SAN FRANCISCO AS IT. IS

Star (Christchurch), Issue 8832, 19 January 1907, Page 4

SAN FRANCISCO AS IT. IS

A REMARKABLE CITY. According to the latest American papers, San Francisco to-day _is a greater city commercially than it was before its heart was wiped out of existence by fire and earthquake nine months ago, and it is claimed that more business is being done now than then. Tlie bank returns are about 20 per cent greater than they were a year ago, and the total clearings for the four months, from the date when banking resumed, to October 1, were 662,397,000 dollars, while for the same period in ; 1905 they were 610,333,000 dollars. This is a gain of 11.7 per cent for the four months period just past oyer the previous year. The figures for the month of September, 1906 and September, 1905, were 178,057,000 dollars and < 151,509,000 dollars respectively, or a rise of 17.5 per- cent for 190 d. The first two weeks of October show an increase of 20 per cent. On October 1, 38,885,121 dollars more was in the banks of San Francisco than there was on April 15, three days before the conflagration began, and still more, over 50,000,000 dollars is to be paid in by the insurance companies. Mr Isais W. Heilman, president of the Wells Fargo Nevada National Bank, in an article states that "the San Francisco banks, commercial as well as savings, during the past > five years have enjoyed great prosperity, and in consequence havo grown to vast proportions. Most of the larger banks liave been compelled to invest part of their surplus funds in New York and other eastern money centres. . When the great calamity befell San Francisco in Ajjril, our' banks were in excellent condition, and had ample cash resources to weather- the storm. - I claim that, had this, caliamity befallen any other city, not excepting iSew York and Chicago, a monetary crisis would have followed, and, in that event, would have oarried down many a strong and conservative financial institution. To the credit of San Francisco be it said that each and every one of the looal banks promptly resumed business, and not one of them has been in the least embarrassed or unable to pay all demands when called upon. Since the reopening of the banks I in San Francisco, there has been a considerable increase in deposits, which, according to published statements of September 4. amounts to fully 25 per cent." Altogether, since the fire, the resources of the banks have increased over 38,000,000 dollars^ The banks were the first to reopen in the burnt district, and the First National, as soon as conditions are clear will . put up a tenstorey steel structure,- Class A t to cost one million dollars. It will thus be seen that money is plentiful, and easier than ever in the city's history, and is probably circulating more freely than anywhere else in the world. Exports and imports are flowing through the unr harmed harbour and shipping terminals in undiminished volume, trade in necessities and luxuries eclipses all previous records, and the re-stocking of the city is giving a tremendous impetus to wholesale and retail merchandising. The demand for labour is unprecedented in all fields, and workers are receiving the highest average wage known, while a larger number of men are at work than ever before. All branches of trade and commerce are prospering in still greater measure as the debris fades away and the greater permanent buildings under way multiply. Improvements oh the railroads are being rushed on. Freight handling facilities have been doubled, rail and vessel have been brought together on the docks, a new transcontinental line is almost completed, important cut-offs are creating new land entrances to the city, and vast harbour expansion is planned. At Visitaclon Bay, four miles south of the city, new yards, ' roundhouses and shops are being built. Among the transportation improvements projected jby the Southern Pacific Company in the neighbourhood of San Francisco is the increase in its fleet of vessels on the bay. Contracts have been called for two of the finest and fastest ferry boats in the world to ply between, the city and Oakland, the cost of each being estimated at 300,000 doL The transportation feature of the greatest -angle interest to San Fraiitcisco nearing completion is the new mainland entrance to the city, made by boring five tunnels" through the hills to the south. The work undertaken by the Southern Pacific Company, about two years ago, and which will be completed toy January 1 next, together with the proposed bridging of the southern part of San Francisco Bay, affords a new transcontinental en- j trance to San Francisco. The Custom I House returns show a big increase in imports, and the exports are still greater, so that the April disaster, instead of p analysing the commerce of ; San Francisco, as at first expected, seems to have had a -marked effect in increasing it. One word, before concluding, about the insurance companies. The situation caused by the fire is still a never-failing /topic of conversation. Few, -if any, of the _ companies have escaped adverse criticisni, ■ but it is generally agreed, with some notable exceptions, that the companies have done the best they could in the. circumstances. The Ices cf 200,000.000d01— that about represents the San Francisco losses — brought fifty companies, near to insolvency. The big companies have paid in full, others from choice or necessity,' have demanded, or are now demanding, "concessions" from their creditors, and are offering 75 cents in the dollar. Others are offering below 75 cents. These include : (1) Companies denying liability under the earthquake clauses, but which offer compromises to avoid lawsuits; (2) companies whose financial rating did not justify their acceptance of such large risks as appear against their names in the table of San Francisco looses. There remains the " waiting " list — companies which com- ' prise " welchers " pure and eimnle; companies that have postponed settlements, pending financial negotiations, and ooinnaniets in the hands of re- ' ceivers. Needless to say the ootnp**nies ' that have paid in full their San Francisco losses are making capital out of the fact in the newspapers.