlike the installment of new methods 
and appliances, does not deteriorate in value, but, on 
the contrary, increased property values are certain. 

Paramount in the minds of many is the ques- 
tion of transportation. The question is pertinent, 
but if it be possible to place the goods in the same 
markets with an increase of ten or fifteen per cent 
in net returns, it signifies a prosperous business, 
which is the desire and aim of all. 

A most striking illustration of the economy of 
location is that of California, where natural advant- 
ages are so infinitely superior to any other section 
of the world, which fact, coupled with the untiring 
energy and steadfastness of purpose of her peo- 
ple, enable her to transport her products to all mar- 
kets, and this has been accomplished regardless of 
the fact that the Mediterranean countries have a 
sunny climate, and labor is less than one-fourth the 
cost of California labor. While such is the result 
of agricultural and horticultural undertakings, with 
the recognition of the economy of locations in Cali- 
fornia for manufacturing and the application of 
full economy along that line, proportionately greater 
will be the result of industrial undertakings, the most 
important of all. 


Buildings and Locations. 

In this progressive age manufacturing build- 
ings several stories high and very tall chimneys are 
characterized as "monuments to the folly of their 

It is a well recognized fact that where the 
amount of land is ample it is manifestly desirable to 
erect buildings but one story high to insure the 
lowest operating expense, as well as the best light and 
lowest cost of construction. 

Regardless of the designs or dimensions of the 
buildings of a manufacturing plant, or however 
carefully provisions be made for all necessities for 
handling materials within the works, it is essential 
that the plant be located on a main railroad line, 
with a siding entering the yards and buildings, to 
allow direct handling of materials to and from cars 
by hoists or chutes, as the nature of the materials 
require, in order to save the several handlings of 
materials and trucking, the cost of the latter averag- 
ing 25 cents per ton per mile for the whole Union, 
according to the latest census reports ; and, in addi- 
tion thereto, there is the possibility and generally 
the probability that in the future the plant will have 
to be increased in capacity. It is, therefore, import- 
ant to consider the cost and nature of the land se- 
lected for the plant. 

A site for a manufacturing plant should require 


no blasting of rocks, no grading, and no driving of 
piles ; the drainage, however, should be perfect, and 
the underlying strata for secure foundations at a 
reasonable depth of from three to six feet is essen- 
tially important, both on account of first cost of 
construction of buildings and maintenance of the 
same, as well as to insure stability of structure and 
absence from vibrations, in order that the cost of 
repairs to the plant may be reduced to a minimum, 
and a larger amount of work may be turned out at 
the least possible expense. 

In San Jose and vicinity there are thousands of 
acres of land adjacent to the main line of a trans- 
continental railroad, possessing all of the favorable 
requirements for manufacturing plants, together 
with a bountiful supply of artesian water, obtain- 
able at a very reasonable depth, which may be used 
for condensing-engines at a trifling cost; therefore, 
together with oil fuel, steam power may be had at 
a lower cost than in the East. Oil fuel being sold in 
San Jose for 70 cents per barrel places the fuel item 
38 per cent cheaper than the Cumberland bitumin- 
ous coal at $3.60 per ton in the East. And in con- 
nection herewith it is well to mention that the elec- 
tric current generated by water power is distributed 
over the city of San Jose; hence the practical solu- 
tion and demonstration of the fuel and power ques- 
tion is clearly beyond the possibility of nearly all 
of the manufacturing centres of the East. 

For the construction of buildings, the late all- 
steel buildings, brick walls, and concrete floors pre- 


sent disadvantages in the way of discomfort and un- 
healthfulness to workmen, and inconvenience in at- 
taching machine-hangers ; while the excessive expense 
is not offset by advantages secured in an absolutely 
fire-proof structure. The style of buildings now being 
largely constructed is composite in character, con- 
sisting of brick walls, steel girders, heavy wood floor- 
ing, and plank roofs, with fire-proof covering and pro- 
tected underneath with a fire-proof paint. A diagonal 
flooring eight inches thick, laid on steel girders or 
concrete, is very rigid, and, with anti-caloric sheet- 
ing laid between the top and sub flooring, will resist 
fire for a long time. 

The price of lumber in California is much lower 
than in the East, and especially so in the central 
and northern portions of the State. The fact that 
San Jose possesses large brick kilns and also some 
of the largest lumber companies, who furnish tim- 
ber of any required dimensions to the length of 70 
feet, as well as abundance of fine building stone in 
the immediate vicinity, ensures cheap and superior 
building materials near at hand. 

The world moves, and nowhere is this more ap- 
parent than in manufacturing; and it is evident that 
many manufacturers of the East, who are progress- 
ive, will, when the advantages of Santa Clara 
County are thoroughly and definitely understood, 
move their plants to San Jose and the Santa Clara 

2 •* 

O E 


O E 

O (S 

■a +> 

E «) 


San Jose and the Santa Clara Valley 
as a Manufacturing" Centre. 

According to the latest census report San Fran- 
cisco is the leading manufacturing city of the Pacific 
Coast, and Los Angeles the leading city of the United 
States, of her class, in increase of population and man- 
ufactures. Now, therefore, why should San Jose be 
recognized as superior in location and advantages for 
manufacturing purposes, to San Francisco and the 
southern section? 

San Francisco can not be said to be a manu- 
facturing city, nor is it true that she is making any 
efforts in that direction; she is simply the largest 
city in California, the centre of commerce of the 
Pacific states, and possesses several ship-building 
concerns, one of which, the Union Iron Works, 
ranks among the first in the world. Aside from the 
latter, her industrial undertakings are, as a rule, 
very meagre, and very poorly equipped, occupying 
property of high values without regard to fitness of 
location for the particular business conducted, rep- 
resenting in a general way the worst arrangement 
for economically producing work. 

San Francisco, unlike San Jose, is hilly, and a 
large part of the lower city is on made ground ; the 
first is prohibitive on account of expense of truck- 
ing, grading, and so forth; the second, because of 
the cost to secure foundations, while the land val- 


ues are several times greater than in San Jose, where 
miles of property particularly adapted to manufac- 
turing lie adjacent to the railroad line, with under- 
lying hard-pan or gravel from three to six feet be- 
low the surface, and, there being no mud, and the 
underlying stratifications insuring secure founda- 
tions at a very reasonable depth, the expense of 
piling and so forth is avoided, while, the land being 
practically level, there is no expense in grading, but 
perfect drainage is assured, as San Jose lies 88 feet 
above tide water; also, it is connected by railroad 
with Alviso harbor, seven miles distant, on San 
Francisco Bay. And, in addition thereto, San Jose 
has terminal transcontinental railroad rates, insur- 
ing adequate transportation facilities and the di- 
rect loading of cars at the works. 

Los Angeles fully realized the necessity of a 
water outlet, and displayed wonderful tact in her 
ability to secure an appropriation of millions of 
dollars from Congress to construct a harbor at 
San Pedro, 18 miles away. This is not a land-locked 
harbor, nevertheless it shows what well directed 
energy may accomplish. 

Artesian water not being available in San 
Francisco as in San Jose, steam plants in the former 
city must be located near tide water in order to oper- 
ate condensing engines with economy. 

The climate of San Jose may be said to be a mean 
between the climates of San Francisco and Los Ange- 
les, being warmer than San Francisco and cooler than 
Los Angeles in summer, and about the same as either 

A cap-controlled Artesian Well, San Jose. 

A Liberal Artesian Flow. 


in winter ; orange trees and semi-tropical plants thrive 
in open air the entire year; there are no cold, damp 
trade winds, no scorching hot winds, no sand storms, 
but gentle warm every-day breezes during the after- 
noons of summer ; the sun shines nearly three hundred 
days in the year, and, in fact, the atmosphere is the 
most clear and perfect of any section, Mount Ham- 
ilton having been chosen as the site of the Lick As- 
tronomical Observatory for that reason, to which, 
from San Jose, there is a most sightly and magnificent 

Climatic conditions have a wider influence in 
many lines of manufacture than would generally 
appear to the casual observer. It is clearly ap- 
parent to many, however, that the more equable 
the climate as to temperature, and with an even and 
moderate degree of humidity, the more satisfactory 
and the better the results obtained in the manufacture 
of accurate machinery, fabrics, and the like ; dust, also, 
is an important factor to be considered, especially 
when carried by winds, and, in consequence thereof, 
sifted through factories, over goods and machinery. 
To the mind of an experienced machine builder, famil- 
iar with the methods and tools for the production of a 
high grade of interchangeable work, it is very appar- 
ent that strong winds carrying dust would be prac- 
tically prohibitive to the operation of such a machine 
plant ; while, on the other hand, a place of uniform 
temperature, where there are only gentle breezes, 
carrying neither dust nor moisture, would be an 
ideal one in favor of such class of work, and San 


Jose must certainly be recognized as a leading loca- 
tion in these particulars. The foregoing is also true 
of the manufacture of textiles and so forth. 

The name Garden City was given to San Jose 
from the fact that around about her are the most 
productive farms and orchards, which, however, 
need no encomium, as their products are in the 
world's markets ; eat of them, and judge for your- 

The products of the southern country are truly 
wonderful, but the fertility and depth of soil are not 
to be compared with Santa Clara County, and, 
strange though it may seem, the latter, though over 
400 miles north of Los Angeles, ripens products 
about three weeks earlier, and, together therewith, 
the rainfall is always much greater than in the 
southern section ; San Jose, the county seat, being 
but 50 miles south of San Francisco, the rainfall is 
about the same in the two cities. 

A city located in the heart of a section so 
highly favored, together with the fact that com- 
fortable homes may be had for from $1500 to $3000, 
where the property tax is low, and, in addition 
thereto, where schools are on a par with those of 
New England, with a State Normal School, the Uni- 
versity of the Pacific, and, in the immediate vicinity, 
the world-renowned Stanford University, the most 
richly endowed on earth, must appeal to all reason- 
able minds as being a perfect section for the residence 
of the employer, the employees, and their families ; par- 
ticularly so, as there are beautiful parks and drives 


with 450 miles of roads kept sprinkled during the 
summer season ; also there are numerous electric car 
lines traversing the valley ; a boat runs to San Fran- 
cisco daily from Alviso harbor, with a round trip fare 
of $1 from San Jose ; by rail, monthly commutation 
tickets to San Francisco may be obtained for $15, good 
on all trains and every day, including Sundays ; sev- 
enteen trains run daily each way, and there is a mid- 
night theatre train from San Francisco. San Jose, be- 
ing collectively herewith the finest and cheapest pro- 
duce market, is irrefutably an incomparable residence 
and industrial location. 


u& : -i!i 

f K^f^f 





This i;.'s.Tv:iiiim or Bark contains about 3,000 a 


: ires, and many if the world's largesl pnd Rnesl trees, among which is the 

feel in early Califor lays this trei was ■ cavated, and in it General Fremont 

trly closi 'i i.>\ --I owl h. 

1 'alifor laj - this ti-< i was i j 

HTdW 111. ''i.iinmIi till- size Of 111.- 


New England and California. 

At the time that New England was assuming 
the leadership of the world in industrial undertak- 
ings, California, incidentally, while developing 
mines and mining, discovered her agricultural pos- 
sibilities, and proceeded henceforth to develop them. 
That New England and adjacent states surpass the 
world in industrial undertakings admits of no discus- 
sion, while California, on the other hand, has de- 
monstrated her fitness to support a great manufactur- 
ing population, as well as to furnish a larger supply 
and variety of raw materials than ever before 
known in any section of the world. 

Now, therefore, it is quite reasonable to assume 
that, were the industrial enterprises of New England 
removed to California, lower and more luxurious liv- 
ing for operatives would result, as well as a greater 
saving to manufacturers in the cost of production, 
insuring them the dictation of prices and the control 
of the world's markets during times of depression, 
which would be a direct benefit to the entire Union. 

While the New England states were perfecting 
enterprises California was preparing the home for 
them. New England has built greater than she 
can take care of; California has demonstrated her 
ability to care for several times the population ot New 

The production of grain, meat, and potatoes in 


New England is less now than in 1850. The density 
of population is 76 persons to the square mile, while it 
is only 24 for the whole Union, and 9 for California. 

We have the strongest evidence of the assimi- 
lating character of American institutions in the 
fact that New England is typical of the American 
people, although half the population of New Eng- 
land is composed of immigrants and their children. 

The rapid growth of towns has coincided with 
a great influx of immigrants from Europe, and the 
census returns show that the number of Americans 
has increased but very little in 20 years, namely, 
6 per cent. If we seek to ascertain the cause why 
the American population does not increase in New 
England as it does in other parts of the Union, we 
are almost forced to conclude that the develop- 
ment of the resources of New England has been 
accomplished. Yes, more than that, it is overdone, 
and, therefore, thousands have gone West in the 
past 25 years to enter new fields of development. 
Incidentally many New Englanders came to Cali- 
fornia for their health, thousands located in Los 
Angeles, and their old-time energy and indefatiga- 
ble industry have resulted in a most phenomenal 
increase of 103 per cent in her population in a single 

Los Angeles is said to be the "hospital for New 
England." Be that as it may, the energy of her peo- 
ple, weakened though it may be, has resulted in the 
most remarkable growth of any city in the Union of 
her class. As shown by the census report of 1900. 


Los Angeles, in the preceding decade, increased 103 
per cent in population, 115 per cent in manufactured 
products, and 107 per cent in number of wage earners. 
In San Francisco, the leading manufacturing city of 
the State, the population during the same period in- 
creased but 14 per cent, while the value of manu- 
factured products decreased about 2 per cent, and 
wage earners increased but one-half of 1 per cent. 
The growth of urban population is almost directly 
proportional to the increase of manufactured products 
and commerce. 

The rapid development of Los Angeles is a 
forceful illustration of what Eastern people of health, 
energy, and comprehensiveness might accomplish in 
the more favorable sections of California, notably San 
Jose and Santa Clara Valley, by grasping the advant- 
ages of which, they could demonstrate to the world 
unparalleled success in industrial undertakings, which 
would be followed by unqualified success in every 
other line of business. 

r^'t, *" VST {fST 


California's Gold. 

California is the only land that over a hundred 
thousand men ever tramped two thousand miles to 
get to rather than stay away from. They came 
primarily for gold, but after a time agricultural pur- 
suits attracted the attention of some, and to-day 
California is in these respects the "wonderland" of the 

It is now recognized that "sound money" has 
some importance in our national economics. We 
learn from trustworthy sources that California put 
the United States on a gold basis, and that prior to 
the civil war the United States (excepting California) 
had produced a value of about twenty-five millions of 
dollars in gold and silver. California has given from 
her own mines more than one-half of the gold pro- 
duced in the United States to this date. Fourteen 
hundred and fifty millions in gold from one state is 
certainly of much importance to the finances of a 
nation which transacts its business with about one- 
half of that sum. 

The discovery of gold in California is to be 
credited with : the financing of the Nation, the de- 
velopment of the greatest agricultural domain the 
world has ever known, and the supersedure of the 
"pony express" and the "prairie schooner" of the 
"fifties" by six transcontinental lines of railway. 
These achievements were great and form a stable 


foundation for the next in order for California's 
true success, namely, the establishment of manufactur- 
ing within her limits, which should now be done with- 
out delay. 

The California gold seeker made his shadow 
bigger than his substance ; in other words, stock 
gambling, the game of freeze-out, and throat-cutting 
were originated in California, and from that fact the 
gold seeker is of necessity so familiar with his own 
game that he seeks elsewhere for safe investments for 
his gold, in consequence whereof California gold has 
been primarily the means of developing the Eastern 

The corporation laws of California are, perhaps, 
satisfactory to mining interests, but they certainly 
are not suitable for manufacturing interests, any more 
than the rules of a gambling house are suitable for a 
Sunday-school room. 

The attention of the gold producer must be 
called to the fact that there are safer and more lucra- 
tive investments for his gold within the boundaries 
of the "Golden State." 

Wealthy as is the Nation, if only the amount of 
gold mined within the borders of California were 
taken out of its pockets, and withdrawn from its 
enterprises, the result would be a national collapse. 
It is not the amount of gold produced in the State, 
but the amount retained within it and in circula- 
tion, that is of value to the State. 

California has been generous to a fault in the 
distribution of her gold in the East ; let her now 


look to the development of other resources, more 
stable, even richer, and clearly of a lasting and 
growing wealth to herself. Let Colorado, which is 
now producing more gold than California, and whose 
natural resources are nil compared to those of Cali- 
fornia, contribute to her Eastern sisters. 


Gold Opened California— Manufacturing 
Will Populate Her. 

The discovery of gold in California at Sutter's 
Mill caused a most remarkable uprising and the 
tramping of tens of thousands of men of energy Cali- 
forniawards. When the facts concerning San Jose 
and Santa Clara Valley as a most desirable manufac- 
turing centre become known, many manufacturers 
will locate there, causing ten times tens of thousands 
to migrate to the city lying in the heart of the richest 
valley in the world ; for it is well understood that man- 
ufacturing is the first factor of wealth among civilized 
people, the wealth of the wealthiest sections of the 
world being in direct proportion to the ability or 
advantages of those particular sections to manufac- 
ture cheaply, in order that their goods may compete 
successfully in the markets of the world. 

That a certain section of California was par- 
ticularly rich in gold is no proof that all sections are 
equally rich, but it is evident that in many localities 
mining has been successfully carried on. Likewise 
regarding manufacturing, while San Jose and Santa 
Clara Valley possess the greatest number of van- 
tage points, there are other sections of Califor- 
nia as much superior to the Atlantic states for 
manufacturing, as California, as a whole, surpasses 
the Eastern states in agricultural pursuits. 

A section possessing the many advantages of 


San Jose for manufacturing is truly one of the richest 
sections of the world, even richer than the richest 
gold mining sections, for mines after a time are 
worked out, the section becomes depopulated, and dev- 
astation and ruin are all that are left as a monu- 
ment to mark the great achievement of man; while, 
on the other hand, a section with superior manufac- 
turing advantages is continually increasing in wealth 
and grandeur, for manufacturing is not only a lasting 
and permanent gold mine of itself, but it creates and 
increases all other values. For example, manufactur- 
ing increases the population, the demand for food- 
stuffs, the demand for general supplies, the demand 
for raw materials, commerce, transportation lines, the 
demand for land, land values, and the values upon 
which banks loan money. 

It may be of interest here to note that the re- 
sources and liabilities of state banks, loan and trust 
companies, and savings and private banks, together 
with the capital stock paid in, represent, according 
to the census of 1900, a total of $9,817,114,921. The 
capital invested in manufactures was $9,813,834,- 
390, which produced a value of output of $13,000,- 
149,159. The failures in banking were $53,363,255. 
The failures in manufacturing were $47,678,082. 
This shows that investments in manufacturing are 
as reasonably secure as bank deposits ; and since 
there are no restrictions upon returns as in the case 
of bank deposits, and the returns are much larger, 
the opportunities are infinitely greater. And with 
the fact that, according to reports, more money has 


been expended in the mining of gold than has ever 
been taken out of the mines, it is clearly evident 
that manufacturing is the king of all undertakings. 
Now therefore, it would seem politic to seek for 
the most favorable economic conditions for manu- 
facturing in order that we, as a nation, may always 
reign supreme. 

In this great and progressive country there 
are to-day many concerns occupying rambling and 
antiquated buildings, where the needless expense of 
the inconvenience of handling materials and of con- 
ducting the business generally, amounts yearly to 
a sum sufficient for the building of modern works 
properly designed for the economical production 
of a much higher grade of goods than it is possible 
to turn out in old plants, poorly located. 


California's Natural Abilities. 

So limited is now the production of bread- 
stuffs in New England that the total grain crop 
would hardly suffice to feed the population of Con- 
necticut ; and as to meat, the quantity produced yearly 
is less than the amount consumed in three months. 
Were it not for the Western and Southern States to 
supply New England with grain, meat, butter, flour, 
fruit, poultry and eggs, the people would find them- 
selves in a much worse condition than the inhabitants 
of Great Britain, who mainly depend upon the for- 
eign countries for grain and meat. The agricultural 
capital of New England is but 10 per cent of her whole 
wealth, while in Great Britain it is 15 per cent. 

It is well known that one of Great Britain's 
supremacies is her manufactures ; nevertheless, New 
England leads the world therein, relatively to popu- 
lation. The ratio that belongs to New England is four 
times that of Great Britain, and three times that 
of France and Germany ; moreover, Great Britain 
manufactured more per inhabitant in 1850 than did 
New England. Still more wonderful does this ap- 
pear when account is taken of the fact that New 
England imported almost all of her raw materials, 
while Great Britain had her coal and iron, and for a 
long period furnished New England therewith. 

New England did this, and paid wages from 
two to four times as much as the European working- 


man received. Other sections of the United States 
were not slow in profiting by this example of the 
most wonderful success the world has ever known. 

So marked a change being apparent in a land 
with no more advantages than New England, how 
much more rapid and effectual must be the change 
in California, whose unparalleled natural advantages 
and general products will enable her to surpass New 
England's record ; that is, providing the energy of 
Los Angeles will cause an awakening throughout the 
State, particularly in San Francisco, whose manufac- 
turing industries have decreased since 1890. 

While Los Angeles has accomplished much, still 
greater would have been the results with the same 
energy employed in the more favorably located cen- 
tral coast counties. The lands of Santa Clara County, 
without a doubt, are the richest in the United States, 
and they have recently been pronounced by some po- 
litical economists the richest of the world ; together 
therewith the county is most advantageously situated, 
being at the lower end of San Francisco Bay and 
traversed its entire length by a transcontinental rail- 
road line. 


Farming and Manufacturing 1 . 

The typical farmer of Colonial days was a 
"Jack of all trades." His wants were few, and most 
of them he could supply with his own hands. 

Industrial organizations have brought about great 
changes, and it is clearly necessary that California 
should at least keep pace with Eastern sections in 
industrial enterprises. The work of all industries is 
now specialized. Moreover, the work of one trade 
is divided between a dozen or twenty distinct classes 
of operators, each skilled in his own particular duty 
and each dependent on all the others, in consequence 
whereof great branches of industry have become linked 
together, as it were, in an endless chain of interde- 
pendence, so that every link must be perfect in itself, 
and free to move, in order that all may move unin- 

In 1850 and for years thereafter, California was 
but a string of mining camps and an importer of flour, 
potatoes, and almost all of the necessaries of life; 
to-day, however, the link of agricultural industries in 
the California chain is nearly perfect, but that of 
manufacturing is sadly incomplete, the one upon 
which, in these times, all else depends. 

Should the population of cities move to the 
country and become farmers, the world would not 
consume any more food to accommodate them ; hence, 
as a result, overproduction. It is well understood 


that the world's demand for food is necessarily 
limited. This fact places a natural limit to the num- 
ben of men who can successfully devote themselves 
to the production of food supplies; but there is no 
such natural and necessary limit to the world's con- 
sumption in other directions. In houses, furniture, 
carriages, automobiles, bicycles, dress, ornaments, 
and luxuries in general, the purse sets the only limit 
to expenditure. If the world were a thousand times 
as rich as it is, it could spend a thousand times as much 
as it does on objects, but it would consume but little 
more food. 

In the presence of these facts, it follows that the 
population and wealth of California might be rapidly 
increased by the employment of operatives in indus- 
trial pursuits, thereby supplying the markets of the 
world with manufactures, and creating a larger home 
market for her agricultural products. 

Rich in gold, rich in iron, rich in antimony and 
other metals, rich in lumber, rich in oil, with raw ma- 
terials in large variety, rich in agriculture, unsur- 
passed in horticulture, and with a climate unequaled 
the world over, it is now time for Eastern capital and 
energy to move Californiawards, not as it did in 1850 
with hard strides of four long months to establish 
mining camps, the outcome of which will forever 
associate California with gold, but, with a flying trip 
of four days from ocean to ocean, to establish that 
with which they are definitely familar, namely, indus- 
trial enterprises, dotting the richest agricultural do- 
main of the world with beautiful white cities bv the 


employment of smokeless fuel, winning for themselves 
a greater success, and for California a greater recog- 
nition, than did their predecessors, proportionate to 
the difference in time required for making the journey, 
marked by the past half century. 


Rural and Urban Wealth. 

We find that in the United States before i860 
the accumulation of wealth for each rural worker was 
much greater than that corresponding to the urban 
workers, but since 1870 we find the accumulation of 
wealth among the urban workers averaging nearly 
seventy-five per cent more than among the rural work- 
ers, which suffices to show the importance of imme- 
diate attention to the industrial development of Cali- 
fornia. The increase of urban wealth also shows a 
remarkable rise in wages, being over sixty-two per 
cent since 1870, showing that increase of wages and 
wealth advanced almost hand in hand. 

We find in the United States that rural or agri- 
cultural wealth has only quadrupled in forty years, 
while urban has multiplied sixteen fold. This proves 
that farming has not been so profitable as manufac- 
turing. In late years, the increase in urban population 
has been much greater than in rural. 

Were the agriculture of the whole Union on the 
same basis as in California, the improved areas under 
farms would reach nearly seventy-five per cent more 
than at present. This shows that the agricultural de- 
velopment of California is far beyond that of the whole 
Union and signifies an overbalanced development, for 
the most successful sections of the United States are 
those where agricultural and manufacturing interests 
advance almost hand in hand, the secondary sections 


where the manufacturing interests are in excess of the 
agricultural, and the tertiary sections where agricul- 
tural pursuits are the principal occupations of the 

This rapid advance of agricultural interests in 
California is more than wonderful, even beyond 
comprehension, for statisticians show that for the 
whole Union, since i860, nearly two hundred million 
acres of land have been brought under cultivation, 
and that had the United States no urban population or 
industries whatever, the agricultural development 
alone would place the Union's increase of wealth far 
beyond that of any European country ; it has no paral- 
lel in history. It is known that the greater part of 
this work has been done by European settlers ; so also 
has the work in urban industries been largely accom- 
plished by foreign settlers. 

The patient, delving European has been the ful- 
crum, and American brains and enterprise the lever, 
of the great progress of our Union. If California 
hopes to parallel her marvelous agricultural develop- 
ment with manufacturing, she must show Eastern 
men of enterprise and Europeans her manufactur- 
ing advantages. Both are necessary parts of the 
human machinery that causes the commercial and 
financial world to revolve in its daily orbit. The immi- 
grant built our railroads and opened our mines, and 
now his children are advancing with the general prog- 
ress, are teachers in the public schools, and are prac- 
ticing the skilled professions in the cities and villages. 

1$ H unreasonable to assume that California can 


become as marvelously great in the advance of manu- 
facturing industries as she has become in her agricul- 
tural pursuits, from the fact that she possesses raw 
materials in much greater abundance and variety than 
any other section of the world, together with a cli- 
mate which insures constant employment the year 
round, and which does not enervate or debilitate her 
people ? 

It seems not inappropriate to say that as the 
importance of manufacturing becomes more and 
more appreciated by the whole people, and the large 
part it is destined to play in the development of this 
State is more widely recognized, it is reasonable to 
believe that such appropriations will be made for man- 
ufacturing as will be commensurate with what should 
be its true position in relation to the. other industries 
of the State. 



It is well known that California fruit is shipped 
to the four points of the civilized world, New York, 
London, Sydney and Hong Kong; that she success- 
fully competes with the Mediterranean countries in the 
production of wines, of citrus and other fruits; that 
she is one of the great granaries of the world ; and yet, 
how many of her people, and those of the East, realize 
that the same conditions which enable her to do this, 
would better enable her to supply the same markets 
with manufactured products at less risk and with a 
much larger margin for profit. 

California's fruit is sold in European markets 
in competition with that of the Mediterranean shores, 
where adult labor in the orchards is paid from 25 to 
40 cents per day, while the workers in California 
orchards receive from $1.25 to $2 per day. Also it 
must be borne in mind that the expense attending the 
freighting of fruits these thousands of miles in cold 
storage is of such import that one may assert that 
another once supposed impossibility has been accom- 
plished by California. Truly it cannot be said that 
this wonderful achievement is alone because of her 
natural advantages of soil and climate, as these are 
practically on a par with each other in the two places. 
It is clearly due to the enterprise, education, and in- 
genuity of the American people. 

California, though but an agricultural and min- 


ing state, ranks eighth in the Union in the number 
of patents granted per capita, the larger percentage 
of which pertains to the culture, packing and pro- 
cessing of fruits ; therefore she employs the latest 
improved machinery, and has adopted the most 
modern labor-saving devices in her orchards and 
canneries, such as are unknown in any other section 
of the world, thus enabling her workers to very ma- 
terially lessen the cost of products of the orchard be- 
low that of the illiterate Mediterranean worker, who 
receives about one-fifth of the wages of the field 
worker of California. Therefore, it is evident that 
the cry "cheap labor" is a fallacy, unless qualified by 
intelligence or the ability to produce an equal amount 
in the same given time. 

A California byword is, that manufacturing can- 
not be successfully conducted in that state for the want 
of cheap labor, while, on the contrary, the real or true 
causes would seem to be that her manufacturing en- 
terprises are established, equipped, and operated with 
no greater degree of efficiency and understanding, as 
compared with the East, than is the management of 
the fruit industry in Mediterranean countries, as com- 
pared with California, with an additional advantage 
in California's favor over the East as a manufacturing 
centre, in her climate. 

The workers of the farms and orchards are en- 
gaged but a portion of the time; factory hands are 
constantly employed; therefore the climatic advant- 
ages are constant with the factory employees, but in- 
termittent with the employees of the orchard and 


farm. Manufacturers may regulate their output, and 
change from the manufacture of one article to an- 
other quite readily to meet demands and market fluc- 
tuations, and freaks of nature in a particular locality 
do not affect them ; the fruit grower cannot regu- 
late the yield or output, years are required to change 
varieties, and climatic changes are very disastrous. 

While California leads the world in agricultural 
pursuits, the equipment of her mechanical industries 
is comparable to the days of the reaping hook and 
flail, of the old fashioned plow and harrow, of spin- 
ning wheel and hand loom, when the farmer's main 
object was to produce on his land what he needed for 
his own consumption, the home markets being scat- 
tered, and foreign markets hardly accessible. 

The changes that have taken place since those 
days in the agricultural pursuits are patent to all who 
use their sight and hearing. To all who use their 
sense and reason it must be evident that California 
is able to support a large manufacturing population, 
and that operatives would be only too glad to migrate 
to such a land. 

The East knows much less of the Middle West 
than the latter knows of the former, and either sec- 
tion knows but little of the True West (the Pacific). 


Light and Heat. 

Engineers, in designing buildings for the East- 
ern country, state that "ample provision should be 
made for light, for which purpose the windows 
should be placed at short intervals and extend nearly 
to the ceiling. At the same time an extravagant use of 
glass will also increase the cost of heating." Again, 
to quote from Eastern construction : "There should 
be ample opportunity for ventilation, yet not unneces- 
sary height, as the expense of heating would be need- 
lessly increased." 

Absurd as it may seem, the above signifies that 
in the East, even light and ventilation must be paid for. 
Such conditions, however, do not in any degree bear 
upon the construction of manufacturing buildings in 
Santa Clara County, California, no heating being re- 
quired at all ; and, therefore, as abundance of light and 
best ventilation are synonymous with better and more 
work, it is clearly evident that all may be had in 
Santa Clara County at no inconvenience or additional 
cost, but, in fact, at less cost, for there is a very 
material reduction of cost of buildings constructed 
without a heating plant and without regard to being 
heated at all. 

This is a very important item of manufactur- 
ing expense ; indeed, it is of such significance, that 
where buildings cover two or three acres of floor 
space and require several thousand feet of glass, the 


interest on money invested in and used for the main- 
tenance of the heating plant, together with the expense 
of heating, in the aggregate results in a goodly sum of 
money expended yearly. And in addition thereto, 
in many cases, buildings in California may be of open 
construction, while in the East, for the same purpose, 
the required construction would of necessity be tight, 
and consequently more expensive. 

Another point favorable to building construction 
in Santa Clara County is, that no additional cost of 
roofs is necessary in consideration of the weight of 
snow thereon in winter, there being no snow in this 

The important fact that any plumbing, water 
pipes, and the like, may be run out of doors without 
being protected from freezing, will appeal to all, a 
great nuisance and expense being clearly avoided. 

One of the most potent factors in the advan- 
tages of Santa Clara Valley for manufacturing is the 
temperate climate, no heat being required in winter 
as above stated, and the summers are not oppressive, 
so that fans or any cooling apparatus are not re- 
quired. The air is dry and the every day afternoon 
breezes of summer are not chilly, but warm and gentle 
zephyrs. While the thermometer sometimes indicates 
90 degrees or over, the indication of the hygrometer 
is low, which fact, together with the clear air in mo- 
tion, insures no lassitude, no worn and tired out feel- 
ing of operatives, all of which is a guarantee that 
much more may be accomplished than is possible where 


there is severe cold in winter, extreme heat in summer, 
a high degree of humidity, and a still atmosphere. 

In the operation of natural causes constantly 
at work revolutionizing American industries, capital 
has been more liberally expended and labor more 
costly than in the same industries engaged in in 
Europe. Neither money nor brains have been spared 
in America in the great desire to enable labor to 
accomplish more, either by complete substitution of 
mechanical processes, or by the improvement of meth- 
ods already employed. Never has the best known 
principles of accomplishing a result been satisfactory 
to the American manufacturer. Some better device, 
principle, or location is sought, whereby a better 
article may be produced at the same cost, or the same 
at a reduced cost, which in either case insures a 
larger business and profit. 

In conclusion, therefore, it is self-evident that 
manufacturers located in Santa Clara County, with 
the same equipment as employed in the East, would 
be able to very materially reduce the cost of their 
products, and those who are so located, and keep 
abreast of the times with improvements, would defy 
the world's competition. 



A very forceful illustration regarding heating 
and ventilation where deleterious results are severe 
and difficult to overcome in cold and damp climates, 
is the foundry. 

When the atmospheric conditions which pre- 
vail in eastern United States and Europe are con- 
sidered, a frightful state of affairs is found, which 
is admitted to be difficult to overcome, and which 
would not be endured in any other department. 
Where foundries must be of tight construction it is 
very difficult to avoid draughts and at the same time 
insure pure air, which is obviously important. In 
some cases fans are used, though at a considerable 
expense, to overcome in part the unhealthfulness, by 
removing the impure, smoky air and the stifling gases, 
which are constantly arising from the steaming sand, 
from the drying of molds and ladles, and at the time 
of pouring molds and the shaking out of castings. 

Able authorities state that over three-fourths of the 
cases of sickness of foundry workers are of the res- 
piratory order, and are mostly contracted from the 
detestable conditions which the foundrymen are 
obliged to endure. These conditions are practically 
entirely avoided in the temperate climate of Santa 
Clara County, where the building construction may 
be open. 

It is an undeniable fact that the better the light, 


and the purer the air, the better will be the health and 
general comfort of the workmen, and, in consequence 
thereof, less fatigue, and greater, better, and cheaper 

A few probably know that foundries require heat- 
ing, and that it is true that where this is not especially 
provided for in the eastern United States, Great Brit- 
ain, and Northern Europe, less work is accomplished 
in winter than in summer, and that in summer hardly 
half a day's work can be accomplished in a day on 
account of the excessive heat and humidity. In North- 
ern Europe and Great Britain there is hardly any 
systematic heating of foundries ; instead, there may be 
seen, scattered here and there upon the floor, fires of 
every character and kind, similar to those in the lodges 
of the American Indian, emitting with a certainty a 
small amount of heat with a goodly supply of smoke. 

Inadequate heating and cold draughts in these 
foundries, as well as the heat of summer, are very 
damaging factors, aside from their effect upon the 
workmen, to a degree hardly to be credited by any one 
inexperienced therewith. Cold draughts in winter 
very frequently freeze the molds ; while in summer 
the models are rapidly dried out, which is detrimental 
and necessitates a longer time in finishing; and, to- 
gether therewith, more than double the time is re- 
quired in cold weather to bake or dry the cores in the 
core oven. 

As it is self-evident that in order to secure the 
greatest economy from good tools it is necessary to 
employ good workers, it follows that the latter must 


receive as much thought as the former ; especially, re- 
garding the influence of the surroundings or environ- 
ment upon the physical health and moral character 
of the workers. Therefore, in order to secure and re- 
tain the most faithful and intelligent men, it is quite 
essential that the location of the works and vicinity 
possess the most favorable advantages for all em- 
ployees in all lines of industry, such as fine climate, 
low cost of living, attractive homes with gardens rea- 
sonable in cost, good schools, libraries, and churches, 
together with pleasant parks, and good driving and 
cycling roads ; as well as opportunities where children 
may, if they so desire, be employed out of doors dur- 
ing vacation time, whereby they may earn, and learn to 
appreciate, little luxuries, establishing, as it were, a 
degree of independence, thoughtfulness, and worth. 


Inflation Process in California. 

Inflation of values, due to the desire to become 
suddenly rich, usually at another's expense, has 
been practiced in California for many years. Min- 
ing, land, irrigation, oil, and industrial companies 
have been excessively capitalized, and stocks and 
bonds have been issued without regard and floated 
over the whole Union. Each possessor of the stocks 
or bonds is persuaded to believe that his possession 
will rapidly increase in value, and forthwith he suc- 
ceeds in distributing some of the "wild-cat" securi- 
ties among his friends, all of whom are called upon 
from time to time to meet assessments, and, in a 
large majority of cases, are caused to suffer want 
in order to meet calls for money. And if this 
be true while inflation progresses, what must be the 
result when the time comes, and come it will, when 
the fever has exhausted itself and returning reason 
leads back to sound and legitimate business sense? 
Then, with declining values and a depressed con- 
dition of affairs, the victim will find himself still 
further a victim of circumstances and for the time 
being be compelled to accept reduced compensation 
and irregular periods of employment. As surely as 
all wealth springs from the earth, do all fluctuations 
in value pulsate back to the source whence they 
came, and he who "earns his bread by the sweat of 
his brow" during conditions of general prosperity or 


increased returns for his labor, shares in the gains, but 
is unprepared and powerless to protect himself from 
losses when they come, and consequently with re- 
sistless force he is borne to the ground, a fate prin- 
cipally due to his unfamiliarity with the corporation 
laws which govern his investment. 

As a state we are great and strong, rich and 
prosperous, fertile in resources, and with opportunities 
far beyond our general understanding, and must be 
the scene of unprecedented activity and industrial de- 
velopment in the future. 

We can and do stand much bad legislation, and 
rally quickly when stricken down, but the poison of 
inflation is in our blood, doing its deadly work, and 
nothing remains for us but to hope and believe 
that the "common sense" of the California people, 
which is at once our glory and pride, will make its 
voice heard and heeded in the councils of the legis- 
lature before it is too late, and we are forced to 
learn, through bitter experience and at material loss, 
the lesson which history can teach, but to which we 
seemingly give no heed. 

In the presence of these facts it must be ad- 
mitted that there is something radically wrong, and 
the trouble is largely the inefficiency of the laws of 
California to protect the minority investor, whose 
only property is generally the savings which from 
year to year out of small earnings he has laid by for 
future need, and who will find himself compelled from 
time to time to put up more money for assessments, 
or to receive stock or bonds, the value of which is 


steadily decreasing, and he is finally reduced to the 
state of nothingness. A depression in industrial enter- 
prises is the result. The present remedy is to organize 
industrial companies under the laws of a state which 
is largely engaged in manufacturing, the laws of such 
a state having been made particularly with the view 
to furthering the manufacturing interests, and framed 
in such a manner that minority interests are protected 
in their rights. 


Corporation Laws. 

Connecticut was not only the first state in the 
Union to engage in manufacturing, but led the world 
with the joint-stock act of 1837, which contributed 
greatly to the states prosperity. Its principle of per- 
mitting small sums to be capitalized in manufacture 
has been copied, in a degree, by almost every state in 
the Union and by Great Britain. 

The corporation laws of all the principal manu- 
facturing states aim to accomplish the same purpose, 
namely, the encouragement of strict, straightforward, 
and legitimate business, whereby people with small 
means may receive direct benefit from their savings. 

As a rule, companies organized under the laws 
of these states are governed by well-regulated laws re- 
stricting excessive capitalization, in addition to which 
the laws encourage the establishment of reserve funds 
from the net earnings, created through the operation 
of the laws which govern their management. In con- 
sequence of this the greatest security is offered the 
investor, and there are no corporations in the Union 
for the investment of the masses in which the risk of 
loss has been reduced to so low a minimum ; therefore 
the low savings bank deposits of these states. 

It has been the announced and settled policy 
of these states to encourage capital to incorporate, 
by the enactment of laws, first just, and then lib- 
eral, and by like legislation to protect all stockholders. 


These states have led modern legislation along 
these lines, remodeling and amending the corpora- 
tion acts whenever necessary to meet new demands 
and fresh emergencies, and the laws are intended to be 
a terror to the fraudulent promoter and the "tramp cor- 
poration," and are calculated to deter bubble organi- 
zations from claiming these states as places of resi- 

The power given to incorporators in the certi- 
ficate of incorporation, to insert any provision creat- 
ing, defining, limiting, and regulating the powers of 
the corporation, directors, and stockholders, is im- 
portant. Within certain clearly defined limits, parties 
may, by their certificate of incorporation, obtain what 
is practically equivalent to a special act of the Legis- 
lature. With the choice of powers, objects and pur- 
poses, invested in the incorporators, the certificate of 
incorporation is no longer the mere record proof of 
incorporation, it is the foundation of the corporate 

Stockholders are permitted to delegate and 
determine and qualify the powers of the directors 
and officers elected to carry on the business of the 
company. The manufacturing laws of these states 
are singularly free from pitfalls and ambiguities, 
leading to personal liability of stockholders, officers, 
and directors, and the stockholders and officers ob- 
tain in the fullest sense limited liability. 

Experience is, after all, the best teacher, and, 
v/hen it may justly claim success as its ally, needs 
no reinforcements. Is it true, then, that the his- 


tory of the past shows us that we may, and how 
we may, if we choose to investigate its pages, be well 
protected and successful by incorporating industrial 
enterprises under the laws of a state that has had the 
experiences of generations in manufacturing? 

May not a great and wealthy per capita state, 
the "Golden State" of the Union, have justice ad- 
ministered at least as satisfactorily as in any other 
part of the world? Must she pay a tax to another 
state to be protected from fraud within her own 
border ? 

Arch Effect, Stanford University, Palo Alto. 


Circulation of Wealth. 

New England stands for one-fifth of the bank- 
ing-power of the Union, that is, in discounts, $112 
per head, although her population is only one-four- 
teenth ; that is to say, each New Englander repre- 
sents in banking matters as much as three citizens 
of the Union, and nearly three of California, which 
is $40 per head. This shows much greater activity, 
enterprise, and industry in New England than in Cal- 

It is interesting to note that the savings bank 
returns show much larger deposits per head in 
California ($764), than in any other state in the 
Union, and more than double that of the New Eng- 
land states ($376). This indicates in California 
lack of industries, and the lack of judgment or con- 
fidence of depositors to invest their money them- 
selves, they preferring to rely upon the banks to pay 
them a small rate of interest for the use of the money 
to loan. 

Many of the banks of California find it so very 
difficult to make safe loans that they are obliged to 
limit deposits. This condition will not be changed 
until energy and enterprise are awakened, and manu- 
facturing is largely engaged in, resulting in a large 
increase of urban population, and a consequent de- 
mand for property, and increased values thereof. 
Here it would be well to call attention to the fact that 


the mortgages in New England amount to 17 per 
cent of the value of real estate, and in California but 
to 11 per cent. Thus it is that the New England 
banks make a much larger per cent of loans of their 
deposits, and principally on urban property, the best 

Again, it is interesting to note that the per capita 
wealth of California ($2097), is nearly double that 
of New England ($1112) ; and that the amount of per 
capita insurance in New England is nearly five times 
that of California. 

With double the per capita wealth and double 
the per capita savings bank deposits of New Eng- 
land, together with a considerably lower per cent 
in amount of mortgages per capita, and but one-third 
of the per capita discounts of New England, Califor- 
nia, with a climate which does not enervate or debili- 
tate, certainly shows a very morbid condition ; for, 
from the facts set forth, she should more than treble 
her business. The inactivity of this great wealth is 
largely due to "wild-cat" mining, land, irrigation, and 
oil companies, all of which have been excessively cap- 

The number of horses or teams a farmer pos- 
sesses does not signify unless they are actively en- 
gaged, and so also is it with dollars. Honey bees 
recognize a certain number of drones, but they are 
limited and have their duty to perform. Surplus 
dollars in the treasuries of manufacturing concerns 
are very essential, but dollars stored in vaults with no 
other purpose than accumulation in view, are worse 


than useless, as circulation is restricted and business 
interests contracted thereby. 


Training- for Industrial Success. 

The wonderful natural resources of California 
are as nothing when compared with the resources 
that lie dormant in the neglected industrial training, 
and that should be preceded by a thorough education 
in political economy and a clear understanding of 
economic prosperity, both of which are requisite to 
the establishment and extension of California's most 
important interests. 

It is most interesting to note that there is in 
progress a general awakening to the fact that Cali- 
fornia is a new world. And it is a world which is 
as certain to make new methods and standards for 
itself in industrial undertakings as it has already 
done in mining, agricultural, and horticultural lines. 
Education, both general and technical, can no longer 
be denied as essential to the true general development ; 
indeed, the "right about, face, forward, march," in 
that direction is now quite well established, and life 
and vigor are being infused on all sides. In Califor- 
nia the East is constantly quoted as a land in which 
technical education and industrial training are main- 
tained at a high and modern level. And it is true that 
that section does lead the world in polytechnic train- 
ing; and furthermore, strenuous efforts are being 
made for still greater improvement, with the purpose 
in view of qualifying" students to be recognized by 
leading concerns as able engineers. 


There are, however, two distinct classes of edu- 
cation required for the production of industrial wealth, 
namely, the knowledge of materials and how to fash- 
ion them, and the ability to understand the value of 
the men by whom the work is to be done and the direc- 
tion of them ; unless the engineer, by actual training, 
understands the latter his education is sadly incom- 

It is, indeed, needful to know what the most skill- 
ful and the swiftest workers are doing, but to surpass 
them, we must, in a measure at least, do things dif- 
ferently. There is, as a fact, and as we all concede, 
constant improvement in product and productiveness, 
but it never comes from a servile adoption of even 
the best of existing ways and means. We are apt to 
speak of the up-to-date things as the best that are 
known, and of the up-to-date way as the best way of 
doing them, and for the moment so it is ; but up-to-date 
is a point of departure rather than a resting place. The 
pioneer needs in his outfit something more than all the 
information in the world on his particular undertak- 
ing. In the extreme advance the critical and sugges- 
tive faculties outrank and supersede the memory. 

It is known by long experience that there are 
no trivial matters connected with shop practice or 
principles of manufacture. There is nothing so 
small that within it may not reside the conditions 
of waste or of saving, or to which may not attach 
possibilities of improvement and gain. No work- 
man, or foreman, or superintendent, no designer of 
machinery, and especially no collector and dispenser 


of technical knowledge, can despise or belittle the de- 
tails of manufacturing without disaster. Lastly, and 
above all, the manager must have a thorough knowl- 
edge of the lesser as well as the greater duties of his 
subordinates, that he may keep every branch in per- 
fect tune and all harmoniously ringing out success. 

It follows, therefore, that the resources of Cali- 
fornia could be speedily developed by men of ex- 
perience from the eastern United States, where in- 
dustrial education and experience have been ac- 
quired in every line, embracing every detail, and in- 
suring definite fitness for success. 


Borax Works in Death Valley. 

New Almaden Quicksilver Mines, Santa Clara Co., Cal. 


Polytechnic Schools. 

The manufacturing business of this country 
is becoming more and more an exact science with 
every year, and the advantages of a polytechnic 
education in disciplining and developing the mind 
cannot be overestimated. It cannot be denied that, 
when the polytechnic institutions have employed 
thoroughly up-to-date and practical methods in their 
curriculum, the manufacturers in this country will 
prefer to employ young men who have obtained a 
thorough polytechnic training. 

Polytechnic schools are educational institutions 
in which instruction is given in many arts, more par- 
ticularly with reference to their practical application. 
Not only should "practical application" in the mechan- 
ical trades mean the reduction of theoretical knowl- 
edge to practice, but also such training of students 
as would be required of them were they employed in 
the best manufacturing concerns, thereby instilling in 
them the importance of self-confidence, practical un- 
derstanding, thoroughness, rapidity, obedience, and 

Taking these institutions as a whole, the govern- 
ing board, whether a close corporation, or made in 
part by itself and in part by the alumni, is ridiculously 
ignorant of the special work, and also shows a lack 
of interest in improved methods. 

It cannot be denied that there is a great deal 


of improper instruction. Improper instruction in the 
institution is a result of lack of energy, enthusiasm, 
practicability, and fundamental understanding on the 
part of the instructors, or lack of interest in the sub- 
ject or student, and indifference to discipline, without 
which last all else is valueless. This improper instruc- 
tion results in incapable, unreliable, shiftless, un- 
thinking, careless, and good-for-nothing workmen, 
and, as realized by many students, they are, in a fac- 
tory, subjects of jests and ridicule. 

The polytechnic should do all for the student 
that an apprenticeship could do, and in addition 
thereto teach him the theory and fundamental prin- 
ciples thoroughly. The student who is to become a 
capable man should be distinguished by breadth of 
view, liberality of learning, and largeness of judg- 
ment. To become a capable draughtsman, the chosen 
course should be the drawing room, pattern shop, 
foundry, machine shop, and blacksmith shop, and, to- 
gether therewith, he should be well grounded in the 
principles of hydraulics, pneumatics, and thermody- 
namics. Knowledge of several of the trades gives 
a much broader understanding of any one, and a pat- 
tern maker should understand machine shop and foun- 
dry practice as well as drawing. 

For example, take the question of milling, 
which is but one of the many methods employed in 
machine construction. It is safe to say that there are 
but few concerns in the whole Union, and none on the 
Pacific Coast, where it is thoroughly understood, and 
the average machinist, either during his apprentice- 


ship or afterwards, fails to learn much about it unless 
he makes an effort to find out about some things that 
do not come directly in his path. It is, however, a 
very complex question in its entirety, and it is quite 
impossible, without the opportunity of mathematical 
training, theory, and practice, for one to become any- 
thing but a bungler in this branch, it being one of 
those subjects in which but few ever become proficient 
enough to realize that they know nothing about it. 
Not until called upon to design or fit up a milling ma- 
chine with the necessary tools for some particular 
work, do polytechnic graduates realize that this, the 
most important branch of the machine industry, was 
treated by their instructors merely as a passing pan- 
orama, and that their time and money were but poorly 
expended in the institution. 

In milling, a full complement of machines con- 
sists of several different types and their various at- 
tachments, and under this head comes properly the 
study of the best methods of producing a vast number 
of duplicate parts as well as a single piece ; this class 
of work includes the use of the various types of uni- 
versal, horizontal, and upright millers, as well as the 
profiler; it includes, also, the whole subject of gear- 
ing — the sizing of gear blanks, the cutting of bevel, 
spur, skew, and spiral gears, the hobbing of worm 
wheels and the milling of the worms, the cutting of 
cams of every description, the working of regular 
and irregular surfaces, and the system of gang mill- 
ing and the mills ; and, last but not least, it includes 
many important factors in tool making. Here is 


chance enough for study, and while all of these 
branches of milling will seldom come within the ex- 
perience of any one machinist or toolmaker, they that 
pretend to do anything at all with the milling ma- 
chine ought to make an effort to find out something 
about them, and the polytechnic institution should 
teach all there is known of them, as well as of all the 
other branches. 

The failure of institutions to train students to 
become men and do hard things, together with the 
lack of proper methods and equipments, results in 
a very limited degree of capability of the graduates, 
and especially noticeable is this in the California 
trained mechanic, as there are no machine concerns 
in that state whereby the student may be aided in 
these advanced systems. But let us hope that such 
weaknesses are only temporary and not structural to 
the whole system, and that the time will soon come 
when a diploma from the polytechnic schools of Cali- 
fornia will be recognized by all manufacturers as a 
guarantee of the par excellence of the capabilities of 
its possessor. 


Profit - Sharing. 

The success of a business rests with a few 
people who direct the affairs of the concern, and with 
those of the employees who keep the interest of the 
concern always before them. Generally speaking, the 
employee is working for his day's wage only, and does 
not consider the question of general results at all. 
He seems to think that the general results are quite 
satisfactory, and his principle or general object seems 
to be to get as much wages as he can, and with as little 
effort as possible. To discourage waste and indiffer- 
ence, and to establish a spirit of good fellowship be- 
tween employer and employees is a question upper- 
most in the minds of many, the solution of which has 
been accomplished by some of the largest concerns 
of the world, by instituting some system of sharing 
the profits of the concern with the employees. 

The experience of those who have established 
profit-sharing has been, that production is increased, 
quality of work improved, care of implements and 
tools assured, and the economy of material and the 
general welfare of the business promoted, together 
with the elimination of the strike factor, and the de- 
velopment of a better class of operators. Several sys- 
tems are adopted which entitle employees to a bonus 
on wages, and put an end to the hostility between 
master and man, bringing about harmony and inde- 
fatigable industry. 

The plan of giving employees a dividend on 


wages equal to that declared on the common stock 
has been very satisfactory. Another, to pay twice 
the regular dividend to energetic workers, the regu- 
lar dividend to the less ambitious workers, and no 
dividend or bonus at all to the careless and indif- 
ferent employee, is productive of very fair and satis- 
factory results. With the great concerns that for many 
years have instituted profit-sharing in its various 
phases, it is no longer an experiment. It has been 
established in every kind of manufacturing, and many 
other kinds of business. 

Edme-Jean Leclaire of France was the pioneer 
of profit-sharing, having put a plan into operation 
as early as 1842. It is quite impossible to give a 
list of the concerns of Europe and the United States 
that have adopted profit-sharing; however, it is well 
to mention a few concerns in the United States that 
have employed it. The Proctor and Gamble Company 
of Cincinnati, Ohio, had many strikes prior to 1887 : 
in that year they adopted profit-sharing as a protec- 
tion, and have had no strikes since ; the cost of labor 
has decreased over one-third >for the same output, 
while wages are over ten per cent higher. Since 1888 
the Bourne Cotton Mills, Fall River, Mass., have fol- 
lowed a profit-sharing system, because, they assert, 
it is "good business." The Pillsbury Flour Mills of 
Minneapolis, one of the largest in the world, have for 
twenty years employed a profit-sharing plan. The 
Columbus Railway Company, Ohio, has, since its 
profit-sharing system was introduced, increased its 
dividend each and every year, and pays its em- 


ployees the same dividend on wages that is de- 
clared on the stock. The Ballard and Ballard Com- 
pany, flour mills, Louisville, Kentucky, has never 
had any trouble or strike since the adoption of a 
profit-sharing plan about twelve years ago. The X. 
O. Nelson Manufacturing Company of St. Louis, 
Mo., has a foundry at Bessemer, Ala., factories at 
Edwardsville, a few miles from St. Louis, pump 
works at Mound City, 111., as well as a large bicycle 
manufactory, together with factories producing 
large quantities of plumbers' and machinists' sup- 
plies. Mr. Nelson is a very prominent advocate of 
profit-sharing, and has demonstrated its success in 
a most remarkable degree. 

A sufficient number of examples have been 
given to show that it is advisable to place em- 
ployees in such a position that they may be directly 
benefited by the lively interest they may take in their 
work. Mr. George A. Chase, Treasurer of the Bourne 
Mills, Fall River, voiced the sentiments of all the true 
profit-sharing concerns, when he said he believed that 
"the dividends to stockholders, on which the bonus 
to labor depends, have been larger as a rule than the 
net profits of rival concerns because profit-sharing 
has developed a better class of operators." 

Does not the experience of those who have 
had patience enough to wait for results, prove that 
profit-sharing has eliminated the evils of manu- 
facturing, and does it not establish the fact that 
manufacturing may be conducted without fear of 
discords, contentions and strikes? 



Description of the Factory Buildings of 
The Goldy Machine Company. 

The general condition of affairs in these days 
of progress demonstrates that whatever is under- 
taken, should, in the beginning, embrace at least all 
which experiences of the past have proven to be 
wise and proper. And since true progress is not 
the adoption of the latest methods in entirety, but 
the establishment of better ones, determined by 
these past experiences, it follows that the aim should 
be to make the beginning an improvement upon all 
predecessors. Especially is this true in industrial 
lines, where the endeavor should be made not only 
to lead in the adoption of the latest methods and prin- 
ciples, but to analyze clearly and logically all circum- 
stances and conditions from every economic view 
point, not only of the present but of the possible fu- 

While it is important that the establishment 
should be kept abreast of the times in equipments, 
it is imperative that a view should be had to future 
enlargement without entailing the extravagance of 
tearing away the original structures or necessitating 
the occupation of a multiplicity of buildings ill suited 
for the purpose and located at random, the irretriev- 
able inconvenience of which is a fixed source of 

It is a well recognized fact by some, and should 


be more generally understood by greater numbers, 
that a large majority of manufacturing establish- 
ments are the result of a haphazard aggregation 
of buildings, which usually signifies much larger 
investments of capital, together with continued ex- 
travagance in the production of the output that 
would have been eliminated had proper attention 
or forethought been given, not only to the erection 
and requirements of substantial buildings, especially 
adapted to the purpose, but to the view of future 
enlargements and requirements as a continuation in 
general of the original plan. 

It is the paramount duty of all who are practi- 
cally associated with industrial progress to con- 
sider fitness of location from every standpoint of 
economy, namely, first cost, maintenance, and par- 
ticularly the ability to compete in the world's mar- 
kets during times of depression, the residence of 
operatives and their families, the design and ar- 
rangement of the equipment for a more economical 
production of goods of standard quality than is pos- 
sible in old locations and establishments, and also a 
view to the future enlargement and general welfare 
of the establishment. 

In this instance, the design, equipment, general 
layout, and location of the proposed establishment 
were determined upon after a most thorough con- 
sideration and investigation of all the factors re- 
ferred to in the foregoing, pertaining to economic 
production, and the ability to successfully compete 
in the markets with the finished products. 


The accompanying illustrations represent a 
most modern and up-to-date machine manufactur- 
ing plant, to be established in Santa Clara Valley, 
California, by the Goldy Machine Company, for the 
purpose of manufacturing their specialty and building 
medium-heavy and light machinery. 

The plant is to be located on the main Trans- 
continental and Narrow Gauge R. R. lines, thereby 
reaching San Francisco and Oakland by both 
routes, as well as the Alviso Harbor on San Fran- 
cisco Bay, a few miles distant. R. R. siding enters 
the works so that materials may be unloaded from 
the cars directly into the required places of con- 
sumption, and cars may be loaded directly from the 
foundry and machine shop cranes for departure to 
any part of the United States with terminal trans- 
continental rates. 

The entire plant, as shown in Figure 2, requires 
more than an acre of ground. A total availability 
of ten or more acres causes no limitations as to 
the most economical arrangements for present or 
future needs, or interference with the layout, which 
reduces to a minimum the expense of handling all 
materials. Oil fuel may be pumped into the tank 
from a car on the main branch or on the foundry 
branch ; bars of steel, shafting, etc., may be un- 
loaded directly from the cars into the stock racks, 
which form a portion of the smith shop, and coke 
and coal as may be required for forging, into the 
bins opening into the smith shop; pig iron stacked 
from cars near the breaker and cupola-platform 


hoist, the cupola-platform having bin capacity for 
fifty tons of coke, and the bins being filled from 
cars by the hoist; molding sand bins are located 
inside of foundry wall and the sand discharged 
from cars thereto, and drawn therefrom, by a chute, 
and mixed and sifted as required without handling; 
flask and pattern lumber stacked under shed ad- 
jacent to the pattern shop, foundry, and carpenter 
shop ; all of which clearly establishes the most eco- 
nomical distribution of the materials to be used. 

The machine shop or main building is 60 ft. 
by 250 ft., is one story high, and has no obstruc- 
tions whatever, pillars or the like, to interfere with 
the location and the operation of the machines. An 
electric traveling crane spanning twenty-five feet 
of the center of the floor moves, nearly the entire 
length of the building, reaching all tools requiring 
its use, as well as the erecting floor. 

To prevent the dust from the universal, sur- 
face and other grinding machines, from cutting 
and ruining other tools, they are inclosed by glass 
partitions. Also, gas and oil furnaces for temper- 
ing, and for melting Babbitt metal, are substituted 
for the dusty coal forge. The tool room is situated 
centrally as to requirements, and connects with the 
grinding room and laboratory, the latter having 
the torsional and tensile testing machines, the grad- 
uating machines, and the standard measuring ma- 
chines. The foreman's office is in the centre of the 
west side of the building, overlooking the entire floor 
and the departments in the glass enclosures. The su- 


perintendent's office is in communication with the 
laboratory, and is centrally located for the conveni- 
ence of all departments, connecting with the yard, 
and consequently convenient to the forge shop, foun- 
dry and carpenter shop, and opening also into the 
machine shop offices, and the drawing room. 

The general office is in the main building, com- 
municating with the secretary's and manager's offices 
in the adjoining intermediate building which is two 
stories high. The further occupation of the first floor 
of this building is the drawing room, located to re- 
ceive light from the north, and connecting with the 
pattern shop on the same floor. Stairs lead from the 
pattern shop to the pattern storage on the second floor, 
and a trapdoor opening is provided for in the pattern 
storage floor, over the driveway between the pattern 
shop and foundry, for despatch in handling the larger 
patterns. The remainder of the second floor of this 
building is devoted to a library and reading room for 
employees, reached from the general office and from 
the outside by the stairway. 

The foundry building is 45 ft. by 105 ft. and 
has the core stock and general supply rooms in the 
front end. Core ovens for large and small cores are 
centrally located and are close to the sand bins, with 
core benches on either side. A core making machine 
is mounted on the smaller bench, which is convenient 
to the Millett core oven for the drying of small 
cores. Oil fuel is used in both ovens, a most efficient 
and economical method, doing away with the smoke 
nuisance and the extra construction expense neces- 


sary for coal, which involves a constant loss of heat 
in order to attain the same results. The sand bins 
being elevated above the floor, sand may be drawn 
from them by chutes into the mixing and sifting ma- 
chines, and therefrom delivered into buckets or bar- 
rows as may be required, from which it is seen that 
the handling of the sand is entirey mechanical from 
the arrival of the car to the hands of the molders. 

The cupola blower is mounted on a platform 
near the furnaces and is motor driven. The tumb- 
ling barrel is located adjacent to the pickling, grind- 
ing and chipping room, for small castings, as well as 
conveniently near the furnaces for the working over of 
the slag. Wall cranes and cushion air hoists are pro- 
vided for the molding of heavier patterns to insure 
the uninterrupted use of the main safety traveling 
crane, which spans the main molding floor, and 
traverses the entire length of the foundry proper. 
Heavier castings are delivered to the chipping and 
stock shed by tram cars, and are there cleaned and 
trimmed by sand blasts and pneumatic chippers and 
grinders, a wall crane being provided for the con- 
venience of handling. 

Since no heavy forging is contemplated, the 
forge shop, drop forge and hardening departments, 
and power plant are all included under one roof. 
The underlying substratum of the ground being of 
the very best character for foundations, and but 
little below the surface, no vibrations from the 
light steam hammer and drop presses will affect 
in the minutest degree the operation of the preci- 


sion machines, a considerable distance away in the 
main building, and neither will there be any vibra- 
tion in the engine room. 

While a down blast coal forge is installed, other 
forges and furnaces are provided with oil burners 
which insure greater regularity, economy, and con- 
venience of operation, together with a greater uni- 
formity of output with the same attendance. In 
passing, it is well to call attention to the convenience 
of the stock racks for the supplying of the forge shop, 
and within a bar's length of the cutting-off machines 
and the tram car track, by which latter all forgings, 
entire bars of steel, or bars of steel cut to special 
lengths as may be desired, may be delivered to any 
part of the machine room with despatch by hand car. 

Nominally speaking, the power plant consists 
of two boilers, with sufficient space for double the 
power, and a Corliss engine with condenser, of the 
latest approved pattern; though the engine is small, 
a provision is made for doubling its capacity by 
compounding when required. An electric generator, 
belt driven, is provided to supply power current 
for the electric traveling crane and individuaj 
motors, as may be required, as well as the current 
for lighting. The brick stack, 78 ft. high, of 250 
H. P. combustion, is so situated that the boiler and 
all other furnace flues may be easily connected. As 
this location is in an artesian belt, water for con- 
densing and for fire purposes is provided for, which, 
together with the installation of a fire pump and 


water mains, insures against loss by fire with abso- 
lute certainty. 

In order to guard against excessive friction 
and consequent loss of power, due to bad alignment 
of shafting, and vibration, settling, and shrinkage 
of timbers, the main line shafts are carried on iron 
brackets having collar-oiling bearings with verti- 
cal and horizontal adjustments anchored to the side 
wall, leaving only short countershafts subject to the 
above conditions, which, however, are not affected by 
them since they are carried by two bearings only. The 
main line shafts are provided at various points with 
cut-off couplings and clutch pulleys, in order that the 
load as a whole, or in part, even the generator itself, 
may be taken off the engine in an instant, thus per- 
mitting the operation of such departments as may be 
desired, irrespective of each other, and guarding 
against a complete shut down and the running of idle 

It is readily observable that the arrangements, 
as herein set forth, insure the lowest minimum ex- 
pense in the handling of all materials, from their 
arrival in the crude condition to their departure as 
finished product. And together therewith, it will 
be observed that the plant may be enlarged to several 
times its present capacity without interfering in the 
slightest degree with the arrangements, inasmuch 
as the main building may, if so desired, be increased 
in length to double or treble its present capacity. 
Heavy forge shops may be located opposite its fur- 
thest extremity and in line with the present foundry 


building, which also may be extended to meet with 
such requirements as may be needed. Storage sheds 
for finished machinery may be erected in the interven- 
ing space between the heavy forge shops and the ex- 
tended foundry building, or in the ample yard room 
between the two rows of buildings. In view of these 
enlargements, it would be necessary to increase the 
capacity of the pattern shop, as well as to enlarge the 
drawing room, in which case the pattern shop could 
occupy the front end of the present foundry, and the 
drawing room include such portion of the present pat- 
tern shop as may be required. 

And in conjunction with the aforesaid, other 
buildings may be erected as required, parallel with 
and beyond the foundry, with satisfactory yard space 
intervening, which arrangements would in no wise 
interfere with the tramway system or any established 
convenience, and the power house would be practically 
in the centre of the entire works. 

No provision is made for heating, as no heat- 
ing of factories is required in the temperate climate 
of the Santa Clara Valley, an advantage that may be 
appreciated by many who are called upon to install 
heating plants with every imaginable restriction placed 
upon them regarding the construction of buildings, 
the general equipment, the placing of machines, etc. 
While several systems of heating are employed, each 
claiming to have its particular advantages, it is never- 
theless a fact that the heating apparatus, while a neces- 
sity in colder climates, is not only a bar to other ar- 
rangements, but a constant nuisance, annoyance and 


expense in its maintenance, in addition to very mate- 
rially increasing the first cost of the general construc- 

Also, the matter of lighting, the area of glass 
surface, must be dealt with in reference to the cost 
of heating. The greater the area of glass, the greater 
the cost of heating; hence, the glass area is re- 
stricted in cold climates. Since well lighted buildings 
are synonymous with good work, and more of it, there 
is to be charged to the heating plant an item often- 
times overlooked but of inestimable value, which in 
part may be understood from the fact that the co- 
efficients employed in the formula for the heating 
of buildings prove that for equal areas of glass and 
wall surface, double the amount of heat is required 
for the former. Hence, the better may be the lighting 
of buildings in the better climate. In the buildings 
under consideration one-third more glass surface is 
employed than in the regulation construction of the 

Were these buildings constructed in the East, 
with the prevailing requirements of that section, 
the first cost would be at least 25 per cent greater, 
irrespective of the heating plant, the annual expense 
of the maintenance of which, including the cost of 
coal, and interest, taxes, and depreciation, would 
amount to $2100. Where buildings are not erected 
with a view to heating, double siding, interior lining, 
or, in other words, tight construction, is unnecessary ; 
also, there is no requirement of snow guards, in- 


terior leaders, or guarding- against the bursting 
of gutters. And, in fact, all plumbing may be 
located without regard to frost ; therefore, closets and 
the like may be situated outside the buildings, the ad- 
visability of which is unquestionable. 

A composite construction of factories has recently 
been employed by some very large concerns in the 
East, which class can certainly be constructed to a 
greater advantage in California, as lumber is much 
cheaper there. For instance, in the use of shingles, 
a very marked difference in the cost of roofs would 
result, first quality shingles being $2.50 per M. in Cal- 
ifornia, as against $5.25 in the Atlantic Coast sec- 

It is an established fact that large wooden col- 
umns resist fire better than cast iron or steel; the latter 
breaking, twisting and warping, thus causing a rup- 
ture which is far more disastrous than is the destruc- 
tion by fire within its own limits. The construction 
of the buildings under discussion is composite in 
character, the foundations being of concrete, the walls 
of brick, the floors and entire construction aside from 
the walls, of wood, the roof being covered with fire- 
proof material. A twofold advantage is obtained in 
the employment of timber, namely, the convenience of 
attaching thereto hangers or any auxiliaries, and a 
much less cost of construction. The fact that timber 
is available in lengths to 70 ft. in the yards clearly 
demonstrates an overpowering advantage over East- 
ern sections in the erection of manufacturing build- 


A fact worthy of mention is that, in the climate 
of the Santa Clara Valley, auxiliary buildings are 
merely open structures, as, for instance, in this case, 
the flask and carpenter shops, and chipping rooms 
are of the open type, in consequence whereof the cost 
is much less and the convenience much greater. 

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