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University of Southern California Dissertations and Theses
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Claus Spreckels of California
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Claus Spreckels of California
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CL.:. S ' 1 • ) ,._ I i by • .. .., .I.. 'J. • 1 ~ . ..,c ("I n·f"'I t cd ' ~ -· l s ... lJ - .l. J - - ..., ...., ..... C (:. ,.. oat- r, .. F ,- .. T , ..- .l - Jl .1. ... --' .J...I v l L Jvl.J ULI (j < I •· • ' l''" \ 'lT r 1 -;, i. I ~\. u \_) · ..1._ ' . . .. j J .. Grl e 0 ..._) #, # I l, J I • I This dissertation, written by 1 t 1 i 11 i Pm n,:oodro v Cordr 'V ...................................................................................... '-{ ..................................... . under the direction of ?.~-~-Guidance Committee, and approved by all its members, has been pre sented to and accepted by the Faculty of the Graduate School, in partial fulfillment of 1·e quirements for the degree of DOCTOR OF PHILOSOPHY fr . ............................................... ................................... A .... ~ .. ·=··d................ , .... . ~ . Dean D ~p 6 . 1 55 . ate .......... ~ ................................................ . G uidancc C ommittcc / ·-1 R. l&rn~ ........ ~ .... ,J .' .... ~ ........... . ·········--··w··ill.~ .. w.~ .i ) . ~ . - ... -... -- ...... - ...... -. -.. -... .... -... -....... --... ---............... --... --. - .. . \ 1 ~ ls • prec_~cls ' ·.it , 1379 , by Toby • os s t 1al . _-:1 0-'· 1.: - ,"\1.t 1 .,nis c :l _ ust ·n J., - nc , c• r c 'els St o "' Co1 pnr1 • .L . .LI . - ,.,.rr1 · 1 ,, .1.!,l. - , . - · III . T V. v. (' - .:., r- 'J .l . CL! T Vi l . .L .;...J;,. .. 1 III . I • ,. r JI .. r .w.i. , . A .,J .1.· - U ' T -.,. - ..., t J Lu -,· - - c, ' ..1 l ..ul.Ju . . .. J. l J. • 1 7 3.2 1 01 132 171 20 '- ' 23_; 2 , ILi,U T ·"ilrontisniece Claus Sprecl els nd John D. S~rec rel, 1 63 California St.gar .. cf' er, v ve tise . er1t California uc .r ..n • • .. e. 1 i ery , 138;, I . .,_ t . nvi l.lH ion , mro ·1el , nd Cornerstone Box -. Sur:' -:-i ef i esvern er - 0 precl{els 1 r,·i1 . , C· ..,. • • t.n 10 C n.~ ,~ ta ·1 J.J. ~ ~' .. Y)re c.l'els' -:-,iill , .,. ... • • ue;n.r• .l 'I J.. J.. .J.. Sn ls 1 cfin · l1· · 1a elJh · a ec ..:)Un' CI'' ,. - ' i l"anl{lin efine l1ila el • "' , la ·iatsonv · lla Beet Suuar 1:1 ctocy s 1~ec_'els ~ eet • jl tor- , 189 uua .._ recl"'els Beet ctory, 1953 ~ne Cl e~ s Sr , 1 B ·1. c~ 0CJ e S :t_ ing Entrance to .I.-') Clat s upraclcels n, .i • l.Il San ~rancisco Gas n ~ 1 lect ic Co. ny G01erati ng • • J.l. 1 17 ,..,..., 7u .. 86 7 10 119 120 l Gu lant 11 C en.tr al To ·,er Bt · ldi_113 , San • I' {., nc · 1 s co 192 Jtr tion 11 A 0 of t Jl0 I _;aci ic G s a_ Q ·l 1 lectric CoJ.J any 20 ' Station 11 A n of t}1e .t:a.ci · ic Gas cJJ1c i11ectric Cor1pany 201 St . . ar 's 2van . elic, 1 L t oro.n C.,1. .rc_ 1, 0an Pran isco 207 Interior o ~ St . 11(. rl 's Te1..:1le of l.'usic , Go den Gt,; te Fnri , iv 200 • 1 ' 'lal1C:L S co 0 I • 001. in t l10 Clo.us 3 pr ec_{ ls = · --~ .. nsion " "nr a c: • .1.. • "')lS vl 1 :-J. V .... 22u 239 .... • PREFACE The author's interest in Claus Spreckels began with an attempt to discover why he was called "the Sugar King." Textbooks or short biographical sketches all referred to him as "the Sugar King," as if this were an adequate explan ation to the reader of this important man. A cursory search seemed to indicate very little material concerning Spreckels, but a more persistent investieation revealed a plethora of sources. In fact, each new fact about Spreckels seemed to open new and never ending avenues of research, and so the study was expanded intJ this dissertation. Gathering inf~rmation pr6sented certain problems. The fire following the San Francisco earthquake of 1906 had destroyed many records. This meant that news~apers had to be heavily relied upon. Therefore, newspapers dating from 1856 to 1908 were scanned in an attempt to cover the entire period of Spreckels' residence in Californla. Early news papers were small in size and presented very little diffi culty except availability. Later date newspapers were voluminous, an scanning a year's news presented quite a lengthy probl6m. Cheuking over every newspaper in the San Francisco area for this period would take years; and, so, the decision was made to rely most heavily on the San Francisco Chronicle, checking in other papers only on the dates when important items were discovered. The Chronicle .. ' .. .... " vvas chosen becau.se of its relative avai).ability , and because th.is paper \Vas often very critic al of Spreclcels and therefore counterbalanced pro- Sprec{els writings . The San B,rancisco C .11, o\·1ned by John D . Sprecl{els for many years , does not open its facilities for research use . However , the San Francisco tublic Library and Los Angeles Public Library have fairly complete files for the later period and tl1eref ore \Vere available for use . · ,!embers of the S rec eels f arnily v1ere contacted for materials as lie e the businesses in which Spreckels had been interested . The coo eration of the librarians of the various libraries in Los Angeles, San Francisco , e.ncl st1rrom1.dine; areas vrere solicited in nn effort to find ~11 possible data . This research is basically a study of Spreclcels ' role in California's developncnt . However, his ctivities out side c nlifornia are includdd since there is a direct rela tions1 1ip bet'\/teen the tv10 . To say t11at -Spreckels ' career v1as tb.e l1istory of late nineteenth century California gro,·1th v,ould be to overstate t e case; but there ~1ere in his activities many aspects that are so truly representa tive of that period , that his life 1 s story reflects much of C lifornia's developmental era . Attention is given to fa ily rela.tions l1ips ru1d civic activities in oi"der to pre sent a more complete picture of Spreck:els tl1e man . • • VJ. .. ... In organizing the materials, a topical approach has been used to facilitate handling and tJ emphasize each activity . There 1s, however, a noticeable chronology in Spreckels' business activities with each new venture seem ing to evolve out of the previous one. He was "the Sugar King" and more, for his financial genius · found outlet in multiple enterprises. The preparation of this manuscript would have been impossible without the assistance and encouragement of many people. In gathering the materials on Spreckels' sugar activities, I am greatly indebted to the Spreckels' Sugar Company for its assistance, and in particular to Mr. Austin Armer and Mr. K. A. Meserole. Mr. Dan Gutle- ben's notes and helpful advice and encouragement proved invaluable. The thoughtfulness and helpfulness of the officers of the California. and Hawaiian Sugar Refining Corporation is greatly appreciated. The chapter on Spreckels' Hawaiian activities could not have been com pleted without the many notes and manuscript furnished by Dr. Ralphs. Kuykendall of the University of Hawaii. I wish to acknowledge the kindness and assistance given by Mrs. Alma DeBrettewille Spreckels, her son Adolph B. Spreckels, Mrs . Andrew Blackmore, and Ivir . Willa.rd Swain. Through their help, interviews were arranged, and much • • • J.1 t! i needed materials v.rere acq_uired . The author ' s gratitude is expressed to the Pacific Gas and Electric Company , and in particular to I, "r . Charles Colenan , company historian . His assistance was of ut 1 ost i mportance in evaluating S rec .i:~els' utilities venture . Tn e Harbor Corm· 1 issione1'1s ' office :I11 San Frru1cisco gave consider ble assistance . The office staff very cheer fully searched out the musty I"ecords of the 1 90 ' s for use o.nd rovided Er: ple des 1 t snace • ... Aid was eiven by t h e San Francisco office of the Santa ~; e • -.il 'lay CoJn any . These t ~ ~o o · f ices \~ 1ore able to ~ rovi e ·.1uch . aterinl concerning Sprec'els' r ailroad venture . no ·1spa ers \'C ... e relied upon or 11any · et ils . 'Y n e San ~rancisco Chronic . a nnd T' n e rn j~roninn opened their i"iles for U""e . Th.e cheerf ·lncss \Jith v .. ich • • e .1. , iss ion ,va s given is · .. ost gr nto f lly .I. omernbered . Bancroft Libr o.1 "'y of t l10 · univcrsi t y of California , the ,.Ienry untington Lib rlary , t1.e T '"a: n c s Poundation LibraP'J , Sacr . ento , the T ..Jos .2.n ,eles i .-u~ l ie Library , the Los \.n 0 cles County Lib1 ~ar tl , ~Xi osition l."'o.rk , · h.e u·niversity of Sou tl1ern Calif o,ni Libra r y , and t h e Society of California ?ioncors ....Jib: y in San nr nncisco e a cl1 pPovided 1n ~ te1"i als , and t11.cir staffs ·7ePe excec inn-ly .1elpft:.l in finding additional ix sources for tne aut~ or 1 s use . I v1ish also to acl{nov1lodf;e the assistance of my wife , Vivian . She cr1eerfully gave up many vacations to assist in the rese~rch and spent many hours proofreadin the copy . ., ,;" • ,. iilliam V'/ . Cord ay X · .., . . CHAPTER I PRE-CALIFORNIAN BACKGROUND Gold has been called the cornerstone of California. Certainly gold has been one of the State's greatest re sources, but a far greater resource has been in its people. In the 1850's gold and California were almost synonymous, with thousands of eager people crowding the trails leading to California lured by tales of gold and the great wealth awaiting them. Fortunes in gold were acquired by many, but others, disappointed in their golden quest, settled on farms, entered business, and practiced trades thus helping to build a new state. Some men, however, were attracted to California for other reasons. The "pick and pantt were never their goal. California was to be the land in which their special dreams could be translated into reality- their land of promise and opportunity. It is about one of the latter type of individual that this study is concerned. San Francisco papers of July 1, and 2, 1856 carried the announcement that the steamer John~• Stephens had arrived. Listed among the ship's passengers was "C Spreckels, wife and infant."l No band, no fanfare, Just IThe Daily Alta California, July 1, 1856; The San Francisco Herald, July 2, 1856. One will often find the name spelled Spreckles in newspaper accounts. The John L. - SteEhens arrived in San Francisco on July 1. Spreckels and his family had boarded the steamer in · Panama. f' ' . . --- .... one simple phrase heralded the ... arrival of one of San 4 . .. ... . Francisco ' s greatest builders . 1 T11e nev1comer , Cl aus Spreclrels , born July 9, 1828 , v1as the oldest of the six children or Diede~ich and Gasinna Baclr Sprecl{els . T11e ancestral f a:Mn on v1hich he ·was born was located at Lan1stedt , a village in the lingdom or Han over . 2 The first eighteen years of his life were spent on ~ - 2 or near this family home . There he had aided his rather in tillin~ the farm and had received at the village school the only education tl1at the meager 111eans of the faraily could afford . Frunily circurnstances had made it necessal""J for him to leave school and tal~e employment as a farm hand at the age of fifteen . 3 Sprectels ' life pattern t o this point had _robably been no different from that of thousands of .farm boys v1l1ose family r inances Yere lov1 . I{ov1ever , here I e inf ant , J olm D. Spreckels , had been born in C1ar eston in 1853 . Ie , too , was destined to become one of California ' s outstanding financial l eaders . See infra , p . 265 for a genealogical chart of the f :~: r . 2The family had migrated to I-Ianover , Go · · : :1 any from ITorway . The narr1e v1as Spreckelsen. Later the nar:1e bee ·a.e Von .:>preclcelsen, but by tho time Clo.us was bor•:r it ., a .. _ beco1. o Spree .. els . I-T . Austin do.ms , Th.e .ilan Jo ·", ~ - 0;:,rec, l .. ols (San Diego : - ress of Frye · Smitl1 , · 192L 1 .), p ;. 2. -4. (Hereinafter cited as : Adarns , Jo111 · n . ~ Jrecrels · 3.rsprecltels , Cl us n · ( Typescript in ~-I . : . Bancroft Col lection, Bancroft Library , University of California, Berteley , California . en. 1880 . 8 p2~es , C-D, 230 . 1) . (Hereinafter cited as : Bancroft , "Claus Sprecl:cls , 230 . 1.") ., • .. i • I ,. ,1' •' • . • the sim1liar1ty ends, for even at this ·early age he had begun to exhibit those qualities which at a later date were to make him one of America's foremost financiers. Spreckels in commenting on this period said: "I was very strong and energetic. I tried to do well wha.tever I had to do. The natural result was that my labor was in demand." 1 These early characteristics of strength, energ~, and doing well whatever he did are very apJarent in his California activities, also. The Germany of Claus Spreckels' boyhood was in a state of almost const nt unrest. One of the "happy" privileges of healthy German boys was that of spending from three to five years 1n the army. Spending several years in the Hanoverian army held little fascination for young Sp1·eckels. Therefore, he decided, as did thousands of others during this period, to migrate to America. His parents, friends, and minister tried unsuccessfully to dissuade him from carrying through this projected plan.2 However, once Spreckels' mind was made up there ~as little chance of it being changed, for translating carefully thoughtout deci- lv1ctor H. O'Brien, "Claus Spreckels, The Sugar King," Ainslee's Magazine, Feb., 1901, p. 518. (Hereinafter cited as: O'Brien, "sugar King"). A photostatic copy of this article was furnished by Mr. Dan Gutleben, Sari Francisco. 2 Ibid., p. 516. 4 sions into actions was another Spreckels' characteristic. Spreckels sailed for America from Bremen, arriving in Charleston, South Carolina in 1846.l He landed there with little except faith in his ability to make his own way. 2 He spoke no English at this tim e. In fact, a German accent was always in evidence even after he had learned the English language. However, he soon found employment as a retail grocery clerk, and the beginning of his great for tune was made. Little is known about his work as a clerk, but that he acquitted himself well can be inferred, for his industry and honesty had impressed his employers so much that they sold him the store when they retired. His savings were meager, but these were accepted as the initial payment for the store, and his note was given for the balance. In addition, their high recommendations caused wholesalers to extend to him much needed credit. That Spreckels had lwriters do not aeree upon the date of his arrival nor upon the place. Adams, John Q. Spreckels, P .:-- • 29-31, says he arrived in New York when seventeen, and that he worked there for several years, going to Charleston after his marr1aee, August 11, 1 852, to Anna Christina Mangels. Others, including Bancroft, "Claus Spreckels, 230.1," p.l, state that he went to Charleston from Bremen in 1848. Since he left Hanover to avoid being drafted into the army, I pre fer the date 1846. The fact that Anna Christina had a bro ther in New York would explain why she came there instead of to Charleston. 2Adams, John~. Spreckels, p. 29, says Spreckela arrived with only seventy-five cents. O'Brien, "The Sugar King," p. 516, gives the amount as three dollars. ,,. • 5 learned the grocery business well and that the confidence reposed in him was not misplaced is evidenced in the fact that he paid off the indebtedness within the following year.l Immediate success in business, as evidenced here, was to become a Spreckels' attribute during the remainder of his life. Meanwhile, his Hanoverian sweethee.rt-, Anna Christina Mangels, had come to New York. She and Claus were married there on August 11, 1852. Their first child, John Diedrich Spreckels, was born in Charleston on August 16, 1853. 2 There seems to be general agreement that the grocery business in Charleston continued to prosper. In view of this, why Spreckels decided to leave that city is not clear.3 However, in 1855 4 he sold this business and took his family to New York City. There he purchased the Samson M~ore business located on West Eroadway and Anthony Street.5 !Bancroft, ,rclaus Spreckels, 230.1," p. 1. 2Adams, John~. Spreckels, p. 43. See infra., p. 265. 3H1s wife's brother lived there, and he may have influ- enced him to move to New York. Claus had been there when he married, and he may have got the idea then. 4 nict1onarx of American Biography, XVII (1935), p. 478. 5Bancroft, .Q.E• cit., p. 2. • • • .- .. 6 This retail and wholesale grocery business must have been an even greater success t1an his Charleston venture, for in the i"ollo,ring year he toolr 11is family on an extended visit with relatives in the Fathcrland. 1 Soon after Claus' return, his brother Bernard, owner of a grocery business in San Francisco, _ assed tl1rougl1. :Nev, Yor r or1 his ,vay to ~uro e to vlsi t tho fa.rnily. Clau.s, bein 0 apprised and convinced of tl1e op ortunities in Cali fornia, sold his lfe\v Yo k enter: rise and urchased his brot~er's store in San Francisco. 2 After having woun u~ h s I"ev1 Yorlc affairs, 11.e took passage in 18.5 for California via the Isthmus of Pan~ a. At the Isthmus he secured acco - odations on the stean1er John L. Stevens bound for San --- Franclsco. 3 · lB~ cro'rt, "Claus Sprec~els, 230.1,n p. 2. 2 Ibid., p . 2. T-o\V much mo11ey Spree_ els could not be ascert~ined. O'Brien, "Sugar states that Sprec.:cels arrived ,ii tl1 <'. \4, 000. 3Bancroft, op. - • .... 2 CJ.v., P• • nad at this time Kin n- n P c1n o, . / .,, . .. 0 0 • " • .. CHAPTER II ENTER "THE SUGAR KING" The arrival of Claus Spreckels and his family in San Francisco was an auspicious event n · Jt only for his family but for the people of California. He arrived a grocer of meager circumstances in 1856. When he died some fifty-two years later, he had become one of the undisputed financial leaders and benefactors of the Pacific coast. Personal ambition determined that he would not remain long a small time grocer, and before long he was looking around for ~ ore profitable fields wit which to challenge his abilities. The first venture outside the field of his proven success was that of brewer. Brewing was an important local manufacture of that day in San Francisco, and his Germanic origin seems naturally to have turned Spreckels' attention in that direct i on. In any event, the Albany Brewery, Claus Spreckels and Company, was formed 1n 1857. 1 Here again lThe Sa.n Francisco Merchant, May 27, 1881. A copy of this paper was among the contents of the cornerstone of the California Sugar Refinery, sealea by Claus Spreckels, Presi dent, on May 28, 1881. The contents were removed on March 16, 1951, when the plant was dismantled by the Cali fornia and Hawa.iian Su ar Refining Corporation, San Francis co. Photostatic copies were furnished to me by this corporation through Mr. Dan Gutleben, San Fra.ncisco. Pre vious to this, Mr. Clifford Schink, Vice-~resioent and Treasurer ot the C & H Compe..ny, had allowed me the use of fortune smiled on ,1i .L11, for tl1e bltsiness ,vas profitable , and :1appenings at the b - 1 eiiery \Vere to direct ·h.is attention to v,ard .. is 1nain life's ·1ork , the anufacture of sugar. At t.,1is time tl1ere ·was only one .l anufacturer of sugar, the San Francisco Sugar Refinery, in San Francisco. This monopoly v1as very lucrative, for "crushed sugar in t11ose days sold at about seventeen cents er pound when ~astern sugar was plentiful int ism rket and ran up to twenty-five cents i.:1hen it ·,as scarce. :rl ,--hy Spree ::els decided to enter the sugar busi'ness r/ns ex1 Jlained by Jolm D. '!y ecl-~els in J.,y fa th.er used to run a groce_ y and a saloon next to the 1efino (then me of the refinerJ has slipped my 1ind) and at t·1e end of the daJ the suear v,or r0rs used to core into l1ie> saloon for their sterui beer. , ·hile they \"Iere drinlring tneir ,)eor , th.ey \"lot: ld is cuss the ay' s h ppenin s at t 1 e refine y . 1i·y fat., er noticed that not a day as,->ed but \"t at t.ne sugar house men vrould bnnter vii th on.ch other n.b ov.t ruru ing lie _ or tnn ."'s over into t ~. e se,ver. 'l'., is stnrted hir'.1 thinlcing along tl1ese l.nes, ' 1f t,1e .1en can··run licuor i11to the se\1ers day r .. fte1~ day and ni 0 ht after r1i --l1t , and the firm can still ·. 1alce a good profit , those _refits 1ust be eno. ~ nous t' Tho..t is 2 the reason my fatheI' started in the su ar business.- __________ __ , ___ - - · - ------- t l1e contents in 1is o_ 1~ ice. C and : bought the refi11ery in 19 7. l'l1he - - 2Hen1 1 y S ue-1.l", rt · ·i'rom if e · .1ory ' s Files, ~pis odes in tl10 LiJ. e of a .. es tern Su 0 0.r efinery ~ 1ployee , ' t .;pesc1')ipt, i-25 p 9 . Ex rpts of th·i s v;or1r \Vere n ':!.de by :Oan Gutleben. Ire f .1 nisl1- ed 11 e a copy of t11ese, and o.. copy is in the Bnnc1~ort Lib~ary. I-Io ·1over , I v1as able to read t ~_1is t -:rnescri-::,t v1nile I \Vas 9 \J.onopolies are lil{ely to l''e sent co:m.peti tion, ~ re c_cels ~nc Y , n.nd San Francisco• s sug !:1 r 1 ~ onopoly ho.d the b o.cking of the millionaires of the Banl{ of Californi • Fevertl'1ele ss, he 'lent ahead ··11th l1is pl ans, for :1e reasoned thnt "more eco noi. ic, 1 processes and better n ~ nser.10nt \~1ot1ld 111ore t11sn counterb le.nee t l1e ine qu ality in co.pit al." 1 ThorouGhncss , a r eigning passion \Vi th Sprcc.t. .. cls , \lould be the 1.ey ot;c to success . That tho J.Casoning \Y,.,s correct \V e. s to be ,.....de u'""'tc ly dor.1.onstratod Ylithin he n;;'"t fe·· y o rs. T11e Bay ~ugn.r efiner-J , fi st of several S 0rec1-:cls ' SU"" r ventures, ,;10.s incorporated in J'"nt1c.r , 18'L... "'.ssoci .ted 7ith i.ir. ' -. rec1:els ln t his en or_ rise ,ere ?eter Spi~ec .. els, 11is b oti1cr , Clo. s I .:anucls , 11.is b :..·otl-ic1~-in-ln.\1 , Lo is ond ...=-e e r i.!o "'( or, and {em nn I.fecse. T'ne Cn it 1 of t e co .pony 1~s • . ,,; · , OOO , and t .. e i ncor oration v1as for · 01~iod O.L f ift~ - · ars. 2 vor ing in the Di"t ict Office qf the S~rec rels 0u ✓ar Co - pany, 3ncrcr."'ento. I found i.r . uutleben's exe __ ts to ue correct. Henry Sagar v1 s en 01n loy0e of tho S re el 01s ' f i . n :i_--aori1 1091 until 19 37' a t Yll1ic _. ti1:1e l e retire • . l e v1 _ _ s in Jolm S~rcckels ' of '"'ice representing t l10 u ion in the v1~ -,e scl1e :le disc1. _ ssion . ... fter th.e sohedule ·10.s finis1 eel , John -- ~10.ted t l_ i~1 story . ( iTereina.fter cited as Saco.r, u I. e 1 ory ' s Fi 1 e • 0 ) 1 s nn Francisco .I ,1 ,..cl10..nt , . :.~ 0 J 27, 18 :~, 1. of ta of 2The ~rt ·cles of inco : oration d o ~he 1onth on w: ich org~1izn~ion was y si 0 11od tl1e : 'pePs on J , nuary 20 . : et 0 " and 101: is I.:c;; or ·1 as not given not include t l1e day off oc to u , t c · .o T~e relations ip in any account per - . M • . .. 0 10 In planning this new venture, steps calculatea to assure success were ta.ken, thus eliminating the element of sheer chance. Spreckels, who knew very little about the actual processes of sugar nanufacture , went to New York to overcome this deficiency. In order to acquire the needed knowledge, Spreckels secured employment . 11 as a common hand in all of the departmen'ts or a lar5e refinery, ~~l there. That he learned well while in New York can be surmised from the rapid progress he made toward becoming the west coast's leading refiner. In addition to learning the sugar making processes, Spreckels had been commissioned tJ purchase the machinery for the new plant. The time was most fortunate for he was able to secure the bankrupt United States Re- 2 finery at his own price. The Bay Sugar Refiner,, wc:.s a financial success from the begin~ing. Therefore, Spreckels disposed of his pro fitable brewer y i order to devote his entire t1~1e to the mana 6 ement of su gar affairs. Operations so small did not used. The Articles of Incorporation, Bay Su :ar Refinery, are filed in file 610, Secretary of State Archives, Sacra mento, California. lAdams, John ±1..!.. Spreckels, pp. 27-8. Spreckels later u.sed this method to learn about sugar beet refining. See infra., pp. 12-13. Young John Spreckels accompanied his father on this trip. How long Spreckels worked in New York could not be ascertained. 2The San Francisco Merchant, May 27, 1881. -- ll interfere with the San Francisco Sugar Refinery's preferred position, so the wrath of that monopoly was escaped. How ever, despite under Spreckels' direction,- all was 11ot well. As president he wished the company to take a bolder course and expand its facilities and production, but 1n this the co-directors were unwilling to follow his lead. Conse quently, he disposed of his interest at ·considerable profit in 1865.l This illustrates another Spreckels' trait--he withdrew when he could not control. He was very touchy on matters concerning the soundness of his judgment. It must be respected--to question it was almost a personal affront. At this time there was considera ,_le talk of the pro duction and refining of beet su ar in California. This discussion had attracted Spreckels' attention, and being free from any business obligations, he decided to 1nvesti ga.te beet sugar possibilities. The manufacture of beet sugar was an old and established business in Germany. Therefore, in 1865, he and his family again visited Europe. During this eight months visit in Germany, he made a very IThe San Francisco Merchant, May 27, 1881, says he sold his interest to his partners. The San Francisco Commercial Herald Annual Review, January 15, 1880, states that he sold out to George Gordon, the manager, at that time, or the ban .t:i·rancisco ana l:"a ci1·ie; rte11n~r_y. nen tue California Sugar Refinery was incorporated in 1867, two men, Peter Spreckels ~nd Claus ~ tiangels , who had been in the Bay Sugar · Refinery at its incorporation were with him again. Of course tnese were members 01 his own family. 12 11111 '\ t, •• • · I , \'\I• Ill' t .\1111 tt ' Claus Spreckels a11d John D. Spreckels about lb6~. Picture from John~. Spreckels; The Man by Austin Adcmc .. 13 careful study of the entire process of raising and re1'1.ning sugar oeets. In h1s desire to master every detail, hes~ cureo employment as a refinery workman at Magdeburg. 1 In addition, he brought back seed to be distributed in Cali fornia. He concluded after this study and experinent that there was little chance for success in a Calii"ornia bE-et industry at tnis t~~e. Labor costs were too high; 2 coal - was too expensive; and there as no method of utilizing the refuse as in Europe. 3 Spreckels never cared to be associ ated with unprofitable enterprises. Therefore, he gave up the idea of entering the beet sugar field and returnee to his original purpose--rnaKing cane sugar. The s .cond Spreckels' venture in sugar was the Cali fornia Susar Refinery. This refinery, constructed at Eighth and Brannan Streets, San Francisco, was incorporated on April 3, l8b'7 • .Associat.ed witn him at incorporat,lon 1 sug r in the M king (a pamplet published by the Western Sugar Refinery; San Francisco, third edition, 1937). Prac tically all accounts of Spreckels' career give thls lncldent, however. 2sancroft, 11 Cla.us Spreckels, 230.1," p. 2. 3san Francisco Journal of Commerce, March 10, 1881. A copy of this paper was' 'fo'u"nOin the cornerstone of the California Sugar Refinery {by then called the Western Sugar tteflnery) wnen it was aismantleo in 19~1. A photostatic copy of part of this paper was among the papers furnished to me by the C and H Company through Dan Gutleben. It contains a short interview with Sprec1 ·els by a reporter. '• . . . 14 were Peter Spreckels, Claus Mangels, Frederick Ha 6 emann, and Henry Horstman. The capital at incorporation was f300,000. The object of the corporation, as stated in the charter, was buying, importing, refining, selling, and ex porting sugar.l Spreckels held controlling interest in the company ana was elected its first president. While the build::.ng at Eighth and Brannan Streets was being constructed, Spreckels went to New York where he personally supervised construction of machinery for tnis new rerlnery. 2 The plant at completion in 1867 had a re fining ca.pacity of about 25,000 to 30,000 pounds of su gar ~ per day. ✓ This was not a large volume with which to be~in a struggle for control o~ the J:>a c11·1c coast, sue:,ar· ma.L·Ke"L, cut bPL·ecKels was not depending upon size alone to give him ultimate victory in this struggle. !''certificate of Incorporation of the California Sugar Refinery.:, A freehana copy ot this document was found in the cornerstone of the Refinery when it was dismantled. A copy was made at the time these items were perus ed in the offices of the Cali!'ornla and Hawaiian sugar vorpora.tion, ban i4'ranc1s co. 2AlonzoPhelps, Contemporary Biography of California's Representative Men (oan .B·rancisco, lo81), p. 410. {Herein after cited as: Phelps, California's Repr~entative Men) . 3 t>an Francisco Mercne.nt, 1vay 2~ (, lbo.L. The capacity is put at 9,000 tons a month in Bancroft, ''Cl us Spreckels, 230.1," p. 3. . '• .. ...... 15 At th~s in titution of the California Su5 r _efinery , the process of re 1nin 6 and _ettin~ su b- r ready for .arket took bo t three . ,reeKs . Spree ~els wor .. _ed on t is probler:1 and discovered and perfe~t d a proce ss whereby t 1 is operetion was reduced to at~ nty-fo r our period . Tis 1nv ntion, patented ~ rch 17, lc68, opernt d by t,, ~ {.in ~s t .. e su r··ur in t e process of .~ nufacture, from t" e or inary cer1trifuual .acnine a 1d puttin:; it in a s lidi nc · 1oppcr, then s 1 i - 1 n 0 t:. oppe1~ over a ooJ- calle n mould by 11 ic, ... o.ns tne TT1ould ·las f lled. The su3ar in the mould w~s then covered vit a board fitted in the mould and t e rh le as~ed under a pr ssure tot· e amo nt of a ut si~ty pun tot, es ~uare nch was applied to t_e cover t ~us press in ~ t:e s ~ r · nto a ca~e. Te cake t~us fo ,e~ taste laid ~way on · elves or r~czs and ~11o~ed to arde about ~1rteen lours , 1nen t ey vere reiov t 1. r · nr• ro . Fith a te4:ipE r ture e.t about 130° -q,aren eit w·'l re t ey 1 re .ain d unti su ~ c_ently ~rdene~ for crushin • 0 r i ._; 1 n n 11 y t . es e s u L . r l oa v e O '.a be G n sold to t e cons u r1- r s , and ever>' fa . ily er s~ cd or ro .e t 1e1. t suit t·1e1r i 1 iv~ ual needs . At a 1 ter ate t 0 in·ustry adopt d r.1ct chine r y · 1 i ~ h c ru s e d t -e e 1 oa v e s or s wed the 4 1 n to cubes . ':' Ls t 1e cu to oer co la. uy su car t -- r1red either "cru ,. e s ~a r" or "cube su:;ar" . S rec ~ ·els invented a rna c11 · ne , ; .. 1ereb y .. e co l d Iu . t-: e cuoe .... usar ., irec.t. ly from the IGlaus S:)re .Tels , lai ti f vs. T 1 ~e valif.'lornia u ,"'ar "'"nery , D :i."\crdant • . ~ase "'• :o . 1717 in t1e U.S. Circuit Court , D"Etri t of vali ornia . Suit at law for Infrin 0 e -· en t o ate 1 t , ~· · 1 e J a nu a. r y 3 0 , 1 c 77 • s · or cc t e 1 s ·1 on t. is suit, alt 1 .1.O_ -...). t 1 ·1e court c•ra.rdcd , im only a to en o.ua e of ~~100. 16 centrifugals.l Therefore, he was able to market either crushed or cube sugar within about twenty-four hours after the centrifugal process had been started. This shortening of time, combined with both the best ma.chinery available and Spreckels administrative ability, .. contributed consider ably toward his goa or eventual control or ~ac111c coast Progress of the new refinery w ~s so satisfactory that by 1869 it ha d b e come a; rEnt that expansion was necessary, and the obsolete l ant w s repla ced by a l a r ger build i ng . This nGw building w a tot, co .,, one wing of the r efin ery when 1'utu··e enJ. c.t·gemen us lJeC ~..1e n ee 'ln.Lb first expansion--there were four in a l l--gave the rer·nery a ca · ac1t.y 01 1~!:>,UUU 1 ouncs :JI su g '~r every ten n ui-0.~ The ~trug ··.Le Iu".- l;unt,;r•ol of the sue_ar market of the area had begun in earnest. Spreckels' close a ~plication to busine s s was brins ing his organization to the front, but it wa s also having its effect on him. The ~rolonged str in on his faculties, aue ~o cont..inual overworK , proau c.;ea c .. sbrious orain ais oraer, and it appe ared that his brilliant career m i ght be - !The San Francisco Commercial 1:!.§!:o l d .Annual Rev1_~, .Jan uary 15, 18t)O. 2The San ~ r anCi b C() .1.v1erc uo~1 L,' 1 v1ay 'cl°(, .LbOJ.. 0t:;C J..UJ. .1.·~·, p. 17, for a picture of this plant at the time the new re- ,~,.. .. n v'-t California s • '::?;~',,.'.;:; . -;::_.;: .. ~~ ... •,;.• :... ~ ... ·!-'~ :- ~:C,~ . . · ,:~ ~ · . . . , ._. r - I ~ •"!it",r - • • • • -✓- -. ft ' • •• 1,. • - . • •• , ~ ..... ! _ . . . .. ~.: , ..... ... '\ ;.• . . . .,,, .. . · ----.. . . ~ I_; I I • ~ : .. No. ":)O:;u'cJ, p . j . \rtereinafter cited as Bates, "Claus Spreckels"). 2,The San Erancisco 11erchant, 1v1ay 27, 1881. The death of George Gordon, iv1an ge1· of this refinery, was a~so a contri ou'ting ! ·L.or • .?·in b y ~U f;;e:i 1· nerinery was still operating. Its capital was enlarged in 1873, according to information in file No. 682 , Secretary of State Archives, Sacramento. This became tn J:.mer1.can Ue::,cr e11.ne1·y of a later date through which 19 Before Spreclcels vras able to forpe the opposition to cease o~ erati on., t 1cre arose vrl1at he co11sidered to be a t l1reat to his ~)l,..ofitable buslness. 1-Iavvaiian and Californian bu.sinessmen w•ished an accord ·w11ereby United States and Hav1e.iian produ.cts ,,ot1.ld be admitted duty free. In spite of o: osition from S reckels and other sugar interests, a re- c· procal treaty v1e11t into effect in 1876. Sprecii..els I fears vrere soon s 1 . 10·1n to be unjustified for Ha\vaiian sugar _ ro .. uc tion ·ras stin1ulated by this -greeraent v1ith · ost of tl1e ravr sugar being refined at the Califo1"nia Sugar nefinery. "lit"i in a fe\v "Tears t"' e c apacity of the existing plant \"las s r10-r1n t e too s _ all to process tl1e eve increasing strean of Haw~iian sugar. 1 ~nrecl els was never one to allow u gol en op 4 ortunity to pass nor to relinquis is hard won pos · tio11 as t l1e ·.Jest's lead_·n 0 refin...,r. Therefore, ~lans v1ere dev lo .I. ed or o.n e11tirely nevi refinory--the most extensive in Americ at the time. As 011e of his associates, Cali fornia's ex-Goverr1or FredericL. F. Lo,1, stated: Ie s~w t1at his present refinery was not up to the standard of t 11e day , an.d to im) rove it v1otlld cost _________ , _ -- - ...... tl e UGar Trust tried to drive Spreck:els fro1n the refining busi 1ess. See infra., pp. 78-100, for a discussion of Spreck:els ' struggle against t : is threat. The exact date at ,v:1.ic the title nsugar Kingn vvas fi1~st acquired could not be efinitely ascertained, but it was sometime before 1881. 1sec infra., p p . 32-75 for a discussion of Spreckels' IIav1aiinn activities . I a gQod deal of money, and at t~e same time have but a second-rate institution. The site chosen for the new refinery was a ler·b~ tract of land 1 on the :Po"tre!·o at the foot of Twenty-third Street. At the time of its selection, the area was considered of very litL~e ve1ue,J but it was developed into a very choice water front lot. No expense was spared in the resolution to make this the finest, mos"L moue1·n refinery in merl.l;~. Everything was developed on a huge see.le. A wharf 400 feet long, ex tending into the bay until a depth 01 twenty-tour feet was re~cncu, extensive warehouses for sugar, yorde for coal, and all other appu~tenances, was built. Thus, ocean going vessels were able to dischar~e their ca.rgoes directly at the factory. A tunnel was constructed under the bay where by water ai tu€: r·s1-e or 8,uuu ga11.one a minute could be raised for purposes of cooling and condensation. On a hill I.ta. l4. Low, ··uri~.1.n of the :Magnificent Enterprise: The Capita.l 1nvolvea anu .t'rocao1e Produce of the Refinery," The DailI .Alta, California., May 29t 1881. (H-ereinaf°ter c1Leu as: .LH->V•, uMaE,nificent Enterprise" J. Low was one of the rE; finery' s trustees. 2 spreckels 1n an 1n1.ierview pr nted 1n the Sa.n Francisco Journal of Commerce, March 10, 1881, stated that, tneL·e weL·e six anu oiib-half acres. Low, in "Magnificent Enterprise," states that the area. contained seven and one-half ecres. 3Low, "1v1agn1f1cent Enterprise." The amount paid for this land coula not be ascertained. . " 21 near the refinery there was a reservoir capable of holding 7,000,000 gall0ns of fresh water. Water for this reservoir was furnisnea cy lci.t•t;~ artesian wells loca.ted at the old plant at Eighth and Brannan Streets. The main building was :J':Jt :t'eet long by ei~hty-t'i e feet wide. It was 110 feet high, or eleven stories, and it contained a deep basement. Clu S"Lt:i·~c a1·ouna "this main building were various other sub buildings .l The total cost of this ex~ensive establishment as ell over a #1,000,000, and an additional like amount was needed to put and keep it in operation.2 The major part expended on constructing this plant was spent in San Francisco3--a policy most gratifying to the businessmen there. Some idea of the value to San Francisco of Sprekels' refining operations in 1881 may be gathered from the fol lowing statistics. !This description was taken from two sources. The Spreckels' interview found in the San Francisco Journal of Co1nmerc~, March 10, 1881, and the San Francisco Merchant-; May 27, 1 881. See infra., p. 24, for pictures of the plant. Sub-buildings included one 105 f eet by eighty feet where the sugar was boiled; the filter house, where the sugar was clarified, measured sixty feet by 147 feet; ana the boiler house where the steam machinery was placed mes.sured seventy-five feet by 187 feet. 2Low, "Ma.gnif icent Enterprise." 3The San Francisco M erchant, May 27, 1881, states that all except a.'6out #400,000 wasspent in San Francisco. • I 22 At the present time the sugar refinery furnishes pro fitable labor for 240 men in and about the refinery. In addition to start, there are about 100 men en gaged in manufacturing barrels and cooperage. The amount of ani~al charcoal produced in this country and finding a sale in this refinery is 600 tons per annum, yielding to the manufacturers #36,000 . Formerly, the bones were thrown away or shipped East and there manufactured. The v~sEels employed in tne sugar trade between the Hawaiian Islands, Manila and San Francisco, bringing raw sugar to this refinery, number 30, almost all of which were built by the labor of ~ur mechanics with material furnished upon our own sh~res. • • • 'Ihe quantity consumed by the present refinery amounts to 25,000 tons per annum, nearly all of which is consumed on this Coast. To give you an idea of the amount of capital that is required to carry on such an enterprize, the raw sugar requirea to be kept on hand and in transit from foreie:n parts in this place, snd the refined sugars on hand, averaees 8,000 tons. Practically, it reauires 1,000,000 cash to keep the refinery in running order, to sup~ly the comnunity with the much-needed art1cle. 1 In addition, the build1n6 of the new refinery would require an average force of 200 men to complete it, and San Francis co industries furnished $100 ,000 worth of iron work 2 and 6,000,000 bricks. 3 Then too, the new refinery was to have a capacity of triple the old plent, and would thus furnish employment to many more pe:)ple. Is it a:1 y wonder then that a San Francisco paper wrote thus? lLow, "Magnificent Enterprise." 2san Francisco Journal of Commerce, March 10, 1881. The Risden Iron Works received the largest contract. This com pany, it was noted in the newspapers, received many contrect from Spreckels through the years. · 3The San Francisco Merchant, May 27, 1881. 23 Would that California had more men, who were born generals in the art of manufacturing, more men who knew how to create the capital they need to carry out their enterprises, and more great manu facturing institutions strong to turn the current of trade and make it flow from us over the moun tains and open out over the broad plains of older states. Would that kind Providence would send Cclifornia some more "monopol1sts,u like Mr. Claus Spreckels, who would save the poor from extortion on a necessary of life, furnish employment to the industrious, and trade to the enterprising mer chant, and give wealth to the country and all who are bound up in interest in it, even while making for themselves and their families colossal for tunes. And would that all millionaires would wear their honors s~ lightly among their fellow men as Claus Spreckels and Sons.l In another column of the same article a further evaluation of Spreckels' contributions in San Francisco and California was given as follows: In recounting this victory over the San Francisco and Pacific Refinery we have no regret for the de feated and let no reader have any; it was a waste ful and improvident, but a hard, srlnding and selfish monopoly--one that had been a terror rather than a friend to the distributing mer chants, that fell in the battle. Under the new regime, the California Sugar Refinery has not only protbcted the merchants from unfair risks of loss by extreme fluctuations, but has benefited every interest in the city and State. True, the refinery was not started as a charitable institution, and like other successful mercantile concerns draws a distinction between ::. business transaction and a charita.ble act; but it furnishes good treatment, steady employment and fair wages for fair work to a large body of men rectly, and most 0 1 th 2 se benefits to a still larger body, indirectly. IThe Sen Francis.£.Q. Merchant , ~ay 27, 1881. 2Ibid. 24 ' .. . ,, Photos courtesy of the C. & H. Sugar Company, San Francisco. ,. 25 At e l ater date sori-ie San Francisco ne\vspapers v,ere to vrri te of 1im less kindly . 1 The ceremony of t he laying of the cornerstone for this nevi refinery reveals another side of - ,.1r . Spree cels--his love for doin things in the grand manner . Engraved invi tations rere sent out to important persons ; 2 ex- Governor Low and Senator Jaul leumann made s_eeches ; transportation to the ceremony was provided by the tug , n Grif ith; a_nd nn abundance of f'oo snd c 1 1 1·)0.gne ,1as served to tl1e 3'l1ests . 3 It ,ras truly on affair \7or·~hy of t e gro,vin 6 institution. Operations uore corm :1011.ced in tl1e ne~r refinery on December 2 ~-, 1 82. 4 John D . .:>preckels boiled the first filling of sugar at tat It ~ias a great day in the life o t l1e Compn.ny--tl1e first s1..1gar in America ' s largest refiner ha~ been made . To celebrate t~e occasion , Claus lsee _tnf'ra., Pl . 91- 93 . 2 see jpfra., p . 26 . 3~ne Dqily Alta California , 1.way 29 , 1881 , p . 1 . 4·Tb.e year miel1t have been 1881 , 1 82 , or 1883 . TJ:1e con struct:on was started in 18 1 . It is doubtful that it was com pleted by December of that year . It also seems illogi cal t l1at it required until Decen1ber , 1883 to con1plcte tl1e constructior1. In Sagar , "I'Iemories File ," p . 257 , date listed is 1893 . T11is is obviously an error. Spreck:els ,vas develo ing is beet sugar interest in 1 _,93, ru.1.d tl1e Sugar Trust ha ac uirel an interest in the refinery by then • • J'" ,,,, I,: 1"' f,,/1 ,,,,. ,/,,/ t ,,,/4,~. a ,r'J , 7 I//,, ✓,,,,,, 4,,, ,; &, . L, /#;,;,,,,,, J,,?"' '0-"'J ,,. /.,t.,,,t 7 ~ :~1 ~✓ ,./ ~ /' II ,Ii'. /.7 //./~ ... ~-#N ,, .. // t.. • ., #..N,,. I/,,,/ 71ky .. / ,,, _,.,:-, ./.)#f 1£_?_"1//"" /. 26 Inv1t ti1un to tine c.;e.cewony or laying the Ca l ifornia su ,-a r _1.efinery cornf -;r tone 1881. Trowel used at the ceremony and cornerstone box . Courtesy of c. & H. Sugar Company, San Francisco • . . Western Sugar Refinery, r in~L·y, ban .r·ran c1. st:o . S n Francisco. - 4: .. , ... ~ - . , .. _ .. .,,~ 27 formerly the California Sugar Re l!ou.1·L ~y or c. & H. Sugar Co. 1 28 trea.ted the machine men on thE centrifuga.ls to champagnt; • .l .1.\J ex L to tt.Lt su Bar ref iner_y, bpr·e ckel b ucd a coopere ge which made the barrels in which the finished sugar was packaged and shipped. In the mid-twentieth century, consumers are constantly reminded to lo~k for the packeging datie on many 1.1..ems sucu ~ -b (.;:.Jll.tH;· l.n 0 .1:·uei · - '-'~ ooSui•~ them- selves of tbe product's freshness. The Spreckels firm adopted the practice of marking their barrels of sugar with this information as early as 1886. However, the purposes were different. Custo1 ers wei•tj in the naoi\, 01 buyJ.r ~ large qua.ntities or sugar wren the prices were right. At this time, before moaern techniqu~s and controls had been developed, the BUBar would often cake in the berrels- espec1a.lly if it hao. been stored too long in tne cus'Lowt:L· s warehouse. Consequ cntlJ , when this i1 -~~en&u , the merchant would often return the barrels of suge.r claiming. that they were fre sh sugar just newly arrived. This practice in- v~lved considerable loss to the manufacturer. rirm, to prott:; L: 'L 1 ~~t:.LI against fa 1 se clai ns, The s pre c.Kel. s 1 dooted a • s yste.: of c rking each be rrel with one of fourteen symbols whereby· the exact date of pa.ckinB could be ascertained. 2 lsaga r, a}llemories Fi e ;r p, 'c!. s·t • ~Lett~.t· irom Claus ugust Spreckels, S_ ecretary of the California Sugar Refinery, to the Superintendent of the Packing and Shipping Department, :darch 17, 1886, exerpt by I • .. .. i .. 29 Moaern inaus'L.i:·y nas aaopL,eu a bYS"Le1u 01 wia.-morning anu ai~ernoon breaks in order to relieve industrial fatigue and tensions. Thia relievins r espite , e custom handed down from Claus Spreckels' brewery days, was achieved at the Ca.111 or·n.J.a buga1· he!'..L.ubl' .Y uy tiue issu(j!H;e 01 a qua.rt of beer twice a day to each man in the house. Here 1s how one of the company's employees wrote of this custom: The total quantity of beer "elivered aa.J..ly to tne rei inery c~l.Lci: v-:cU::: t1 1 Ucl. L;J L u e uuna;b.L u1 ill~.u - ~.1.wt::t> two quarts. The key to the cellar was entrusted to the foremen. As time went on the foremen de veloped the habit of makin6 unauthorized with drawal t from the barrels in t ne cell' L· ana l in~.1.ly tney 10.L·goL Lf.1e.1.L· c1r·J.l, u1utt:Lc. Then it came about that some men got only one qua.rt and eventually the me~ at the end of the line got none at all. Then one day the refinery wanaeer took note and tne e,ooa 0.1a cusLom 01 u~t.1· a.Ll.O ·v o lt!e was t,...1.·o · wrl ouL 1,IJ.e window.l Another interesting story concerns the way employees at the refinery settled their own personal differences. 1he relatiQnship of logic to musc~e is explaJ.nea OJ ~agar. Tnere were many nen 1n the refinery who were not endowed with an understanding o~ LOGIC. Henry learned that a.mong these, differences of opinion were resolved · y t oe gooa r 1.t,nt c.l·lll , ei 1.iner· with or without tne a 1 .:- 1 11. L;o "Ll.un 01' Lord Queensbury' s rules. The locale was usually just outside the _, _________________________ . ________ _ Dan Gutleben. When at a later date Sprec~el~ was f.1~nt1ng tue ~uga1· 'lru bt, ne Ubbu a b.iml.1.or· method to check on those merchants to whom he was furnishing sugar and thus ascer tain if they were loyal to his cause. See infra., p. 92. 1 bagar, 11 Memories File, 11 utl~b~n bxt;l·.t,>t. The morale effect of this wi~narawa~ was not recoraed. .. 30 r finery gate unless special ur ~ncy required im mediate action on the spot. Henry, thou h six feet tall and strong as an ox, lost out in some of the discussions until he had ta.en a course under a professional boxing master. He acquired SUPERIORITY both ·n erh1b1t1on matches and in tha regular pursuit of instilling r spect for his opinions.l San Francisco was convulsed by serious anti-Chinese a 3itation in the 1870's, and such sand-lot orators as Denis Kearney, with his "The Chinese must ,.,.o," rose to prominence in California and v1ere able, throuuh the ~orL in men's Party to insert anti-C inese laws in the Constitution of 1878. The California Su3ar Refinery does not appear to have employed Chi 1ese laborers. In speaking oft e refinery one reporter ,rote as follo1s: The success of this su ~ar refinery is one of w ich C~lifornians may well feel ~roud, and it has been built up without the aid of the cheap muscle of a sin gle Chinaman. It 11as been conducted by w ite m en on the white principle of live and let live. 2 V fhy Sprecl<:els never used t11em in his r efinery was not ex pla i ns d , for it is almost certain t1at he mployed them on his . ..Ia ,1aiian plant tions.3 Sprec~els also differed from eastern refiners in ano t11er re spect . It ~·,as a very com mon practice at that time lsa ._)ar, n1~cr: io ... "'i es File," '1utleben exerpt. rancisco 1~ cha nt , ~ay 27, 1881. 3see infra., p. 61. . . ,). •• ; 3J. to adulterate sugar by the addition of glucose. In fact, through the years one of the major points in the Company•s aavertisernents was that it,s product was pure sugar and thus free from all chemicals or other adulteration. 1 The operations of the new refinery consol1aetea Sprecxels 1 position until h~ was master of the sugar busi ness on the Pacific Coast. There was no one to challenge his position. He was trulj t;aJ.1.1 orn1a · s "Sugar King" by 1885. However, such an enviable position in such a profit- . - 2 able field was not long to go unnoticed nor uncna~l6tlbea. lsee supra., p. 17, and infra .• , p.33. Spreckels stressed this point in an interview recoraea in tne ban Francl..JCO Journa.l of Commerce, March 10, 1881 when asked concerning ~he use ot glucose in sugar. 2 ~ee in1·ra., pp. 78-99, for his struggle to maintain this position when challenged by the Sugar Trust. 0 ... CH.APTE1-t III <;L.AUS S.PRECKELS Ar D HAWAII Once upon a time all Hawaii danced to the tune as fiddled by one Claus bp.1 ·t:;C.Ke..La;.,. During those yt:;;&.L·s, principally in Kalakaus • s reign, in which Spreckles ( sic) played on all four strings and ttawai1 aanced { but, ver·y nwill.1.ngly), the fiddler was spoken of as uthe power behind the throne, 1 "the uncrowned king, 11 and, of course, a.s 11 tne sut;aL· king.' Although Spreckels in his later years lost the first two titles, he retained until his death the t11.,.1.t:; or ·tne bugar Kint, 0.1 Hawa11.l This, then, is the characterizatiJn once given to Claus Spreckels. Is such a description Justified? If so, how did he attain that position? How was the position lost? At the time Spreckels was winning the oat~..L~ for dominance in the refining business in Se.n Francisco, pro ponents of Hawaiian reciprocity, a plan whereuy riawa1.1 an~ the Unitea btates would each admit the products of the other duty free, were beginning to see the possibility of ~uccess . Spr~c~~~s oppos~u this treaty on various grounds , although the major reason wes a belief that such an arrange ment woula oi·ing ruin to America's refining industry and thus end hi:: own profitable business. In an at-tempt to prev t:;11 '- L·a "L 1.11. Ub l.,.Lon, Spre ckel s and other coast ref in era 1 n. Billam- r/a.Lker , Adve.utures in tne history of Hawaii, No. 20--Claus Spreckels, the Sugar King," Honolulu Star .bulletin, Aug. 17, 1935. Notes from this article were furnished by Dr. R. s. Kuykendall, Un1versiLy or Hawaii. \.tiereinafter cited as: Billam-Walker, "Claus Spreckels, the Sugar K1ng 1 ). 35 sent a pro~~d~ ~u California's Representative John K. Luttrell in Washington in March 1875. If treaty ratifica tion could not be prevented it was hoped to procure the exclusion of higher grades of sugar from entering duty free. The protest pointed out that the islands were capable of producing not less than one hundred fifty million pounds of suga.r annually, or about eighty million pounds more su ear than the Pacific coast could consume. Therefore, the surplus would ha.veto be shipped East where it would com pete with the product of Southern planters and Eastern refineries. It was further pointed out that the average duty on sugar was two and one-half cents a pound, and that . -· .. . -- ·· .... a lose of three million seven-hundred fifty thousar1d dol- lars would be sacrificed by the Government. It was felt that this was a loss too ~reat to be sustained, and, there fore, additional taxes would have to be imposed. Moreover, it was felt that the annual yield would exceed the estimated one hundred fifty million pounds because of the extremely favorable Browing conditions found in Hawaii. It was pointed out that the islands were already producing and sendinB t0 our markets sugars with which only the higher grades of refined sugar could compete in spite of the fact that they were not filtered through charcoal. In view of this, the protest asked that all sugars of higher grade 0 34 than number thirteen (Dutch Standard) be excluded from entering duty free "should the consideration of oversha dowing national requirements render it pcflitic to sanction the treaty." It further pointed out the loss of capital and employment if the refineries in the United States were forced to close. The Hawaiian Reciprocity Treaty, approved by the Senate on ~rch 18, 1875, had been negoti~ted at the time Hawaiian 1 ing Kalakaua had visited 1ashington in January, 1875. 1 It was to remain in force for seven years and to continue thereafter subject to one year's notice of termi nation by either party . Legislation necessary to implement this treaty was not forthcomins in 1875, and so, according ,, to Spreckels, he spent ~r2, 00 in sending a petition to Washington in 1876. 2 However, protest and petition were to no avail, and the treaty was put into effect by special protocol September 9, 1876. 3 lnonald 1 -arquand Dozer, "The Opposition to Hawaiian Reciprocity , 1876-1888," Pacific Historical Review, Vol. XIV, ~o. 2, June, 1945, p . 185. (Hereinafter cited as: Dozer, "Opposition to Hawaiian Reciprocity") . 2 The San Francisco Call, April 27, 1897, as printed in Louis Sarani, The Hawaiian Reciprocity Treaty (San Francis co, !Jiay 1, 189'f}, p . 2 . 3The le ~islation necessary to 1 plement this treaty was voted by the House of Representatives on :May 8 , 1876, by a vote of 115 to 101, Congressional Record , 44th Cong., 1st sess., p . 3037. The Senate approved the legislation • • G 35 Defeat vras to be sor.1ething almost foreign to Sprecl~els 1 career . His efforts had been culminating in ever and ever greater success , yet here was a situation which he was powerless to stop and whi ch could bring about his ultimate ru.in . The treaty uould be in force for at least seven years . Tl1erei'ore , it \Vas necesssx-y to m ke it v1ork for l1is interests rather than against them . Spreckels ' first protective step was to go tote islands ~nd contract with the Hawaiian planters for more than half o~ t he entire production of sugar for the succeed ing twelve months . 1 He had been importing his raw materi als fro1n T i ianila and Batavia up until this time , and tl1is brilliant stratagem created auite a sensation in Honolulu and San Francisco . However , as the operation of the treaty continued , Sprecl,els v1as to expand his hold on t 1e planters . In fact , as e rly as 1879 , Villiam Allen wrote his father that Spreckels had purchased virtually the entire sugar crop for 1880 . He furt· er stated that t he nlanters "v1ere comJletely in his l1ands , he 1vould l"lave all or none , and as on August 1 l~, 187'6, by a vote of 29 to 12, ibid., p·. 5572 . The President then put the treaty into effect by special protocol . This treaty , vii th slight r.iodifi cations , ,t1as to stay into effect until the islands were annexed . 1 Ralpl"l S . Kuyl{endall , 11 Hav1aiian Kingdom, 187L~-1893 , 11 Un ublished manuscript , loaned by the author in 1952. P . 2 .. Spreclrels arrived in Honolulu on Aug . 2~. , 1876, and sailed for San Francisco on September 11 . 36 Spreckels controlled all the refineries, we could not send .. '-:".... ...... -~.............. .. . . .... ... • :..-....... ........ ........... .............. .... ... . ....... , .. .. ........... . ... - .. . .. our sugar to an open market. • 1 1 Spreckels' quick action gave him virtual control of the Hawaiian sugar crop, but he realized he might not always be able to retain this posi tion. Therefore, he put in motion plans which were to make him the largest producer of sugar cane in the kingdom of Hawaii. Spreckels returned to Hawaii in 1878. Accompanying him was Mr. Herman Schussler, a prominent San Francisco water engineer. It had be en pointed out to Spreckels by Mr. s. T. Alexander tha + the fertile plains of central Maui, then lying waste, only needed irrigation to make them productive. Alexander had already constructed the Haiku irrigation ditch which ta r ..1ped streams flowing down the northern slopes of east aui. Water from this ditch was at that time being used to irrigate three plantations.2 ILetter from William Al len to his father, Elisha H. Allen Sept. 29, 1879, as cited in Sylvester K. Stevens, A erican Expansion lg Hawaii 184g-182d (Harrisburg: Archives Pub lishing Company of Pennsylvania, Inc., 1945), p . 143, n. 5. (Hereinafter cited as: Stevens, American Expansiog in Hawaii) . Elisha H. Allen was minister plenipotentiary for Kalakaua when the reciprocity treaty had been negotiated in 1875. He continued as Hawaiian minister unti l his denth Jan. 1, 1883. 2statement of w. D. Alex naer to Com. James A. Blount, President's M:e.§.:__?,f-€ fiel ating t:1 the Hawaiia: n Island~ Exec u t,J. ve J.JOCullient l\ o. 4 '/, :>5ra congress, 2na bession , .tiOUbc u1 Represen~a L~v~ (Washinbton: ~overnrnent - rinting Office, 1893), p. 179. (Hereinafter cited as: Execqtive Document, 37 .. Schussler made a survey of the district for Spreckels. His conclusions were thc:it water coula t· e obtained for the tiract by ouila.1.ng 1ort.y-1·i- e mlJ.es or canals, twenLy tunne.Ls, cJna thousand feet wide an6 four hundred feet deep) with iron pipea.l Assured by this information, Spreckels bought or leased several thousand a.cres 2 of the Crown Lc1nds on the plains of central Maui ~nd a plied for a - rant of the need ful water from the ~overnment . The cabinet, as tnen cons~1LuLeu, ~b reluctant to confer these water rights. Spreckels, never one to take any blocking of his plcns lithtly, then took steps cal culated to assure a supply of water for the projected plantation. He had made friends with the Hawaiian KinB, ana so h~ wen~ 0irec~iy ~o nin with the problem . This conierence Wl.ldl ~u~ king, July 1, 1878, brought immediate !!7). This 1s Blount 1 s report on the situation in H&waii • .Alexe.nuer had been Surveyor General 1·or tne .K.ln8aom 01 iiawaii . 1 i:;a.ncr·o.r t, 1 ' vlau s Spreckel s, 230: 1," ,P. 3. 2The exact amount of land could not be ascertained. Spreckels stated in answer to a court suit that there were 16,000 acres acquirsd in 1878. San Francisco Chronicle, Nov. 22 , l.b~::>, p. (). .Kuykenaall., 11 nawaiian Klnf::aom, lo14- loSl3, 11 p . 25, states that some thirty or· forty thousand acres were acquired. In 1882, Spreckels acquired 24,000 acres of the crown lands on Maui, so the two may make the 40,000 acres. ... 38 results. 1 Kalakaua, already dissatisfied with the cabinet, wrote letters of dismissal to the1n that night and appointed a new cabinet. This change of cabinet , according to Chief Justice C. C. Harris of Hawaii, was facilitated by a gift of $10,000 and a loan of $40,000 at 7 per cent with which the King could repay a loan of like amount upon which he 2 was paying 12 per cent. The new cabinet, being in accord with the King's end Spreckels' wishes, • - 5ranted the desired water privilege to Spreckels for thirty years at 500 per 3 annum. In order to exploit this land and make use of the newly acquired water rights, Spreckels, to8ether with Herman Schussler, William F. Babcock, Frederick F. Low, and Herman Bendel, organized the Hawaiian Commercial Company. Therefore, in the fall of 1878, there were 400 men, 100 head of' oxen, ana ...,ixty mu.lea wor·King on t.he irriga 'L,iOn .. , . pruJe~t. San Francisco businesses profited by this enter- prise as well as Hawaii, for the Risa on ll "' )u voi·.r.~ ilici.uu- iAccording to the testimony of w. D. Alexander in Exec utive Document !fl, p. 181. - The king wanted the development, for 1 t w0u1a aaa rc:vc:nue to ni::, empty coi .1. bL·s. ~In a letter from Justice c. c. Harris to E. tt. Allen 1n lb'fo, ao quo"ted. in Kuykendall, "Hawaiian Kingdom, 1874- 1893, '' pp. 25-26 . See1nfra.: p . 40, for another case in which Spreckels used somewhat the same technique. 3w. D. Alexander in Executive Document r o. ii.., p. lb~. several million tee~ or lumber were shipped; and provisions for the use of the laborers and mechanics, as well as huge quantities of dynamite, were shipped from San Francisco.l The ditch, when completed, was to be capatle of delivering ~u,ooo,uuu t::allons of wa.ter dail.y. 2 Witnin "tw~J.ve woni:,n~ a.r t,er· ·~u.t:; construction b e e;ar1 the project was completed and planting of the cane could be started. Here again the Spreckels penchant for efficiency was shown, for the irri gation system was so arra.nt,ed t11at one man couJ.a irri~a- ~e !l.l"Leen to twen1,y "LJ. uco ao much land as had been possio1.e under methods previously in use. Soon after the planting was started, construction on a sugar mill and a town called Spreckelsville was started. This mill wa s constructed according to ar1 ori e.inal pl.an as aevisea oy Glaus t:> precKe1s, JOml .u. bpr·ec .Kels, one ,J. Moore, and Charles Watson. It had a capacity of twenty five tons in a ten hour day. In this mill cane was pa s sed between five roll ers instead of the customary three, and 1 Bancroft, "!Jlaus ~prec.Kel s, :C:jU: 1." p. 4. c'Dan uu l.Jl. t;; uen, "The Su e,a r rrarnp 1950, Ha,1aiian Issue" (UnpublishEd pcper furnished by Mr. Gutleben), p. 6. ( Hereinafter cited as: Gutleben, "The Su g.ar Tramp"). Mr. Gutleben is a retired sugar engineer. As one 01 nls va.r1- ous avoca "Lion s he prepares a yearly paper which he sends to his friends of the sugar world. The paper for 1950 was on the Hawaiian Islands, and he very generously gave me a copy. .. 40 thus ten per cent wa.s aa ,- - . ed to the sugar yie.La. This fi.L·st mill provea so satisfactory that three more mills were constructed on the same plan within the next ten years. 1 To reduce costs of transporting cane to these mills, narrow-gauge railroads were constructed thr ~uc h the planta.tion. borne ia.ea. or 'tne SCOi:Je 01 l,uJ.B pJ.o.u1'al,iun development may be had from SprecKels' statement to Com missioner James H. Blount that $1,000,000 was spent bring ing water to it. 2 All this activity pleasc;d King Ka.le.kaua very mucn, onu. ·Lo snow t11 · app1· ~J v c:l 1. v.J Lulb r·J.<.;o new friend, he con ferred upon Spreckels the desree of "Knight Commender" of the "Order of Kalakaua" on l~arch 29, 1879. The degree was conferred in S& n Francisco, an Sir Claus im eclaL~iy m~u~ plans ror a ~rlp ~c ttawaii.3 Spreckels mad e an investment in 1880 which was to add 24,000 acres of tl1e Crown Lands to his personal holdings. King Kamehameha IV had 6ied intestate in lbo~. In tne J.~bJ.olc;;.lJJ.Ve act anu dee· sions set Lint::; up w11a"L constituted !Bancroft, "c1aus Spreckels, 230:1," pp. 4-5. 0 'Claus Spreckels' interview with Com. Blount, June~, lo~::;. 1n -cer·v 1. ~w No . ::>l. , .t!..Xe cu 1., .L v e .u~ <.;Ufilt;n 't !±1., p. 508. 3The Daily Alta California, March 29, 1879. The decor ation \'las to be returnea to King l\.aJ.a.ttaua seve1• aJ.. years ~~lJer. See infra., p. 56. 41 the Crown Lands, the claim of' his half-si ster, Ruth Keel1kolan1, had been omitted. Spreckels purchased her rignt.,, titJ_e, ano 1.n·Ler-ecLi in L!l~ Crown L·nds for $10,000 and a loan of $60,000 at 6 per cent per annum. This last sum was to enable her to liquidate a loan of like amount drawing interest at the rat,e or J..t::'. pt-; r• cen"L p e1· anny.m.l. 1 t is ao , ut.,I u1. 1,ne,.1, Rutl1' s clai1 · had any val id i ty, but, tlJ.e legal status of the Crown Lands not being understood, the investment paid ofr in 1882. 'Whether Spr r- c.te 1s un~ .i.-~"'vc oa Lne questionau~e nrture of the clai is not certain but quite probable. In any event, the Hawaiian courts were not given the opportunity to pass on its l e~aliL , ror wi t n tnb KJ.n_ c·nu. t;· bin et :t'r1.enu.1.y L,U hlc interests, he was able to exchange , by legisl~tive approv 1, his claim to all the Crown Lands for 24,000 acres of the hol ings located at Walluku, .i".laui.2 lMr. Spreck.els mcde this statement durin .. the court fi ·ht which develo ped between him and his son, August, in 1895. San Franci~t;~ lihronic1e, rov. ~~ , 1 ~ ~5. 2 statement of W. D. Alexander, Surveyor-Gener 1, to t ,. 0. Smith, Attorney-General , Honol.ulu, iv arch jl. , .1.0~.:>, a.s touna in ~xecutive Do_9]dmen1 !±1.., p . 199. The value of thie land at the time ce>uld not be ascertained , but Eillam- V✓aJ.. Ker, 'lil.8.u s bPL·e e; 61. d, Tne ;::,u E r Kin e. ," laces the value at #500,000. In the satle year, 1 8 ,000 acres of this grant were turned over to th Hawaiian ana ~o uercia~ ~uBar liO pany tne su ce;esso.1.· "'o the Hawa.iian Conlillercial Company. At the time Spreckele received the -_rant he was a minority stockholder in the company, ut cr~e r· conveyin~ the land ne s,~rus t~ na~e become the majority stockholder. San Fr~n- • 42 whicl1 was to aid him in becoming the most powerful economic figure in Hawaii. This step was the formation of a part nersnip WiL:1 w. G-. Irwin unaer- 'tn8 nawt; Oi. w. G. Irwin and Company. The firm, under this partnership, grew to be one of the most important of the sugcr factors in tlonoiulu. In lc..c;L, J.n the lat,"Ler part of 1882, during a visit to Boston, Irwin was as ed by a reporter if the assertion that t his firm had monopol·zed the whole sugar production of the Haw ii~n Islands were true. He replied: That is true. We control almost the entire crop. Our monopoly, however, is a matter of busi ness, of pure, competitive aealing. Mr. Spreckels is one of the smartest business men in America to day •••• As I told you, our firm directly controls one-t ird of the sugar crop of the islands. The other two-thirds we purchase of the other planters paying them ••• as rnuch as any one else can afford to give them. Thy are .not compelled to sell to us. .Anyone else can e_o in and t:uy from them •••• 1 Meanwhile, Spreckels had embar ed on another busi- nes venture which was to aid him in his economic dominance of the isl ~nd: . This venture, the Oceanic Steamship Com- cisco Qhronicle, Nov. 22, 1895. lPacific _Qoll].rnercial Advertiser, Dec. 23, 1882, as quoted in Kuykendall, ,r'l'h e Hawaiian Kingdom, 1874-1893," p. 27. Spreckels retained an interest in this firm until his r; e~th in 1908. 43 pany, had been organized on December 22, 1881. 1 Shortly thereafter service was instituted to the islends. In November of 1883, the company had in operation two steam ships and nine sailing vessels. 2 Throue:.,;h the years the services of this line were expanded until it beca1ne one of the most i :·!oartant connecting links between America, Hawaii, Australia, and New Zealand.3 The tremendous increcse in Hawaiian business brought about by the r ciprocity treaty had further complicated the existing currency problem. Hawaii had no coinage of her own at this time, al ihough paper certificates of deposit, sometimes called "silver certificates," had been authorized in 1859 and in use since 1866 or 1867.4 There were #419,000 of these certificates outstanding in 1882, 1 Articles of Incorporation of the Oceanic Steamship Co., file no. 13484, Corporation brchives in Sec. of State Archives, St .te Car itol EuildinB , Sacramento , California. 2c1aus Spreckels, "Pacific Steamship Line," 1 p. MS Bancroft Library, U. of' Ca.lit., i:,erkeley, Ca..i.i!"ornia. ( 1n cip r c.n.~l. s' own hand, N- JV. 2 , 1883). Se& inf~. , p. 271. )uee ~nrra., pp. 172-181 for a discussion of the Oceanic Steamship Company. 4Kuykendall, "The Hawaiian Kingdo1n, 1874-1893," p. 29. His 1nform~tion was taken from the Civil C~ae, 1859, Sec. 479, a men ed by Laws, 1.o'(tt, pp . :;u-:.;'":J, c:.11u RepQ_£t of Fi nance, 1868, pp . '(t:;. . .. I , 44 and this an1ount had increased to .;>795,000 by l8f?4. 1 Tl1e le islature, a ~ ,are of tl1is problem, had passed an 'inance "to 1 JUr- c h se ,,,.old and sil · ver bullion '\.ri th c.n • T 1 i C 1 . ·1 :l . • • be j_n the 'l 1 rcn su.r / , o.nd to C ".U:Je to e coined t10 e · O"' old nd ni l"" er c oi11s . 02 Ho'f v0r t,1e · 1in · · n :-. · . 8 , !. . • l n rt• l O 1 I l C e c lJ t 1n.t -'j i '. 1e · 18.cl e no 1 f1 of t c Pttthori J' •• t; on . I n t_ e s1)ri r; of 1882, ·"' 1 t ., ,..I,. l . • l • b econ ,., ·1 o 1 ·1· d ._-, , j__ C 11 i e d h i }_ 1 f ~ -i· J.. - u_ . . l ·1 -- , c nb · net coun i l -;·•o - .o 8Ut l"\ori 7::,d ··o n···, - C. - - cJ _. -~ ... t.J ' • + A v .. _. ,,. . d \.J_n ,, .- . 1 ext .f t . 1 . 1 n•t, • 1 Cl . ' • . .l. ~""I ri t h Cl e. uc or other ">c1_r··- • op fo t e c i11.a r·:e of 2. s u- 1 of · .old r n d il er not to .:~ceed . ~ 1 5 , 00 • ' _.., • ..I- v _ 1· - v e s 18. 1 ·1~0 ritt r ct U .,. .. " "'t ("'< I J • • ) ' eould not, ,_ ccord- l_l, n r_L 11 •. -~ r ... ""'i l 0 ~ n ri Il • 1 l 1 7 -1 3 ff . -:-> C) -- ..: i.. C ~, \.. , - C ,"\,.- • - - - - ' - - 1 '-J ' _ e • • • I1i .. : _n o r :r12t~i.on · 8. t a}: n _ :-i. or1 ~l e rt , o t of ·~· ni ;-;t e . f _ 1 i 1 [ nco , 1 _ /~ , . . ) , and ~- .,· )nrt 2£. · j _ .ni·< .. ,t·er of 1.Pinnnce-;J.884, . 16 . 'IT • • .C, t • __ J_ S l i O . .. 1 1,· l n ·ra in 1. o ·i1a :i_on c . : 1e j_ ro: 1 1 the abinet ) 0 , 1 3[1 • ,, , • 45 ·n) to the law, be sold under par, 1 they were not being sold. Gibson and Spreckels worked out a plan whereby the bonds could be disposed of and a national coina e could 2 be achieved at the same time. Therefore, in the spring of 1883, the cabinet council authorized the Minister of Finance in concurrence with the Premier ••• to conclude a negotiation with Mr. Claus Sprec~els for the coina e of Hawaiian money to be exchanged for Government six 3 per cent bonds, as initiated by the Premier. Under this authorization an a reement was negotiated with Spreclels wherebf he became the agent of the Hawaiian gov ernment in the coinage transaction. Spreckels a ·reed to buy the silver bullion and have it minted into 1,000,000 worth of silver coins. The Hawaiian government was to issue to him 1,000,000 of the 6 per cent gold bonds in exchange for the coins. 4 Spreckels purchased the silver and was able, through the interposition of the Hawaiian minister in dashington, to have the coins struck off at the San Francisco branch lKuykendall, "The Hawaiian Kingdom , 1874-1893, '' p. 32. His information came from Laws, 1882, pp. 47-49. 2 Ib 1 d • , p • 3 3 • 3 rbid., p. 32. This quotation was taken from Cabinet Council Minute Book , 1-1:arch 6, 1883. 4 Ibid., p. 34. ' . - .. . . .·• II • I t 46 mint in Philadelphia. 1 In arranging the transaction, H. A. P. Carter, the Hawaiian minister, 11ad several conferences with Treasury officials of the United States. In a letter to the Minister of Finance, J.M. Kapena, he stated that the Treasury officials regarded the whole arran3ement as very queer. They said they would have bought your _ bullion and turned out the money for simple cash ••• .• The dollars will not cost over 85 cts. all told, and the other coins not so much. I hope the Gov't gets the profit. It will be about $150,000-- on the million but what in the world will you do with a million in Silver in addition to what you now have? The dollar will be a handsome coin. 2 Some of the coins had been minted and were ready for dis tribution in the latter part of 1883. The first installment of the silver coins, consisting of $130,000 in half dollar pieces, arrived in Honolulu on December 9, 1863.3 Immediately on the arrival of this first shipment of coin, i. R. Castle, s. B. Dole, and W. o. Smith brou~ht action in the Supreme Court to prevent the carrying out of the as re~ment with Sprec kels. The court dismissed the suits (there were two) on technical grounds and other reasons, but it did state that it "would be l Kuykendail, "'l1he Hawaiian I(in dom, 1874-1893," p. 34. 2carter to K a pena, June 7, 1883, as cited in ibid., p . 35. 3 ruy l~endall, "The Hawaiian Kingdom, 1874-1893," p. 35 • .. 47 illegal for the minister of finance to issue six per cent gold bonds in exchange for the new silver coins." 1 This decision did not prevent the new coins from being put in circulation, although the main object of the suit apparent ly had been accomplished. Nonetheless, the Privy Council, acting on a motion by Gibson, adopted a resolution on December 18, declaring the new silver coins "to be le al tender, and receivable in li ke manner as silver coins of the United States of' like denomination." 2 Spreckels then proceeded to put the coins in circulation through his bank, plantation, and other sources available to him. The whole consi gnment of coins had been received in Honolulu by June, 1884, and they were all gradually put into use. The govern ment's action in making them legal tender was unfavorably received by many Hawaiian leaders. Minister Carter, in commentin on this, wrote: The most dama ing thing now in our currency, is that a Gov't can, as a favor, to a private indi vidual perm1 t him w•i thout legal sanction to flood us with whatever he pleases and make it legal tender and make ~150,000.00 out of it--what limit is there to such proceedings? Both law and public opinion seem paralized. There was not a shadow of warrant for it in the coina ge act. Probably the next move will be to declare pho- I cuykendall, "The Hawaiian Kingdom , 1874-1893," p . 36. 2Privy Council Record , Vol. XIV, pp. 115-116, and Daily Pacific Commercia l dvertiser, Dec.i 1883~ as cited in Kuy ·endall, "The .awa i ian ingdom, 874-lu93 , u p. 36. • • " - . .. 48 tographs of Mr. Spreckles (sic) legal tender for any amount.l ~ The exact profit to Spreckels on t hie transaction is un kn0wn, but it was surely close to $200,000. Billam-Walker stated that it had been agreed that Kalakaua should receive half of the profit, but afterwards the King "claimed that Spreckels kept all the seie_niorae,e, --'.1Ving him none. 112 The Supreme Court's decision had prevsnted the gov ernment accepting the coins and civing Spreckels the 6 per cent gJld bonds in exchange. However, due to the action of the Privy Council, the coins were legal tender. There fore, Spreckels used them to purchase 500,000 worth of the bonds. The law had not specified that silver could not be used to purchase them. It stated only that they should not be ~ssued at less than par, and that they were to be re deemed with United States gold coin or its equivalent.3 In addition, the Spreckels' firm of w. G. Irwin and Company advanced the Hawaiian government #130,000 as a special loan. Thus, the government was indebted to Spreckels in lH. A. P. Carter to s. B. Dole, April 5, 1884, Sanford B. Dole Papers, as c1 ted in Kuykendall, "T i.1e Hawaiian Kingdom, 1874-1893," p. 37. 2B1llam-Walker, "Claus Spreckels, the Sugar King," 3Laws, 1882, p J. 47-49, as cited in Kuykendall, "The Hawaiian Kingdom," 1874-1894," p . 32. 49 the amount of Q::630 , 000 . 1 A further bid for power was made by Spreckels in 1 4 . Bishop and Company was the only bank in the Kin-dom of Hawaii at that time . There was really a need for another banL. . Therefore , on !"'ay 23 , 1884 , a bill was introduced in the le islature which would have allo~ed Spreckels and his associates to establish a national bank . This Sprec1 : els Ban' Charter, as it i:1as called, provided for the issue of a million dollars ' worth of paper money , backed by an equal amount of ov ernment bonds deposited as secur · ty . mhe notes mi 0 ht be redeemed in either silver or gold . There was no clause requiring quarterly or semiannual reports of the state of t11e b n .. . or was a mini - mum fixed to the a~ount of cash reserved in the ban~ . In fact , most oft e safeguards oft e Amer ican national banl in ~ system were o itted . Its notes were to be legal tender exce t for custocs du s . It was empo1ered to own steamship lines and railroa s , and carry on ercantile bus·n ss , without uayin s license fees . 2 As soon as the contents of the bill beca 1 e lno1n, a stor. o~ protest bro' e . . :-. .. ass meetin 0 s of indi r-n tion were r1eld, and le islators and the c ~amber of co Jmerce tore it a uart .. ' showin-- its □any flaws . The l"inu beca :i e alarmed at the furor, and t 1 :ie bill \vas 1" illed by an ove!".·1nelmin 0 aj ori ty l yuy endall, op . cit . , p . 42 . ee infrn, p . 56 . 21 xecutive Docu ~ent 47 , p . 1 ? . Tl i s stet _ent br V l . D. Ale ander characte.r·zed t .1e bill as a r: atte 1 p t to one olize or c ontrol all t1e transportation in awaii as well as t e i m portin~ u n -ss fr o. the un~ted States. .. 50 - on its second read:n ~.l The discu 0 sion started by the S~rec ~els an~ Charter atte pt fi nally resulted in "An Act to p r ov de for th In- corpo --iati on o B n ~ins Co1 -- a · es " ' , ich was ap~roved by t 1e : i n,, on .\u ~: st 11, 1 ~4 . The . onolulu Cha ber of Com merce ad an 11 .. portant part in t e draftinc of t : is le c is- 1 t · o .,., , ~ n d S: _ ·e c : e 1 s , b nv·tation , was : re cnt at the l ~s t tr e o t_e ~eeti n~ . T~ s,, e acted 1it, the Cha. n t __ e ban in _., act, · 1 Lic ._ ,,as con i ered a T t 1 .. 1e ~01 o · ,.... f'"'iV\ • 1 · .. n 3 , e ...... r , ~..I re . .,. is associate ·,. , I • s1ip n _e r the ~_m. ne.e of Claus Sprec :els and Co□pany, 1 0. s 11 f r t :c 1 urpose of carryin ·> on a n : of Sa v · n s an . ... _. De1 10s 1 ts , for trarisactin . _, a . eneral Ban ~ .. in r a .d .. \. - ch n(l"e b sin6 s .u3 l ~:e cu · · ve Docu . ent f+7 , _ , . 187 . Ale .. ~and.er conti1.:ued by s.J- t · n2; t ot Cl . . us S) rec' ls tooL tLe f rst stee.□er for ~,.o .olulu .. ~ - 11 e l co.rned of t e defeat , and that "on is a r riv,:-, 1" t e u. iii .- 2. s 1 u e - - - ~ ,.., ~ 1 of st ran . e oaths , a :id .. q n y ,., re u: e.. . ~ 1 \• T • '' 2 ~-u r k. en -a 11, " r:1 _ e . :aw a i 1 a n Yi n s do . , 1u74-18 9 3 , " lJ • 4 7 • S:Jrec 1 :els was i:1resent at tne July 16, 17, 18, 1 84 meetin...:,s acco in ;-- to infor!i1ation in _) . 78 as tal:en fro□ t e Cha□ber of Co _, ere I- :1 nut e or k .... o • 1. 3m e · or s oted are fror:i t e 11 5an' ~in __:) .I. ot1.ce" publisl1ed in t _e Daily Pacific Com t.ercial Advertiser, April 2v , 1885, as cite in .-: 1y,:endall , "T e .. !t")•waiian Kingdom , 1874-1893," • 44 . .. 51 Opened on 1 J !ay 4, 1885 , it ·was well received in Honolulu, for it was reco~n1zed that another bank would be a beneficial feature in t~e economic life of t he kingdom . 1 This institution was really the second bant tha t Spreckels established in Tionolulu, but the othe.t' 1v~ras a short lived institution apparently established to aid in putting the ~1aiian silver coins into circulation. 2 · Sprecrels was at the pea of his power in Hawaii in the year 1 85 . He was th island's largest su~ar producer, and he controlled t e whole island cro~ of suGar with the exception of s _all lots sold to 0 rocers . Te domin ated the carryin trade between the islands and the Pacific coast. The total included five Ha\·1aiian , one Ger an, six Britis , one l\orwe -ian, and 126 American. Ei~ ty-five of the American vessels were either owned or controlled by Spreckels.3 He was the most powerful man in the islands politically because of his influence over ~ in Yalakaua . A cabinet unacceptable to Spreclels had !Kuykendall, "The _awaiian Kincdo1, 1874-1893, 11 pp. 44- 45. 2 rb1a ., p . 43. He points out inn. 76 that he was unable to find t1e date on which this first banl went out of existenc~, but a "statement in the Ha\-1aiian Gazette, June 11, l8b4 itJdicates 1 t v1as still open at that ti 1e ." "Z .J"The Treaty, the Advertiser, l• Ir . Sprect:els and 'Dis- cri ination 1 ," Planters . onthly , IV, 308-311, 11arcb., 1886. These notes were furnished by Dr. Kuykendall . 52 little chance Df survival at this time. In fact, as late as July 3, 1886, Mr. James H. Wodehouse, in his report to his superior on affairs in Hawaii, stated that Spreckels had Just caused the dismissal of the old cabinet and had constituted a new one more than ever under his influence, many members of which had had only a brief residence in the islands. This new cabinet had been constituted in spite of the fact that this late ministry ••• had a large majority in the House, none of their measures had been defeated, no vote of confidence had been passed or indeed attempted f gainst them and yet they were suddenly disbanded. The reason for the dismissal, he continued, were generally supposed to be that Mr. Spreckles (sic) to whom the Government are largely indebted, wanted as security for his ad vances, a lease of 99 years of a large wharf, and the adjacent water which would have been virtually a sale, but that the Minister of the Interior would not agree to it, and hence their dismissal was called for, and the wh0le Cabinet were asked to resign. The town is full of rumors of the lease of the harbour or a portion of it to Mr. Spreckles.2 He continued with this observation. People knowin8 th&t the present Cabinet is largely composed of' confidential a gents of' Mr. Spreckles (sic) are suspicious of covert designs •••• 1 Wodehouse to "My Lord," (No. 18. Political & Conf'l), July 3, 1886. Foreign Office and Executive, British Consular Records. Notes furnished by Dr. Kuyken6all. 2 Ibid. (.:.) • - 53 It is useless now for I1r. Gibson to talk about the independence of the H. Kingdom. The King is no longer a free agent--l-1r. Spreckles (sic) 5oes about saying that ne 1s the real Kin 0 as the Gov't. owe him money which they cannot apparently pay , and that he has a right to remove Ministers , if he chooses. If he is not a Kin Yaker he is certainly a Cabinet I~ker. In a letter shortl>r afte1"' this, ~rodel1ouse informe his su perior that Spreckels l'lad denied the report that l1e was demandin~ a ninety-nine year lease of the wharf. He said further t hat Sprec,:els had induced t he IrinG to send a messa 0 e to t,1.e Le5islature recom1:1e11din economy and re trencnment, but that the Le3islature "continues to make appropriations that Sprec~ .. els consideras extrava 6 ant and ~ useless."~ In furthel"' comments in the same communication he ·stated: ~r . Sprec~les (s ic) leaves by this Steamer for San Francisco, not well pleased witl the present condition oD affairs, as I am told that es id to a c;e 1tleman here ' you are 3lad at t, .. e idea of 0 et tin . rid of m but you vrill probably very soon \rv~ sn me bacL a 0 ain' and I thinlc myself that as soon as the pressure is Ni t,1drawn, it is but too likely that t 1 e KinG and his -inisters will revert to t_eir old course of extrava ence (sic) if they can succeea in raisin- money . It is possible that 1 - ~r . Spreckles (sic) may refuse to make any further advances and under )re sent conditions, no money can be obtained from any l·rodehouse to "I-y Lord," (1T o. ln. Politica l an Conf'l), July 3 , 1886. Forei Pn Office and Exec t·ve , Britis1 Consular ecords. _ ,ates fur nis,1ed by Dr. 1 uy · ~ e ndall. 2 -b: . , ( ~ J o • 0 0 • .... o 1 i ·u •• ca. 1 ) , Ju 1 y 31, 18 86 • ., 54 other source. 1 Spreckels' position was still stronB, but already the re bellion had set in. They ar 1886 was a fateful one as far as Spree tels ' econo□ic position in the islands was conce~ned. Some of tl1e nlanters contracted \'• Ti tl1 t 1 1.e American Su ·ar Refinery in San Francisco to sell it t 1 1eir su 0 ar crop for the next t1.ree years. Thus it was estimated that $preckels con trolled only about 20,000 tons of the island production , w1ile the rival refinery received about 55,000 tons after tis contract. 2 In addition, the rebellious planters were favoring other than Spreckels owned vessels in the carryin5 trade. Economically, Sprec~?els' 11.old was lessening, al thou0h he \·ras still the most po111erful fi : :;ure in the economy of the _ringdom . Politically, Spree els also suffered a setback in 1886 . Spreckels had fur 1ished □oney to the Hawaiian K1n~ ~om for yearr}, and the brealt witl1 KalaL.aua occurred over t e ne~otiation of a loan. The loan bill had been 1ntro- I t, odehouse to ". 1 '1y Lord, " l r. n6 . 20 , Political), July 31, 2 " _ e Treaty, t _e Advertiser, -Ir. Sprec Lels and 'Dis cri mination'," Planters l• Ionthly , N, 308-311, 1 - 1arch, 1886, p . 309. Furnished by Dr. Kuykendall . A spokesman for the Am erican Su :;ar Refiner/ , Henry C. : ott, _ __ stated in 1890 tat t~ ey ~recessed two-thirds of the island crop. San Franc· sco Chronicle, lJ 1arch 2 , 1890, P, 16. 55 duced early in the 1886 legislative session, and it was expected that the money would be obtained in San Francisco through Spreckels. This bill, sanctioning the borrowing of two million dollars, had already passGd the legislature when Spreckels unexpectedly arrived in Honolulu with an amendment to the bill in the shape of a restrictive clause which read as follows: Provided that hereafter no bonded debts shall be incurred nor any bonds issued prior to the ma turity of the bonds issued hereunder, unless provision be first maae for the payment of bonds issued under 1 and in accordance with the provision of this act. This amendment, accordinb to Gibson, had received the re luctant approval of the cabinet and the King, and he thinks it w~uld have been approved by the Assembly, but Mr. Spreckels on one or two occasions, and es pecially at my r6s1dence on October 12, 13th ven tured to express himself in such a dictatorial manner to His Majesty in the presence of several members of the Assembly--sayin~ that his views must be carried out or he would 'fight' and exclaiming that this meant a witholding of financial accom modation and immediate demand for what was owing him--that he aroused then and there a determination on the part of the native members present to resist the dictation of 'ona miliona' (Mr. Spreckles), and they vowsd, to see whether their chief Kalakaua or Mr. Spreckels were king. This occurred durine the noon recess of the Legis lature and at 2 P. M. of the same day the op Jo s1tion t o the proposed amendment of the Loan Act IGibson to Carter (No. 25, Confidential), Foreign Office & Executive Box 110 (Minister & Special Commission, Washington), October 22, 1886. Furnished by Dr. Kuykendall. , ••• J 56 was open and manifest. This amendment devised and insisted upon by Mr. Spreckels was voted down by a large majority. It will be claime~ that there were other influences at work especially tat of parties r epresenting London Capitalists. The influence existed and had been brought to bear to some extent on the Govt, yet I can say positively that this influence had ceased to command attention, that His Majesty and His Ministers had distinctly decided to accept Mr. Spreckels' amended Loan Act as trans mitted from San Francisco by him, and that they had agreed to pernit the loan to be floated by his agencJ'". I wish to repeat to your excellency h . ., t it was through Mr . Spreckels' offensive dictatorial man~er arousine the sensitive native members to indignation, that these rran ements were thrown aside at the last moment.l Thus, Spr eckels' close association with the Kin8 came to an nd in October, 1886. 2 Meanwhile, the Reciprocity Treaty, which was original ly negotiated for seven years, had a e,ain come up for consideration in 1 82 . Eastern refiners had opposed it from the beginning and had been propa ·andizing for its re peal. Spreckels, however, had found that the treaty had been beneficial t0 his interests, an so he had changed his position entirely fro m that of opposer to d efender . In the effort to perpetuate the treaty, Spreckels and his partner IGib s(,n to ~ Carter , Octo·cer 22, 18b6 , F'oreign Office and Executi T e Box 110 (" i n . & Spec. Com., ~ vashington) . Fur nished by Dr . Kuy kendall . 2w. D. Alexander , i n is r sume to Commissi oner Blount , stated: "~r. Spreckels called on the King, r turned all his decorati ns , nd shook off the dust fro his feet." Ex . Doc. 47, p . 191. Spreckels stated at a later date that he hadwithdrawn from all politics in the Islands in 1886. 57 F. F. Low journeyed t:> vlashington to exert their influence in behalf of its continuation. The main West Coest critic of the treaty was the Sa~ Fra.!!.2isco Ch_roni~l.~, and Spreckels answered its contentions r ather effectively, although he could not silence it. Just how effective the efforts were could not e ascertained. However, the treaty was not ter minated as the eastern refiners desired nor was it resigned as the we stern roup wished. When in 18 7 it was r passed by the Senate other c ~nsiderations than sugar were in volved • 1 eanwhile, Spreckels had been investit ating the possi- b111t1es of et su ·ar reduction in California, and he en- tered the beet sugar field by establishing a b eet SU b3r factory t ~atsonville in 1888. 2 In addition, at this time the sug r trust began their attempt to force him fro the dual roll of pro ucer and refiner to that of producer only, and this fight was to occupy his efforts for several years.3 Ise e supra., pp . 33-4, for Spreckels' ori inal stand on the treaty. See infr ., pp. 114-115, for Spreckels• st nd F er he began his withdrawal from the i.salnds in favor of California eet su gar . Spreckels was consistent although it may appear otherwise, since h e sup~orts the tre ty when it i s to his financial advanta pe and o~; oses it when it p ~ears fin nci 1 y disadvanta eous . 2see infra., p J . sugar venture. 100-126, for a discussion of the bet 3see infra., pp . 79-99, for t '1e discu "'Sion c0ncerning the Spr eck ls--su --·a r 'I'rust fi ht. 58 Moreover, as previously mentioned, he had broken with the Hawaiian King in 1886. Therefore, from this period on there was to be a gradual withdrawal of interests in Hawaii with a corresponding increase in i.nportance of his Cali fornian interests. This shift of interest was reflected in his idea on reciprocity with Hawaii, for he r~verted to the position taken prior to 1876. The McKinley Tariff of 1890, by placing SUBar from all countries on the duty free list, did away with the advan tage the Hawaiian planters had enjoyed since 1376. How ever, the policy of protecting American industry was not abandoned, for a bounty of two cents a pount for American produced sugar was i~cluded in the bill. The effect of t his new policy on Hawaiian su ge r producers was almost ca tastrophic, for su8ar prices in Honolulu dropped from one hundred dollars to sixty dollars a ton. It is on the basis of the plight of the sugar growers of Hawaii that the eco nomic theory of the Hawaiian Revolution has its foundation. Although this theory has been pretty well exploded by later investigations, there is little doubt that it was a contri buting influence.l lJu.li.us w . Pratt, "The Hawai :_ an Revolution: A Re- In terpretation," The Pacific Historical Review, I, 3, Sept. 19-; 2, p. 274, (Hereinafter cited as: Pratt, "Hawaiian Revo lution"). This article contains one of the best short dis cussions and interpretations of the revolution to be found. C:> 59 On Tuesday, January 17, 1893, through a bloodless cou£, Queen Liliuokalani was deposed, and a provisional govern ment was established. This provisional government, which in the following year gave way to an Hawaiian Republic, had the support of Spreckels at first. Mr. L0rrin A. Thurston , who with William R. Castle, William C. Wilder, Charles Carter, and Joseph Marsden arrived in S&n Francisco on January 27, states in Memoir~ of the Hawaiian Revolution that Claus Spreckels called on the Commission to express his hearty support of its errand and to tender his private car for the overland tri p . Needless to say, the offer was not accepted.I Spreckels told a different and more plausible story of this meeting and his support of the revolution at the start . He stated that when the Hawaiian Commissi0ners arrived, Thurston sent him a message asking him when he could see him. At the m eetlng which followed, 1hurston, according to Spreckels, stated that under the new constitution the Queen was to have had the appointment of the Supreme Court Judges and one-half of the i obles. He further stated that she planned to confiscate all the property of the white people ,.. and would deprive them of their vote, and thus the natives 1Lorr1n A. Thurston, Memoirs of !he Hawaiian Revolution, edited by Andres Farrell (Honolulu: Advertiser Publishing Co., Ltd., 1936), p. 283. would control everything. In view of this I said that if that was the case it was right to form a provisional Government. Then the Com missioners and those interested in Hawaii met in Parlor A of the Pal ace Hotel and it was the senti ment that they were not for annexation unless some pr~vision was made for importing labor, something we must have in Hawaii. Well, the developments afterward proved that Thurston's statements were untrue, and when he and the other Commissioners got to · wa shington they did 60 not carry out their intentions in regard to labor. They let everyt hing go in the interest of annexation.l Spreckels' interest in the Hawaiian situation caused him to journey to the islands in April. He arrived in Honolulu on April 18 , and a ccordin ~ to the ~lount report, the annexion ist forces immediately attempted to enlist his aid in fur therin their objective. Three days after his &rrival he call ed on Commissioner blount. During the course of their conversation, Blount as ke him i f he had ha d any communica t ion fro ! M r. Stevens, the American Minister. The answer being in the affirmc tive, h e w s asked t o sta t e what the message was. Spreckels' reply was tha t He s ent d own on Tuesday about 3 o'clock, whether I w ould b e kind en ~ugh to come u p to his hous e to s e e him. I took a cRrriag and saw him at 4 o'clock tha t Tuesday aftern oon. He t old me th 0 t Mr. Parker had no influen ce wit t he Queen, but that Paul Neu mann could control her, and, if I w~uld, I c~uld · 1 ,an Fr ancisc o Chronicle, July 27, 1893, p. 4. This ~ta eIDen t w s contained in a n intervi ew iven by Spreckels u pon his return fro Hawaii. At tha t ti .ne Spre ckels had b e co ne very pro-royal i st and anti- annexationist in his vi ews. However, the l abor problem wa s t he crucia l problem .. 61 control Paul Neumann; that Paul Neumann tell the Queen that she be in favor of annexation, a.nd tell the Kanakas, who follow her, to go all for annex ation. He said that he expected to be here onl y thirty or forty days, and he wo ~ld like for a nnexa tion to be before he left. Some words to that effect. 1 Blount confronted Stevens with this statement, an he did no t en the informa tion as e,iven, althou 8h "he said he thou ght Mr. Spreckels misun ~erstood him as to his declara tion that he wanted annexation before he l eft." 2 Spre ckels opposed annexation a l most from the be inning on the grounds tha t the exclusion l a ws of the Unit ed States would pre vent the planters from securing su ·ficient cheap Asiatic l abor to J per ate their plan t ations. Rumors were cu r rent as SJon as he arrivea in Honolulu tha t he was for forming . Republic instead of annexation. The Chronicle avers tha t on April 25t h he called a meetins of the plant ers a nd ~utlined o pl an for the creation Jf a Repu blic, but tha t the plant ers were cool to t he idea preferring annex ation t o the Unit .d Stat es. 3 Thurston, r fer-rin._ to t his to h i m as f a r a s annexation was concerned, for it meant the di f ference between operating a t a profit or e lo ss. lMr. Blount to ~r. Gre sham, April 26, 1893, Ex. Doc. No. !fl_, p. 14. 2Ibld., p . 14. 3 Sa n Francisco Chronicle , Ma 15, 1 93, in an editori ol titled" H w aiian Annexation." 62 meeting with the planters, wrote that Spreckels pointed out that the need for Asiatic labor could be fulfilled under an indepe dent e,overnnent, ,.nd, therefore, the planters ' in terests lay in inde endence. In view of this, they should a band on the annexation movement. 'I·hur ton cont inu d by stating that ~ r. J. B. Athert:)n, a member o · the firm of Castle and Cooke , su ar ents in Honolulu, replied to 1r. Spreckels, expressing t e pr~ctic~lly unani- ous ft lin o1 t.e sear pl nter, in substantially these w~rds: 'We d it, r. Spree els , the o -ic of what you say. But you do not live in Hawaii, and your sole int rest here is a inancial ~ne. The rest of us do live here, however , and our interests in wa11 is not onl J a financial one, but we have a person 1 interest as well, and we wJuld prefer a littl less money and a little more peace. We are, therefore, unable to accept your su gestion.• 1 1hurston records that Sprec~els became very angry over this st nd, informin the planters th he wJuld support the r stor,-tion of Queen Liliuokalani, and that fr ; J1 that uate he was an open and avowed ro · olist. 2 This is in direct variance to statei ent Spree els ma · e to -n Associated Press Corr spondent end fil d frJ 1 _o olulu on pril 26 . hi i~ ervi ew h's e ted : I was not here when the revolution broke Jut •.• , R i c1 ! r .. V l~ C 1 e .. 'J \1 l'1 t., ".) in.,. _:, .J t i . t t t_. •• f(l . ~ ~ I i.11. l r3 !Thurston, Memoirs of the Hawaiian Revolution, pp. 88-89. Thurston was in Washin.ton at this tiille, so his information is based on hearsay. 2 Thurston, Memoir~ of !he Hawaiian Revoluti.QQ, p. 89. 63 a link or two in the chain, my plan is not yet definitely outlined. The labor question is the all-important one and constitutes my only ob j e ction to annexation. Whites could not and Kanakas will not work in the cane fields. Negroes have been spoken of as laborers, but it is impossible to keep t hem in the country; they always w ant to go home. The contract system will not be toler ated by the United States, but that system is es sential. The monar chy cannot be restored.l The importance with which Spreckels viewed the labor ques tion is further shown in this interview with Commissioner Blount. Q. Could the sugar cane be grown here without cheap contract labor'& A. No. Q. Suppose they coula n ~t get it, what would be the condition'? A. The y would have to close the plantation. • • • • Q. Those of them who ~re declaring themselves in favor of annexation, how do they look at the labor question in connection with annexation? A. - They think that the Unit d States will make a diff erent law for the islands. If' they could not get labor they don't want annexation. Q. But they are satisfied that the y will get such legislation? A. Yes, sir; they think and hope the United States will do that. • • • • Q. They think in that way they can evade the labor laws of tne Unit& d States? A. Yes; t hey think they can get ar~und it. My opinion is that they can not, but tney think the~ can get around the United States laws. President Dole called me the Saturday before last and asked if I would be kin d en- :,ugh to go Isa~ Francisco Chronicle, May 4, 1893. interview t0ok place following the meeting ers. Spreckels was anti-annexationist but at this date. Note that this with the plant not pro-royalist 64 before the ministry and talk the labor law with them on Tuesday. I went there and I asked President Dole whether he had studied the im migration laws an6 whether he found that I was correct. He answered that he found that I was correct in that way. ' Eut ' he said, 'I have belief that the United States will give us a separate law that we can get laborers here.' Q. Did that idea seem to be in the minds of other members of the cabinet? A. Yes; that the United States ~111 give them any thing they ask for.l The exact date on which Spreckels changed his mind con cerning the restoration of the monarchy could not be ascer tained, but evidence points to the fact that by May he had become pro-royalist. In that month Spreckels asked pay ment of the 95,000 which the government owed him, although supporters of the provisional group claimed that he had agreed not to press for the money when it became due. How the wealthy men supporting the government advanced the money and Spreckels was paid. 2 Shortly t ereafter, c. w. Wilder, son of Vice-President Wilder, wa.s appointed Consul General at San Francisco to succeed F • . s. Pratt, a royalist. As the Chronicle stated: - Pratt, although a royalist, was kept in office by the provisional Government at the request of Claus IExecutive Document 47, pp. 507-510. This interview be tween Blount and Spreckels took place on June 5, 1893. 2san Francisco Chronicle, June 19, 1893, p. 3; Billam Walk'er-; "Claus Spreckels, The Sugar King." Spreckels. Now, however, that the Government is no longer under obligations to Spreckels it has been thought best to have such an important post filled by someone in sympathy with the annexation movement.l 65 Spreckels further showed his dissatisfaction with the Pro visional Government and preference for the Royalist group by giving an elaborate dinner to which only Royalists and a few naval officers were invited. 2 June was an eventful month as far as Spreckels and island politics were concerned. A Royalist conspiracy was discovered, and three men were arrested and brought to trial. Thomas Walker, one of the conspirators, testified "that the royalists had good backers in the person of Claus Spreckels and James Campbell." A. s. Prescott, a witness against Walker, .tated that Walker had told him that Claus Spreckels was to assist by givins the royalists $1,000 ,000, and Campbell was to give $500,000. However, nothing was developed showing any grounds for the usE of Spreckels' and Ca.mpbell 's nameB.3 Spreckels' support of the royalists did not go un noticed by annexationists, and he received a subtle threat lsan Francisco Qh~9nicle, June 19, 1893. This has a Honolulu date line of June 10. 2 Ibid., June 29, 1893. 3rbid., July 7, 1893. 66 of confiscati~n of property and anot~er of ass8ssination. 1he confiscatory threat, never sanctioned by the Govern ment, was contained in an article in the Hawaiian Star . The rumor was current that Spreckels intended to ruin those planters obl16ated to him financially who opposed him on the annexation que~tion . The comment, an indirect threat, suggested "that if Spreckels does not stop meddling with Hawaiian politics the Provisional Government might cause his arrest, confiscate his property and send him out of the country." 1 The threat of assassination was discovered on the morning of June 22. The thre twas in the form of a placard ornamented with a skull and crossbones posted on the gate of the Spreckels' residence and stated "Gold and silver will D:)t stop lead." 2 s· reckels immediately reported tl1e incide nt to th · overnment, and police ·nen were assigned to guard the house. oth the Annexation club and the Government disavowed any connection with the threat, but Spreckels alwaJ s believ -d tha there were plans to assassi nate him as well as other prominent royalists. Thurston IAs reported in the §a~ Francisco Chronicl~, June 19, 1893. 2Ibid., July 6, 1893. Honolulu, June 28 , dateline. An interestin stJry grew up around tnis incioent to the effect that Spreckels was so firghtened that he immediately locked the house and sailed for home without even ha.ving the breakfast dishes washed. It was almost month after this incident th t Spreckels sailed for home . 67 wrote that some ten years later when in San Francisco I happened to meet him. He did not recognize me, and I said: 'Good Morning, Mr. Spreckels. This is Mr. Thurston of Honolulu.' Glaring at me, he ejaculated 'Oh, Yes. You fellows down there wanted to shoot me, eh'Z' 'Oh, No!! ' said I. 'Nobody in Honolulu wanted to shoot you; that placard was simply a bluff.' 'Yes, you did!' he insisted with great emphasis. 'Yes, you did! Yes, you did!' Seeing that his mind was made up, I spent no further time in discussion.l Spreckels arrived in San Francisco on July 26. When he boarded the steamer Australia in Honolulu for the trip home, he was presented with a gold mounted cocoawood cane. An inscription on the cane read: "From your fellow citizens doomed to die at the hands of the murder society of the Annexation Club." On the cane were inscribed the nam es of the people presumed to be doomed to assassination, and thus it a ppeared that they were the donors. However, among the list was the name of Minister Blount. Blount, on learning of this, filed a protest with President Dole. The Government then asked C. E. Creighton, who had made the presentation, to make an apology to the Minister, and he did write an apology. H~wever, since it was not en tirely satisfactory to the Government of Hawaii , it was r eturned to him, but the Royalists refused to make any further concession. Blount was asked about this incident ---rThurston, Memoirs of the Hawaiian ~evolution, pp. 88-9. 68 when he returned to the United States in August and stated: I cannot help what foolish people may do. My name was used without my knowledge or consent. I knew nothing of it until after it was done. I never felt any personal uneasiness in the islands; never felt that I was in any danger. You must know that I am not responsible for newspaper reports or what contending factionists may say.l . Spreckels wa s in Washington in September. An article in the Chronicle tells of a dinner party given to him by the Oxnard brothers. After the dinner it was reported that Senator Perkins of California suggested that it might b e a f OOd i dea to annex Hawaii to California. SprecKels 1 reaction to this suggestion is unknown, for it was reported 2 tha t he made no comment. However, since this would not have solved the l abor question, it hardly seems likely that he wou. d have supported such a move. The annexationist were unsuccessful in their efforts to make Hawaii a part of the United States, and the Pro visional Government was succeeded by the Republic of Hawaii. However, Rudol ph Spreckels was. accused of being conn e cted with the plot to overthrow the republic and re store Qu een Liliuokalani to the throne in 1895, but he lsan Francisco Chronicle, Aug. 16, 1893. 2 Ibid., Sept. 21, 1893. Washington dateline of Sept. 20. -The reason for the Washi~gton visit could not be as certained, but it probably CQncerned sugar since the Oxnard brothers were there, also. ,. 69 denied any connection whatsoever. When asked about this incident, Spreckels claimed ignorance of what his son Rudolph might be doing, but diG state that "the present Government 1s not founded on a firm and substantial b sis. ,n. Spreckels, in 1895, stated that he had been neutral between the annexationists and the royalists. 2 Thie state ment is at variance with the facts, and certainly the annexationists felt that he wa s ~n of the main obstacles to their cause. The Chronicle's special corres pondent in Honolulu wrote, December 8, 1894, that one of the most serious obutacles the Government is now battling with is to m & et the obj vction of the minority of planters to annexation. 1he m ajority are in favor of annexation, but t he influence of Claus Spreckels end the English sugar planters is bein - brou ght to bear in the hope of continui~g the present form . f Governnent, which Mr. Spreckels decl ared a few months a o to b his ideal of a Hawaiian government for the sugar planters.3 In any event, annexation was defeated for the tim e b ein, and he could turn his energies elsewhere. The San Francis co Call, April 27, 1897, published lsan Francisco Chronicle, Feb. 8, 1895. The quarrel ----- - between Rudol ph, Clau s .Au .ust, and their .1.·ather had already occurred. They were not to be reconcil ed until 1906. See infra., p. 236. 2rbid., Sept. d , 1893. SprecKels pro bly hones t l y felt t na he had b een n eutral. 3Ibid., D ec. 16, 1894. -- 70 Spreckelsc views on why the Reciprocity Treaty should and would be brog tea . Amon the 1 ·nificant facts in this di course was toe st~teme1t that the presJnt Hawaii·n Gover· ..... c .. t d ever thing to enc · ra te trade with Canada , Germany, and Eneland at the expense of the United States , and that "they have even withdrawn the subsidy formerly paid to the Oceanic Ste mship Coill~any, an American line which h .s done more to develJp the islands than any other transportation company . " 1 Spreckel s I interests i~ tl1e islands were bei g liquidated in favor of his California beet su ·ar enterprise; his fi ht with the trust was over , and the planters were again forced t m rket their sugar throu '1 hi n; annexation was defeated for the time being ; and so , since r ciprocity was not benefiting hi1· , he began to propa an iz ~ a ~ainst it . How ·ver, tnis blast at re ciprocity did not o unchalleng e d y tne merchants of San Francisco . The merchants favorable t~ the continuation of the treaty ado ted a reply which was signed by Louis Saroni a candy merchant na old enemJ of s -rec.Kels . 2 'Ihe reply , as would be expected, reviewed the history of the benefits Isan ·Francisco Call , April 27, 1897, as cited in Louis Saroni, 0 The Hawaiian Reciprocity Treaty , " p . 1 (San Francisco : May 1 , 1897) . 2see infra. . , p . 90, for Saroni's e rlier brush with Spreckels . • 71 the treaty had brought to Spreckels and to the Pacific coast. The document rightly stated that the treaty should be considered in the light of public inte est and not pri vate interest. However, the merchants fell into the error of assuming that their private interests were public in terests just as Spreckels had done. They took the rather novel position that the competition coming frJm Hawaiian sugar would benefit the b ,- et sugar industry and continued by stating : And if it be true, and if it were possible, ••• that the 200,000 tons of Hawaii sugar will be thrown upon this market to the great loss and detriment of the entire beet sugar industry, which we positively deny, why even then must it not necessarily be shown that ther industries will thrive by virtue of the r educed cost of this sugar, and that the American refiner and the American laborer will find his occupation by reason thereof,l Spreckels' interests were certainly no less public than these interests of those wh~ wished the propagation of re ciprocity. Opposition to Spreckals was developing from another source, also. The Hawaiian planters were showing signs of rebellion a gainst the Spreckels ' monopoly. Spreckels had begun his buying of Hawaiian sugar by payins the planters the price of Manila sugar duty paid in San Flrancisco. Thus, the planters received the benefit of the duty remis- lsaroni, "'l 1 he Hawaiian Reciprocity 'l'reaty," p. 7. fl, "' ... 72 sion. The Manila basis was agreed upon in substance when Spreckels had agreed to take the entire crop of the plant ers at a price which would be equal to that of an equiva lent quantity and grade of Manila sugar delivered, duty paid, at San Francisco. The price of Manila "extra superi or" sugar was telegra phed to San Francisco daily. To this quotation was added six dollars freight, 2 per cent 1nsur- .. ance, the cost of sixty days' exchange, and a specific allowance for the remitt~d duty. This system of computing the price of Hawaiian su 0 ar gradually became the custom, althou gh Spreckels stated that he was overpaying the planters for their sugar. Spreckels based his idea on the fact that the increased polarization of Hawaiian su gar caused him to pay thre e-eights of a cent extra for sugar that brought him only one-sixteenth cent per pound. When this differential was computed on the basis of· one year's crop it amounted to over $350,000--a sum which neither Spreckels nor the planters wished to forego. Finally, in 1892, Spreckels refused to buy the sugar on the "Manila basis." Instead, he would only bu y on the basis of Cuban quotations. Certain planters refused _to accept the argu ment that they were being even slightly overpaid and com bined to refine their own sug-ar in San Francisco.l. P .ppa- ' I~eEorts .Q.f. Committees .Qf the Senate .91, the United 73 rently this rebellious venture was short lived, for according to a report from Honolulu -in 1895, the planters had perfected a plan to break away from the trust and Spreckels if they did not r eceive more satisfactory terms when the present contract with them ran out in 1897.l Therefore, J.B. Atherton, H.P. Baldwin, and C. M. Cook ca.me to San Francisco to try to negotiate a. more favorable contract with Spreckels a.s early as Nove1 nber of 1895. 2 A contract was made, but the terms continued to be unsatis factory to the planters. Under the terms of the contract, they were paid the New York price for their sugar less a certain per cent. This differential had been one-fourth cent per pound or five dollars a ton in 1892 when Spreckels discontinu ed the Manila basis. This was increased during the following years until it finally reached twelve dol- §tate~, 2d. Seas., 53rd Congress, 1893-94, Vol. II, No. 227, Hawaiian Islands (Government Printing Office, 1895), p. 111. {Hereinafter cited as: Senat e .B_eQort li£• _g.?1_) • lsan Francisco Chronicle, Aug. 2, 1895. Honolulu date line of July 25. 2Ibid., Nov. 18, 1895. Atherton was a m ember of the firm of Castle & Cook; Baldwin ran a bie sugar plantation; and Cook was a member of the firm of Lewis(&) and Cook. .. 74 lars and fifty cents a ton.l Since thts price differen tial amounted to nearly #2,000,000 per year, the planters' dissatisfaction can well be understood. his situation was endured until 1905. However, at th& t time, with the contract running out, the planters de manded that the penalty a gainst Hawaiian su gar s hould be reduced to two dollars and fifty cents a ton. This demand was r efus ed by Spr e ckels. Therefore, thirty-seven Hawaiian plantations combined to organize t neir own refinery agency. Thi s or ·anizati on, the Cal if' ~r nia a nd Hawaiian Sugar Re finery Corporation, located its headqu arters in Sa n Fran ci s c o and its r efinery in Crockett. The factory at Crockett had be en lea sed to the trust for $200,000 a year since 1903, for competition from this source was unwanted. 2 However, it has been in continuous o eretioo sinca 1906. Thus, opposition to Mr. Spreckels and the trust gave Cali fornia an oppositi Jn refinery which has grown into one of the largest refiners of cane sugar in the world. However, Spreckels had already anticipated this event. He had not been able to prevent the annexation of Hawaii, and he had 1 Ib1d., April 8, 1892, California and Hawaiian Sugar Cor poration, "How it Happened," ( pamplet published by the Califor n i a and Hawaiia n su ~ e r Refining Cor poration, San Francis co), p. 4. (Hereinafter cited as C & H, "How it He ppened"). 2sa n Francisco Chronicle, March 7, 1906. 75 constructed one of the larBest, if not the largest, b eet sugar factories in the world at Spreckels near Salinas. 1 The Spreckels' era had lasted thirty years. Hawaii no longer danced, but it is doubtful that either Spreckels or the Hawaiians regretted this passing of an era. I - See infra., p. 118. -- - ~--- ;.. - -- ------ -- .,,,., - - 76 •t ---· -- - . ' ...... _,.,, .......... ... ,., •• : .. , '"' ....... I . .. I ' ' •• ,, , ... ,. I I .... ,. '"·"'"'if '"· " •·· ......... , .... , - ...... .., .. , ,.... ,,.,. '- f,tt It 111,11 ••" ·• Ill rr,ottt J.o11flt•·11 ltt I• 1·111, .... ., ..,.., I,•. llllf tu ,tfltlltt .. •, t• ltt •U •r Ill •l.tlllft I ul lr,,.f It , ... ,_. •I • ... lltlf lo trri1111t .... , allfl 111•• ., •It-tit ,,I • •ot1t, .. I lat•_, th.I a.rt, t:"••I "'ttlll&,1 f,au • ·•• II all 11111"1 111 lllf ftf'•l,.,1 .. •• '4 tf,• ,,. ti •w1 ·. Mr ~••• ••· I• 11,,,,lt· ·• n, .. ,.., .,,. .... ,.,... I, , ,,...,..,, ... th,_,. ti" I t,eul.• l111tl1 llf• 111 lltf• Mo"lfll,ettt• In t •ft I, ....e ..... ,ti .. • .,, ' ... ,,1,• 11••1 (rum ,1 ... ,·loote,I• 1,, tf,,. '""" I • •••••• .,.,,·un,.., "" ,,...,,, .... ,,,,... •••tit"'· et,,,·t, • I .,. ,. '"' ,t.,•" " ' .......... . ... ,u .. , .... .. ," ,, ... , .• ,_.. '" 1,1. 11,,11 • ••. ,... • ..... , ,., ............. , • , ., ...... , ••. ,.,,,.... I" •••.• ,. '"" • I, .. '" . ' .... ..., .. "'"" .• '., " •.• "t, •um .....,-wt,i,- • ~•.•n••·· ,·r. R 1 •. ,,1.r1.r. ,. - • Spreckels' mills, r esidence, and cane cars, Hawaii. From Frank Leslie' ~ August 9, 1890 and furnished American Su ar Refinin Company, New York . by the • .. - .. 1 - I , • - - - - • • ~ ' ~ - . . • - - - • , - - - .. z = ; - - :. - - - . - • \ . • • . • 6 ~ • . . - .. - . - - - - - • C - "! - - - - a - ~ .. • • • ! : ... .. = - - . - - - ~ . - 'll : I • • • I • ":: - - - - • • "!. - - - . - • - - . . - - !! . .s - - ~ .. • - • • ~ • ": . - - • - - p • , - • - !'- C - C ~ . "' ,.. • ;. • - - • - - - - ~ = • - ~ • - s - . ,. .. :a a • • . - • - - - - - - ~ - • 1 ~ - C ':I, i . - - - . • .. , • , • . - . : - - : ~ ~ - ,. ' - - . - . - s l" - ~ • - • . :. - - ~ • • - -: ~ • • • • .: • - . - ~ • -: ! r - • • - .; - - - - - • • • • ~ - - • ~ ~ - - y . - ,: .,. !! ~ - C - • i • ~ - - " 1 : • - • - :. . - - . . . ::. - - - - - - - ~ $ '-: - - p ~ 'S - - = - - - - - - - - - - - .. ~ - .. - - ... - • ~ • - I • - - 7. - - . - - - . - . . - , . rl "I Cl) '"i ' "I I . . 9' U1 0 C: ,.,. /) CHAPTER IV SPRECKELS AND THE SUGAR 'I'RUST Claus Spreckels, as stated in the previous chapter, had become master of the sugar business in California as early as 1881. He was the Pacific coast's chief refiner as well as the leading. grower and importer of Hawa.iian sugar. However, Hawaiian su8ar cultivation had increased so much under the stimulus of the Reciprocity agreement that Spreckels began to refine more sugar than could be consumed in the Pacific Coast states. This surplus sugar was shipped eastward from California. As Sprockels' sugar neared the Missi~sippi River, it came into competition with sugars produced by eastern and Louisiana refineries. This competition eventually developed into a battle of survival for Spreckels' refinery. The challenger in this stru~gle was the American Sugar Refining Company of New York, more commonly known as the Su gar Trust. The American Subar Refining Company was organized in 1887 and controlled nearly all Atlantic coast sugar re fineries. Chief purpose of the Susar Trust was to increase IThe Franklin Sugar Refinery and E. C. Knight & Co., of Philadelphia were two large companies outside the Trust at this tine. However, the Trust had control of the market because of its overwhelming refining capacity. San Fran cisco Chronicle, Oct. 22, 1891: Mar. 12, 1892. 79 the margin of profit on sugar by monopolizing the United l States' sugar market. Spreckels' control of the Pacific coast market and his shipments of sugar into the l41ssissipp1 Valley region prevented any increase in sugar profit margin~ Two courses were open to the Trust: the Spreckels' refining interest could be integrated with the Trust; or, Spreckels could be driven from the refining business. Spreckels re fused the Trust's offer of association, for although he might have profited financially, it would have meant giving up h1s independence of action. 2 The first course of action being a failure, the Trust instituted a second course in 1888. The eastern refiners who made up the Sugar Trust did not fully understand Spreckels ' monopoly and how it was maintained. They had a mistaken belief that the monopoly was a direct result of the Hawaiian Reciprocity Treaty which allowed certain grades of Hawaiian sugar to enter the United States duty remitted. Spreckels' hold on the sugar trace in California had been established before the treaty had been made . In fact, Spreckels had fought ratification lsan Francisco Chronicle, June 14, 1894. Statement made by Theodore Havemeyer, one of the Trust founders, before the Senate of the United States . 211 sugar--Historical," (Loose-leaf note book 1n Spreckels Sugar Co. Office, Sacramento, California), p. 12. ... 80 of tl1 e treaty because he felt that it - would endanger his position. 1 Sprec{els' fears proved groundless , and within the next few years he found it necessary to increase his refining capacity. However, as the amount of sugar pro duced increased, the margin of profit per pound on sugar decreased. Spreckels controlled the Pacific coast and ' Hawaiian market it was true, but in order to retain this monopoly he had to pay the Hawaiian planters a price that would make it more profitable for them to sell him their raw su gar. If he had tried to hedge on the price, it would have been more profitable for them to have sold their raws dir€ctly to the grocery trade. Therefore, S~reckels paid the planters maximum price for the raw su gar and kept the price of refined sugars at a point which would not exceed the price of the raws plus a certain per cent. In fact, this policy kept raw ri-rades of su gar out of the grocery trade on the Pacific coast, while in England, for example, a large proportion of sugar consumed at this time was not put through a refinery at all but was sold directly to the consumer just as it came from the plantation. 2 ls _,, 0 •. e e supra • , p • J c.. • 2 senate Committee Report rJo. 227, "Hawaiian Islands," p. 112. This report contains an excellent discourse on the Spreckels ' monopoly and how it was maintained. 81 Another mistaken belief current amon~ eastern refiners \Vas tl--1.a t Spreckels was able to poclret t~e rera.i tted duty allovred under tl1e Hav1aiin.n treaty . They refused to believe tl1at 11.e paid planters the 1orn1al price for ra,v su.gars plus the rer:1i tted dtlty . Spreck:els' profi.ts were not as astro nomical as tho Trust believed , for it was figuring thnt he made two cents more profit per pound of sugar made than he actually received . Spreclcels l1ad to pay the remitted duty to tho plnnters if he were to retain his monopoly . 1 The planters themselves nade certain that they received the remitted duty, for by 1387 sugar e~{ports had risen to 212,763,647 pounds, 2 malting t: e sum involved well over a nil lion dollars . This slun v1as sufficient to pay for a vrell equipped refinery and represented the difference between a large or s110.ll profiJG to tl1e planters . Tl1erefore, Spreclcels p~id t : e rernitted duty to -eep tl1e planters fro_ establish ing tl1eir o\vn refinery . In fact , the basis for t_1e early contracts ~,ith I ... av1aiian gro,vers \Vas ·t;he price of I ljlanila sugar duty paid md delivered to San Fra.Ylcisco . Latei-• , when the margin of profit on sucar had been materially reduced, SprecL.els reft1.sed to continue buying on th.e I v1anila 1 senate Report No . 2 27, p . 110 . 2!v 1 r . Blount to . .. r . Gre,sl1am, Honolulu , July 17 , 1893 , Executive Doc~u ent 1J1., p . 105 • . . ·- 82 basis because he was paying an extra three-eighths cent for su . er which when refined would bring a return of about one eighth cent. This slight change resulted 1n a difference of some $350,000 in the total amount paid for the Hawaiian production of 1892. 1 However, Spreckels continued paying gro,·rers the two cents in rem1 tted duty, but the planters were very displeased with this new policy. In fact, this dissatisfaction was one factor leading to establishment of the California and Hawaiian Sugar Refining Corporation by the planters. 2 The Sugar Trust began its campaign to drive Spreckels out of the refining business by acquiring control of the American Sugar Refinery , Spreckels' chief competitor on the coast.3 The tremendous capital 4 of the Sugar Trust lFor an excellent discussion of the Spreckels ' monopoly and his relationship with the Ha\iaiian planters, see Ser te. e ort, .i:, :o. 227, pp . 103-117. 2 The California and Hawaiian Sugar Refining Corporation, Ltd., (Hereinafter cited as C & H Co.), 215 l 1 iarket Street , Sar: Francisco, alifornia be gan operating its Crockett refinery in 1906. 3 Techn1cally this company w snot owned by the Trust, but since the Havemeyer interests a cquired the stock, and H. o. Havemeyer was the president and moving force behind the su~ar Trust, the company followed Trust policy . Ircnically the American Sugar Refining Company was the old :say su~ar Refinery established b1 Spreckels and associates in 186. See supra., p. 9. 4 The Su ar Trust was reported to have had a capital of $50,000,000 until January, 1892, when the capital was elevated the American ~ef1nery to a position wnere it was able to undermine Spreckels' position both on the coast and in the Hawaiian Islands. In fact, when Spreckels' contract with the Ha·wa11an planters came up for renegotiation, the American Sugar Refinery was able to supplant him in many cases, thus cutt1n 0 do•, r n upon Sprecl els' major source of su ~ar for the past decade. Prior to this event, Spreckels had been processin almost the entire EaNai1an crop, but in 1890 1 he wes only refining about one-third of it, this third being grown on Sprec'-els' ot-1n plantations or those under control of his a ~ent. Spree eels had to take some drest1c action if he were to stay 1n the refining business, and he was not one to lose a decision by default. Spreckels' rise to dominance 1n the Pacific coast re f1~1ng business ~ad been achieved by explo1t1n every pos sible advantage. However, in this f1,.,11t, there was little if any advantage he could exploit. In fact, he saw very clearly that he would be at a continual disadvantage in any increased $90,000,000. San Francisco Chronicle , :Larch 17, 1892, p. 2. 1 Henry C. Iviott, a 3ent for Havemeyer and Elder owners of the American Sugar Refinery, stated in . /~arch , 1890, that the American was refining two-thirds of the Hawaiian crop. Contracts with the planters were for a three year period, and so loss of the Hawaiian supply was a very serious re versal for Spreckels. San Francisco Chronicle, r- .. arch 2, 1890. -·. 84 actions taken on the Pacific coast, for the owners of the American could recoup any of their losses from higher east ern profits. Spreckels decided, therefore, to extend the theater of conflict by building a plant on the eastern coast in the area under control of the Trust. Thus, the Trtlst ,.~ould 1ave to ta~te less profit on its Atlantic coast operations or allow him to profitably dispose of all the su3ar he could produce. Having decided upon this strategy, Spreckels proceeded to Philadelphia where he purchased a site at the foot of Reed Street fronting on the Delaware River. That the strate y was sound and the site exceeding ly well chosen was to be shown by future events. Spreckels purchased the Philadelphia plant site early in 1888. In May, he turned over the management of his Pac:fic coast business to his oldest son, John D. Spreckels, in order to go to Philadelphia to complete plans for the nevi refinery. As a partin- gestu·re- , about 800 of his em plo,"P.es and their •wives and friends surprised him with a reception 1n his honor. At this meeting, Spreckels stated that "it was his intention to fi 0 ht the trust on its own ground and demonstrate that it ,1as not omnipotent." 1 1 spreckels was deeply moved by this reception. The em ployees presented him with a silver plate up on which had been en sraved several resolutions than in g him for his "stand a 3ainst the ~u c;ar Trust as ta t~ en in the intsrest of . . .. ·' . ...,... 85 Shortly after tb.is recept.!..on, Claus Spree els and t_is fam ily departed for P iladelp ia 1here plans were co.plet ed for t,1e ne,.-1 refinery. Tl1e first of t e 20,000,000 bric t s used in constructin r ,. t·.Lis lant was laid - ~.n Au5ust, 1628 . The re~inery, t , e nost co.plete and □odern t~at money could Lu7, cost so lewhere between ·3,000,000 and $4,000,000 and had a re inin ~ capecity of 2 ,000,000 pounds of su ~~ r doily w : en co .plc~ed. me r ~f inery was co Jpleted and p t into opera ti ri • n Decc E.ber, lv89 • 1 T --_is r f iner/, t 1e Snrec :els Su -.:.,ar :rte t'.\inin s Go mpany of P 1iladelp ia, was i ncor orat d \·11th ':t5 , 000, 000 of pa id u cent of w1ich ras owned by c~pital stock, almost 100 2 ~-· Ir. Sprec 'rels. So.e 500 er .en Fere errployed 1n op rntin . the re f iner/,3 and t1e fi . ht for A erica 1 s su Ga r nar~et , no holds .L. ea rne s 1.,. his e mployees, expreosin D estee, and ~r at itude for 11s liberal spirit, kindness and ·u~tice, and wishin him suc cess 1 n , is ne\ e r1te rpri se. The ; ... orfJ i n5 Call, San Fra 11- c i s co , .. :a y 6 , 18 C 8 • 1 Lou·s1ana Planter, Dec. 28, 1 9 (Gutleben notes ); Frank Leslie's, Au 0 ust 9, 1 ri90 (Photostat furnished by The Arerica n Su ba r Refinin g Co_pany, 120 ~11 Street , 7ew Yor , 5, • . :. Y.). 2 1~ceordin - ) to reports :• "r. Sprec. 7 els owned ~,;4, 9✓9 , 600 worth of t e stoct" , and t·1e otl1er ~ ~ 400 was istr buted, ~100 each to C. A. Snrec ~els, Le1is S~rec-els , Peter A. s __ th, and ~harles Jatson . Louisiana Planter, une 21 , 1 90 ( ';rUtle"' en notes) . .. ·• ···- 0 C t' l~ ,. • ·Kt:I ..... \~I• TIii'. l~lll.!CTK\· . .. , •• ... . , .. 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I ~ .... 88 -:-.1ean ft1:1 , t e stru~,_;le 1.or the Pacific co1..-.st lar:et ho.d not la c;ced . n ~ov abcr 5 , 18u2 , action had been brou~ tint e Su~erior Court of San Francisco to have t1e fr net :se o t c A ericnn ~efinery Co., P-y f orfeited, on the crounds that its ca tal stoc ~ e1 the conduct o :ts business ~ad been surrenderea :nto tle ... nn ':'rust . 1 "'.e · 1spa!)er accounts of t,1is le c,a l bout care.l. lly re.!. ra ine i n i J. i ate d, a 1 t 1 o u £)1 a t1 u n no. .. ed la r er .., d co .. ~ en t t o one t 1 on c on c er 1 t at : s "" e 11 t· now n _ n t: : c · t y • It pc. d tl1e la 1yers a i - bore t e b rd.en of t e ~- osecut · on . 11 ~ _ et er t. action ,2s _nitiated uncert :n , for n o evidence was diccov ~ed to ear 0 1 t t ~e above ace sa ~ion, but t ! at Sprecrels was a:..,ed by anu ~oo~ advanLase of t~e situati n , t ere can be n doubt . Durin 0 t e next fourteen r::ion t :s , t : e case of t _e Peo, 1e o;. tl ... e State of Callfor a vers s t 1e A .1 ricnn Su,....c.r nefinery Co .. )en T ·1as nr ::...,uGd in t _ Su,)cr•ior Cou_ t o.J:"\ uan Fra ncisco . I') ., . d 0 1 • , udce ~di 11 io. r:i F . 1 :, n l lace, \·! ,. 7 1 000 8.11 • , ..i.. C • T 0 1 O Q 0. • ~ , .,) • eard t .. e cc.sc, , . .... 1 1S 89 1 decision declared the com·-any ' s fra tJ cl1ise forfeited . The decision was a ppealed to the u_re e ~ourt of Cnliiornia i r:::11.ediately , ut in uPi te of lc : al sta '"S •. d ap"":'eals , Judge - 1:'allace appointed a receiver for t l'1e refinery early in H'eb - 2 ruary . ~he re c e i ver , Patri c~ ~eddy , sto __ ed all de l iv rioo of ,~u ► ar to t11e com_ any ' s jobbers , and a sur·ar famine 1m Jediately developed in San ~_anci s co . 8losin 0 of the A erican ~e - in cry a .d t.e ecisi n of .. eceiver 1 eddy to s top all deliv ries of su ~··ar from its toe r-ave control of t~ e :!an , _.r(_ n isco suNar :~ r ~"et to the __, valif ornia _efinery . o:~ ·b rs ·-1 - re s oon out of su ._a r unless they were pre c els ' custo ~ers , a nd S_rec ~el 0 consiaered a · oL -er a custo er o ly if he ~~ad a:;r ed to buy a .d had en ~ uyi~ G all: is su5ar needs from t e J~li~ornia finery . I ac_, .:: i ion , Sp_"e c ':els . ad .re u ired 1 oo~ srs handlin is susar to pa y t.e ~rice o _ su :,ar on t, e d y of delivery and not t e price current on t e i ~y order~d . Since the date of el·very c ould be pi c ked by the r efin er y, this po] icy roved disadvanto.r-eous to s or.1e dealers , and t 1ey had ref sed t o uy on these -rms , preferrin G rather to supply 1 ~an 7r an ci s co vhronicle , Jan . 7 , 1690 . 2 Jud'e ~~llace a .d ~eceiver 4 dd y were ~u~ t~ of cont rn, t of court and fined : 10 Court of ca1·~ornia . The ·u ement 1as ecision . later adjudued by the .,upreme ive to one 90 1 tl1eir suc;ar needs from other sources . .. ow' ho\·.rever , 0 rcc~e1s r fused to honor nny orders rom th m, and the ··prec : els ' joob r refused to sell ther.1 SU ·-- (._) r, also. 2 Louis ~aroni and ~o. _any, a candy ma in firm in San Frcncisco, was one of the firms to \hich Spree! els and his ~o ~ ers refused to sell sugar . This firm's pli ~ht shows how the ·, allace decision affected fir s that ..: rec .. '"els felt hnd _n aidin ~ t e u~ar rust in its effort to ruin him . ~he roni firm had c~ased bu in ~ fr om the alifornia Re finery seve al mont s, efore tL e o rt decision . All su 0 ar used a be en pure ased fro the A1 eri~a n , be e use , ac '•ord- 1 to -~r. ~aroni, t e .. olicy of :: vin : to _ ay t e ... rice of su . r on t e deli very da inst ,:nd of t _e d worled t o his d_sa~vanta e in u t~ng ~rices on f ture eliveries . o ever, ...,losin'"'" of the A .. ar· can de ... ri e , 1 of _ · s su 0 ar - ~ply, a n ~ so, a_ ~lic t on w s i ade to the ~alifornia e f i r er >r a nd i t s o · e rs for n e d d s u . __ a .r • T 1 s a "? _J 1 i cat ion ae denied by t _e refinery since t he . ana ment did not car i der Sarani one o its custo~ers. ~r . ~ re ~els ' lack of '' _ a tr ... o t i s rn '' ad e · ~ r • car on 1 v er; i n i . nan t , for it ernt th this rof·ta le business\ ould have to cease 1 0 an ~r · co _0_ 1 _r_ o _·_c_l_e, ?eb . 22, 1890. 2 ee s pra., p . 70. t . 1 o era ion. It seemed very unfair to him that Spreckels 91 should adopt such a policy, and Sarani saw no reason why he should be made to suDfer any loss just because he patron ized a firm dedicated to ruining Spreckels' business. Sprec 1 i..els ' jobbers also refused to sell to the Saron1 com pany, althou ~h some jobbers did furnish small quantities of suga r at inflated prices . 2 At t_is time, the ~an Francisco 0hronicle, a consist ent o ponent of the preckels ' interests, 3 came to the aid of the ~aroni co□pany. Reporters were sent out to buy su c;ar, int ~rview jobbers, and advertise the situation. The report rs were unable to buy any Ereat quantity of su~ar, for tle jobuers were reluctant to deal with any of the boy- coted firms . o.rever, at least one firm, Ehrman and Com- pany, denied that it had receiv ◊d any orders forbidding it to sell to J r. Saroni . 4 ·evertheless , since the refinery refu_ed to sell to him , jobbers were reluctant to sell to 1 an ~r2ncisco ~~ronicle, Feb . 26~ 1 90. 2 I~ . d 01 • 3 The Jhronicle 's dislike of Spreckels oes back many r <= n rs. Adolph .:_ . Spre .~els shot one of its editors because of vhat he considered libelous a:id insultin attacks on I!lembers of the s: recL.els fa ily. Adolph was wounded by a clerk in the ne1spaper office . In the trial wh"ch followe~ Adolph was acquitted . 4 san ~ranc isco Chron·c1e , Feb . 26, 1890. 92 hir:1 , also , for there ,vas a feeling thr t their ov1n su_ ly r1ight be jeo )ardized if t ... 1ey did . To the q1)_estion , "how· is iii., . S Jrec .. els to L.novl \"T}1ether :rou dispose of sugar. to any of t_1.e boycotted f irrns? ', this interesting infoI at ion ,vas elicited . Oh , he ' s a sharper •••• You observe that all my barrels have numbers on them . 1hose numbers tally exactly Yli t l a tabulated list of cu.storaers on file at tle refinery . Tnen again since the boycott, as been inst1tuted , each barrel bears anotl10r Jrivate _1arl .... by "lhich it can be identi fied . To co plete t :,is system of surveillance Spreckels _ rob bly hii-'es men to spy around tl41e various boycotted stores to see \7hether they 11.ave an ... ~ barvaels secretly ~urc _ased fron1 acce·)ted custo iers o~ the refinery . 1 o evi ence was ever nroduced to s,1.oY t11at Surec~ .. els ever ~ ~ l1ired s pies as i {l!)lied . - robably none v1as needed , be en.use most jobbe1"s v1ould -; ave bee11. deterred fi-•o 1 sellin to t e be- cotted fir1s for enr of ·eo~ar y of t~cir s ly . i.'reanr1.1ile , t b.e . r.lcrican Sugnr -:-)ef _:neptJ I d bee11. n.r guin its cnse bef o e t ~. 0 C2..lif'ornia Su.!. reme Court . Final - 1 , on June 9, 1890 , the Co rt file its opinion , finding 1. n favor of t .. 1e r.1er:lcan and issuin a ·:/rl t of Prohibition to - rve. eye~ ... and Elder , o mers of tl1c refinery . TJ e su,eur f I ine ,,as ended , but t}1e Spreckels - Su ✓ ar Trust struugle ls p . 28 . 1 rancisco Chronicle, 1 eb . 27 , 190 . See uupra., 93 was to continue for almost two more years. The struFsle on the east coast was marked by extreme bitterness. Some idea of the length to which Spreckels ' enemies were willing to go may be gained from the testi mony of Claus August Spreckels during the ConGressional in vesti-ation of the American Sugar Refining Company in 1911. !t1achinery wa.s constantly breaking down where there was no cause for a break, and at other ti es things would be found thrown into the gears . In one instance a plank was thrown into an elevator causing it to break down during the night. On another occasion, Claus Au • ust testified that he noticed that so~e barrels of su ga r appeared ~eavy for the amount of sugar marked on the barrel . :lhen they were weighed, the barrels proved to have twenty to thirty pounds more sugar in them than was marked on the barrel . Investi- ....... gation proved that the man in phar~e was deliberat ly marking his barrels light. He was unable to give any ex planation for his actions, and so was dismissed immediate ly. Further testimony elicited the fact that these troubles disappeared as soon as the Trust and SprecKels came to terms. 1 1 Hear1ngs held before the Special Co mmittee on the American ugar efining Co. and Others , House of Representa tives, 62nd Cong., 1st se'ss.\vashington: Government Printing Office, 1911) pp. 2220-2223, 2353-2354. mereinafter 94 San Francisco had experienced a sharp increase in su 0 ar prices during the time the American 3ugar ~efinery was in the hands of the receiver. However, upbn the Atlan tic seaboard the stru_gle was marked by a disastrous price war. In Au - ust, 1889 , sugar was being sold in Philadelphia at eight and three-fourths cents a pound. The Sprec~"'els' .. Philadelphia refinery went into operation in December of that year, and reductions within the next few months brought the price of susar down to four cents per pound in Philadelphia, or three and ninety-two one-hundredths cents net for cash. 1 Something had to be done, for as one re finery official stated: at the small margin of profit at which suga r is now made the profit on 100,00 pounds would scarcely pay your fare to Philadelphia and back . It is only a multiplication of that to 10,000,000 po~nds which enables the American ~ompany to succeed. The something that was done 1s one of the most revealing cited as: Investi ::ation of the Am rican us;)ar .. efining Co.). Claus August oprech.els had an intense hatred for the Su . ar Trust for he blamed it for the estrangement that was caused between his father and brothers and himself. He also reported dead rats being put in his su ~~r, vats of sugar liquor being ruined by burnin3 or running down the drain after he established the Fede1al 1efinery at Yonkers, ew York. 111 A Sugar tlar," San Francisco Chronicle, editorial , Au gust 6, 1891. 2 san ~rancisco Jhron· cle, 1arch 29, 1892. The statement was by a Trust off cial in ~ • ew York . .. 95 chapters of the stru:..,cle , for it shows how both 3preckels and o Josition leaders were able not only to recoup their losses but to make huge profits for themselves also. I1i1r. Harry O. Haverneyer wc.s president of the Sugar Trust. He was also president of the Havemeyer and Elder vompany, owner of the American ~u 1 ar ~efinery in San ~ran cis~o. This company, technically, was not one of the com- .. panies owned by the 0u .. ar Trust, although there can be little doubt th t trust policy guided the actions of the American. Ho\·rever, through this technicality and the fact that Havemeyer w~s president of the Su 6 ar mru~t, one of the cleverist pieces of high ~1nance (or skuldu gery? ) was ne- otiated. ~arly in 1891, rumors b an to circulate that the 0preclels' interests had been broucht into the sugar com bine. This rumor was altGrnately affirmed and denied, and technica_ly when the d al was made it wasn't between S-prec tels and the _ru t but between :arry Havemeyer, Theo dore Iaverneyer, Johr. E. Searles and Claus Spreckels. In fact, it wasn't until 1897 that the Trust was able to get the preckels int erc ts entirely within the fold. ~arly in 1891, ~1aus A. 0preckels , vice president and genera l manager of the Philadelphia refinery, was ap roached by i,1r . John E. ~earles , the secretary and treasurer of the American Sugar 96 Refining Company, or Sugar Trust. At the meeting which followed, he made the proposition that in return for sellirg fifty-one per cent of the stock of the Spreckels Philadel- ._ phia enterprise to him and his associates, the American Sugar Refining Company of California would be closed and the entire field on the Pacific coast left to preckels. ~laus Au ust ~preckels refused to transmit this offer to his father, and Searles agreed that they would be willing .. to take a minority interest instead of the proposed con trolling 1nterest. 1 The senior Sprec~els took over ne5o ~iations from this point until they were completed. He refused to o east to - meet with · earles, insisting instead that Searles should come to ~alifornia to discuss the details. Searles did not wish to ~o to San Francisco b-cause he was in contempt of .. court there, and so Sprec rels agreed that the meeting would be in San Diego. At this meetin , the y lestern Sugar Re fining Company was organized with ~preckels owning fifty per cent of the stock and Searles and his associates owning the balance of tha stock. This company then leased the Galifornia Sugar ~ef1nery from Spreclrels for ~i50, 000 a year. The American su~ar Refinery was also leased, but it 1 rnvestigat1op of the American Su ar Refining Co., Vol. IV, p. 2200-2201 in Claus A. Spreckels testimony. 97 was closed and never operated a~a1n, being destroyed in the earthquake of 1906. In addition, an a reement was made whereby Spreckels sold Searles and his. associates 45 per cent of the stock of his Phila:lelphia u.efinery at par . Claus August Sp~eckels, in recounting this story, stated that up until the time of deliverr of the stock, he had thought that the stoc{ das to 50 to the American ~u~ar Re - fining ~omnany. owever , at the tie he delivered the stock he was told that the Su5e.r Trust did not .rant it, and that the ~toe should em e out t :arry o. .1.avemeyer, Theodore I~vemeyer, and John E. ~earles . 1 This was in A ril 1891, and by late lb91, the ~rust had become very interested in acquiring stock 1n the . preckels ' Philadel phia plant. A special meet in of the boa rd o - ~ ir ctors of the Arn erican ( u-ar _ cfining Jompany was held in ... ]ew York on October 16, 1891. The treasurer reported that ~11 efforts to obtain for this company from l r. ·Jlaus Sp rec 1 :els a half intere'-:t or any intere st in his Philadelp111a refinery had proved unsuccess ful. He statEd that - .1.r. Snreckels had in Auril ~ ~ last disposed of 45 per cent of the ca ital lrnvesti r;z. e t1on of t ... e A ... 2rican . 3u :far :.:le finir1t,,;i Jo., Vol . IV, p. 2203 . Sprectels testified: 'I think Theodore Haveme;er :ot three-ei ~hths of the ~tock , !. o. fa vemeyer three-ei ~hths, and earle s two - ei hths." L ter v1hen Claus A. asked his father about this he said he never knew 1 t, "but that 11e ~;as indifferent ab out it." .,, .. stock of his company to the ''\'essrs. Have meyer.1 98 Efforts to buy out the ~prec{els interest on the east ern coast continued, owever, and early in 1892, the Trust ac _uired Spree' els' Philadelphia refinery. The company had a paid in capital of $5,000,000 of which 55 per cent was still own ed by Spreckels, he h 0 v1ng sold a 45 per cent interest for ~2,250,000 in April, 1891. ' In exchan~e for all the preferred and co mm on stock of the company, the Tr st i .... sued the owners ~ -10,000,000 worth. of stock in the Am0rican 3ucar . 0 fin in Company. At par , Spreckels' share of thts stock was worth $5 ,500,000. Thls, plus the cash he ~a previously received, Qade a total of ~7,750,000, 2 or a surplus over investm en t of •t 2,750,000. True, as some writers poi~ted out at the ti me, the value of the real estate involved had increased, but even considering this, t ere w a s a nice piece of untaxable chan ~e with which ~prec t.els could recoup any of the lossee incurred during t he stru ~- le. However, the profit i· n ,- ,t stop there, for a cordin 3 to 8laus Au :· ,ust ' s t estimony, his father was able 1 _:inutes printed in Invest i ~o.tion of. _ the American Su5ar :efi11in5 Co. , Vol. V, p . 2911. It s1ould be remembered t. a t o. ~ ave .e ye r was r side .t o_ the · -usar Trust and John~. 0earles wns treasurer at this time. . .. . . 99 to sell the stoc~ at a bout twenty dollars per share above par. This estL at, if true, and there a . p ea1s no r eason to doubt the statement, means t hat Sprec rels was able to realize well over ~ ~l, 000, 000 more prof .1. t by judiciously disposin of h s stock. 1 At the time of Sp reckels ' death, his estate inventory showed that he owned 200 share s of the preferred stock of t e A□erican ~u,.,.ar -'"cf inin,.,,. vompan y valued at $25,600. 2 Thus, the war with the Sugar Trust was brou~ht to a close in 1892. Spr c ... els, in o ne sense , ad sul'fered a partial def .at, for he 1nd had to allow the ~rust a certain inter ~st in his operations . Howe ver, in one s0nse , prec kels vas the victor, for the _r ct had withdrawn from the Pacific coast 1ar 1 .. et l eavin him a clea r field. The closin of t he 0Jrec .~ els-0u:a r ... rust str1.1 c 0 le brae sht about an unfortunate si tuntion--a quarre l withi n the pre c els fam il ,r. Spree ,'"els was no less c -11 tle in de a 11 n w · th f nm 11 y a i f (.' e re 11 c e s t r1.a n f in an c i a 1 opp o sit i o 11 , 1 In v · st i ~ ·c, ti on of t l e A~ e r i can Su ~ . ;a. r :-1 e - ~ n 1 n g IV, p. 2205 . GlauSAu :·:ust Sprec.:els 1 t e stimony . Vol . 2 rn the ~upr-irior . , ourt of the 3tate of Jalifornia , In and for the Gity and vount of ~an Frn !Cisco . In t h e ~tter o the ~st~ te of vlaus S;re c.els, _ecea ed . Inven tory and Appraisemer.t. _ :o. 6977 ·J. S . Depart nt o. 9 ( ierei na fter cited as : 11 Inve ntory a t1d a :) 11r a i seme11t , · Jlaus Spr c."'els Estate" ), p. 3 • .. , 100 and the quarrel caused a fourteen year breach between the fat·-er a nd Rudolph and • Jle.us Au gust and between these two a nd t heir brothers Jon and Adolph for the r est of their 1 . 1 1ves . . - ... ... CHAPTER V SP~CKELS A I D SEET 3UGAR United States ' beet su 0 ar production efforts had been a story of almost consistent failure up to the entry of Claus Spree els into the industry. ~1r. E. H. Dyer had con ducted experiments in growing su-ar beets prior to 1870, and he had b come fJ.rmly convinced that there was no place 11 :• :e California for beet production . In lc70, therefore, D>rer sta~lished a factory at Alvarado ,,1th a capital of It •,>250, 000. T .• s plant had failed after op 6r·atin5 four years d rin \·(o.ich time 250 , 400, 562, and 700 tons of su 0 ar re spectively were produced. The 10c ~inery was sold and moved to 3oquel , Santa 8ruz ~aunty. On°rctions at oquel ceased in 1~76 bein ~ com enc d a ~ain for one year only in 18 0 t1 1en 150 tons of su s r \'ere produced . In spite of failure, Dyer clunu tenaciously to the belief that the mak1n of beet su 0 ar could be made a success. ~her fore, he orGan1zai the vtands.rd Sugar 1 - .. anufacturing · :Jompany, his second facto- ry at Alvarado, in 1873 . Ie later enl~r~ed this company by purchasing the machinery of another unsucces~ful beet sugar factory at ~righten, increased the capital, and cha· nged the name to · tandard s u ~ar _ efinery. This D·per refinery, first successful lant in the Unite States, in 15R 4 had a re fining capacity of 100 tons of beets per cay . However, 102 two boilers blew up wreckin g the buildin g and puttin b the r efinery out of busine s s in 18~6. The company, reor 0 anized as the Pacific Coast ~ugar Compan: in 1887, failed at the end of one campaign. Reorganization of this compa oy under the name of the Alameda r 5u sar - Jompany w a s effected in 1889. This company proved able to ~urvive, and there f ore, Dyer 1s ri chtly cor.sidered founder of tl1e first succe ... sful beet su !...>ar ent e r prise in the iJnited States. 1 However, Spree ,els' entry into beet su 5ar ~anufacture mar~ed the development of beet su a-ar reduction into a rnaj or C alifo1~ i a ir:dustry. Claus Spree'· els' int erest in the possibilities of sur-ar b eets a.s a source of supply tor 1is California re finery \'las evinced early in his su5.ar care er. He h .d ,one to Germ any in 1865. ,_..,·~ni le there e ha d secured employment in a su 3ar factory 2 where .1.e had ca ~efu l>r o, served the processes of mat{ing SU .r from b et s . Furthermore, he had brou r-ht back beet se eds which he had distri buted to those farmers willi 1 5 to experiment with t heir ~ro 1 .-1th in Califor nia. His conclusions aft er checkin t ese experiment s 1ere that the prospects for s usar from beets s ro rn in C alifornia 1 Tru . 1 an G. Palmer, "rnn e .. eot ,:)u 3a r Ind 1stry of ·Jalifor- n ia," S, 29 pa bes (in :Ja ncroft Li rary). This little 1 nanuscrip t contains an exce J. l ent r esume of t 1 e beet sugar industry in the -111ted Stat es to 1915. 2 see supra., p. 13. 103 were "not sood" for coal , .e too expensive (.;.\nd t ere was no r-iethod of utilizir. 0 th r efuse as ~; s one in S rope • 1 1 • .ev ..;rthel -ss, prec L.els' interest in s ,:~ a r ..1 12 et culture YNas lre_ t alive because ood \'hite su 0 a r ,va"-" bein3 made from bets. s. rec'·els, the lea in c su ~ar r .L'\in r on t _e Pacific coast by 1 87, lied i r. ,·· c o.11 d "The ..Ju car I\.i r. '' a r: d , e TB. a are of t he on "-" t r2 t t · r a t tot is ·.., os1t·on. reel - els r fu ~d to o~n t e j ~ar Tru ti n 18 ·7, nd t, e effect of t is refusa.l ... 2 ("'loon be come appa ..... nt . .i.◄urth '-rmore, contracts •11th t e ! -raiiar. plant r 0 ca e up for re .s~dal ever' t hr ee ·ears , 0 .d t e pla nt : rs -c~ b c more and more otlevs . oprc ~ e_s 1.·1-::.· S a ure that .. e f1 i " >l t no al- le to - nend t nla t ·ro ~or • ways a upon se ~ s s ... of If t fus d t o t with . for ra ·T su c;ar . e r o- t ' '"' 1m '-' l! _..· c;...... t h ir crop, a new ._:, urce of s p l y ould ha v e to be found if he rere to l eep bis bi refin ery opera t n at en acity. T ro courses could ~ e follo ·red • .i:, 1-e \·J re to lose the ii n ,, ,. . ...,r . '"" .... ;/--" . he s ources , as e ad ~on l is su~a r from ~~r as t ern efore t he _:nirai ian ~ec i ... roci ty 1 an ::'r'")ncisco "'"ourna l of _____ ·.:arc -- 10, 1 c-·c1. In a~s\ e r to an i n .uiry u~ ou t beet rat t~ e time tl e c orn e rstone ~as laid forte lar~e refinery at t e · otrero. 2 see su-ora., rthapte r IV, for a dis l ss on o-'=' the resultant str ~le vi t the Su~ r ~rust. • 104 Treaty had been negotiated, or he m:sht develop his own source of supply in valifornia . .e chose the latter al- t e r nat ive, and l a t er events were to p~ove his decision cor r ect. rec:els' i .t re ~t in beet su ~ar had not died w:th t le a bortive exp riment of the 1L60's. The Soquel refinery vn located nea r his Aptos ranch ; Soquel refinery had fr-i.ilcd ut he 11n observed its source of su)ply, the luxuri ou s e t ~i ~lds neor y. _n a df i~i on , he 1ad be en raising so l~e cets at t:1e ro.ncb for f eed . 1 Therefore, when his octor iarned him t et he was headed for an early grave, ~p: c·e_s acce· t cd t e aoctor ' s a dvice and ~ent to Germany in 1 · '27. ~th no intentions of relaxing. I .mediat 1 r upon ar~ivin ~ in Ge r .nany, 0prec~:els er-an n · t nsi ve st y of the beet su 6 ar industry from seed to su sar. Afte r s everal months i nv~st i : at ior., he concluded tha t t e tir 1 e h~d co !~1e to expnnd his su !~a. r activities to i 1clude beets ~~r . r..laschi n -n.i: bri r •..::-rev en cr oich for enou n-h machinery to estab lish a factory capa le of p roce 0 s in ~ 350 to ns of beets per 2 D. y. 1 u t 1 e b e n ' s n o to s on t 1 e ·;{ a ts on v i 11 e en t e rp ri s e • 2 r : ..1id., Infor1·.ation on Sp··ec l els ' •uropean interlude is al o f oun d in m e ajnronian ( ~:la t sonville, ""alifornia), Oct . 20, 1B87. 105 ·\·lord that Spree.tels had purchased ~ machinery f0r a beet su 0 ar factory proceeded him to California, and he was en thusiastically received upon his return to his Aptos ranch. The site for the projected factory had not been selected, and farmers around the Pajaro Valley population center of ~atsonv1lle ,ere hoping location would be in their vicin1t~ Irr. Sprec.{els was interviewed by a Pajaronian reporter, and arran r ements were made to call a meeting between Spreckels and interested farmers. Spreckels admitted that the Pajaro Valley was a most desirable location for the factory. How ever, he stated that whether it was located there depended mainly upon the outcome of the meeting. 1 The meetinG ,-1as held in the Opera '""ouse in \ atsonville on Saturday, .ov ember 5. Circular letters , n ev1spaper ap peals, and interested men's personal efforts produced a huge dele gation for the 3at~erin r . 3~recrels outlined his plans and tl1e opportunity afforded the farmers. He would erect the first factory. If it proved successful, he would, if the farmers desired, invest ~100,000 in each factory t 1 ey decided to erect. 2 1 The Pa~aronian, Oct. 20, 1887. 2 Ib1d., I:ov . 10, 1687. The paper stated that this was the lar5est meetinM of farmers ar.d merchants the area had ever had. Sprecrels ' speech included a very interesting statement--"! am now in my sixtieth year, and it would Kill .. 106 Other cities , meanwhile , were tr,1nu to attract the new lant to their areas . Invest i ~ .tions proved that the soil from San Die ~o to 1~apa was suitable for 0 rowin5 beets . Each proposed location wn investi s~ t~d , and it was not until the middle of December that the choice of the latson ville site was disclosed . Vuch of the credit for uettin · the f .ctory located in ~atoonville belonss to Dr . vherles Ford, for when sub scriptions la ~ged he a 5reed to make up any deficit to~ard the purchase of the plant site . 1 The factory was expected to cost about r 350,000, with an additional $150 , 000 being needed to rovide workin 0 ca ital . In addition to tnib $500,000 w ich was to b e furnished by ... _r . Sprec _ - :els , the expense of e ucatinu th f a rmers in t he correct cultivation proc :ures , amount uncnown, w s to b e ~orne by him, and so , it was expected that the co1mu .ity in ,hich the plant was built would furni sh the site. Therefore , interested ;Alat sonville eople raised ; 14 , 300 and purchased twenty-five acres ~p on which t he plant 2 ould be l ocated . me to fail in i at I un-ertake to do . It is not money that is an ob·ect to me, but I want the people of C alifornia to be a le to snow that Claus ~pr ckels has done someth1n" for this state when his bone·s are at r est . " Fa rmer owned fac tories were the rule in Ger.~any 1 s beet susa r industry . 1 The Pa~~ronian, Dec. 15, 1887 . 2rbid . A good resume of the sele .... tion of .'lat 0 onville for the factory locati on is found in -utleben's notes . 107 ~otivat1ng Spreckels in his choice of Watsonville as lo ation for this initial Spreckels beet sugar venture wer~ first, the soil in the area had already been proved adapt able to su ~ ar beet cultivation at the time of the Sequel fa ctory; second, I·-itr . Sprec ~·:els ' Aptos Ranch was near, and he was familiar with the .ossibilities in the area; third, there was an ample supply of water, wood, and lime in the area, and an abundance of all three was necessary; fourth, the farm rs in the area had a vreed to ~row the requisite num er of be ts to &eep the factory op ratin5 ; fifth, the plant site had b en donated as expected. Construction on the ~atsonville su 5ar factory build in 0s was started sho~tly after the site 1as elected , and operations were commenced ·11th t he crop of 1888. This first factor7 of th 0 ~est ·rn . e ct Su -ar Jompany, for such was the na m e of the mpany formed to admin:ster it , c ould handl e 350 tons of beets a day. Sprec~els put .~440, 000 into t e enterprise , and six associates each put !'. 1 in j l0,000. 1 Hec:.,rin~s :_efor;; t h e Som m,i,t,t C:,.~ . .QJl -.ra ys, ~nd ~ -'Ieans, 51st von g., 1st sess., Tu89-1890 ( ,\Ta shin ·ton: Government Pr1nt in 0 Office, 1 90) , p. 1098. Tr1is iLiformation was 1ven by vlaJs Sp r ckels whGn he ap pGared before the committee in op- position t o t1e bill doing away wi~h t11e tariff on sugar. M r. ~ . D. Bond, J. B. Stetson, L. Sloss, M. P. Jones, J. L. I{oster, atid • "'~hr m an were a sociated with !- 1r . SprecKels acco r din c t o the \.,l~tleben notes 011 ;latr,onville taken from ... he Pajaronian . .. 108 The '/latsonville factory was a success from its first campaign of beets. Somewhere in the neighborhood of 3,000,000 pounds of raw sugar were produced during this 1 first campaign. The farmers, hot-.rever, were somewhat dis- appointed with the returns to them and with the large amount of "stoop labor" involved in cultivating a beet crop. 2 Spreckels, to assure the factory of sufficient supply, planted a lar e acreage of beets on his Aptos Ranch . Spreckels tried to stimulate interest in the cultiva tion of su ar beets by pr sentin a prize of $500 to the farmer of ten acres or more rhich nroduced the richest and . be t beets and made t l e most su 0 ar, and a prize of · ;--' 250 was given for the best five acre plot of beets. 3 In addition, preclels tried to educate the farmers in the best method 1 only raw su ,.,.ar was produced at ~ ratsonville. The raws ·vere refined at tL.e 1 tlestern . ugar Refinery in San Francisco. Statistics given in the San Francisco Chronicle, April 23, 1893, p. 14, show that 2,920,000 lbs. of raw sugar was made in 1888. 2 Louisiana Planter, Jan., 1889, from Gutleben's Notes on : atsonv!11e. 3c1aus Soreckels' testimony at Hearin~s before the Com mitt~ .911 i .[ays and L.eans , 1889-1890, p. 1099. The Alva rado factory had instituted a program similar to this at an earlier date. Johns. H1ttell, Commerce and Industries of the Pacific Coast of 1Jorth America (San Francisco : A. L. Bancroft & Co., Publishers, 1882), p. 541. ..... --~·· ...,.. ,~ . ... ~~-.i~~~iJ :~ r eckel s ' firs t ~eet sugar . ., ,ory loc:1 te ~' t ne Spreckels Sugar Cornpan t ~-.:atsonville , Calif ornia . Pnoto furnished hv l-' 0 '-0 of cultivating the beets. At the lrovember 5 meeting, Spreckels had explained the best cultivation procedures , and even before this, his ideas on this subj ect had been 1 published in The Pajaronian. 110 All the activity at ~atsonville and the investi gations of the proffered factory sites cr -ated a widespr~ad interest in beet cultivation. Inquiries to ~r . · Spreckels concerning the cultivation of beets and other relG t d facts became so numerous that he could not answer each one separately . Therefore, on December 28 , 1887, Spreckels sent a letter to I,1r • Ed w 1 n F • mith , 3ecretary of the State oa.rd of A,..,.ricul- ~ ture, 1n which information on cultivation of beets and on what was neces~ary in erection of a beet su ~a r factory were outlined. 2 At the time oprec~_els stablished his first b eet su-ar factory, all imported su -ars except those or1-1ratin5 in Hawa11 paid - a duty of around two cents a pound. Under a proposed chan _e in the tariff law in 1829, all sugars below 1 The Pajaronian, Jov. 10, 1887. 2 claus Spreckels to ~dwin F. 3rn1th, Esq., ecretAry State Board of Agriculture, Dec. 28, 1887. Appendix to Journals of the Senate and Assembly, Califorr.1a Legislature, 28th sass-=-:- Vol. VI, 1889, pp. 222-3. This letter was in cluded 1n the Transactions of the California ~tate A 0 r1cul ture Society of 1887 as printed in the Appendix. Spreckels' articles are found in many of the proceedin5s from this date. 111 a certain standard were to be admitted free of duty. United States' refiners felt that this change might ruin the sugar business for them, although those favoring the bill proposed that a two cent bounty be aid on all home produced su ~ar. Therefore, in February, 1890, Spreck.els journeyed to the nation's capita l to protest a 3ainst the proposed tariff change. In testi m ony before the Com "11ittee on ways and 1 1eans Spreckels reviewed his beet sugar operations and the possi bilities for its general expansion in the United States. He stated that he was contemplatin ,· enlar ine his beet busi ness at t is time, although tl1e 1 tlatsonville factory had only processed two crops of beets. In view of this statement, :tvir . Joseph v .cKenna, Representative from California, asked what would be the effect, if any, upon his purpose if the committee should decide to take the duty off sugar and give a bounty on the beet sugar production . ~r . Spreckels re plied that his associates had said that they would quit if the bounty were given , and that tl1ey would not put up any additional factories. v ir. ~ cKenna then asl ed: " .fou will not extend your bus· ness?" To which lv r. Spreckels replied: ~ -le can not . As I stated to you I put . : ·.440 , 000 in t he first factory You 0 entlemen ~now I could not put that am unt in every fac tory;the other one is c omposed of other 112 cauital, but I am interested in that factory. 1 Spreckels was very emphatic in his opinion that there was every chance for the expansion of the sugar business, and he predicted that some day enou 0 h sugar ~ould ba grown in the United States to supply all its consumption needs. \ -fuen asked when he thought this would c ome about, he re- plied : If you assure us tat there is not to be any change in the tariff, and you had one hundred Claus Spreckels, I think we would do it in three or four years . I have so many irons in the fire that I have to watch t em closely to keep them from burning.2 In spite of refi .ers ' op osition, the dut on su 0 a r w~s removed in the , c: inley Tariff of 1890, and a bounty of two cents per pound was giv en for home grown su ~ar . Re fin ers ' fears a bout duty free su ~ r proved unfounded, and in 1°92, p _ eckels wired :~schinenfabir~ Grevenbroich "?epeat Order 555 ."3 The order involved an expenditure of 1 .. ea r.inf;s before t .e Co .in i ttee £!!_ · . n :ays and J:eans, 1889- 1890, p . 1102. 2 Ibid. 3c:-utle en note .... on ._ ::::u r.r r 1 ouse •volutiori . -v-.nen - :r • . 1er ner Lan gen, 1-.. ana 6 or of :aschinenf 0 birl Jrevenbroich vi .... 1ted the preckels fact ry in 1952, he recalled the various occa sions when Jlaus ap rec ·els 1as the guest at his father's house 1n Grevenbroich, and the xci te rn .. rit er -a t ed by the ca , le s a yin " _ PEAT r _ 555 ." This equipment v,yas at first int ended for a duplicate of the 1 ~tsonville factory , but its nlans • v0re chan s ed and t he .achinery used to double ~at sonville plant . 113 f350 ,ooo and duplicated the order gi ven for sJ.abl1shment of the ½atsonv1lle factory . In tallation of t hi s machinery dou bled th.e capac1 ty of the ·~ atsonville_ plant . It could now take care of 700 tons of beets per ay . This process ing volume also proved inadequate to meet the increas ing b ee t cultivation , and new ,achinery w ~s added until the f actory could process 1,000 tons of beets per day . Accord ing to Spreckels , the ·.atsonv1lle factory roduced 84,252 tons of sugar dur1n 0 the t en yea rs of its oper tions . 1 Early in 1 96 , S-prec els be:a n m,, t- in ~:;, plans for a lar ')er and ~iner su _)ar factory . ~.e ent to er :iany where he s- ent ei t::ht weel{s calla oratin 0 11th the en s ineers at taschinenfabir~ J revenbroich in de v lo ing plans for the proje~t d factory . .r . ~:,erner Langen , the mana5er' s s n, related an intere._ ting story concern in . the ..., rec ~ .. els ' visit at t_is time . o keeu the "old l~n" out rom under their feet ... and at t he sam e time to aintain contentment and pro_ in _uity in case an i pulse should 0 tri e h im to order another su_ar factory , "'-~anase r ·Jarl Lan en ulaced at .. 1° disnosal is own c rria e - . and a spa n of high - steppin hor~es . The villa . rs , re c o 0 n 1 z i n ~ - :r . L?.. n ~ e n ' s ca r r 1 a 0 • a , s a 1 u t e d a s it passed , which was hi -hly pleasin - to Lr. S_ reckels . ·when t e order for t~e new factory 111 Tr s a ct ions of t e Californ~ a ta e A5ric ltural ~ ociety durin,..,. tl1e ear 1299," p . 19. Appendix to Journals of the ;;;-.; ate r1d A .. se bly of the otate of vali:f rnia . came through, it was the largest order for sugar machinery in one package ever to be re ceived by the firm •• • • l 114 Salinas, Galifornia was tentatively selected as the location for this new factory. Taerefore, on Au~ust 1, Mr. 0prec (els met w:.th interested people , mostly farmers, in A 0 ricultural Hall at dalinas . The actual building of the factory at Salinas depended on willingness of t he farmers to supply necessary quantities of beets to keep the factory in oneration . Reports at the t~me, indicate that fully 2,000 people attended the 1 eetin • oprecl{els had come to ake arran ; ements for e tablishin3 the '·1orld ' s lar est sugar beet factory , and e w s convinced that the entire farming co~~unity was d"th h im. :e rema r'{ed: Raise the eets and I will do the rest •••• It uill be a factor}r with a ccipacit>r of 3,000 tons daily , and do you know what tat ans to you? It mean s an expen iture of f l2,000 per day for 100 days int e year . It means ~5,000 a day for labor f el, etc ., for the same period •••• _u t I want two th1n~s, beets and protection. _ e former I will ma a the su ~a r out of and the ._, later I will need until the industry ecomes fully established. We 1ust have some law where~y the manufacturer in the United States who pays $2 a da y or more to his labor in men will have some protection from the countri s where labor is paid 50 cents a. day .2 l , .... utleben ' s notes on u r r ouse Evolution . ·:verner ....... La.nr-en , as the son of '-!ana f er :J rl lansen . 2 san .rancisco ~hronicle, Aug. 2, 1896, p. 20. Note that the method of ~ettin support for this factory was the s e as th----t us d at · :·o.t onville . See supra., pp. 105-10. ... 115 A banquet was given at the Abbot House in honor of Mr. Spreckels after the meeting with the farmers. Someone ad dressed him as "S1r Claus," but he refused this title, say ing as follows: If you want to give me a title, I have two. I was a colonel on the Governor's staff and I am the 'sugar king.' When I shall have built this big refinery, however, I will no longer be the 'sugar king,' but the 'emperor of the sugar in dustry. •l The banquet was reported as perhaps the most notable ever given in Monterey County up to that time. Spreckels was a firm believer in the importance of the protective tariff in establishing and expanding home indus tries. In a letter to the San Francisco pall, he had \41r1tten: The subject of tariff on sugar is one that, in view of adding to the sugar manufacturing in dustry, must of necessity interest the people of this State. The Republican idea of protection becomes an object-lesson in the establishment of the sugar industry. Without a protective tariff there could be no success attendant upon the ef forts of capital and the tillage of the soil to this end. But the tariff on sugan should not ex ceed the demands of protection. California asks The $2 a day wage scale was a factor of great pride to Spreckels. This wage was paid to the unskilled workers. Skilled workers received a higher wage. 1 san Francisco Call, Aug. 2, 1896 , clipping in tr1a "~4orse Scrap Bool{," p . 27. Spreckels gave up the title of ' Sir Claus' when he broke with King Kalakaua. 0 .. 116 nothing more for anr industry than to be protected against unfair competition. But this State need not confine itself to the mere effort to supply the home marKet with beet sugar. If this State can become a competitor 1n the markets of the country there is no reason why the effort should not be made. Let there be a tariff of 1 1/ 2 cents per pound on sugar, and California, with the coop eration of the farmers, would be enabled to turn 100,000 acres of land, which is not nov1 in condi- tion for tilling, into the growing of sugar be0ts, and could produce enough sugar to supply the mar- kets of the entire United States.l In addition to pressing for a protective tariff, Spreckels came out very strongly for repeal of the Hawaiian Reciprocity Treaty at the time he was constructing the new sugar factory. . He still held large interests in three large awai1an sugar plantations as well as other property; his sons had large interests in Hawaii, also; but he pointed out that the remission of duty on Hawaii~n sugar amounts to date to the enormous sum of ·73,000,000. If the present treaty, as included . in the tariff bill under consideration by the Senate at the present time, remains in operation it will give to the islands about $7,000,000 per annum as a virtual bounty on the sugar raised there and exported to this country, and this amount will practically come out of the pockets of the citizens of this country. If the treaty is continued they will eventually bring their annual crop of su ar up to 300,000 tons. New plantations are being open ed up right along, and with the reciprocity 1 san Francisco Call, Dec. 1, 1895, as printed in the "Transactions of the California State Agricultural Society during the Year 1895," p. 126. treaty as an incentive the amount of produc tion will increase every year. This will re sult in injury to the sugar iniustry of this and other States of the Union. 117 Sprecl\.els' position can well be understood, for although he was processing the I~waiian crop, the -remitted duty had to be paid to Hawaiian producers. If a tariff wa& levied against Hawaiian sugar, he could still process it, and the added stimulus to beet production would add more dollars to his refinery profits. Jhila Spreckels was informing farmers on the correct method of cultivatin5 beets, and the importance of a protec tive tariff to the su5ar industry, investigation of sites for the new factory continued. Acreage five miles south of Salinas was selected for the new factory and Spreckels , California came into being. Some idea of the enormity of the project rnay be athered from construction that was nec essary. There was no transportation to Spreclels from Sali nas excepting by horse and buggy, and so quarters had to be provided for the employees. Therefore, a sixty-one room hotel and forty cottages of twelve different d6signs were constructed. 2 The main factory building was 562 feet long, lsan Francisco Call, Dec. 1, 1895, as printed in the "Transactions of the ,...nlifornia 3tate A[;ricultural Society D·1r1ng the Year 1895," p. 126. 2 Louisiana Planter, Aug. 13, 1898 and \~rch 19, 1898, as c1 ted in Gutleben' s notes on the Spreclcels Su ar Company. , .. 118 102 feet wide, and five stories high. It took 3,500 tons of steel and 4,000,000 bricks to construct this one build ing. In addition there w a s an oil house, machine and car penter shop, and boiler house. 13,000,000 gallons of water per day of twenty-four hours were required to run this fac tory--water consumption equal to the daily consumption of the City of San Francisco at that time. 1 Perhaps an even better idea of the scope of this new plant may be gathered from a comparison with California's other sugar factories in 1897. The Watsonville plant could process 1,000 tons of beets a day ; the Chino plant, built in 1894 after Spreckels' success , boasted a ca-oacity of 750 tons of beets a day ; and the Alverado factory could handle 500 tons of beets daily. Thi s was a com~ined total of 2,250 tons a day, which was a canacity of 750 to ns of beets per ~ay less than that of the plant at Spreckels . 2 This new leviathan in the proceas of being built in t ere...,ted the Su5ar Trust . It : ad held a half interest in the 1 :.restern Su ::-::ar :1.efining ! Jornpany for seve:·al years, and 1 11 s ~Jreckels Peet Su ar Factory and Refinery," pampl1lat (comul i m ents of the Liv erpool and London Globe Insurance Co ., Room 6, vcDou ald ldn-., Salinas City, Calif.). 2 san Francisco Call, ~._o.r. 9, 1897, clipping in "r- ... orse Scre.p Book , " p. 70. Sprcck 0 ] s ' beet su~ar pl ant at Spreckels , California in 1E98 . 3'--1 gar G ompany . - ·1rnished by the Spreckels f- r '-0 • ,\ ~ . . ~ . . . . . t .. ; . .. ~~·;-~=--~•·-·-· .. ·• _ --... f- ...... . ~ '~ ·~ ~ , J .I : - •r~ , ¥-ffl<<'\00 ~ ~ !.::£;JJ&a ·• . ~. ' !. ~- T .._ . ., ·'.1£k~ s ;,:Jp,ft_..._ . · ~ " ........ _ ,.._ -► . . .. _ . ..... - ~ - ·~e:...:=.. .~ . • "_,. ' •' ' :, .. S~recLels ' be8t su~nr plant as it leaked July 22, 1~ 53 . nr~er, Spreckels Suear Company. 1 1oto take~·1 ::. furnisned by 1l.ustin I--' I\) 0 121 the association had proved profitable. 1 Therefore, the Trust felt the time was expedient to enlarge its association with Spreckels. Pursuant to this objective, the executive committee of the su~ar Trust adopted a resolution of Feb ruary 3, 1897, authorizing the purchase of a half interest in the Spreckels beet suaar enterprise on the Pacific Coast. The treasurer of the Sugar Trust contacted !, .. r. Spreckels and at his request came to the coast to further the negoti ations. An agreement was worked out whereby the Aterican Su 5ar .. \.efining Company wn s to purchase a half interest in the T ~ ·restern Beet Co.' s pro :perty at '\vatsonville, Cal., on the basis of ~l, 500,000, also one-half of I- !r. Spreckels' in terest in the Pajaro Valley Railroad on the basis of $500,000 and in addition one-half interest in 6,000 acres, more or less, of l nd near Salinas, Cal., at ~125.00 per acre, and in sundry leases at cost, and to take a one-half interest in the building of a nei susar beet factory at Salinas, the two factories to be o,ined and operated by a sin5le company, one-half of the stock of which is to be held by the American Sugar Refining Co., the leases under wh1ch the Western Sugar Refining Co. is operatin5 the San Francisco re fineries to be extended for an additional term of 10 years on the same conditions.2 lThe exact date that the Sugar Trust obtained this inter est 1n the ;astern could not be ascertained. However, the Havemeyers and Spreckels founded this company in 1891 . The Havemeyers were leaders in the Su~ar Trust and may have sold their stock to the Trust at the time it purchased the Philadelphia plant. 21/·inutes of a special meeting of the board of directors of the American Su5ur Refining Co., held April 14, 1897, as • ,. ,_ 122 Unanimous approval for this agreement was voted at a special meeting of the American's board of directors on April 14, 1897, and the treasurer was authorized to consumate the 1 purchase. As co-owner with Spreckels, the American Sugar Com pany's policy in dealing with him was "to keep the old gen tleman in good humor. 112 l-ir . Oswald Rathmaler, Superintend ent or the ,r1estern Refinery, had been sent to the C 11f'orn1a plant 1n 1895 to succeed 11r. Richard Sprague. In a letter of April 7, 1897, Rathmaler opinioned that if the arrange ment with Spreckels went through as ,-1orked out "then I think the American Sugar Refinery Company will have a great deal more to say about running the planta."3 However, after the deal was consumated, Spreckels was consulted and his approval received before any changes were made at the plant. At this time, the Spreckels' interests were being handled in the main by sons John and Adolph, but "the old gentle man's" wishes were respected. 4 - ·----------------------------- reproduced in Hearings Held Before the Special Committee of the Investigation of the American Su ar Refining .Q.Q.. and Others, p. 2934. 1 Ibid., p. 2934. 2 Rathmaler to H. E. Neise, May 14, 1897, from Gutleben's Abstracts of the Western Refinery's Letter File. 3Ibid., Rathmaler, April 7, 1897. 4 The Gutleben abstracts of letters from the letter file The beet crop was short in 1898, and so the 1atson ville factory handled the campaign for that year. The 123 next year, however, the factory at Sprec kels was put into operation and has been running ever since, while the V/at sonville works were closed never to be reopened. The new plant was the lar est beet sugar factory in the world when it be3an operating in 1899. It is still a leviathan in the suga r world, for 1n 1952 close to 7,000 tons of beets could be processed there daily. 1 Spreckels' phenomenal success in the beet sugar indus try did not depend entirely upon the outcome of experiments and op rations 1n California , althou plant policy was changed from time to time when exp rience seemed to dic tate. Spreckels ' native Gerriany was a leader in beet cul ture at this time. T erefore, since he had a large treasury, he purchased some of his "know-how." He paid $1,000 a year to a German agent to ather and forward to him the latest information on German beet su ·ar develop ments.2 of the !estern to the American Sugar Refinery Co. officials makes continual references to Snrec., els- ' opposition to certain new proposals. 1 Gutleben's notes on Su uar House ~volution. 2 Rathmaler to rriese , June 13, 1898, l"!utleoen abstract from t1'1e Jestern Refinery Letter File • • '>Q ~- 1 1 0 .)· . } \.J .J. .,_ C f r -1- eG v S C 'J t , onto per t on . , .., . t. 1 , J a Ct C. l l 0 1 0 C 8 r; r 0 G • - _ ull. b ..I... C1 I..., •. , ..., • f ··.c t o ~ , r .nd t o ~ - ro i d t ni s , a noli ir.· r e _, 1- • vJ 8]. r , n ,-J , l 1 · i· r · rv .-.J-- ~ t • ·t' J1e -~ ..... c ··-o-.. - · '- .L _, - - '3_ L, t . 1 ·10 ,,. ) 0 S l... ... u • ... .... ··· ·• •t 1 0 ... - - ' 90 ' c. to j, .l.. • . t l . , J. .1.l ' of t ho l .!t ' 1 ..L. - C U . )T) • tl S t .!.1eso 0 -o c c r'.".:11 s v - - : .' ... \.:., • J~ or ,ri C 0 28 , er t on l i e ~ r or -,• 7 r t ..,__ C t ... . . -.. -1- e .J • .._ v .,.. ,, "l ... 1·~ r-- s _l -• ,., I 1 ''j - . l - • :. • and processed in April , 1907 . The sugar content of the beets fell to 10 peI' cent ·while e rlier beets l1ad s n o•r .rn a saccharine content of 15 to 17 per cent . levertheless , the company paid the standard price of five dollars a ton for these be~ts . 1 Under u sliding price scale policy t l1ese beets vrould ;)robably l1ave been docl ed fifty cents a ton for each agree of polarization u.nder 12 per cent , if not rejected enti1 "ely. As Sprec ... .. els said , the sliding scale contract v1as jug-h mdled , • 1ith the handle in the hands of t 1e factory . 2 125 1 e oponinu o t r_ e l arge Sprec .. rels pla11.t brougl1t about ·· Qilot er fari er compl aint . In negotiating the contracts for 1&_ , t l o f nctoi7 insisted th t beets ~ere to be delivered ithor at ':'ctsonville or Sp1"ec· els, at the option of tl1e rnngc ~ent . Since it would cost fifty cents er to c el.:.ver t ~ ... e beets to S ... rec" els , t h e farmer stood to Tb.e .l: a j ar contracts ly c a i tula '· ,e d t ount if t b.e n e\· 1 pl ,.-nt v1ere oi)ened . f arrners l1eld b aclc on signing the nevi ese circtunstances . The m£1nagement final s truck: the offensive clau.st~ from the lfu)et.2l1 e ar ( azette, pril 23, 1907 (Gutleben ' s notes) quoting fro.11 t , #- Re cord of Sacra. ~ento . 2 Louisi .t er, (no t given) 1897 (Gutleben ' s notes) . ::ecw I 126 contract in order to secure more beet acreage. 1 However, this problem continued to arise at succeeding contract ne gotiations , and the farmers founded the Pajaro Valley Beet Growers Association in 1902, 2 in order to protect their interests. Growers wished all costs of transporting beets to Spreckels from Watsonville to be paid by the factory. In addition, they wished one or more employees chosen and paid by the association to be at each weighing and washing station and in disputes the cases to be settled in a fair and unprejudicial manner.3 Opening of the large plant at Spreckels created another unforeseen problem. F 1 actory waste was dumped into the Salinas ~iver. Fish were killed, and the resultant stench was reported as being almost un bearable. The Castroville Enterprise termed this "one of the most brazen pieces of imprudence of the nineteenth century, an outrage, . and that Claus Spreckels and his hired man, 1.fir. Waters, don't care a continental." 4 However, the company made 1 The Pa,jaroniap , ._ar. 3, 1898. 2 ·tratsonville Register, Dec. 21 1 1902. Clipping in : Horse Scrapbook. 3 rbid. 4 castroville Enterprise, Oct. 13, 1899. Editorial "i .,_ust the Peop e Die as the Fish!" 127 arrangeme· nts to keep factory sewage and waste out of the river. A large dam was constructed some distance from the factory, and a pumping and water plant was established so that the waste water could be used for irrigation instead of bein run into the r1ver. 1 In 1901, a break in this dam allowed waste to flow into the river causing another whole sale destruction of fish. Investi5ation at that time show ed that there was no company ne li3ence involved in this second contamination. 2 Spreckels had other ieadaches besides the technical ones of sugar production. In 1897, labor Commissioner E. L. Fitzgerald stated that ninety-five to ninety-seven per cent of all labor connected with the ~alifornia beet crop was performed by Asiatics.3 The ?aj~ronian came to the defense of Mr . Spreckels, pointing out that of the million dollars spent for beets, labor, fuel, freight, and rock by the ~tsonville factory not over $150,000 went to Mongolian labor. Fitzgerald, in reply, did not correct his error nor explain the discrepancy 1n the figures, although he did lower his percentile figure by almost fifty per cent. l~~tsonville Register , Sept. 21, 1901. Clipping in r!orse Scrapbook . 2 Ibid. 3The Pajaron1an, June 24, 1897. 128 Furthermore, he then attacked Spreckels (Spreckels had not been mentioned in the previous cr1t1c1sm) by pointing out that his large steam plows were supplanting labor. The Pajaronian, quick to the defense, pointed out that these plows had forced fewer men from w·orl{ than 111hen Fitzgerald' a boss, California's sovernor, had cut off the appropriation l for the State printing office. However, the beet co mun- 1ty was not 100 per cent in agreement on the question. The Castroville Enterprise wrote: Claus Spreckels is now attempting to pose as a great advocate of "protection to A merican labor and American industries." The arch humbug ! 1.fuat man 1s there in California who has done more and 1s doin g more to oppress white labor than this hypocritical gold bug? In every possible position he has displaced the white man by the cheapest of coolie labor, and in all cases he has used his utmost endeavors to bring the recornuense for labor down to the lowest notch. 2 - In commenting on this editorial, The Pajaronian stated: "Of all the rot with which this ccmpaign will be marked it 1s not probable that anythin g will appear containing more f lse statements to the inch."3 It pointed out further -------- 1 The Pajaroniag, July 22, 1897. Fitzgerald's reply was given to the San Francisco Examiner on Sunday previous to this comment. 2 Ibid., July 23, 1897, quotin 0 from the Castro·ville Entef!)rise. .. 3Ib1d., July 23, 1897. Clipping in Morse Scrapbook. -·· 129 that the vatsonville factory had been 1n operation for al most ten years by Claus Spreckels, and not one Chinese or Japanese had found employment there. Furthermore, the lowest wage paid had been two dollars per day to adults, and skilled laborers were paid up to four dollars per day. The paper further showed its approval of the founder of its main enterprise and the town's sole benefactor by stating: If all of Galifornia's mill1ona1res beiieved in and followed out ~laus Spreckels ' theory that the home labor mar et should be developed as much as possible , and that California's millions should be invested at home, there would be small ca~se for complaint about hard times in this State. The furor subsided, but Sprec cels' sup~orters pointed out t hat the dama~e ad alr ady been done , for a dvocat es of Ha.iaiian Reciprocity used the report as an argument for 1ts continuance. 2 !Jo evidence was found that Spree {.els favored Asiatic labor rs in ~alifornia,3 and the attack probably was connected with reciprocity politics. S rec{els, not the beet industry, seems to have been the chief target of the attack although Fitzerald did say that the farmers 1 The Pajaroniap, July 23, 1897. Clipping in ~orse Scrapbook . 2 Ibid., July 22, 1897. 3Truman G. Palmer 1nvest1~ated the Asiatic labor situa tion in 1911, and he testified that the Spreckels ' plant employed 16 Asiatics and 300 whites, and that about 20% of labor in the vicinity wo.s done by Asiatics. Invastiga;tiong Q!. the ............. ..:.s::.A&. ·s. e • ~., P. 2677. ,. . 130 would make more money if they raised wheat instead ot beets. Spreckels, on the other hand, had at numerous times pointed out the benefits to the farmers of beets over wheat. 1 One of the most novel su 0 ar exp eriments of !)reek.els was an attempt at human betterment. As one writer aptly put it, The Salv~tion Army has been fi ghting the ~rorld, the flesh and the devil with fire and has made a great success of it. It looks now as if they really would have opportunity to see how they can succeed in saving a part of it with sugar.2 Spreckels met with S'lvation Army officials and proposed to divide a seven hundred acre farm and turn it over to them to cultivate beets for ten years. If they applied themselves industriously they were to have the farm deeded to them at the end of that time. Spreckels also agreed to provide them with money and advice. The first continent left Oakland for Soledad early in October, 1897. 3 The fervor was high to start, but it soon faded, for there was 1 l!earings, before the Com mittee ,sm \~r.ays and 1vreans, 1889- '90, p. 1098; Transactions of the valifornia State Agri cultural Society, 1899, p. 18; The San Francisco Chronicle, Aug. 2, 1896, p. 20; Claus Spreckels , "The Beet Su ar Industry," California, The Land of Promise, p. 62. 2 Louisiana Planter, Sept., 1897. 3san Francisco Call, October 7, 1897. .. 131 not enough personal intere st among the colonists since the candidates were on trial and were to be paid nothing for their services. Therefore, nothing came of this project. A direct outgrowth of establishment.of the Natsonville factory was the building of a narrow gauge railroad incor porated under the name Pajaro Valley ~ilway. There was eventually twenty-two miles of track, and while it did serve other r.eeds, the main purpose of the railroad was to serve the factory. 1 This little railroad seems to have been Spreclcels' first attempt at railroading in the United States , although he had long had railroads on his planta tions in Hawaii. However, Spreckels' railroad career is a subject for a later chapter. 1 see infra., pp. 165-168. ... Cffi .,rrER VI CLAUS SPRECI~LS , RAILROAD BUILDER California' s paramount enterprise in the 1870 1 s , 1880 1 s , and 1890 1 s v;as tl1e Sout1 1ern acific Railroad . Its monopoly put virtually all merchants , industrialists , and agrictlturists nort of t :i:10 Tehachapi ··iountains at its ercy for by arbitrary freig,1t rate 1n~ipulation, it could brins ruin to anyone v; o dared oppose it . SoutJ:1ern Pac r ic 1 s many contributions toward Cal ifornia' s econo1ic devel op .. ent ,vere lost in a risin 0 tide of resentment brou[;ht about by tho co pony ' s abuse of - 0 · 1er md Stlpreme influence on t11e governrnent of the State . n atte 1pt to settle the transportation n1onopoly prob lem was · mnde in drawinu up Cal fornia ' s State Constitut on of 1)79 . ~nis Constitution provided for a Board of ail road Comm ss ioners , one to be elected from eacl1 of th ee geographical districts . The Connnissioners v, ~ · empov1ered to regulate railroad freights and fares , stiff penalties being provided against those who refused to abide by the rates as laid down by this Board . Adoption of the Consti tution of 1379 broue; .:._t great rejoicine; t,:1rougl1out Califor nia , for people felt the Railroad Co1nnission to be a 11 panacea for all the commercial ills that had impoverished • .. 133 the State." 1 The rejoicing ~roved premature, for it soon was per ceived that a majority or the Commissioners elected to look after the people's interests were in reality representatives of the railroad companies looking after those interests. However, hope once born does not die easily, and after each disappointment, it was felt that surely the next board , .. elected would prove to be satisfactory. Boards served and passed out of existence, but the re~ulat1on of freight rates and fares never seemed to be considered as part of their official duties. Results proved the same re gard.less of the political affiliations of the Corim1ssioners, and Califor nians eventually realized that no relief from this source could be ex~1ected. In fact, t11e solut_ ion lay outside the realm of politics in the form of competition. 2 The first instarce of effective competition asainst the Southern Pacific was by the lon ocean route around Cape Horn. In October, 1891, a ritish ship arrived in San Francisco with a car o made up lare;ely of American goods . These goods had been bought in ! ew Yorit., carried to Antwerp in a rit1sh ship, and then transported to San Francisco. 1 Arthur Wheeler, The Va l ley Road (San Francisco: The Wheeler Publishing Co., 1896), p. 6. 2 Ibid., p. 7. 134 Even with this circuitous route, the goods were transported at much less per ton than the railroad companies would bring goods across the continent direct. ~oreover, Ameri can shipping firms were compelled by the Transcontinental Association of Railroads to refuse competing rates. How- .. ever, the law required that all coastwise commerce must be carried in American vessels, and foreign vessels were for bidden to clear from one A er1can port to another. There fore, the United States Government took a hand in this fight and confiscated the cargoes of American goods brought in on foreign ships on the grounds that these shipments violated the navi r-ation la,i requiring all coastw1se com merce to be carried in American vessels. The cargoes of sixteen foreign ships were seized between October, 1E91, and t~ay , 1892. California merchar.ts , feeltng tnat the Government was supporting an unjust m9nopcly , hired council and took the case to court. The court decided in the merchants' favor, but the victory was of little effect, for Con ress amended the law in such a way that further shipments v1a this method were now prevented. However, during the short period this transshipment method was in operation, it was estimated that an average of over four dollars a ton was saved on the 0 oods received in California~ 1 fueeler, The Valley Road, p. 10. .. 135 Some indication of the value railroads placed on bein able to retain their monopoly and dictate the freight rates may be gathered from the sums paid to a potential competi tor. In a period of slic;htly less than fifteen years, "the Pacific !-Tail Steamship Company received from the Transcon tinental Association (of Railroads], the sum of over 1 1 tl4,000,000." 1 In the long run, of course, this subsidy cost the railroads nothing, for t:1e shippers of California were made to pay it throu h excessive freiGht rates. The railroads' grip on California's econonic develop ment seemed secure. The railroads' control oft e Board of Railroad Commissioners had nullified anr relief from the ex cessive frei 0 ht rates throu~h constitutional means. The amendment of the federal la111 had prevented any shipments of oods on British ships usin , a circuitous route. However, rior to the time this latter method had been used, an im ortant step had been ta en which was to aid immeasurably in solvin5 the problem . Several San Fr.ancisco merchants began to 1old secret meetin s at w1ic plans ·were worlted vut for an association to fi ~ht t~e railroad co .panies . After 1 •fueeler, Tl e Valley F,oad, p . 12. In ot er ords, the railroads paid tl1e Pacific .-ail Steamship Company a subsidy of about $1,000,000 a year for allowinG t~em to control the frei ht rates sot at t4 re was no competition between t e two. Tl1e Pacific .... ail received a federal subsidy also. 136 many preliminary m etings, this group held its first public meeting in the assemby hall of the Cb.amber of Commerce on October 11, 1891. The object of this meeting, as stated by r-rr. James B. Stetson, chairman of the gathering, "was to organize a freight bureau and traffic association for the mutual protection of the merchants of the city, and for overcoming by united effort the unjust discrimination a gainst the business interests of San Francisco. 111 The name "Traffic Association of California" was adopted, and committees were appointed to work on the problem. Shortly after this oruanizational meetin 0 , mem~ ership 1n the associ&tion was thrown open to all shippers living in California. .owever, support outside San 3'rancisco was slow in aterializing. 2 .1.•feanwhile , steps had been tal"en preparatory to the formation of the 1rorth American Navi sation Gompany--organ- 1zed to establish a frei bht service between Panama and San Francisco. The Pacific tail Steamship Company contract with the Panama Railroad was terminating, and North Ameri can . . avi gation had begun negotiations to acquire this bu siness. However, trouble was experienced in raising the ~meeler, The Valley Road, p. 13. 2 Ibid • , p • 14 . • 137 necessary capital because the merchants feared the Southern " Pacific Rsilroad Company. The Traffic Association came to the aid of lorth American Navigation and raised the neces sary capital in consideration for havin3 a majority in the company's directory. 1 Once the problem of necessary capital was solved, :Horth Ame.t·ican nav15ation was able to secure the contract with the Panama Railroad Company to bring all goods to Cal ifornia that came over this route. Opponents of this new venture immediately took steps to eliminate this threat to their position. Freight rates to Central America were re duced to two dollars a ton and to five dollars a ton to New York via Panama 1n some instances. In spite of below cost operation, rorth American 1 11as able to operate for fifteen months. However, although the investing merc 1 ants had lost ~300,000 in this venture, it had shown that competition would bring freight ratEs do,vn to a place where business could be profitable. During the fifteen months of opera tion, overland frei5ht rates had been reduced so much that savi11 ;.·s estimated at ~3, 500,000 had accrued to California shippers on eastward shipping alone and ~5 ,000,000 addi tional on westward freight and increased . sale of products. 2 1 fueeler , The Valley Road , p. 22. 2Ibid., p. 32. North American's operations were in 1892 138 At about the same time the 1:orth American Company was being organized, the rterchant ' s Sl11pp1ng Association had been formed to transport the more bulky freight to Califor nia via the Cape Horn route. Competition by this company's ships, under Grace and Company, brought some reductions in frei ht rates, but an all out war of extermination was not . ~ . instituted, and so, the company was able to survive. !J.earn'lhile , more and more people began to realize that a competing railroad was necessary if the State's agricul tural, industrial, and mercantile industries were to pros per. All efforts to et equitable frei ght rates within the State had failed. Redress from the Railroad Commission seemed impossible, and all representations to the Southern Pacific had proved of no avail. In fact, in one case be fore the Board of Railroad Co. missioners, Colonel Richard P. l-J !or5an , an expert called to testify in this case, main tained that the charges in California were not only reasonable but actually too low when one considered the cost of maintaining and equipping the railroad 11nes. 2 and 1893. l v fuaeler, The Valley Road , pp. 20-38. 2 Ibid., p. 68. This case was not endorsed by the Traffic Association nor by any authorized body of people. As a result a general distrust arose concernin g this case • .. 139 Efforts were made, therefore, to establish a rail line from San Francisco to Salt Lake in 1892. The nee~ for the competing line was recognized, but the money to ouild it could not be secured. 1 During 1893, the Traffic AssociatiQn appointed a com mittee to work with the citizens of Sari Joaquin Valley towns r3lative to construction of a railway there. The proposed road was to be known as the ~an Francisco and San Joaquin Valley Railroad. Ho.vever, in spite of the gener ally reco nized need for such a road, funds for such an 2 undertaking could not e raised. T~affic Association leaders, unwillin 0 to accept fail ure after only one effort, revivGd the plan under the name of San Francisco, Stockton and San Joaquin Railroad Company 1n May , 1894. This company wns to have f 3,500,000 1n capital stock. Therefore, durin 0 the n~xt few months ef forts were directed to .vard raising '+?350 , 00, t his amount bein necessar1r before incorporation could be ef ~ected . Despite persistent work, ne1spaper publicity, and recog nized need, the money could not e secured. In fact, not quite half of the requir~d sum had been subscribed after ---·----- 1 ~ .. ·rheeler, The Valley Road , pp. 41-43. 2 Ib 1 d • , p • 7 0 • 140 three or four months cc nvassin 0 • 1 '-J.erchants and capital- 1sts were reluctant to subscribe to the venture, and with out adequate financial backing the competing road could not be construct ·d. Three years of persistent wor~ ;: by the Traffic Associa tion had produced no firm backi n · · or a com Jetin{3 road in California. Furt~er e forts .e~ed futtle, but before -1v1n · up entirely, the As ~ociation decid don one last a tern t. ,::' __ erefore , a .,eetin . of r eal € tate owners and rc:~ ants w, call ed to "settle whetl1er t , e Valley Railroad shot:ld be built ot1ce for all, ten or never." 2 The men at this eetincr, held on t~ afternoon of January 22 , 1C95, in the Chamber of Joo erce , repr ~ented ~i lions o_ dollars in capital. 0laus Sprec,els wa c a on 5 t e c p talists pre ent.3 st prominent .. /r . Isaac Uphar., Pre.:.Ji ent of t 1e Tra.J..fic Association, called the rneetin3 to order. Ie stated that the object of the 1 eetin was to raise $350,000 to enable them to begin 1 . i fueeler, The Valley Road, Jp. 71-76. vnlifornia' s law r equired that a minimum of ten pcrc r.t of a com pany's ca ital stock must be pledged before _ncor oration c uld beef cted. 2 rbid., p. 76; San Francisco 8hronicle , tan. 19, 1895 . - ) 0an Fran isco Chro~ivle , Jan . 23 , 1895 . 141 construction of' a railroad from Stockton to Bakersfield. This speech was followed by others in which a review of the past efforts was given , and the need .for a united effort was emuhasized if the Southern Pacific Company's monopoly was to be broken. 1 It was left, however, for Claus Spreck els to give real impetus to the movement. Spreckels had taken no part in the fight against the Southern Pacific monopoly up t0 this time. In fact, nei ther the Spreckels name nor his company's are among those listed in support of past endeavors. However, Spreckels ha~ fou~ht a four year battle with the great Sugar Trust rnonopoly , 2 and he grasped the situation immediately -- the amount as~ed for was far too inadequate. If construction were started with such a snall amount, the road would never be built. rrever one to want to invest in a losing proposi tion, Spreckels stated that he would be willin5 to pledge ::~50,000 if the sum were increased to ◊3,000,000, and if pos- sible to $5,000,000. Further, he suggested that the chair man appoint a committee of twelve to devise ways and means for assisting the valley railroad project and for enlisting the help of real estate owners in the enterprise. This 1 .nmeeler , 2£• cit., p . 77-81. 2 see suura., ~p . 7c-100 . 142 suggestion was approved, and Spreckels was entrusted with the tasr of forming the committee. 1 Spreckels selected the committee carefully and called for a meeting in his offices for the morning of January 24th. All men chosen agreed to serve, although two members were unable to be present at this initial meeting. Mr. Spreckels was chosen to be chairmen of the committee, and -1r . E. F. Preston served as its secretary. This group, later enlarged to twenty-two, met every day for the next week in Spreckels' office maturing the plans necessary for launchin such a large undertaking. 2 The com nittee decided that the Valley Road should be capitalized for ~ 6,000,000 instead of the ~3 ,500,000 or1 in ally proposed. Further, the committee agreed that the steel .. of the new road should be held by a board of trustees for a period of ten years in order to assure that the road would remain a competing line for at least that length of 1 san Francisco Chronicle, Jan. 23, 1895 ; Wheeler, The Valley Road , pp. 1-82. 2 san Francisc o Chronicle, Jan. 25, 1 95 . The commitee wns made up of Claus Spreckels, Alexander Boyd, James D. Phelan, James Flood, o. D. Baldwin, Daniel !-1eyer, '1 . F. mi ttier, Albert · • iller, Charles Holbrook, Thomas .l·agee, John T. Doyle, and E. E. Preston. San Francisc~ Chronicle, Jan. 24 , 1895. J.B. Stetscn, Lewis Gsrstle, Antoine Borel , c. De uigne, John D. Spreck.ls, Isaac Upham, Adam Grant, Levi Strauss, J. P. - ~rtin, and A. B. l -1cCreery were added to the group during the week. ·roeeler, The Valley Road, p. c~. 143 time. Howev~r, the consensus was that the subscribers them selves should have a voice in this matter, and the actual form of the trust was left to be worked out at a later date. 1 Full publicity had been given u, the committee's meetings and it was known that on the afternoon of January 29, the subscription list was to be opened. Speculation had been voiced all UE and down San Fran cisco's Mark.at Street on just how much ir . Spreck.els would pledge to the enterprise. A persistent rumor had been that he would pledge $500 ,000 with an additional pledge of $200,000 from two of his sons. 2 The rumors and counter rumors had been denied, but at this meeting, as the first subscriber, Spreckels put down his name for the rumored ~500,000 . John D. Spreckels followed his father with a pledge of ; 100,000 and another like amount for his brother, Adolph B. Spreckels. In all, eighteen stock subscriptions were made at this meeting. When the total was announced, pandemonium reigned for some time, for it was found that $1,025,000 had been pledged, or more than half of the 1 san Francisco Chronicle, Jan. 26, 1895. 2 san Francisco Chronicle, Jan. 26, 27, 1895 . ihen aslred about the rumors, Spreckels answered that he had not yet decided on the amount he would invest. 144 $2,000,000 determined necessary to effect incorporation. 1 The subscription agreement provided that no money was to be collected until $2,000,000 in subscriptions had been secur ed, and that the subscriptions were null and void 1f this were not accomplished within six months. Further, it was agreed that the names of all subscribers were not necessary in order to incorporate the company, but when once incorpo rated, the subscriptions were to be valid and binding. Pro visions were made for placing the stock in a trust, the na- • ture of the trust to be determined at a later date by the vote of holders of three-fourths of the stock subscribed. Payments for the stock w re to be made 1n installments ex tending through six months or over as the directors of the company might direct, although not more than 20 per cent of the stock's value was to be called for 1n any one assass ment.2 Work toward securing the balance of the required ~2,000,000 1n stock subscriptions, the amount decided on be fore incorporation was to be effected, was vigorously press ed during the next few days. The San Francisco newspapers 1 san Francisco Chronicle, Jan. 30, 1895; Wheeler, The Valley Road, p. 87. . 2 san Francisco Chronicle, Jan. 30, 1895. 145 published a daily account of amounts subscribed and names of subscribers. On January 30, $1,200,000 had been subscribed, and the following day the total had risen to $1,435,500 - this amount after only three days of subscr1pt1ons. On Feb ruary 7, only $70,500 was needed to attain the goal of $2,000,000. Enthusiasm was high, and incorporation plans were being discussed. However, the decision was that incor poration should be delayed for a few days until valley resi dents had been given an opportunity to subscribe to the project. On the following day, February 8, the goal was attained with ~57,000 to spare. 1 ccordin to the subscrip tion agreement, this made all amounts pledged binding, and a competing railroad, so long desired, was assured. Meanwhile , enthusiasm for the projected railroad as manifesting itself among San .Joaquin Valley cities. The route for the new road had not been selected, and each city was hoping to become a stopping point. Pledges of depot sites and financial aid were dispatched to Spreckels and his com1i ittee. Even the Board of Directors of the Los Angeles Chamber of Commerce considered sendin a committee to San Francisco to persuade Spreckels and his associates to make the company's franchise broad enough to extend the line to 1 san Francisco Chronicle, Jan. 31, 1895 , Feb. 1-9, 1895; 'Wheeler, The Valley Road, pp. 87-99. 146 Los Angeles. 1 Now that the road was assured former inhibi tions magically disappeared. Work was begun on drafting the incorporation papers . By-laws were worked out and eleven directors were selected, as it was required that the directors for the first year should be appointed by the articles of incorporation. A letter was sent to all subscribers callins for a 10 per cent payment on all stock purchased and an erganizational meeting for February 20 in the rooms of the San Francisco Chamber or Commerce in the .1.'.erchants • Exchange Building. 2 Subscribers responded immediately with their first installments, and the Bank of California, Treasurer for the Pailroad, reported that $197,450 had been received at the close of business on February 19. Claus Spreckels was con fined to his ho~ne w1 th a cold, and the first eneral meet ing of Valley Railroad stockholders was-called to order by Mr. Charles Holbrool{. The first order of business was the selection of a chairman for this meeting, John D. Spreckels being chosen by unanimous vote. ?ext on the agenda was electior of directors for the company. The eleven men se lected were Claus Spr~ckels, John D. Spreckels, W. F. 1 san Francisco Chronicle, Feb. 7, 1895. 2 Ib1d., Feb. 15, 1895. State law required that ten per cent should be paid on the stock at incorporation. 147 l Whittier, J.B. Stetson, Robert Watt, A.H. Payson, Char- les Holbrook, Lewis Gerstle, Alvinza Hayward, Isaac Upham, and Thomas Magee. The following resolution was then offer ed and adopted: Whereas, the subscribers of the stock of the San Francisco and San Joaquin Railway hex•e assem bled recognize the commanding influence, amount ing to leadership, which has been exercised by Claus Spreckels 1n bringing success to this great enterprise; therefore, be it esolved, That to Claus Spreckels we send greeting of good cheer, with the assurance that we w~ll second his endeavors in every way possi ble. Articles of incorporation for the San Francisco and San Joaquin Valley Pailroad were filed 1n the San Francisco City Hall on February 25, and with the Secretary of State in Sacramento on the next day.3 This accomplished, the di rectors could or anize by electing officers. Survey work could then be effected toward selecting a route through the San Joaquin Valley. In addition, the directors had to sub mit a trust agreement whereby all stock was to be deposited __________________ , ____________ _ A copy of the letter sent to the subscribers was printed in this paper. 1 Robert Watt replaced Antoine Borel who was unable to serve because of other arrangements. I') '"San Francisco Chronicle, Feb. 21, 1895. 3rbid., Feb. 26, 1895; TNheeler, The Valley Road, p. 103. 148 in a trust in order to insure that the new road would re main a competing line for at least ten years. The newly elected directors c, :1.ose Claus Spreckels to be President of the Board, W. F. Whittier as First Vice President, 1 and Robert Watt as Secund Vice President. On ]!arch 5 the directors selected Alexander 1a.ckie to be Secre tary of the ne\-1 road. V.r . !-1ackie was at that time casl1ier of the tlantic and Pacific Freiuht Line and thoroughly familiar with railroad problems . On the following day, W. B. Storey, Jr. was elected chief en _neer of the rail road. 1-ir. Storey had served for several years as assistant engineer of the Southern Pacific Compa ny, but at this time he was servin under the United States Debris Comm1ss1on. 2 The actual construction of the new line was under the direc tion of lr . Storey, and the choice proved to be a very ex cellent one. As soon as the organization was effected and officials selected, the Board of Directors began an active investiga tion of the various routes suggested. At the same tim e, each community began an active campaign toward securing 1 "w. F. Whittier resi :,ned on 1J1ay 15, 1895, and Robert Watt was elected First Vice President, and Captain A.H. Payson, Second Vice President." Footnote on picture plate of the board between pp . 112-113, meeler, The Valley Road . 2 vfueeler, The ~alley Road , pp. 111-112. 149 subscriptions for the new road. Each c~mmunity had hopes of havin5 the road run throu h 1t and ~new that the amount subscribed would wield considerable influence upon the ul- tim ate decision. Iowever, before deciding on the route, the board concluded that terminal facilities should be se cured in San Francisco, for without adequate facilities there, the road could hardly prove to be a safe business venture. The site that seemed best suited for the terminal facilities was some mud flats at the foot of Channel Street on Mission Bay l{nown as China Basin. The China Basin was under jurisdiction of the Board of State Harbor Commissioners, and so legislation was sought which would empower the Commissioners to lease the land. The California Assembly passed the necessary legislation, but opposition was encountered in the Senate. Spreclrels went to Sacramento to try to facilitate the bill's enact ment. In an interview at the time the bill was being dis cussed he stated: I do not hesitate to say that the passage or defeat of t his bill means the sucess or fail ure of the entire competing railroad project •••• If we can not secure the passaue of this bill we may as well give up the whole project •••• .•• In the first place we must have some means of getting out of San Francisco. I have studied this matter over very thoroughly •••• I have come to but one conclusion, and that is that we must have those mud flats on M ission Bay for the purpose of a terminal. That is 150 the only location which offe 1 s us an opportunity to get out of San Francisco. _ North Beach, fronting on deep water, was suggested as an alternative site. Spreckels was unmoved, pointing out that from there it was impossible to build a road down the pen insula and through Santa Clara Valley, and so it was of no use to the new line. The China Basin must be acquired 1f the State was to have a competing railroad. However, when the vote was talcen on :March 13, the necessa.r•y legislation was enacted by the narrow margin of twenty to sixteen. 2 The bill empowered the Harbor Commissioners to lease the China Basin mud flats to some railroad not then having ter minal facilities on the bay.3 Negotiations for the China Basin lease took some three months, not being completed until July 8. The Valley Road directors made a plication for the lease on April 4. On April 12, discussions on the lease were beeun by the Com missioners, Mayor Adolph Sutro (of san Francisco) and 1 san Francisco Chronicle, !arch 11, 1895. 2 ~lheeler, The V~lley Road, p. 113. The vote in the lower house had been 60 to 9. The Chronicle and Spreckels felt that the Senate opposition was due to pressure by the Southern Pacific on senators it had helped to elect. 3This provision prevented the Southern Pacific from bidding for t1:1e land in order to block the new road. I ' 151 Governor James H. Budd. 1 Further meetings were held on April 27 and !wiay 3 to work out the terms of the lease. It was then printed and sent to the Valley Road directors for approval. 2 The directors objected to four provisions of the lease presented to them. First, they objected to the clause for bidding any assignment of the lease. The second objection was to the proviso that if the railroad company should fall under the control or domination of any person, company, or corporation having railway terminal facilities on t.he Bay of San Francisco that the lease shall be terminated forth with. The third objection was to the covenant compelling the company, on demand, to construct a retaining sea-wall. Fourth, the directors objected to the clause relating to the character of i n provements, the amount of railroad to be built, and the place of termination of the road.3 The Commissioners considered these objections and were 1 The l:Iayor of San Francisco and the Governor were ex officio me bars of the board. 2 M inutes of these meetings are found in the Office of the State Harbor Commission, Ferry Building, San Francisco. 3Letter to the Board of State Harbor Commission ers from the San Francisco and San Joaquin Valley P~ilroad Company, M ay 11, 1c95 (located in the files of the State Harbor Commission, Ferry Building, San Francisco). . · · 152 willing to strike out the clause requiring the company to build a retaining wall. Further, they were agreeable to chan es in the clause relating to improvements, amount of line to be built, and place of termination. However, there was a strong feeling that tl1e State and City should be amply safeguarded against any possibility of the property under consideration ever falling under the control of the Southam Pacific. Mayor Sutro was particularly concerned with this possibility and offered two amendments to the lease to pre vent such an eventuality. The Sutro amendments provided that the lessee should not have the right to sublet for any purpose any portion of the property, and that should the road ever cease to be a competing road the lease would be come void. 1 The directors pointed out that this prohibi tion a ainst subletting would prevent the road from having a newsstand, restaurant, or other such accomodat1ons unless the company itself wished to engage in such businesses. Further, ~,hat or ,iho was to determine when the road had ceased to be a competing road? In fact, the very wording of the lease as presented would prevent the company from selling bonds to complete the road, and the possibility of raising all the money needed through the sale of stock now 1 Board of State Harbor Commissioners, ecord o. 12, ~-1in utes of a Special meeting of the Board held on April 2i1B95. • 153 appeared unl1kely. Then, too, the directors were negotiat- ing with a company for transcontinental connections. Once these connections were made, the road could not be consid ered a "competing road" in the meaning originally gtven these words, for it would become merely a branch of the transcontinental system, and its busin~ss would not be re stricted to com~eting against the Southern Pacific in the San Joaquin Valley. 1 The Harbor Commissioners, l~ayor Sutro, and Governor Budd met with eight of the Valley Road directors on May 22. In the discussions, the differ nces finally proved to be a matter of opinion concerning the wording of certain clauses. The directors felt that the Commissioners were adding to the law which empowered them to lease the China Basin and asked only that the lease be given simply 1n the langua e of the law. The phraseology of the lease was such, according to the directors, that if the bond holders should ever find it necessary to foreclose, the lease would be forfeited. This fact would keep the bonds from being sold, for capitalists 1 san Francisco Chronicle, May 1, 1895. From the concep tion of the Valley Road, the rumor had been that the Santa Fe Railroad would take it over. This gives credence to the rumor, although the name of the transcontinental system was not given . In view of the rumors and the eventual purchase of the Valley Road, the Santa Fe Railroad probably was the system in question. See infra., pp. 163-164. .. 154 would be unwilling to purchase bonds with such a condition attached. After considerable debate, the wording of the lease was changed to meet the objections of the railroad. ~en the changes made met the approval of both sides, the Commissioners moved to have the attorneys draw up tl1e lease to be executed by the two partias. 1 This was done, and on July 8, 1895, the lease was duly signed by the contracting parties. 2 Jeanwhile, the directors had worked out a ool1n - plan for the ne111 corporation, the purpose being to ma ke certain that the road, upon construction, would be maintained as a competing road. Under this agreement, trustees were to be elected -c,o hold the stock of the company, each owner to re ceive a trust certificate for his stock. The trust agree ment was to last for ten years, but it could be termineted before that time should holders of the trust certificates for three-fourths of the stock so decide.3 On April 5, 1 "Proceedings of a special ~ -'eating, State Board of Har bor Commissioners with the San Francisco & San Joaquin Val ley Ry. Co., San Francisco, Cal., Ii.w.y 22, 1895 11 ( !inutes in the file of the State Board of .• arbor Com.issioners, Ferry Building, San Francisco). 2 san Francisco Chronicle, July 9, 1895. 3rbid., J r-arch 26, 1895. The texts of the Trust Certifi cate, the Poolin Deed, and Indorsement on the Trust Certi ficate a.re given here and in ,~"heeler, The Valley Road, pp. 115-120. ... 154 would be unwilling to purchase bonds with such a condition attached. After considerable debate, the wording of the lease was changed to meet the objections of the railroad. Nhen the changes made met the approval of both sides, the Commissioners moved to have the attorneys draw up the lease to be executed by the two parties. 1 This was done, and on July 8, 1895, the lease was duly signed by the contracting parties. 2 Jeanwhile, the directors had worked out a poolin5 plan for the ne-vr corporation, the purpose being to make certain that the road, upon construction, would be maintained as a competing road. Under this agreement, trustees were to be elected · e,o hold the stock of the company, each owner to re ceive a trust certificate for his stock. The trust agree ment was to last for ten years, but it could be termin2ted before that time should holders of the trust certificates for three-fourths of the stock so decide. 3 On April 5, 1 "Proceedings of a special lJl'eetin , State Board of F...ar bor Commissioners with the San Francisco & San Joaquin Val ley Ry. Co., San Francisco, Cal., I~y 22, 1_ 895" ( !inutes in the file of the State Board of Harbor Comiissioners, Ferry Building, San Francisco). 2 san Francisco Chronicle, July 9, 1895. 3rbid., 11.ifarch 26, 1895. Tl1e texts of the Trust Certifi cate, the Poolin Deed, and _ Indorsement on the Trust Certi ficate a.re given here and in \fueeler, The Valley Road , pp. 115-120. 155 1895, affirmative votes representing 19,443 shares of stock were cast for the trust plan out of a total of 22,981. Mr . Adolph B. Spreckels was elected one of the nine trustees and thus represented the Spreckels' interest in the trust. 1 On ~~rch 16 the directors placed the first order for two thousand tons of steel rails from the east. 2 Consid eration had also begun on the various proposed routes for the new road between San Francisco and Bakersfield. Stock ton was particularly anxious to secure the road and termi nal facilities there. Spreckels took an active part in the inspections and negotiations. Stockton was asked to sub scribe for $100,000 in capital stock (at first the amount was placed at #150,000), to give the road a right of way throu 0 h the city, and to furnish acreage for yards and de pot.3 Stockton agreed to these conditions, and the direc tors announced that construction on the road would begin there probably within about two months. 4 On April 6 a party of surveyors left San Francisco for 1,llheeler, The Valley Road, p. 130. 2 san Francisco Chronicle, I~ 1arch 17, 1895. All steel rails were purchased in the east. However, where it was possible, materials were purchased in California. 3rbid., iw.rch30, 1895. 4 rb1d., April 1, 1895. Agreement was reached on April 26, 1895. 156 Stockton, the first contingent of Valley Railway Company workers. 1 Immediately upon arrival, the . .Y began work, and on May 8, reports indicated that the surveyors had complet ed the setting of permanent survey stakes for a distance of six and a half miles from the city. 2 The surveying contin ued, but grading was held up until the rights of way were received, since condemnation procedines had to be institut ed in some cases. l.eanwhile, more materials and equipment were being acquired. Actual construction began with the breaking of ground at Stockton on July 22, 1895.3 The progress made on the bridges, grading, and track laying were standard news items in the newspapers of San Francisco and valley to,-1ns. Contracts for materials and equipment were written up in the newspap~rs. The first en- 1ne was named the "Claus Spreckels" in honor of the road's benefactor, and the consensus was that this honor was ri ght and proper. 4 The company's policy of favoring local firms 1 san Francisco Chronicle, April 7, 1895. 2 Ib1d., ay 9, 1895. 3vlheeler, The Va l ley Road, p. 18-5; San Francisco C ronicle, July 23, 1895. 4 san Francisco Chronicle, three en -ines at this time. Spreckels" on it, the others S. J. V. rinted on them. Au~. 4, 1895. The road had r· o. l had the name "Claus had the letters S. F.and .. 157 and residents when contracting for labor or materials was noted with considerable satisfaction. 1 On October 5, 1896, the new road had been completed as far as Fresno, and a huge celebration was held in that city. An excu1"sion traln brou 0 ht the directo,ts and President Spreckels to Fresno ,, ..,here thousands had gathered for parade, oratory, and free barbecue. Speeches were made lauding !a-. Spreckels' contribution to the road's buildin. When Spreckels was introduced, the crowd broke into spontaneous cheers. ~ fuen the cheering had subsided, li!r. Spreckels said: I thank you very much for the reception you have given us. fuen I see the people come out so earnestly to receive this new enterprise I feel more strongly than ever that this is the people's railroad. It cannot be otherwise. Where you have 1,500,000 people in this valley to-day you ought to have 5,000,000. The valley ou~ht to have them. You have the whole thin in your hands -- whether thts road will be a success or go down. If we mate 6 per cent interest on our investments we will be satis fied. If our income amounts to more we will cut rates further, so that the rate of interest realized will be kept to the 6 per cent. For the present we cannot go further with the construction of the road, but after the election we hope to issue bonds and extend the railroad. Let us not be afraid of each other; let us stand back to back and fi~ht the common cause together; let there be no petty 1 san Francisco Chronicle, tar . 22, 1895 ; June 21, 1895 ; and my 12, 1895. 158 jealousies and let the people be a unit, and then we shall hare 5,000,000 people in this glorious valley. As ¥~. Spreckels finished his speech, Governor Budd arose and proposed three cheers for the President of the Valley Road, and these were given with a "ri ht good will." There was no disguising the fact throughout the celebration "that Claus Spreckels was regarded as the hero of the day and hour." 2 Constru~tion continued to be pushed durin 1897, and the year closed with 238.6 miles of track constructed and 1n operation. Tracks had been laid almost to Bakersfield, the proposed southern terminus for the road.3 The road's equipment included eleven freight and three passenger loco motives, 250 flat cars, 200 box cars, 100 stock cars, nine passenger coaches, three combination baSgage and passenger -.... cars, and a number of boarding, water, and other cars. 4 The Valley Road had gone into operation when the 1 san Francisco _c_a_l_l, Oct. 6, 1896. 2 Ib1d. 3san Francisco Chronicle, Jan. 2, 1898. 4 B1enn1al Report of the Board of Railroad Commissioners of the State of California, for the Years 1895 and 1896 Tsacramento: A. J. Johnston, Supt. of State Printing, 1896), p. 60. (Hereinafter cited as Report _g1 the Railroad Com missioners, 1895-1896). 159 tracks had been laid to Merced and Le Grand in June, 1896. Traffic schedules were published for the eighty-t\, 10 miles of operational road on June 25. The r~tes were below those being charged by the Southern Pacific, and while the Valley Road terminated at StocLton at that time, the company had contracted for water transportation to San Francisco from Stoc~ton, and so grain and fre_ 6 ht could be shipped to San Francisco via the new line. In July, rates ere ~ublished for frei t to San Francisco. 1 Te Sout rn acific reduced its rates to meet the com.et·t1on. Thus, the openin of t.e new road immediately brou ht some measure of relief to the shi pers of the valley. The report of the card of Railroad Co missioners or 1 -95 and 1696 6 ives an nterestin account of w at happened . The commissioners had been asked to ma :e a reduct_ on of 15 or 20 per cent on the rain rates then in force on the Southern Pacific. After a lone and careful examination of the question, the commissioners ordered a reduction of 2 · er cent upon all grain rates then in force and beio charged by the Sout1ern Pacific line. The company objected to this reduction, contending that it would be confiscatory of its property, unreasonable, and unjust. Therefore , an action lsan Francisco Cl1ronicle, June 25, 1296; July 9 , l c96 . ... • 160 was commenced to restrain the board f~om enforcing compli ance with t e reduced rates schedule. 1 The Valley Road, on tl1e other hand, in many instances adopted t11e official rate, which was a reduction of about 8 per cent of the rates charged by the Southern l)acific Com- - • pany between Fresno, Stoel ton, and intermediate points prior to the competition of the new road. In addition, the Valley Road abolished the switchin 0 charge of fifteen cents per ton at Stoc . ton as charged by the Southern Pacific. T"1en, t oo, the costs ,,ere further reduced by . a king arran ernents for water transportation to Port Costa (Carquinez Straits) or San Francisco for fifty c s per ton additional. Th"s meant a sav n • of fifty cents per ton on freight shipped from Stoc' .. ton to San Francisco when co pared to the rates as char~ed by the Southern Pacific. 2 .otwithstandin their contention to the commissioners that to reduce ra-c,es ,11ould be con.r.,iscatory and their suit pending in the courts to prevent enfo1'cernent of the offi cial re.tes, when the Valley Road bee;an operatin3, the South er1 1 -,_acific reduced its rates from Port Costa and Stockton lReuort of tne Railroad Commissioners , 1 ✓5-1096 , p . 60. See Ap endi- D. 2 Ibid . , _ • 6 6 • • • 161 to all stations on its lines that were in competition with the ne\'1 line. In fact, some of the ne,-1 rates were lower than those adopted by the Commissioners, although the Com pany had charged that these were "unjust, unreasonable, and confiscatory. 01 The Railroad Commissioners, in reporting on the reductions made by the Soutl1ern Pacific, stated: The reductions above referred to as made by the Southern Pacific Company will average more than 157 0 lower than the rates of January 1, 1895, bein a gi~eater reduction th.an the original reso lution asking for an average reduction of 15,10 on the grain rates of 1895. With the competing road running from Stock ton to Fresno, having water connections with Port Costa and San Francisco, the business bein divided; a short crop, with less tonnage to move; and with a material reduction 1n rates, ave.re.g- in (includ1n5 the abolishing of the switchine charges at Stoel ton) more than 15% from former rates, the Southern Pacific Company is still bein run, presumably, at a profit, and we have not yet heard that it is unable to pay its cur rent expenses, fixed charges , etc., or that from this sli ~ht reduction and competition it is likely to become insolvent and pass into the hands of a receiver. The reduction proposed in grain rates, if accept ed by the company and enforced, would have saved the grain-shippers of the State an amount equal to the expense of maintainin~ the liailroad Commission since its organization. Competition was accomplishing for California shippers what laws and the Constitution had not been able to do. 1 Report of the Railroad Commissioners, 1895-1896, p. 66. 2 Ibid. 162 A reduction in oharges was not, however, all that the new line was able to accomplish. Competition between the Southern Pacific Company and the San Francisco and San Joa quin Valley Railway had become very intense by December, 1896. The Southern Pacific had met all the Valley Road's freight rates, and in the latter part of December, it an- . nounced that a fast looal passenger service would be inaug- urated between San Francisco and competitive valley points. Fares on this train were to be reduced in order to compete with the Valley Road's part rail, part water service. 1 In July, 1898, the Valley Road, after three years of construction, had been completed from Stockton to Bakers field. A loop into lisalia had been built makin5 a total of 278.91 miles of track 1n operation. In addition, con struction was progressing between Stocltton and Port Richmond on the Bay of San Francisco. The funds for the entire con struction had been provided through the sale of capital stock at par and an issue of ~~6 , 000, 000 first mortgage 5 per cent bonds. 2 1 san Francisco Chronicle, Dec. 29, 1896. 2 Jos Weidel, "Santa Fe Splinters," Vol. 9, "The San Francisco and Sau Joaquin Valley ~ilway Company and Other Lines 1'Iorth of Bakersfield," : N o. l (Loose leaf book, typed located in Santa Fe Public Relations Office, San Franciscot p. 167. • 163 For several years, the rumor had been current that the Santa Fe Railroad was going to extend its line to San Fran cisco. Even before any construction on the Valley Road had been done, a visit of Santa Fe officials to San Francisco caused the story to be circulated that the visit was for the purpose of acquiring the projected road. 1 The story was denied, but negotiations for the China Basin lease seemed to bear out the idea that the Valley Road officials were planning to merge the new line with another line. 2 The Santa Fe system already o~med a line extendin from Chicago to Los Angeles. ]1ojave, a station on the San ta Fe line, was just s1xty-e1~ht miles from Bakersfield, the southern terminus of the Valley Road. The sro\!line; im portance of the California traffic made connections with San Francisco most desirable in order to strengthen the line's position on the Pacific Coast. Therefore, negotia tions were started between the officials of the two lines. At the Annual Meet1n 0 of Santa Fe in December, 189 , the directors were aut1orized to expend $2,462,300 for capital stock of the .San Francisco and San Joaquin ,.valley Railway Company . Through this purchase all but twenty-two shares 1 san Francisco Chronicle, April 4, 1895 . 2 see Supra, p . 153. of t h e stocr sold and outstanding was acquired . 1 The re maining twenty- t10 shares were acquired in 1900 . 2 Thus , ai'ter less than three years ' operation , t l1e "competing line " became one sec ion of t 1.e great Sant a Fe rail\vay system. Sprec~e1s h· s been severely critic zed by sucl authors as Lincoln Steff ens3 fo_ selling out to t ~ 1e Santa Fe . There ,;1 s kee is ppointment in the valley over t 1e transfer , it is trt e , but t" c. :r s to Sprecl{els and 1is ssoci tes , t e v 1 e l1ad its co n et i nr line reg rdless o w·1 10 ·was o orat - i n i t , sn never ain could the n cto· us rr control t l10 destinies of t _ e people as had been its wont in the ast . S ec els ' role as resident ond one of the builders i /1 0 h)an Fr <")ncisco an i'"" mo 0 t · ·nport ant railv1ay connecti on , ,ias not t _ 1e only ra: ~ l v:a::,- in v ,_ ich he v1as 1~ terested . ..:>_ recL.els ' first ex perience as r ailway f ounder and builder had been with the --------- 1 Fro t" G nAtc 1 1ison , Topeka , and Santa Fe Rail,vay Com p any eport t o Stoc lolders , June 30 , 1899 ,n as printed i n · ··ei el , " ant a t e Spl nters , n Vol . 9, p . 1 7. 2 co -- y of n \s ree11en t ade hoveraber 24, 1900 , be-'Gween the San ancisco an_ San Jo quin V-- lley nil,· 10.y Cor1p cmy and t r e Ate ison, Top e a and 0anta Fe n.ilw·ay Company , n as given i n "Sant a Fe 3 l ·inters , n Vol . 9, pp . 170- 171 . 3Lincoln teff ens , U~b)+ildcrs ( Ye-, -or,c: Doubledn.J , .r UGe c· C r.t~ ar1 y , 1909) , pp . 40- 251 . 165 Pajaro Valley Railway. This railway was built simultane ously with the construction of the Western Beet Sugar Fac tory at Watsonville. The railway, formally incorporated in 1889, 1 was of the narrow gauge type and was built as an ad junct of the sugar factory. The Pajaro Valley line offered a freight service from " tlatsonv1lle to :M:oro Cajo as soon as the first section of the road was built. The road started at the Southern Paci fic station in atsonv1lle, crossed the flat lands to the Pajaro River, and thence went dotm the left bank of the Pajaro to Monterey. t Monterey, the tracks went southward to 11oss landing and then to 1-!oro Cajo, \-vl11ch is about t·wo miles west of Casterville. This first section of the road measured about fourteen miles. Portable sections of track were laid into the beet fields that were conti5uous to fac1- 11tate delivery of the beets to the factory. Horses hauled strinBs of little cars of beets over these portable sec tions to the main line where they were then hauled to the factory. 2 The company had twenty-three and seven-tenths miles of 1 "Report of ths Pajaro Valley Railroad Company," Report, of the Railroad Cornm1ss1oners, 1895-1826, p. 325. 2 Freder1c Shaw, Clement Fisher, Jr., George H. Harlan, 011 rmps and Iron Ponies, (San Francisco: Bay Books, Ltd., 1949, p . 159. 166 track in operation according to the off1clal report of 1896. The working division, at that date, was from Watsonville to Salinas. The equipment report showed that the company own ed three freight locomotives, one passenger car, sixteen box cars, nineteen flat cars, and 126 other cars. Total construction and equipment coats had been $331,204.34 up to June 30, 1896. The railroad was small, _but 1t was an im portant source of employment for the area -- the report showing that ~51,610.34 was spent for operational expenses in that year. 1 The building of the large Spreckels beet sugar fac tory at Spreckels 2 necessitated extending the rail line. The Pajaro Extension Railroad Company was formed to con struct the needed mileage. This company was merged with the Pajaro Valley Railroad Company to become the Pajaro Valley Consolidated &lilroad Company on December 9, 1897. 3 The Pajaro Consolidated's report for 1900 shows that the company had about tl1irty-three miles of track in 1 "Report of the Pajaro Valley Railroad Company," Repo~ of the Railroad Con1rnissioners, 1895-1896, p. 325. See Appendix D. 2 See supra ., p . 113. 3"Report of the Pa·aro Valley Consolidated Railroad Com pany," !=teport of t11e ~oard of R.a ... lroad Commissioners, 1900, ( Hereinafter cited as " port of the Pa aro Valley Consoli dated, 1900"), p. 280. • • 167 operation. The company possessed four locomotives and had ~ 170 cars in service. The total cost of the road to June 30, 1900 (equipment, construction, and permanent improvements) amounted to ~~428,939.42. Operating expenses for that year . l were $44 .112 .52. Tl1e expenditures were small, but the company provided employment and important service in the small area served. The report for 1900 also sho·ws that l!r. Spree ... els had withdrawn from the management of the company leaving it in . the hands of t,,;o of h1s capable sons, John and Adolph. 2 1r. Spreckels was seventy-two years old in 1900, and so it is easy to understand his policy of turning over more and more of the rnanauement of his affairs to these two sons.3 Be sides, Spreckels was turning much of his attention to real estate extension in San Francisco, but that 1s the subject of another chapter. 4 Spreckels was, therefore, the founder of the Pajaro Valley narro,-1 gauge railroad which se_r-r1ed that area until 1 "Report of the Pajaro Valley Consolidated, 1900," p. 280. 2 Ibid., p. 279. 7.! :Jsee infra., p. 235 . 4 see infra., pp. 1 1-1 9 . 168 1935. 1 During this span of some forty years, the road per formed e.n i m portant service in the community as well as pro viding a livelihood for many people. However, Sprec {els' most important service to California in railroad building was in providing the spark and confidence that made possible the building of the San Francisco and San Joaquin Valley ?Jl1lroad. Spreckels never entered this project w•i th the idea that the building involved a great financial risk. Ho ever, his motives were not alto ether financial. He stated on one occasion as follows: iiy investment in the San Joaquin Valley Rail road, and I think those of most of the gentlemen associated with me in that enterprise, were prompt ed by two motives chiefly. These were the need of the State for further and competing transportation facilities and the belief that such investments 1n· the end would prove profitable.2 In another letter he stated: I regard the San Francisco and San Joaquin Valley Railway as a sound business proposition which, if properly supported, should make good returns on the money invested. The general re sults of building this road cannot fail to be of immense service to the entire State and es pecially to the San Joaquin Valley. l 11 certif1cate of Election of Pajaro Valley Consolidated Railroad Company, Ltd., to \iind Up and Dissolve," located in file 935-RR in the Secretary of State's office, Sacra mento, Californiao This was filed Dec. 30, 1935. 2 The San Francisco Call, Dec. 25, 1895. .. I was strongly influenced to become interest ed in the enterp 1 ise because the good of the coun try demanded it. 169 Stuart Daggett, in his book Southern Pacific, states that the ability of the new road to make a profit 1w-1as ques tionable. He points out that the San Joaquin Valley, while fertile, was relatively undeveloped; the area was already served by a railroad of large capaci~y; and the new road expected to reduce its rates at the time it was organized and building its business. To survive the road would have to have such popular su port as to minimize the cost of con struction and maximize its business, and connections with some large railroad system to stabilize and 5ive permanency to its traffic relations. 2 Spreckels' and his associates' reputation as success ful and shre·wd businessmen caused many people to have con fidence 1n the ultimate success of the Valley Road. Support in money and right of way gifts were easily obtained. One has only to read the newspapers of that time to realize that seldom has any private enterprise had such widespread public support. The connection with the large Santa Fe 1 tlheeler, The Valley Road, p . 4. Photocopy of a letter dated December 21, 1895. 2 stuart Da gett , Cha ters on the Histor~ of the Southern Pacific, (tew York:The RonaldPress Co., 1 22), pp. 332- 336. 170 system came early in the road's operation. Whether survi- val or profit could have been attained 1s an academic ques tion. As Vice President Robert Watts commented: I have said that the Santa Fe Failroad was not consulted upon the organization of the Valley Road. This is strictly true. But it is also true that shortly after we began w~r- that dis cussions arose among ourselves •••• There can be little doubt that the Valley Road has been a great asset in the economic devoloprne .. t of California. T11e nroject's worth to the State is incalculable. California owes a debt of gratitude to Spreclels and l ls associates fort is contribution to the State's economic well-being -- a contribution that becor.1es more and more imuortant wit ... the State's ·ncreased growth. .. 1 san Francisco EJcaminer, Oct . 28, 1 98 . ·• CF.APTER VII OTH~R I- 1AJOR SPFtECFELS BUSI ~ss VENTURES Spreckels' position in the sugar raf1nin ~ industry so overshadows his other business accomplishments that one is likely to think of him only as the "sugar lt1ng." However, Sprecl:els' interests were catholic. Even 1n this day of as tronomical f1sures, his investments in steamships, real es tate, utilities, and bankin ~ would be considered quite con sequential. :!any of his business extensions came about be cause of som e relationship to an existin5 business interest. The Oceanic Steamship Company, of which he was one of the founders, served his sugar interests both in Ha,-raii and San Francisco. In developin 0 his San Francisco su~ar interests, real estate was necessary. Real estate values were con stantly increasing and, as surplus money was accumulated, offered a valuable place for investment. Improvements on the real estate followed as a means of further enhancing its wortl1. Gas and electricity was used by Spreckels' bu11 in ~s, profits were being made, so a misunderstanding and possible slish,t were all that was necessary to launch Spreckels' utilities business. large sums of money were l{ept on deposit for immediate use. What seems more lo5ical than to invest in ban~ina institutions in San Francisco? Spreckels' interest in ocean transportation began with 172 the establishment of his first sugar factory. At that time, the raw sugar w·as shipped in from Asia, the Philippines, and Hawaii. In addition, large quantities of wood and coal had to be shipped in if the large sugar refinery and coop erage works were to be kept in operation. Therefore, Spreckels purchased part of the Pafael Castro ranch in 1872, his acrea ge lying east of and bordering upon the Aptos River. Rafael had built a wharf at Aptos in the ear ly fifties, and Titus P~le, ,..,ho shipped firewood to San Francisco from there, had enlarged this wharf in 1867. Spreclcels, upon obtaining the Aptos ~nch, further enlarged the wharf so that ocean sailing scl1ooners could be loaded there. A thriving lumber industry grew up in the area, and Spreckels loaded lumber destined for Hawaii at Aptos in the early seventies and eighties. 1 In the meantime, Spreckels' Hawaiian interests had been growing in value and extent. Transportation costs 0 n sugar alone amounted to thousands of dollars annually. Here, then, was a ready-made cargo upon which additional profits could be taken. Therefore, Spreckels, three of his sons, and several other men formed the Oceanic Steamship lLeon Rowland, Annals of Santa Cruz (Santa Cruz, Calif.: Seven Seas Book Shop, 1947), pp . 55, 94. Spreckels' Aptos Ranch 1s near Spree i~e1s ' beet sugar developments. See supra, 104. • 173 Company in 1881. The Oceanic was capitaltzed at $2,500,000. All stock was subscribed for at the time of incorporation, with the Spreckels family owning $1,450,000 of the total, thus being in a controlling osition in the new company.l The new company was not long in getting into operation. Two years after the company's formation, Spreckels stated that Oceanic owned two steamships, the "Alameda" and "?-1ar1posa," each with a ccpacity of 3,000 tons. In addi tion, the company owned nine other sailing vessels and five brigs, the least of the brigs carrying 500 tons. 2 The Oceanic Steamship Company at first operated only between the Ha,vaiian Islands and California. However, in 1885, service to Auckland, Iew Zealand and Sydney, Austra lia was instituted as a joint service with the Union Line of New Zealand. This extensicn of service necessitated 1 "Articles of Incorporation of the Oceanic Steamship Com- any," Corporation Archives, State Capital Building, Sacra mento, file o. 13,484. Claus Spreckels owned 4,900 shares, and 9,600 shares were subscribed for by Claus A. Spreckels. Claus A. explained at a later date that he , J. D., and A. B. each owned 3,200 shares as partners in the firm of John D. Spreckels & Bros ., San Francisco Chronicle, !, iay 26, 1895. Other subscriptions were Charles Goodall , 6,500 shares, James DeTremery, 500 shares, E. L. G. Steele, 1,000 shares, A. L. Tubbs, 250 shares, Gustave Touchard, 250 shares, and Geo. A. Low, 2,000 shares. 2c1aus Spreckels, "Pacific Steamship Line," Bancroft Library !vIS , University of California, Berl{eley, California. See Aunendix C • .. ... 174 acquisition of more steamers and the "Z.ealandia" and "Australia" were secured from the Pacific 1 ,Iail Steamship Company. 1 These ships remained under the Oceanic flag un til the government requisitioned them during the Spanish American war. The annexation of Hawaii to the United States barred foreign ships from the Hawaii-California trade, and so the Union Line withdrew from the joint arrangement . Oceanic then built three ne,., ships, the "Senoma," "Sierra, 11 and "Ventura" which began service in 1900 from San Francisco to the Antipodes by way of Hawaii. Service to Pago Pago, Samoa was added when the United States established a naval station there. "Since then, Oceanic has provided the only commercial service into Pago Pago, an important factor in maintaining and supplying this mid-Pacific outpost. 112 In addition to freight, accomodations, both cabin and steerage class, were provided on Oceanic ships. Schedules varied from time to time, but in 1893, they provided for the "Australia" and "Zealandia 11 to leave and return to San Francisco from Honolulu every other Tuesday, while the "Alameda," 11 Mariposa, u and 11 lv1onowa 1" ( the latter of the l:Matsonews, Dec., 1945, p. 15. 2 Ib1d., p. 16. J 175 Union Steamship Company) left San Francisco for New Zealand via Honolulu once a month. 1 Further, the ships carried the mails to the islands, being under contract with the govern ments of New Zealand and i rew South Wales to carry "Her Bri tannic Majesty's Mail [from] San Francisco and Sydney, via Honolulu, Samoa, and Aukland." 2 This subsidy 1n 1891 amounted to about $60,000 a year. In that year, the United States ConGress passed a mail subsidy bill covering ocean mails. At the time of passage, Oceanic ships were expected 7.: to receive about $64,000 a year.J In addition, the govern- ment of Hawaii subsidized the Oceanic service. The with drawal of this subsidy 1n 1894 was one method by which the Republic of Hawaii sho~red its disapproval of Sprecl els' support of the deposed monarchy. 4 Affairs seem usually to have run smoothly for the com pany. However, the great water front strike of 1886 start ed with a strike against the Oceanic Steamship Company. lReEorts of Com~ittees of the Senate of the United States for the Second Session of the Fifty-third Con~ress 1893-1894 (Washington: Governmerit Printing Office, 1S95), Vol. I, p. 48. 2 William D. Alexander, History of later Years of the Hawaiian Monarch:£ and the Revolution" of t893 (Honolulu: Pub lished by the Hawaiian Gazette Co., 1'896 , plate between pp. 10-11 (IIereinafter cited as Alexander, Hawaiian ionarchy) . 3san Fx'ancisco Chronicle, I-!arch 4, 1891. 4see supra, p. 70 . 176 Tne trouble start ed on t he steamshi ) "l13ri t osa ." The steamer had left Sydney , A stralia shorthanded . Th refore , c oa l assers were compelled to wor' durin , their off duty hours in order t o l eep st n in the boilers . ~ t ·1 re- .l. e; L fused to do this extra dut ~r I ' and t e captain lad them lee - ed in irons . 1 Jhen t e " -ia riposa" arr ... ved in ;:>an Francisco, tl: ese :r.1en ·l re brouu t t , trial r refusin · d tr . Ho · 1ever, - tie jury was un le to reac ~ a 0 reement , a ~d the case 1as ore men e . . 1 C T .:.s de __ and ras r scte , ,. nd on June 3 he " ._arip sa ' s" ere.-, struc' z.: an · re e replaced by C ~ ne .... e . lon ,·s, oremen \·1 o r .. :e t e str C: ves svl, t i3 d l on -sh re~en : 1 d ~ d support of t stri {e . Sprec t·els refused to confer wit .. tl1e Arbi tra tion C mmittee of the re-erate Trac s, was boycotted . The rest f p rec.:.els ' vessels struc ~: fol lowinc tis, brin 0 in j out about 400 additio nal rnen . 1 en June 7 t. ~ ~hipodners ' Protective Associati on o ~ t he Pnci_:c Coas t was or san ·z ed . T :s asso i a t :on w~s f or 1..e to force ·ne mber3 of t e Coast Seo. 1 .an ' s Un on fr o:n 11- e.l.. r D . G-11, "T~e SD-_lor.s ' n ion of tJ.e Pacif "c fr 1. l Z.:05 t --) l_..1 ?c , 11 (:. --s in .oaricroft Librv. ry), p • :>l - 5.:> . ( i n a ft e .r c it e a -i 11, " ... 1 1 e Sa i 1 rs ' !1 i on • 11 ) • i r- i s mo 0 t co~Jlet and best account of t ie stri ~e a~d its · ssues isc over0d . 177 association vessels. This was to be accomplished by com pellin~ sailors to ship throu h the 1erchant's Shippin Of fice, a hiring hall set up by the association. Sailors ern plo~red through. t 1 is office were 0 iven rade bool<:s w ich showed their record of employment in e . ..1·c an5e for the sur render of their union books. The Union combated tis policy by issuin duplicate bool s. he nion was ~articu larly bitter about the shippin office, fe lin 0 that it ias •. really a blacklistin a ency~ ic prevented prominent union men from securin em.loyment. 1 On July 21, the Boardin - House Ass ci~t i on was or 0 an- ized to combat the stri•in union. owever, the nion sent a committee to interview the boardin~ masters, threatenin to boycott any of them wlo s 1 ped scabs, and so nearly all of them withdrew fr m the Associat on. A fews i ps did sail, nonetheless, but incoming ship s were tied up . 2 On Au ust 16, the Coast Seamen held a 0 iant mass neet in a~d parade in San Francisco protestin the treat ent of sailors. The next day the Coast Sea. en and other water front unions c onferred on the S rec kels situation . The Arbitration Committee a 6 a_n called on Sprec kels concernin5 1 Gill " he Sailors' Union," I) . 53 . 2 Ib 1 d • , p • 5 . C U t . e i r de ., o. n . o u t u i t Lout re s u 1 t . front union ~et · intly and vot d a ~a nst ,e1.eral water fron.,__ stri'"..,. After this .. :. eetinc, 178 o~rover ' th Co st S a :ion .. t and resolve t:) stril:e o. l ve selo in oan Francisco n - y , San Pei , ..... urc :a , .;,)tri C s t s exte r1 .e to · .v olve .J.. ' L, e un on v e 1- t i re 1. e 1-:1- b rs _ J o: abou ) , 000 an .. '1V lv d. t : al 1-- C .J... 1 C C. v • T. e Coast .vea ·1en, s 1 ·. ')r'eu l'lVv. t Q l J s l: d. t ~ abo - _., .._, lit .... o o· t - ... s i - i .... ,.,. • ! I . - ·v f f·· C o.. 1d · 0111t co trol 11 an S : i D in r· r _ of ice . Brit s sa l ors .. et ·Tit 1 t e Const a·lor 0 and a.i reed to up_iort t • e: .. -11 t ve . ITo ,,ever, ,..., i ,o ·rncrs re.! ct ~ t. _s pro ~') OoD.l 0 nt c o trol of t C .. ld T~ t ..... tl e s _lor n n t r. - ... ber 1 , , and 15 . 2 ·n t e .. cant· 1 .e , S OJ:1 8 S ips rere sailin _:; , ac ir n .. a ,.,re · r "·10..s bee o. · n , 1 ore o.nd no:. c - ..__ 1 be \1illi n to tc.':e .. ~r c t ~e nion , t he Co .st ' s .. 1 ion o ... e ed s½in 1 r o~fic e acros - ~ ... ..) t e strc t ,.,. t, ~,. , t 1 r or.1 l e .... .. re 1an o Shipp i "1 '"",, Of✓ -'. c e • ·rere l '"'.co by t, ... e l.n i o n on t ne f i "lst . · / of bL s i11 ...,ss . l o·.-1ev er , 1 · 11. " _l P ,, ; 0 _ nn> 1 t.2. n c n tt P • 5 5 -5 7 • 179 the winter surplus of ~en caused the shipowners to reduce wages in the latter part of September, and the stri T e ended in defeat on Septe ber 30, after costin the sailors about ~12,000. 1 For many years because oft e strike of 18 6 , t e ceanic Steams ip Company was seern1nsl' r· 3htfully consid ered to be ostile to l abor . Horiever, in 1~03 , t e co _any si5ned an a ~reement rit ~ne sailors, firemen , and coo~s a reein~ to employ union men 1 1 en t ey were available ex ce. t t .se pers onally ob ectionable to t 1e c mpany . T' is a ~r ement w a s c nsidered a distinct victory for t l e uni ns, or I th the xception of the isl nd ste r .. ers w ich ad been carryin union crews, t e c m. any c:an ed from non - 2 union to uni on cre·.s. T is a reeLent w ,.., s renewed in 19 ·5 . n fact, la bor relations ecam e so hc.rmonious under this asree ent tho. t n 1 06 , 1 :lh n t' e unions dee i ed not to re new their a reem nts and to strite against the Pacif-c Coas~ Steams i Com~any and any ot~ r, if necessary to se- ure their demands, the Oceanic ~teamship Company was spec· f ically e, .. ce uted . 3 1 -...:. · 1 • 11r 1.e Sailors ' Union," p . 57 . . 302 . ;) . 312 . 180 In 1903, the capital stock of the Oceanic was increas ed from 't~ 2 ,500,ooo to $5 ,000,000. 1 Even before t1 ·1.s date, expansion of the company had caused the company to issue bonds, secured by a mortga eon the company's property, for l 2 ~2,500,000. The Oceanic Steamship Company, while still operating, ceased its independent existence when taken over by the tstson '.avigat1on Company in 1926.3 An interesting fact in connection with this pure ase is that Captain William I\.atson, the founder of the 1 :a.tson company, worked for Spreckels or companies serving the Spreckels refinery when he first arrived in California. 4 In fact, accounts have it that Spree ~els admired Captain Matson so much that he loan ed him the money with which to buy shares in Matson's first vessel, the "Emma Claudina," which made its first run to l"oceanic Steamship Company Certificate of Increase of Capital Stock," San Francisco, Calif., Jan. 31, 1903. In file 13484, Archives Secretary of State, Capitol Building, Sacramento, California. 2 "Cert1ficate of Proceedings at Stocl{holders' meeting of the Oceanic Steamship Co□pany Authorizing the Creation of a Bonded Indebtedness," San Francisco, Calif., June 2, 1899. In file 13484, Archives Secretary of State, Capitol Build in, Sacramento, aalifornia. 3 ~tsonews, Dec., 1945. 4 Fel1x Riesenberg , Jr., Golden Gate (·\ ew York: Tudor ub . Co ., 1940), p . 39; ~tsonews , Dec., 1945. 181 the islands in 1882. 1 'While Spreckels \vas en aged in sugar refinery and steamship transportation development, he was also beginning his career as one of San Francisco's leading real estate owners and developers. In 1~89 and 1890, for instance, one finds numerous sales of lots by Spreckels in the Spree els' Subdivision of the Park 111 Homestead Ass ociation listed in the Real Estate Transactions section of the San Francis- co Chronicle. - upreckels possessed extensive real estate holdin s outside of San Francisco, s ome such as his Aptos Ranch bein acquired in the 1870's, but San Francisco was his chief area of operation. Sprec kels' investments and developments durin the l ast decade of tne nineteenth cen tury are particularly noteworthy, proba bly because h e was more and more turn_. n over the mana e.1ent of his industr.:.al invest e .ts to sons John and Adolp • In fact, S rec'·els' chief financial interest at t he ..L • L,lill8 of is deat ·was San Francisco real estate -- he had disposed of the majo r 1 William l~rtin Camp , San Francisco Port of Gold ( ew York: Doubleday & Co., Inc., 1947), p . 405; Riesenberg , .2.E · c 1 t . , p • 3 9 ; -!at s on ew s , Dec • , 1945 , s i m _ 1 y state s that he was able to raise suf:21cient funds t o acquire part O\vner ship . John ~ . Cushin; , vantain lMi lliarn \.ats n ( ... ew Yor/· : T ewc omen Society in J.Iorth meri ca~ 1951), p . 11, states that " /villiam, now Captain ~ts on , went about raisin [; money to acquire a ship." Thus , w .. 1ere e rai sed the oney is left in doubt. ( . r. Cushing ,-1as president of the - J.atson !aviation Co. in 1951.) 182 portion of his fortune through gifts to sons John and Adolph. 1 Spreckels acauired property in many different sections of San Francisco, but his major investments were in the downto1t1n business section, much of it being along I-'larket Street . Spreckels' investments were unusually extensive in 1895 . In ! 1 Jrch, he urchased the r,-ore-shaped lot at the corner of Golden Gate Avenue and ~-1art et Street for a reput ed p625 ,000 from 11lliarn B. Bourne. 2 Two lots located at -arl et and Eddy Streets were secured for $350,000 in May .3 In July , roperty ad oining the lot at Golden Gate Avenue, purchased in }!arch, was secured. The exact price was not publis ed, but so ewhere between ,550,000 and ~600,000 was t he accepted fi ure . 4 Sprec~1'els lost out on one choice lot in I'-1arch. This ro:perty, located at 1/\'arket and Stockton Streets, was part of t he Ryer estate, and had been tentatively sold when Spreckels sent a bid for 496,150, or about 46,000 more t han t e inco pleted sale rice. The court then set aside 1 see infra , p . ~35 . 2 san Francisco Chronicle , 1-Iarch 27, and 29, 1895. 3rbid. , .• ay 3 , 1895. 4 rbid ., July 19, 1895 . 183 the original sale and set a new date for the auction. Mr . James D. Phelan , who had been interested in the original sale, outbid Spreckels in the spirited contest that follow ed. Phelan paid $501,000 which was one thousand dollars more than Spreckels would pay . 1 Shortly after losine; out on the .1.farket-Stoc .. ton site, Spreckels was able to purchase a lot at the corner of ''-:ar ket and Third Streets . This lot, also part of the yer es tate, has been described as t e most valua le site on ~~r ket Street. Tenants were notified t ha t they would ave to vacate the buildin by July 15. Spreclels was lanning to erect a modern office buildin on this lot, and so, efforts were started to secure the adjoinin property . However, Spree els experienced difficulty in acquirin this ro rty, and construction had commenced before the deal was consum mated. Finally, in Jove ber, the prop rty fronting on -Iar ket Street next to the projected buildin was acquired. The price was $150 , 000 , 2 and in the same month ~166,000 was spent to ac quire a lot at Seventh and ~ar et Streets . 3 Spreckels seemed to have an affinity for corner lots. 1 san Francisco Chronicle, - 1arch 5, 1295 . 2 Ibid . , T ov • 15 , 189 5 ; ~ o v • 2 3 , 1 9 5 . 3rbid., Iov . 21, 1895. • 0 184 Excavation on the "Claus Spreckels Building" began late in 1895. Even before this, San Franciscans had been given a ~review of the projected building, one account being as follows: Restin on a base of 75 x 70 feet, it will rise 310 feet to the apex of the belvedere. Aside from its vast height its d1stingu1sh1ng features will be the ornate character of its up~er stories, set off by a floreated frieze and harmonious cornice and surmounted by a mag nificent dome, enclosed by a colonnade and capped by a lass covered lantern, resting on marble columns. The location is one that will enable the structure to be viewed from all directions. Its entire outline will be seen from un and do\'1l1 ... -iar ket Street from I earny, Third and O'Farrell, while its crown will be visible from the bay and all the elevated portions of t he city. The buildin will be in the form of a square tower to the cornice. The first three stories will form a sort of pedestal in ray r .nite with bush hammered face. Above this will r.:.se for seven stories vi at mar be termed a plinth . It rill be in w ite California mar ble, as , 111 all t he rest of the exterior. The treatre1 t oft is 1 ortion of the edifice is severe in order to ive repose to t1e eye. T1en t he orna ent a l style will be resumed in Italian renaiss Qnce. The frieze already spo~en of iill serve as a sett ing for the cornices bet1een the t hirt eenth an d fourteenth stories. Above will r :se t 1e colonnade dome , forty -five eet fro its base , and the belvederes thirty feet hi . , • In all t here will be fifteen stories. T, e building 1111 be of steel const r uction e.nd t oroushly fire - proof. The upper stories 1·11 be finis ned on all sides ali~e. The main entran ce 1111 be on :ar et Stre et, and will be i m posin c and an s ome . It will be in the form of an arc , thirt>r-five feet 11i gh aqd tv1enty feet wide . Cor· ntnian colum ns will flank it on ot s·des, su rmounted b/ a curved entablature, • above which a balustrade will be placed . Between the second and third stories will run a project ing cornice supported by medallions over a carv ed frieze, with windows set in a heavy cornice of granite and surrounded by carved archetraves and spondrils. A 11 ht cornice will break the expanse at the tenth story. Then at the twelfth will come the ornamentation already described and the crowning of the edifice: The ribs of the dome will be of marble, and the metal used will be bronze. The dome will be utilized as a cafe and restaurant. White glass will enclose the lantern. The interior will be furnished in natural hard wood • ••• The main entrance will open into a rotun da of polished California marble, 111hile the floor will be of mosaic. Three heavy bronze doors, supported by polished marble pilasters, will afford entrance to the main interior of the structure. The central door will lead to three elevators, one starting from the basement, the other two from the ground floor, and all ascend ing to the fifteenth story. The right hand door will open into a store, and that on the left to the Call business office, the area of which will be 25 x 25 feet, with a balcony. Another store will be situated on Third Street. From the second to the twelfth floor, inclusive, the building will be arranged in offices of which there will be fourteen on each story or 144 in all. To each will be attached a lavatory and a cloakroom. The main stairwa·y will be of mar ble, and the interior finish and construction 1 will b& of the latest and most approved design. 185 Pictures of the completed structure indicate that this ear ly description was very accurate. 2 An interesting detail in the interior of the building was the ornate door knobs. 1 san Francisco Chronicle, Au3. 17, 1895. The plans were drawn by Reid Brothers , architects for all Claus Spreckels' buildin s. 2see infra, pp. 191-192. 186 These were of solid brass with the raised initials CS on - them. 1 ... The "Claus Spreckels Building" withstood the great earthquake of 1906, although its interior was extensively damaged by the fire that followed. First circulated reports were that the building lay in ruin across Market Street, and "I told you so" came from those critical of such a high building, for they felt it would never withstand a violent quake. The San Francisco Call, commenting on this as the renovation of the building neared completion, stated that from turret to basement the building was as sound, as far as solidity was concerned, as the day it was bu1lt. 2 The "Claus Sprekels Building" is still one of the fin est office buildings in San Francisco. Later owners have remodeled the building extensively, completely changing its appearance, as well as its name. The "Central Tower Build ing," as it 1s now called, still retains one outstanding characteristic of the old "Claus Spreckels Building." It remains the tallest building along Market Street.3 Mr. Spreckels was exceedingly proud of the completed lThese may still be seen on the doors of the original floors of the building. 2 san Francisco Call, Dec. 29, 1907 • . 3see infra, p. 190. . - l l I ·1 · 1 · 1 .: 1 1 ..., - . - . -~1 : 1' ~ ■- ... .--.., H .,. H ~ . !t : t : : ; " ~ ·''-~~-~ ~~~~~ - -. ~ ' .. i I - -~j !·j , - ~,-. r- r rr t _. F: r f. · · • [ 1 I ; 1 l I I · I I I Claus Spreckels Building . From the Society of California Pioneers ' Chas. B. Turrill Collection . 187 - ~ r,4· I ) \ , ..... . ... ... ... ... t o Claus Soreck8ls BuildinR. Fro ol lec t ion . he Society of California Pioneers' C harles B • - , _. • t--' ,. - 0) 1 9 "Claus Spree els BuildinG," and rie;htly so, for it ,..,as quite a monument to the financial ~enius and foresight that had brought him fifty years before, short of money but lon5 in hope, to this is ado ted land. It has often been said that "pride leads to destruction," but in this case, .. ride was one factor in causing Sprec ~els to en a5e ~n another business which was to add hundreds of t housands of dollars to his alrea y \\fell filled coffers. • The San Francisco Gas and Electric Con a y haa t10 of its stations very near the ne~ buildin , the Stev nson Street plant be ng locate ~rectl, bac( o it, w~ ile the Jessie Street electric st~tion, w·t~ a stac · one nd.red and seventy-five fe et . 1~1 , la west ands ut o. t e ild- 1ng.1 Smo e fr om t ese tro installati ns lew over onto and i to t1e new b ilding much to the annora nce of Spree ~els and l _s tena ts. S rec yels brou .. ,.:> _t t,_e roblern to the attention of James . Stets on, one f t ~e directors of the San Francisco Gas ancl Electric Compan y, tell in h .. that the nuisance must in some way be abated . The proble, was brou ~ht to the attenti on of t1e LJoard of Directors by ~ icharles :. Coleman , P. G. and~ . of California ( ~w Yorl{: , ; .cGraw- _ill Book Company, Inc.,ll 52]); p . 85 . - '.::r. Coleman's account of t his Sprecl'els venture is t he best and most complete available. See infra, p . 1 1. 190 Director Stetson at its December 8, 1297 m eetin with the su e; estion that anthracite coal mi 0 ht be used as a means of re uc in 0 t he quantity of smoL.e . The ... roble 1·1as referred to Pres~dent J os eph • Croc ett for invest1 6 ation . 1 Croc ~ott investi ated the problem and .. nde his recom enda ti on at the tarch 23 , 1 9 boa.rd meet nt"1" . He reported that .ec anical sto ers , at a cost of J~600 each , co ld be nstalled, and f rthc r tat t 1e n tellers ~d a ree to re move the sto_ers should t ey not dis_ose of the smoke satis actorily . At a subsequent m eet :n~ , on April 6, 1898 , the bo rd decided to install our of t e stol,.ers on trial . At t e Au ust 24 our eetin , Croc ? tt reported t 1 at t he stol""ers ad not sati factorily disposed of t ... e s. oL.e rob le ut tat thy NOUld be uiven further trial before being re oved . 2 Sometime after t 1e AuGust ,eet inG , an · nc id nt , neve r fully confirmed , is said to 11ave ta~• l.en lace '·:hen S rec els c anced to meet Croc 1 ett at the Pacific Union Club were both were members . he conversati on an im~ediate results lrnforrnation obtai ed in corresponde nce with ir . Charles :. Cole an , author off . _ . and~ . of California . ..~r . Cole man very kindl, a nd helpfully sent summaries of t he neet in5s at i c t e smote ~roblem was discussed as he tool the froi t _ e . nutes o,C\ t11 Board of Directors · ... eet · n s . 2 Ibi . ,.., =, ' ' }; I . ~ f. l} -") '; , ) i , , ' ~ 1~ · , I I Ir . I I • • I I l • - ' I i : ' • I i:us,\1:...m .............. c.,-.• ·.•·•·~-, •~ ;;-............... _. .... . . .. : ) , ,-.,.:Im ~ '°' : l-,:::a . 1 l : ~~ ' '} 21 ' '"" " ~ . • t I J1 II rom this r :-·ner a t,: n; r_r_a.nt, CE :.l ~. ' ~ 0d Gl2:is ~--c r eckcls t o or;"·:inl ;'\ O ""l1c ,.·""''" (1';::,~ _.,.,,,, V ._..,..,l ~.,-A..\,. ... nu € ...c Gric ~ olm•r-11ios in an Francisco . _ ro.,., P • • - • ar~ci ~~ . of Cali rnia _,·-.r Ct1arl cs ,2ol c!10n . --- '"'o :rtesy of J ' • ~. Gde .i. 2Cl. lC ·, ...as c:1nd Llectric Corn~an;; , ·,an 4· r 2ncisco . "° ..... .... -- I ' .... ' ' - i: , .... -- t l . I -- -- • Trt - ' r- • - I -tr . . ' .... .. . . · f f • ' 1 f 1 I I ·- 1 I I f .... • I I ' - f ' I f I .. • • I , 1 , 1 , . - 1 1 1 1 • • • - 1 .. , , • •' . ' , I , 1 , t ' 1 I , I ■• ,, , - ,. ~ J # •• Ii 1 : I cf ' J , 1 . ., 4 " , ' • ct • Central o~e r uildin u , formerly the Claus Spreclels uildin , 1mr{et Street , San Francisco . are reported to have been som et, in like this : ~-~ • S? ? ~1CSL · : " l r . Croc l,. et t , rvl1a t a re you ~oing to do about that smoke from our power houses ? The s oot is blaclenin ~ the walls of my buildin 0 an fillin mr. tenants' offices . It's a confounded nuisance . 1 Il1 • CRO-.J .. C ~TT : "Sir, I 1 e it a rule never to discuss business at the club . r~ you will ta~e the natter u with me at my office , I shall be most happy to c onsider it . " That did it . Mr . S_rec .els, never nown to tate kindly e·th0r to a rebuff Qr o nosition, muttered s m ethin about seeing •· r . Croc' ':.ett ne"'"t in an attorney ' s office and ended the con versation . He rusled bac~ to his OfLice and in tNo hours ad started En~ineer !· .. Iunt on plans for a new electric plant . 193 ~roe ett is sa·d to have denied tha t this inc dent ever occurred , but Rudolph Sprec ~els confirm ed the story in an intervie1 with 1r . Charles J . Coleman in 1951 . T en asled about t 11s oft repeated story , .. r . Sprecl·:els replied : Yes, it is true, t11.e Claus S~ rec and tallest int Crockett's re lv the smoke. 2 " ••• . y father w s very nroud o ls .: ldin , • It was the finest e city . He deeply resented to him and his failure to stop \'·lhether this inc i ent launched Sprec'"els into the electric business can hardl· be ascerta ned . mha t such a 1 colernan , _ . 2· an~ _ . of Cali ornia, p . 85 . Hunt be ca me s eneral Jana3 ·r of the Sprec k ls pla~t en it was ~ . d or 0 c-. n 1 z e • 2 Ibid . , ter s w·t • v6 . uc.olp SprGcl'els w a s not on spea ~ 1 u en e • F ov- , ever, ~now the f ct s . u t .L. • u l1e n L, c • t er at t, e ti.e t hi s is said to ave ha - e iould have ad aople opportun:ty to ~Lrt ler, enrl accou ts accept t e story ee infra, - • 0 34 . 194 rebuff by Croclett would anger him , there can be little room for doubt . A more lo5ical explanation for Sprec~els' entry into the utility business seems to be the Crocker re buff plus the belief that Jrofits could be made in this field . Spreckels 1as a pract_cal and successful financier, and it hardly seems in keepin g t·ri tl1 l1is character that he would risk losin 0 millions merely to aven3e a supposed in- sult . o,Tever, re 0 a rd.less of the cause, the Independent Electric Li t and Po·wer Corrr any was organized on 1--:.arch 29, 1899 . 1 That an ~er did not upset S_recKels' acumen concern in construction costs may be 0 athered from the following: The under~round cables of t he new comnany were to be laid in terracotta conduits. A com bination of t he local terracotta manufacturers comnlacently fixed a price a little below that at v1hicl the wori{ could be done in the East and s1 ·pJed out, although the combine itself would raa t:e a very u11fair profit at the prices offered. : .. r . Spreckels as complacentl/ figured that he could build a factory hi 4self for the amount of profits which the combine proposed itself to mate out of the contract and make his own con duits. San Francisco therefore now rejoices in an independent pottery as well as an inde pendent electric li ~ht and power company.2 Spree els extended his utilities operations still farther when he orDanized the Independent Gas and Power Company on -------- lcole an, P . Q. and~ . of Cali~ornia, p . 85 . 2 ' rien, "Su ar 1 ir: 0 ," _ • 522 . - 195 January 3, 1901. 1 Spreckels' two plants were well equipped and modern. Their entrance into competition with the existing firms brought about a rate war that was not ended until consolida tion took place in 1903. Competition b~tween the existing companies had been going on for a number of years, but the companies in "previous strugcles for business had effected a pseudo truce by tacitly respectin each other's service zones, but now all restrictions upon extensions of line 1w1ere removed. " 2 T1lhile the war involved both electricity and ~as rates, co1npeti tion appears to have been keenest 1n the as field. The Equitable Gas Li3ht Company, established February 21 , 1 9n, had started a "dollar gas" campai5n when it went into operation. Tl1e Pacific Gas Improvement Company and the San Francisco Gas and Electric Company, to protect their customer lists, then offered two year contracts to their consumers for gas at one dollar twenty-five cents per 1,000 cubic feet. The agreements stipulated, moreover, that any 1 "Articles of Incorporation of tl1e Independent Gas and Power Company," Archives of Secretary of State, Sacramento, California, file 32143. 2 coleman, P. G. and E. of California, p. 86. This ac count states Tpage m thatthere were still three elec tric systems striving for business in 1901. 196 rate made by another company would be met. This brought a bout an unrestricted rate war with gas being sold at one dollar, seventy-five cents, and even fifty cents per 1,000 cubic feet in some zones, and soliciters were everywhere trying to get the customers of one company to switch to the company's service which they happened to represent. 1 Sprecl·els' entry into the strug :,le heightened the con test. Earnings and stock quotations dropped off sharply. In fact, "market quotations on San Fra-ncisco Gas and Elec tric shares, which in good times were not far under $100 par, dropped as low as $30." 2 This drop in income and stock valuation brought about a curious situation. Rudolph Spreckels, Claus Spreckels' youngest son, had sold out his interest in the Hawaiian Commercial Company, invested his money in San Francisco Gas and Electric Company stock, and retired from business. Young Spreckels, ·who was at this time estran ad from his father, again became opposed to his father when he was elected a director of the San Francisco Gas and Electric Com any on January 22, 1901.3 lcoleman, ~. Q. and~. of California, p. 87. 2 Ibid. , p. 88. 3rbid., p. 89. Sone authors have intimated that Rudolph entered the contest to get at his father. Protection of his investment was the motive given by Rudolph and seems to 197 If the elder Spreckels had wished to get at Croc~ett personally for the Pacific Union Club ·-incident, he could have had no better representative than Rudolph. Efforts to reach an agreement with Spreckels had failed, and Rudolph had voted a3ainst offering to buy the Spreckels plants as a means of ending the war. From the start, young Spreckels had been attacking the management of the co□pany as the cause of the predicament. Therefore, when Croc{ett appoint ed him chairman of a committee of five directors assi5ned to investi~ate the affairs of the company, he virtually projected his own resignation. The report when presented proved to be very critical, stating that the methods of management ,- 1ere antiquated and that plants and equipment needed overhauling. President Crockett im ediately sub mitted his resignation which became effective January 15, 1902. 1 A new president and several new directors were elected in the shuffle following Crockett's resiGnation. Under this new leadership the co~pany's position gradually became stroncrer, and the decision was made to terminate the costly battle throu ha policy of consolidati on . 2 be the lo ical reason since he had considerable money in vested in the c o pany . 1 coleman, f. ~-and~- of Californi~, p . 89 . 2 The new president was W . B. Bourn . The new directors were Fran' B. Kin :a William (... Dutton, George ....... Collins, 1-egoti tions wore o· ene wi tl · l'-1 r'lv 1 coi .. )o.n es b- t: e San Fr cisco Gus ·,1cctr · c Co _ _ 1p _ y , 1. ina a1 -a1 ruse- ments bei11c c 1. l eted by SeDte!i be 1 , 190 3 . 1 S recl .. els .,e - fuse to e p a1 t o a11.J :i-.1ere;er , .,Yl t he v1as not aver e to sellins 1is CO:'! • • anies :11 ., . . .t10 GO C 1ll _ - ice , oceive ., . _11s rice 110 1i • ·. r 0°0 ooo · .>:Y , ,..; , 1.n casl1 for o receive .. · 0 · , 000 o co e 1 1:.L s ou.t av of eJc ense.:;> s i ce Gi vine; a o·ot ·_ o 1 011 t 10 t~10 c . -1 ... .11.· · es · '"'o t l o .s :ui olla s in c a 11 '\tas t1 _ , _ ned ovc on Ju - u 2 , in o dc1., v O It 7as _ ;: 1o"·n1. cl1c.t ., . L 0.1. l S ·1ere to ., e iss e. i _ o .. der co f'i 1 ... ·1.ce t., _o c :i.1soli t::.o. , , · 1 " ! 1 l. 0 t . C O ~ r"'lC n.1. - - J; J ,. J L, • It ,.-., . - .Cl . J.. a > rO.L 10 o take )5 ,ooo,ooo ins . ., s ··,i . .:..1 e c:: c 1 ~ c c. l 1 e d f o ' ca le , • i r? O -~ fro 1.1 t~1 · s s a _ c . 2 1 c ( ., i , i n f' nc t , :i.. n.cisco 17 • ., _cc l.d. J _c oo: c s • . I\ s o 1'.):. o it , C o 1 . ru1. s o. t e 3 t .'.. o.. t --- ---· -------· -·-·--- -- --- ------- ----~--- __ ,......... . . ·---- ~ . J . ·· c Ct1 .1.. • eon , , ec., elon of the cit : 1 s u vJ.J ec .,_""els , i:,:ur~JJ.'1.J , n n d :8 . of Ca 1·· fo ........... - .,._..._ ----- 1 Ibi • - . -- , . 90 . Louis ~ .. . ~ Iontca l o , ~11 .rfro . t1e top i_ ·- nc . • ~1 C 0 1. '.l i1.i t 'r . If lltll"' V O , ~ -(.. .. yso1111el ov0 . ole ·1,. 1, J.-- . - P . 89 - 90 . ool:e "', G. - _.......,_,;c .... ·~_g_ C - onic_k, T1J l 3, 1 903 . 199 the records show also that he had 1ade a clear profit of ~l,214,000 as recompense for the coal smol e that had smudged tr1e 1w11alls and ,vindows of 1 hi s office building at Third and Market Streets. Sprecl"'els ' two modern and efficient power plants v1ere welcome additi ons to the power producin g facilities of the San Francisco Gas and Electric Company . T11e electric power lant ~ad a capacity of 5,000 _ilowatts per hour at the time of pure ase . In 1952 , this sam e plant, modernized and many t · l .. es en l ar ed, ,, ,as serving San Francisco as Pacific Gas and ~lectric ' s Stati on A. 2 Thus , Spreckels' ut11·t1es venture ended to his own personal profit a nd benefited Cali '°or11ia indirectly. \fnile unrestrained competition of utility companies has been re co3nized as costly and of no last nr benefit t o consu~crs, one i rr~ ortant result was obtained from t hi s stru gle. All the c ompeting companies were consolidated under the effi cient mana ~emen t of one co. pany w ich two years later was me r ged wit the Pacific nas and lectric Company, a company l11ich toda~r serves a .avor portion of the State of California . 3 1 coler:ian, f . .:_ . and ,, • of California , p . 90. 2 p . 86 . See infra • 200 - 201. 3 . G. nd ~ . serves an area embracin .akersfield to ~urct::e.. n t _c • it ,I. iver . \ ,, ', j , , I l jl I \ I 1' I I \ . . • )- J .' • ,, , , r• . ~ I ,. \ i 1 I ;. f t • •' ' " • •i " . ' • I • '(!, ,J. I•' ~'--r , '1 .. ·., • • ;, • ~ <• t n1,..,11:•n ~r • _ , • I, -~ -- Iii.J r~ - - - ~ r-· _ ..... . I ., ' • t ' J t ; .t ' t I ' I I ,, I , I .J • , ...... 1 1,1, ., I •1 I I' II II ... , ' f /, ---- I / . ~.:: ~~:-~----:r----•a!-!!11111• II ... ' .. /--, -- - · , f l i - ·- 8,. . ~ ·1 (.) • . J CJ) 1 ( •rl - -, ·rl C'_) -.t ,. , • .... . 0 r) Cf) C) • ,-l . ,-J 0 M (l) .) • i , ..... I• ;) ( ◄ ,... • 2 1 :.) •rl H ·f-J C) ) ,{ •,'j -· Cl) .I) , () •rl ' •rl ) ,J ,J,... <l) . ..... . µ C: 'J) •rl s:: H ::-1 ►4-! • ~ ro ~ .. .., Cl) r () •rl . • ,-! _ , ri -4 <l) .c: µ 0 0 () en • ·r--1 0 C.) () r · ;.-< w cv •rl . H - ~ rj s::: H ::.1 ~ :u _. I I 1! < r-· 0 ~ · I C°ll ·r, ·+' 8➔ j ~) Cl) ,. 202 Sprec ~els , in additi n to his oth r business hol in 0 s , also "': s n s iv e 1 n v o o t e 11 t s in ban l in r- i n st it u t ion s in San Franc :sco . T. is seems a very reasonable course ,"hen one con°i ers t1e u5e su s i nvolved ·n ma ny of Sprec i"..els ' transactiots . So e _dea f t1e bal~ncGs ~airit ined by Spree . els 1.ay e ,.,.at u re fro an incident that hapuened in 1 94 . Sprev.:el tr n._ferred in one transaction ~ "1 , 500 , 000 .J:I • .i. ro . :11 ~ va c. .. Ja _ ace aunt to is acc·ount at the ank of re 1 · !"'lo·") ,,.., ~ V . - ~ J J..C.J. • Co nent in on tis transacti n , t e San Fran - c nco C ron:cle sJ.. t tat it was not an overly lar e a. o nt or an li :e S rec~els ~ho turne over lar~e suns o.t:' money ever fe1 a s . 1 Ev n at t e time a~ his death 1 n □uc of his woalt ad alrea y passed into the hends of sons J. nan Adolp , t .e nv tory filea eisht months after .s deat s 0 1 ed c s._ in t e amount of $1 , 310, 771 .97 in t _e :_c..n i.S o-C\ t e e .... ecutors . 2 ~ mile s_ rec :els ' co _ lete ban :inc; activities can hard ly b ascerta ed at thi3 late date , some inference nay be dra\· rn fro the .t:'ollo·.r· n .. ~ .Cl cts . First , he was servin as a irector of t e First '"'" atio i:al Ban ... and the First Federal 1 san Fra nc·sco C r onicle, Dec . 4, 1 ;94 . 2 ~. i 11 . A . --. a -..) e e , J o s p h G . o o er , and G· • A . Be rt on , A~. raisers ~n t e Sui erior Court of t~e State of Califor n1 ~ , In an For t ne City and County o Sn Francisco . In t1e ~~tter of the 0 t te of Claus Sprec~els , Deceased . 203 Trust Company , both San Francisco institution , accordin3 t o newspaner ads and news items in 1907 . 1 Secon , at the time of his death , he ov,ned 1 , 000 shares of t e capital stoc of the £ercantile Trust Company appraised at ~215 , 000 and 1, 083 shares of First lTational Ban z stock appraised at 270 , 750 . 2 Alt ou 0 h the amount involved is quite s1all when compared to so .e Sprec~.,.els investm nts , still tL.e sum i1volved _s quite sizeable . As prev i ously stated , Spree els is chiefly re□e . bere for his contributions as California ' s "su _ar 1ri • " and :...:, ' t is re em brance is well deserved . owever , is accom~lish- ments as the II su 3ar kin :;" shoul not co p l ctely overs 1adow the contributions he .ade in oceanic transn ort .tion , re ~l es~ate , utilities , and ban~ing • ....... ---.---·-.-- ~::: .s~ . ,•ss11a ... - ,.. .,,._ _ .. .. . _.._ . :o Inventor and Appra sent . Date~ Au~ . 50 , 19 9 . Cit y 'all, San Francisco . (Lereinafter cited : Claus Sprec ~els Estate Inventor r. ) 1 san Francisco Chronicle , Dec . 19 , 1907 . 2 vlaus Sprec {els Estate Inve ntory, p . 4 . CHAPTER VIII CIAUS SPREC 'CElS, THE CITIZE.· . Claus Sprec kels, as one of the nation's leading indus trialists and capitalists, achieved a local, national, and international prominence that few Americans have been able to attain. However, an exceedingly lopsided picture of Spreclels would be gained if one were to consider only his business accomplishments, for from an ext~emely crowded business life, he was able to find time to participate in religious, civic, and social activities. In fact, some of the contributions he made in these fields are being enjoyed by Californians today. Spreckels ,..;as a member of St . 1rar t ' s Evangelical Lu tr1eran ,,..hurch of San Francisco, at present situated on O'Farrell Street between Franklin and Gough . 1 Spree els ap_arentl> affiliated with the congre •ation shortly after arrivin in San Francisco, for in 1862; he served as one of tl_e me. bars of a bu1ldin 0 committee. T 1e con 0 regation had decided to construct a new church, and so were in search of a new location. A lot on Geary Street near 1 st. - 1 ark' s has had various names and locations since it w s or 0 anized in 1849. The present name was adopted in 1E66. The presen t sanctuary was built in 1894. Rev . J. Geor~e Dorn, One .undred Golden Years in San Franc~sco, Cali~ornia ([San Francisco; 1949])t p . 15. Rev . Dorn has been pastor oft e church since 194?. • 205 Powell was purchased for $5 ,000. A newspaper account of a later date attributed the selection and purchase to Spreck els' recomrnendation. 1 This property was sold 1n 1893 for ~ 105,000 (today it has a value of .',, 2,500,000) at the time the present O'Farrell Street site was purchased. 2 The present St. Mark's church was dedicated on March 10, 1895. The sale of the Geary Street ~roperty did not provide enough money to finance the new building, and so, the congregation was asked to purchase bonds in order to supply the needed amount. The bonds were for ten dollars each, this low value making it possible for the poorest to share in the enterprise. Spreckels purchased 200 of these bonds, later canceling them as a gift to the church.3 In addition, he gave a beautiful chandelier for the new build in g . This beautiful 3ift still serves the congregation , being retained when the sanctuary was recently remodeled. 4 Spreckels was a consistent church goer and insisted that his family attend, but he did not always see eye to 1 san Francisco Chronicle, Jan. 15, 1893. 2 Dorn, ne Hundred Golden Years in San Francisco, p. 15. This is the present location of Dohfflann's. 3spreckels purchased bonds 2520-2719 and later canceled them according to the bond receipt book, St. I -::ark ' s Evan el1cal Lutheran Church. 4 rnform ation obtained in conversation with Rev. Dorn. 206 eye with the minister according to a rather humorous inci dent said to have happened at St. !~rk's. Henry Spreckels was being married at the church, and Claus was serving as best man for his brother. The guests had all assembled at the church and the time for the ceremony had arrived. At this point the Reverend Mr. Jacob Buehler, pastor of the church and officiating minister, asked for the marriage li cense. The discovery was than made that the license had been left at home in another suit. Claus suggested that the ceremony proceed as scheduled while he sent for the forgotten paper. However, Reverend Buehler said that he could not perform the ceremony without the license. Argu ments proved futile -- no license, no marriage. Therefore, while the guests patiently waited, Claus sent for the li cense with the statement that he'd get the license, but he was also going to get another church pastor for he wouldn't sit under a minister who wouldn't take his word. 1 Reverend Buehler did leave the church shortly thereafter, although this incident does not appear to have had any bearing on his resignation. 2 1 rnformation obtained in conversation with !- 1r. Henry Von der 1-1ehden of San Francisco, grandnephew of Christine Von der ]Iehden , the bride of Henry Spreckels in 1865. 2 According to Dorn, One Hundred Golden Years in San • • •• St. - !ark's Evangelical Lutheran Church, San California. From One Hundred Golden Years, courtesy of the author, Rev. J. G. Dorn • • Francisco, 1849-1949, 207 J ~ '-,/ , . ... . .. il 208 • U) r I ·- () 0,) H ""' f : . "" ~ ~ 0,) > •r-f ;,r H (!) ·r-1 r--f 0 C co .c () ·o (!) ..u ·Q •r-f r--f (l) ...w 0 . - • - --- (.) H ~ ~ cu H (j) ,... +.) ::s H r--f co () ·,-I • ~ H 0 ;j • _, • J "d Q G,; >-t (l) > ) ' ) ~ . ~ H 0 _) ::s ro Q) 0 Cl) 0 .J..) ~ j 0 0 • °' -+ M ri (1 • +> , . V 209 Spreckels' political affiliations were with the Repub licans. Business activities required so much time that he had very little time for elective office. However, in 1862, he unsuccessfully sought to become supervisor of the tenth district of San Francisco. The Civil Rar was on, and Spreckels' Charleston residency proved a detriment. Poli ticians of that day were not adverse to taking advantage of any f'act 0 r that would ·work to their own advantage. There fore, during the campai n an article i- n the San Francisco Daily Alta stated: fe are informed by a prominent German 5entle man, who is responsible for what he says, that r-ir . C. Spreckels, the Union-Fusion candidate for Super visor in the 10th District, and who formerly lived in Charleston, stated publicly in Piper's Grocery Store ••• that, in his opinion the South was right, and that if he was there he would fight, and spend the last cent to drive the Yankees from the coun try! A good style £f man to ask for the votes.of German Republicans. Who the German gentleman was, was not stated, but the next day, this article was ans,1ered by the informant. In ans wer he stated that he unqualifiedly denied the truth of any assertion reflecting against the loyalty of Spreckels. Further, Francisco, p. 16. Buehler resigned due to his refusal to officiate to members belon 0 1ng to secret order. 1 san Francisco Daily Alta, l1ay 18, 1862. .- '11crofilm in California State Library, Sacramento, California. 210 In justice to himself as well as to the voters of his district , he deems it his duty to set himself right tn tl1e premises . Tl1e personal friends of ~r . Spreckels maintain that he is a t 1orougl1 Republican, !nd that he voted for Lincoln and Stanford. Just what effect t he two articles had on the campaign can not be ascertained, but Sprec,~els lost the decision to the incumbent supervisor. rlhile some people in 1862 □ay ave cast reflections on Spreckels' Republicanism, he ,-1as not lonr,- in establishing his position with the party . He was a ·warm : ersonal friend of Governor .euton ,oot 1 , Hl10 aupointed him a Lieutenant Colonel on his military staff. 2 Two years later, in 1872 , Sprec Lels served as a Presidential ... lector on the Republi can tic et dhen President Grant w selected for a second -, term .~ In 1n94, S rec~els was listed as one of some hun- dred vice presidents at a Repuolican meetin 0 being held in San Francisco. 4 1 san Francisco Daily Alta, v iay 19, 1 62 . 2 Alonzo Phelps, ontemporary Biopraphy of California's Pe,Jresent - tive • .en (San Francisco : 1881), p . 411. S reel - els is listed as a Lieutenant-Colonel on the l ilitary Staff of the Governor on the Annual Return of .i.lili tia of the State of California for ~he Year E~din Decenber 21, 1871; and for tle Year Ending December 31, 1872. File .o . 11 5- 6 , State Arc ives, Sacramento, C~lifornia. 3p. o. qoy , "tjlaus Spree 1..els, 11 Qictionary of American _io~Jr phy , . • 479. 4san Francisco C r cn:cle, Oct. 1° , lv94. 211 In the Bryan-McKinley campaign of 1896, Sprec rels de clared himself to be an out-and-out I ~1cKinley man. He had seen eye to eye with President Cleveland on the Hawaiian question, but the free silver issue far overbalanced the annexation question. Spreckels returned from Europe short ly after Bryan won the Democratic nomination. Sprecl{els stated that the holders of United States bonds in foreign countries expected to be paid in gold coin and that the American dollar should be worth 100 cents in Europe as well as at home. 1 Spreckels' political activities on the national level do not seem to have aroused any enmity. However, on the local scene, Spreckels did raise the ire of Denis Kearney . In the political and economic unrest of the year 1877, de - onstrations against the Chinese and the Pacific } ,.ail Steam- - ship Company, principal carrier of Chinese imm i 0 rants, tend ed toward etting out of hand. The conservative elements of San Francisco became very alarmed. Therefore, a com n1ttee of public safety was formed. William T. Coleman, of vigi lante fame, was elected president of a special committee of twenty-four in charge of a war chest of ~100,000. 2 lJohn vl . Cau 0 hey, California ( 1'Jew York: Prentice-Hall, Inc., 1946), p. 454. 2 san Francisco Examiner, July 12, 1896 • • • 212 Sprect{.els was amon the many prominent San Franciscans \'tl10 bound themselves to "act with this Comr.iittee to preserve the ... peace and well-bein of this cit;, with our oney and per sons."1 vThen the furor had subsided, the c om. ittee was dis banded. However, Spreci"els became a me ber of t e Citizens' Protective Union which ,~ ,as formed so1 :1etime later. n 1880, during the wave of unemploy ent, Denis / earney a c-ain be an his sand lot oratory. In one of y·earney' s aran uue , e sin led out Sprec Lels , as a me .ber of the Cit zens' Protec- tive Union, for a verbal casti~ation. eports enerally agreed that fearney stated, "There 1s Claus Spree els, the biggest d __ d thief w noever went unhung, and, ~d __ him, I am man enough to tell hi . so to his face. 112 .earney i.· 1as arrested follo1-1it1 G this outburst and r ou:;ht to tr· al for using incendiary lan ~ua Pe. At t1e trial, he did not deny the attact:: on S_ rec ~els . ·:owever, he disa reed w.:.th the re ported word nP' , stating that w at ne really said was "Tnere is Claus Spree.els, he s the bi 0 -est labor thief in the State , and by G _, I am 1an enou ..... h to tell him so to his '--' lsan Francisco Bulletin, July 20, 1 77. Clippin in "Kearnism and the V l'or ~ mans Party," Bancroft's Scraps, Vol. ~ OCCIX , p . 52. 2rbid., Vol. 111-, 1880. II, . 1415, San Francisco Call, .J ._ar . 213 face . 111 T: e c ourt ' s verdict , 1as "5uilty , 11 a11d l earney was s en t enced to si onths i 1; pri sonr.ient and a fine of r? 1, 000 . - o..-1evGr, t case was appe led to t he Supreme Court of the St t f ~ ]·~ 1 a e o ~a .1 or n a, w _ere t l1 reve r sed , and Ycarncy was f r eed . 2 Sprec , els was in _awaii at t he time of t e i c i e .t and tr:al , and no evidence ras discovered c on nectin0 hi d i th : arney'u arrest an subse ~ uent trial . ... 1 pol·t~cal activities are on e oD the major ways .. tat ny it1 en ~n s 2rve . · s communi y, there are various in · . i c, on e .... ay s oulder civic responsibilities . 1~n cities in their early days sou~ t fire protection t .r .._, · a vol nt eer ire depart r:ient -- volunteer fire 1.en st ·11 f notion · n a n mi western tows . San Franc · sco was no Ycc~t·on o t1 ·s practice in its early A1erican days . cit ' s volunteer rou s :uc er ~o rteen , locat ed at Sec on~ Street near . award . ::)"')rec.:els oinea. t is s rou_ , and 11 in his youn ~er da ys lent a i-, llin : l1ar1d a a volu teer fire 1at1 , in hel in c◄ to battle -,, . ., t a ire . u J oinin ; a volunt e r 0 roup was one thin5 , l ncroft ' v craps , ~vol . :---..-~r II , . • 1415 , San Francisco ullet · n , ,:a r . 11 , 1880 . 2 ,.rary Frll ,ces '"cY ·en11y, "Deni s I earney , Or an izer of the .·fo ~man ' Party in Califo r nia," ( - ~ . A. Thesis , University of Cal rn ia, 1939) , p . 81 • . en of San Franc sec (San Francisco : ---c- .- 6ndleton , 1900) , p. 15. active work was another. As one account stated: Claus Spreckels paid his dues regularly to Tiger Fourteen, but he did little or no active work as a fireman. But then Tiger Fourteen could scarcely be classed with the active companies; it \-las second in reputation to Engine Thirteen, which had 'the grass growing under its "11heels. 11 214 Tiger Fourteen took little part in the rivalry that existed bet,veen tl1e different companies. However, one memorable fight is reported ,.rith California Four. Tiger Fourteen's en 0 ine was undergoins repairs when a fire alarm sounded for a fire in Waverly Place. The company sped to the fire with only its hose cart, catching up with California Four on Clay Street. The cart and engine collided, the hubs of the wheels interlocking. The Tiger Fourteen boys wrapped their rope around the engine wheel and tied it to a basement rail ing. A fi Ght ensued between the two companies and the fire was forgotten. The police intervened and arrested the oem bers of both companies, releasing them to the fire chief. 2 rt would be interesting to know if Spreckels participated in this one memorable fight of Tiger Fourteen. Tiger Four teen had thirty-five members -- out of a total of 775 - when the volunteers were disbanded in 1866.3 1 The Exempt Firemen of San Francisco, p . 30. 2 Paul1ne Jacobson, City of the Golden 'Fifties (Beri{eley : University of California Press, 1941), p. 83. 3rbid., pp . 83- 4. 215 ·.n fuile Spreckels probabl)r did 11 ttle fire fi ghting, he did have a large treasurr wi tl1 whicl1 to a id his favorite city and state. lurnerous instances o~ Spreckels enerosity can therefore be found. ,fuen the . '~id\vinter Fair 1'1as being organized in 1893, he sent a check for ~5 ,000 to the fair fund. As one ne\'1spaper co mented , "!-'1r . Surecl· "els has shov.rn what \iealthy men ou ht to do •••• 111 In addition, he 5ave ~200 to·ward t e expenses connected to sta ~in Germ an Day at the fair 2 -- ~eld on June 10, 1894. The plannin , committee for this event na . ed Sprec'~els as .ronorary Presi ent of the Day. 1 1 oi.1ever, business too~- .. h · r.1 to Eurone, and, t herefor , he did not attend. 3 Durin 0 the wave of un~mployment expe rienced in San Francisco in 1~93, a citizens' committee 0 athered funds to furnis a 111 ited a ,ount of .vor~: for the man unemplored. o ,ever, the com i, i ttee had only been able to raise ~15,000, and the drain on this fund had b e - n so Cl"reat that t e labor force \A ras 0 oin -·, to ave to b e reduced. s ... rec· ,,.e1s on l earnin 6 of this s nt t he co! .:r: i ttee a c ec~ ... A 4 for p5 , 000. The C ilclrens osp i tal i n San .,...,raJ.1c i s c o was 1 san Francisco Ch r onicle, eb . 18 , 1 94. 2 Ibid., ~ :ov. 8 , 1893 . 3rbid ., " .. a, 2 , 1 94. Gifts to t 11e fund ran c ed fr om S rec'?'el s ' ( 200 .00 doHn to .. · 2 . 50 ncc ord ... n:; t ot e publis l1 - ed list of onors . une 10, 18 4 . 21 also t l o reci i e11t of Sprec:"'els ' enerosity , a1 he donate ::,; 2.? , 000 to uhe relief fund ra·· sed to a l levi ate t:1e (1'1 _ ffer in0 f ollov1i 1 , t.:.1e is .:) ro ,.s eartl1qual-e and flre o !'I 1 / '11e 0niversity of California lso p r ofited fro . Sp U~iversity records indicate that ec.i.--els ., 0110.te lo • 1 / 7 ,.J C) 3 _n t f b , '1.>l , u ;;, • u .Lor 1. ... e pure :1. .se o o ,_ . -. in 1.1.rc:1ases f 0 11 t :_i ftlnd con.sisted of boo s..s on A~.10 ::,,. ---- :1n s · 1. e la_ n-e sets o :i. boo_ r· , tv10 of tl1 n bei. u t 1 1 Hru"'l.uJ:t ., seven vol u:111s ond ~ · nde .. /· . 3 The University aQ also eceived .. n_ _;L~. , o 0 b e est or t} e S t1i_ r of dise s s of suc;ar beets <.I t } ..... --o ..,oc: .. 01~ ,--i Co ... ·') - ' 19 0 " • J •. Anot11er ift ro·.1 - Uf;c..r u -o ·co ... ... u c o 1e to t110 ·· 1.i vors · t ~-r in a r e t, o ro mdabot1t via • Spre cl .. - els ~ nc • ·lV 0 It I ~ )2;, , 000 to • O.lC t . e farr1ers of }Ion ~erey County t }. C u.ro , ·1. _c-,l1 1 -_ 0 1 -n' U • T ., t., f • ~ "'.....: "' ,._., a ~e"'., , vrr1cn .ne ar ri1e s v11 s _1e vo 3prec ... --els , he reft1sed it . 'i,,ne 1 ran c ~s co C o.l.J. , u . ; • 27 , 110u . 2 , eco d .L Donations le cc~ved by tle University of Ctli or1J. · < ... , 1'er•ioc. II rcl1 23 , 1 63 \,O June 30, 19 .0 (In tho of - .l • ce of t l1e .1. s istant o cl10 ~ -rei.'.)i e t , r -11· ve1~s1ty of Cali o n i , Be-_ cl ) , De c . _ l , 1903 , 1.e.i. . ;-o . 376 . .L. :i • 1 • ... L, - - ) e l p .-,J. c 1 n. __ _ 1. t b oo s f r. ti is ft..md , ..., rece · ve fro t 1 .:is~ - .--r r: nn . ·a v ,. , ssist · t i-e a c. , Order of C ifornia , Ber ""ele· ... . ' ,, ~ D ~· ~ ecoru o onn L, 1ons ••• , .. ,,. 217 farmers then gave the money to the University of Califor nia.1 fuile this gift to the University came from the farmers, still it resulted from Spreckels' generosity to them. Spreckels at a very early date in his business career associated hi .. self with the Chamber of Commerce of San Francisco, rema1n1n a member until his death in 1908. 2 He was active in the organization, records indicating that he served as one of its trustees during the years 1878-1879, 1879-1 ·80 , and 1882-1883. 3 Sprecl"els ,vas very interested in the a pearance of San Francisco. He had larse real estate acreages in the city, with ~any fine buildings on them. He was very much against anything i:1hich in anr lttar might mar or detract from their fine appearance. Therefore, 1t1hen Patrick Calhoun, Presi dent of the Union Railroad, wished to install overhead trolley wires over the streets of San Francisco, Spreckels immediately voiced his objection. He pointed out that he 1 san Francisco Call, Dec. 27, 1908. 2 The exact year in which Spreckels joined the Chamber of Commerce could not be ascertained for all tl1e records were not available. 7. .JForty-Ei3hth Annual ... eport o_ f the Chamber of Commerce of San Francisco, Submitted to a meeting held January 18, Y8'98. (San Francisco : Commercial Publishing Company, 1898), p. 141. 218 had gone to the extra expense of underground conduits for the w·1res of his l13ht and po,-1er company. He felt then that the public interest demanded that electric wires be placed underground, and his views had not changed since then . 1 Calhoun ·was insistent in pres·sing for the overhead franchise, and Sprec~rels \'J'as just as persistent in his ob jections to the plan. In fact, he laid plans for building an electric railway system which would use underground con duits in order to block setting up overhead trolley wires. In commenting on the plan, Spreckels stated: It is outrageous to have the overhead trol ley in this city, •••• Calhoun says we shall have it, and I say we shall not have it. rfuy should he come here and tell us what we should do? It annoys me. I •!r. Calhoun is not giving us a good service with his trolley line no,·r. Can he do better if they all have the trolley? Look at the California Street road. That road gives a good service. The trolley lines are no improvement over that. The cable is good, but it costs one third more to run and more to build. Poles are cheap. \ve have a beautiful city, and I do not want to s~e it dis-figured with more trolley lines •••• Spreckels was ablr aupported in this opposition by his son Rudolph, who at this time was managing many of his father's affairs. However, their opposition proved to be futile, for on April 18 , 1906, San Francisco was roe ed by an earthquake lsan Francisco Chronicle, !-Iarch 24, 1906. 2 Ib_d., . :.-1ar . 25, 1906. • 219 and fire which destroyed 28,000 buildings and devastated a four square mile area, including most of the business dis trict.1 In the confusion following this disaster, the over head trolley franchise ·was Granted. Sprecl""els had fou5ht a good fight, but uncontrollable circumstances had brought de feat.2 It ,-1as common practice around the turn of the century to beautify American cities by placing statues of our na tional heroes in parks and public squares. San Francisco was no exception in this respect, and Spreckels donated $10,000 toward the Dewey lJ ionument in Union Square .3 I - Io,-1- ever, Sprecl{els' best kno,-1n gift 1s the Temple of' !- !usic lo cated in Golden Gate Park. This great stone bandstand is situated at the head of Concert Valley, with seats for 20,000. The stand is fifty-five feet wide and seventy feet high, and is flanked on either side by Corinthian columns. Extending out on either side of the stand are colonnades fifty-two feet long by fifteen feet wide supported by Ionic columns. The completed structure, built of Colusa sand- 1 caughey, California, p. 493. 2 This was one of th.e incidents that brougl1t about the. San Francisco_graft prosecution of 1907. Rudolph Spreckels was one of the men \·rho underwrote the expenses of this in vestigation. 3san Francisco Call, Dec. 27, 1908. 220 stone, cost Spreckels a reported $75 ,000 to $100 ,000. 1 The gift was dedicated and presented to San Francisco on Sep tember 9, 1900. Something of ,-1hat was in Spreclrals' heart was expressed in his presentation speech when he said: California has been for fifty years a State of the American Union, and I have been for nearly fifty years a citizen of California. I was among those who came in early manhood to tal'e part in the development of the rich resources of this golden land and to lay the foundations upon which the fabric of her prosperity rests. Whatever may heve been the experience of others, my labors in California have been abundantly rewarded. This has been no niggard land to me. I have found its people as enerous as the soil, and society here as rich in human virtues as are the mountains with gold . !< [y e:xperience has been that w · 1hoso ever wor~s in California with the honesty of a true industry, and meets tl1e opportunities she offers with a fair degree of sagacity, will not fail to find ample reward for all 'v'lork of hand and head and heart. !-!oreover, the reward will not come in material things only, but in the thousand kind and gracious acts by which true friends ma.re th_s life worth livin • 2 This great bandstand still ser-ves the people of San Francis co during the open-air concert season. Younger Americans ·when reading the words "G -ift of Claus Sprecl{els" may wonder just who this man ,11as ,11ho save such a gift. Ho1,1ever, as lHelen T. Purdy, San Francisco. As It Was. As It Is. And Iow to See It ( San Frar1c isco: Paul Elder and Co1"!1pany, 1912),:p. 64. Guy o.nd :relen Giffen, The Stor~r of Golden Gate Par~r. (San Francisco: •••• , 1949), p. 71. San Francis co Call, Dec. 27 , 190 • Purd~t and tr1e Giff~ns state that Spreckels donated 075 ,000, the Call states ~100,000. "o' Brien , "Sugar I ing," p. 522. S_ ·"ec :els ' "Te mple of - .iusic," Golden Gate Park, San Francisco. 221 .... 222 they adr: ire the stand' s classic beaut , all •will a:;ree that it is a beautiful 31ft and a fitt~n~ Lle~or_al for any great man. As stated at the beuinnin~ oft. _s- chapter, Sprec ~els 1s chiefly no1n for his economic contributions. However, a stud;,r of his life reveals tl1.at he felt a respo11s·b11·ty to God, to country, and to □an . • CHAPTER DC In the .ublicity accruing to any important public lea er, little space 1s devoted to his family relations1ips a id home life unless somethin 6 unusual or sensati ona l oc curs . This tendency is very evident ·n the ccntem:porary accounts \vri tten aboct Sprec 1 :els. .Iis early family asso ciations bein~ free fr m the sensati onal, there is very little to be found in t1e accounts written durin~ the peri od before his c _ldren were of age . Fro1 l 91 on, the sit~ at1on was chanced , ~or ~n that year a family misun erstand inc; occurred vlb.ich eventually divided the family and dis rupted t e close fa□ily and usiness associations that had existed up to that time. Sprec ~els was a Generous husband and father, nrovidin u for his family most lavishly, but he was as untractable or uncompromising in •dealinG with family opposit i on as with business opponents. Claus S:prec l-:el-.J married Anna Chri,~tina :lancels in ITe\-1 .!or' ... on Auc;ust 11, 1852 . Tl1irteen cl1ildren · were born to tl is union, four boys and one girl surviving to maturity . 1 The fo r boys, John , Adolph, Rudolph , and Claus Au n-ust, ,-1ere all closcl~r associated witl1 t 1eir fatl er' s businesses at lse ~ A_1: endix A. 224 various ti es , attainin a nrominence equal to or nearly equal to their father ' s . In fact, S rec els very early gave i~ s ons employment in his business , advancin ~ t em to very responsible positions as soon as t eir tn o, l ed5 secn ed to merit the romotion . 1 Sprec ~els ' San Francisco hom e w a s very unpretentious durin _ is rise to afflu nee . Howeve , his sum. r home at his Aptos Rane 1as developed i nto n place for l avis _ enter- ta1nin5 , 11th a hotel , o t doo r dar:ci n5 pavili on , cotta~es , ra c e trac ~, and polo fiel for t he use of is a famil r ryuest s . His friend , 1 ing alakaua of Harai1 , was enter tined there on is visit to t he United States in l o81 . 2 In 1 ;;-4 , SprecLels began constructi on on a s reat stone man si on in SaB Francisco on Van ".ess Av enue at Clay Street . Th i~ om e reflect e prec ~els ' 0 r eat wealth .ouse and furnis in3s , auart fr om l end , c o tin5 about ) 750 , oo . 3 Sprec ?els m ove~ into this h ome in 1896 . _ 01ever, twas lJo 1n ·Tent to r ;or ~- for his father 1 he n 18 y ars old; Ru dolph ·T ent t o ,,or in t~1e Pr ilade l p 1ia p ..iiant when 17 years old ; an Claus A. had his fat 1°r's p 1 er o attorney at 21 . 2 Rowland , A11nals of Santa Cruz , p . 94 . 3 n t~e Su eri or Co rt of the State of Calif r nia in and forte City an County of San Francisco, In t1e ~ tte r of t he state of Claus Spre c t ... els, Claim of Anna C. s~ rec ~:els or ~94 , 25 .43 (Te Sprec ~'els ' state pa-:pcrs are in tl1 C o u n t y C 1 r l,. ' s Off 1 c e , S .- n Franc 1 s c o ) • See in f ra , p • 2 2 :j - 226 . ..... ,. ,._ ' , "!• . ..,JR.us ::pr 0 ck · J.s .ansi..on, San _ ranc isco . T~rr~l l Collecti • -, 1'ro • j • I , · ·, < . , ' , . . ne _:.o~ ic-c,y ·+ ~. I , ,...- ~ .. --- .. -- ~I"& • • ........ • • • , "'-A,' 4 .. . ..A.' "''ti ~,_,- - ~c.,........ ~~ ., t4,. • - ~~"""!"""'- f California ione r:~r s ' . , _ _. ----· rles b • rv r0 \Jl. JI ., . , I , . I • . • i r f . i ' , r . . t I. 1 c ~ ,,~ .. \~ }{ " : , ' ' ' J .j . ...) 'J.) •r-1 I 0 r f) G) • 0 Cf) ,; C) .,.. :-0 0 0 - ) 0 r-:: r CJJ ~ u fl) ' () . I .. 1 227 ,utted b the ire follow .... n,. the earthquaLe on Ap r i l 18 , 1906 , and so SprecLels moved ba c l" to ~his old residen c e at 2027 o,rar Str -et , where ne lived unti l his death i n 1908 . 1 Iowever, title to the Van ess mansion had been 0 iven to ,._rs . Sprecl"els , and so S_Jrecl7'els told her to ha ve it rebuilt , and 110 , vould pay any costs in e . .,.·cess of the a~ount received from insurance . Construction oft e home tas not c -. letea until someti.Je aft r Sprec '"~els ' death, b1t L. e court allowe~ 1rs . Spree 1 ' clai for these costs "· ... n t... e~tate 1as bein ) pro ated . 2 Tl e h me stood idle f or 1. ny , , se d rin 'dorl death , but was u · ven 3 -; r I . S -pre c ~:: e 1 s a 1 so ov r to Re Cro for r:1 ny 1 e2.rs .ainta·ned a lar e ho ~ in i . 4 .Na l . T e l"' er J c .: e 1 s and hi s Hie do not a 1 ~e r to ha ve L • een ver1 soc ally min d , for o rarely reads c~ any 1 ~an _ran ·sco ~all D c . c6 , 1908 ; San ~r ncisco Direc tory~l90 . --s-ee infra , p . 228 . ") '-I. the 1 · ,,, tter of t e ~.,st .te of vlaus Sp;"ec: .. els, Clai□ o _ ~ n a ::; • Sp t'"l e c s 1 s for 1 ; 4 , 2 5 • 4 3 . ~. rs . ~~ ,. e c ~ · : e 1 s d 1 d not · nvo ,: o comi.1uni t .)roperty law . S11e ap ... arentl> v1as in co□_ lete acco1 wit, ·:r . Spree: ls ~ n t is action , for s e .•. ade o. · 1 at t 1 t r:1--- , .a .. :in 0 t he t"1ame three c ildraen ,_er , ... e! rs . · :n n tro ~ble over I-fr . Sprecl els ' ·rill develo ed, ver ~ c of er pro_erty tote tr c before 7 .::; oa n T"' n c i s o C r on i c 1 e , : ~o. 1 6 , 1 1 u ; San Franc is c o _____ 11 , 1:a y 17 , 1918. 4 in ra, .. • 21'")'- . ---- -- ' ' • ' ~~~J--,., -~- - 4 - . - ti . , , 1 .• - ' .-,-,- I , I· , " .. View of old Sprec kels r1ome as it is today, Van iess Boulevard, San Francisco (Formerly ~award Street). 228 229 Anna Christina Hangels reckels' portrait (presu mably by Toby E. Rosethal - - not sicned), 1879 . Photo furni shed by Austin Armer, Sprec kels Sugar Co~pany . 230 entertainnents held in their home. However, Claus Spreck els li ~ed havin his family with him. He made numerous trips to Europe, and his wife and usually one or more of the cnildren went along. In fact, talin is family alon began earl/ in Sprec 1 -els' career, for 110 took John, then ten • . years old, with him when he went to Tew York to study the best oet .. oas of refinins su r.-ar in 1863. 1 Spree ~els ·was extremely generous i.vi t.. is fa ily. ..e showered them with thousands of dollars in ifts, but 1e ex pected implicit obedience and respect at all times. Claus Au ust told two stories of parental discipline. The first came about because of his name. Durin boyhood , Claus Au ~ust was called by l is first na •.. e. As a child t is was all ri ht, but as Claus Au 0 ust grew into youn 0 manhood some amusin complications resulted. , Lo was to et a letter addressed to Claus Spreckels, the fatler or t, e son? T ere fore, one morninc after brea ,fast, Sprec ~els sum moned youn Claus into t e library. The parental lecture went 1 · " this: See ere , youns m an. ~ y mail is gattin . cluttered up iit~ too many d licately perfumed and p1nkpapered rniss~ves in endearin CT terms to 'Darlin Glausie ' and such. It has to be stop- ed. I won't have it~ So from now on you 1111 1 Adams, John D. Sprec {els , p . 47. 231 be called A~gust or Gus, whichever your friends may choose. That settled the issue, and from then on Claus August became "Gus" to his friends and family. At another time Spreckels too Gus to task for smoking too many cigars , althou h he himself was a constant smoker. However, in this lecture Gus fared better, for as Gus said, he was promptly defended by Gran 'pa 1-Iangels , l1is mot er's father, then a hearty young fellow of 86 and still a heavy smoker, who rounded upon 'the Su ar Kin ' with : 'Leave the boy alone, Claus. Smoked beef -lasts the longest. And when you 're as old as I am it will be time to speak 1th aut ority upon srnokin .•2 ?oth~n more was said, and Gus continued to smoke. Another interestin 0 story concerns an incident that happened to John 1hile attendin~ school at the Polytechnic in Hanover, -er many . Although the re Dular reports sent to Spreckels Here satisfactory, he ~ ept close tab upon the youngster, for he was onl!l fourteen wr1en he had been sent away t o school. On e ornin early, toward the end of John's schooling there, S rec_rels s howed up . John was still in ·bed. Shortly after his father's arrival, the bedroom door opened and a fair >roun 0 irl entered the room with a tray,.containin"'.!' a cup of chocolate and a roll or two. She deposited the tray on a 1 san Francisco Chron icle, Feb. 9 , 1928. 2 bid • , Feb • , 19 2 8 . 232 table beside John's bed, turned, and quietly left the room. His father had looked the girl over carefully but had re mained silent. After she had departed, he eyed his son for some seconds before aslting, "~Tho is she, John?" "The land lady's daughter," ansv1ered John. "H'm! And what 1s she, my son?" "She's an actress, father." :No more was said, and John thoucht the incident had been forgotten. However, later in the day his father informed him that he had secured more convenient rooms elsewhere, and that he was to move to the new quarters before night, and John moved. 1 Rudolph in cornmentin ~ on his differences with his fat er stated that he "always treated us in something of an autb.ori tarian Prus sian manner." 2 Authoritarianism can be gallin when there is so much of the Prussian in the sons. The four boys were all workin for their father in 1890. Sprect"els had moved to Philadelphia to supervise the construction of a huge refinery. After completion, he had returned to San Francisco leaving Gus in charge as manager and vice president of the plant, a position he held until Dece ber, 1891. As manager and his father's representative, he received the ,~2, 250,000 \'lhich the Havemeyers ' paid for a 45 per cent interest in the refinery. Spreclels was in 1 Adarns, John~ - Spreckels, pp . 50-52. 2 san Francisco Chronicle, April 16, 1951. 233 Europe when this huge sum ,..,as received by Gus, and he asked for an accounting upon his return. A misunderstanding de veloped over the disposal of this money, the implication being that Gus had appropriated some $200,000 to his own use. 1 The differences became so intense that Gus resigned as manager of the Philadelphia refinery in November, 1891, accusing his brother Adolph of instigating the trouble. He a· votr;ed that every cent that had passed through his hands was still there, statin5 further, in a letter to his father, I have always worked in your interest as faithfully, honestly and conscientiously as any man could, and no one deplores more than I do the way things have turned out. In conclusion, I want to say that I part with the best of feeling toward you, knowing full ,iell that you are being wron ly influenced against me and that in time you will see things in a different light.2 In later years, Gus must have been less certain of the role his brother played in the estrangemen~, for in his testimony before the Hardwick Committee 1nvest~gating the Sugar Trust, he blamed John Searles of the Sugar Trust.3 The resignation did not solve the family difference, _ and the ill-feelings 1 san Francisco Chronicle, April 7, 1895. See supra, p. 97 for information on this sale. 2 Letter of resignation of Gus to his father on Nov . 24, 1891, as printed in the San Francisco Chronicle, April 10, 1895. 3rnvestir;at:t_on of the American Sugar Refining ~., p. 2206. - ... . ..... gradually worsened, culminating in a series of suits within the family that only served to widen the cleavage. In a slander suit against his father, Gus accounted for the elu sive $200,000 by producing a copy of the report sent to his father on his return from Europe, 1 but the breach was not healed. Rudolph, youngest of the four Spreckels boys, defended Gus in the misappropriation accusation and thus incurred the wrath of his father. Emma eventually became identified with these two, although at first she was on good terms with her father. John and Adolph were with their father from the very start of the quarrel, a suppo~~- ~~~~ .... . W.h¼l'. 0 ~l1!l~-J:l~re :t~ •• be richly rewarded. The defection of Rudolph seemed gross ingratitude to his fat11er, and he felt that punishment v,as deserved. Therefore, he sued Rudolph for the return of 5,000 shares of stock of the Paauhua Plantation Company in Hawaii. This stock, worth $500,000, yielding about $60,000 per year 1n income, had been given Rudolph about two years before. Rudolph quite naturally was,reluctant to part with such a -valuable holding. The recovery suit was based on a State law which prohibited a husband from disposing of com munity property without the consent of the wife. 2 This 1 san Francisco Chronicle, April 10, 1895. 2rb1d., 1ay 21 1 1895. Under section 172 of the Civil Code, Amm. ~ ar. 3 , 1891. 235 attempt to punish Rudolph failed, the court finding that he could keep the stock since the gift had not been protested for so long a time. 1 Spreckels was not one to take defeat lightly, and so until 1906, Rudolph, -Claus August, and Emma were unwelcome in their parents' home and, in fact, did not enter it. aturally, this estrangement was very difficult for the mother of the children, and she worked to bring about a reconciliation. 2 ·,lhile at a later date, with some little ~ride , Spreck els stated that he had only been beaten once and that was by his son Rudolph, in 1892 he was very angry. He turned ing many of his affairs over to these two. In addition, he began disposing of his huge estate through magnificent gifts to them. In fact, from 1893 throu h 1904, Spreckels gave John and Adolph somewhere in the neighborhood of $25 ,000,000 in cash, property, and secur1t1es3 -- an outstandin reward 1 san Francisco Chronicle, •rov. 2 , l u95. 2 Los Angeles Times, Dec. 22, 1911. 3rn the Sunerior Court of the State of California in and for the City and County of San Francisco, Probate. In the ~~tter of the ~state of Claus Spree els, Deceased. Answer of Rudolph Spree els to Petition for Final Distribution, l-1S , filed I i.fay 24, 1910. Gifts to John and Adolph are itemized -- with John receivin over ◊11,407,184.69 and Adolph over ~ ; 10, 709,109.69. ......, ___ _..._. 236 for their fealty. Shortly before the 0 rea t earthqualte of 1906, Spreckels ... sought a reconciliation with his children. Just what caus- ed his change of heart was never made public. Rudolph, at a much later date, stated that when his father called him he said: Rudolph, I'm aging. I've given your two eldest brothers $25 ,000,000 in the past few years and they haven't used it wisely. I've lot ,10,000,000 left and I want to leave it to you. Rudolph was the only one of the estranged children livin3 in California in 1906 -- Emma was livin 0 in England, and Claus Au 0 ·ust was livin 0 in !Jew York. Shortly after this change of heart, Snreckels went to visit them. While in Jew York, he executed a new will. Spreckels acknowledged that all assets were community property, and 1-1rs. Sprackels was to receive all the income from the estate during her lifetime should she outlive him, after which the estate was to be divided equally among Emma, Claus Au ust, and Rudolph. Should any of the thre·e die, their share was to go to their children, or if no children , was to go to those of the aforesaid that remained. One provision in the will stated: l_ernard Taper, "Since Then," San ·T!'lrancisco Chronicle, April 16, 1951. 0 I make no provision in this till for my sons John D. Spreckels and Adolph B. Sprec\"els for the reason thai I have 0 1ven to them a lar e part of my estate. 237 Spreckels in this way hoped, in some measure, to make up to the three for the many years in which they had not shared in his bounty. I.ate in 1908, Spreckels went to e,-1 York where 110 vis- 1 ted with his son Claus Au r-ust. Vfuen Spreckels returned to San Francisco he was suffering with a cold w . icl1 developed into pneumonia. On December 26, 1908, he died at his home at 2027 I-Iowa rd Street. He was interred on December 28, in Cypress I.a.l41n Cemetery, San Francisco. 2 Spreckels estate was inventoried at J9 ,529,140.59.3 John and Adolph contested their father's disposal of the es- tate, and suits and counter suits went on for many years. However, Rudolph, Claus Au -ust , and Emma eventually divided the estate. Thus, even in death, tranquillity ,ias not 1 rn the Superior Court of tr1e State of California in the City and County of San Francisco, Probate. In the ,..;iatter of the Estate of Claus Spreckels, Deceased. Will and Proof and Certificate, } 1 IS, sio-ned 1 1ay 11, 1907. 2 san Francisco Call, Dec. 28, 1908 • ..,. ~In the Superior Court of the State of California, In and for tl1e City and County of San Francisco, In the 11atter of · :.:.e Estate of Claus Spreckels, Deceased. Inventory and Appra 1s ernent, 1•iS, San Francisco , Aue;. 30, 1909 by 1tf1111am A. ?!agee, Joseph rt •• {ooper, and G. A. Berton , Appraisers. 238 restored to relations within the Spreckels family. Thus ends the saga of one of California's greatest builders -- Claus Spreckels, "the Sugar Kin3" -- capitalist, patriot , churchman, citizen, ~enerous husband and father. - - - • ~laus Sprec ~els ' ~Busole m C press lavn emetery 239 CHAPTER X CO . ..TCL, US IO .. / S Claus Sprec {els' activities were an important factor in buildin • t e permanent economic foundations of Califor nia . ~he sugar industry was his special field, but he was also able to leave is imprint on the State's trans ortation system, utility industry, and real estate development as ,.,ell as its cultural life. His successful, and at times stormy, business career '-Jave ,.Lis name nati onal and inter national prominence durinG □ost of his life in California. iis methods at ti mes appear ruthless, but one should remem ber tat he lived in a ruthless business age . Claus Sprect?'els justly deserved the title of "Sugar ,e ntered the sucnr refinin . business in 1864 with little tee nic 1 ~ no 1led5e but " ith sucr1 a passion for eff"cient onerati n t1at within less than twenty years he , 0 d riven t, e monopolistic San Francisco S~5ar Refinery ~ram t~e field and established a monopoly of his own . 1 Tith in a s_an of so~e thirty years he mastered the details of bot can and beet suuar Grow·n and refinin3 . In addition, e was able to rra~e irn rovements on the methods of the day t._ro :-''h vario s inventions . S rec :els' entrance into bet su ar production was an event of utmost importance in establ1shinG the United 241 States' beet sugar industry. California's beet sugar pio neer, E. I. Dyer, had, after several failures, succeeded in operating a small refinery successfully, but this plant was not functioning at the time Spreckels built his Watsonville factory. Therefore, Spreckels entered this phase of su-ar production in spite of the numerous failures that had oc curred in California. Moreover, a large treasury, effi cient management, and modern equipment made profits possible from the first year of operation. Spreckels' reputation for engagin 0 only in very nrofitable business ventures was further enhanced by this undertaking. Therefore, other capital was attracted to this infant California industry, and before the turn of .f-"1e century adai tional plants had been established at Chino, Los Alamitos, Oxnard, Betteravia, and Croclett. In addition, SprecLels had built the largest beet factory in the world at Spreckels. He took the lead, others followed, and California became the leading beet sugar state in America. Spreckels had considerable influence on Hawaiian af fairs for many years. tThen efforts to block reciprocity .roved futile, by a master stroke he secured control of the entire Hawaiian su ar production for a period of three years ne atins any threat to his position from this quarter. His treatment of the planters was at times hi ·hhanded for .... 242 he insisted on all or nothing, and since he monopolized the Pacific Coast refining industry, the planters had little choice but to accede. However, in general the planters do not seem to have suffered financially. All indications are that he paid them top prices for their sugars. In fact, Spreckels stated that he overpaid them slightly when he was buying on the basis of ~ J '.fanila sugar duty paid and delivered to San Francisco, a statement fairly well authenticated. In political affairs, Sprf'ct~els' methods in Hawaii are sub ject to considerable criticism. There can be little doubt that Spreckels' influence over King Kalakaua and his govern ment was mainly based on a willingness to advance consider able sums of money with which expenses or extravagances could be met. In return, cabinets were overthro\-1n, laws passed, grants of land and water rights given at Sprec'els' request. later when he indicated an unwillingness to loan money on previous easy terms, but insisted that regal policy should be as he desired or else (and from all re ports with some arrogance), the influence ended. All in all, however, Hawaii benefited more from Spreckels' activi ties than it suffered, for during the some twenty years of industry, the kingdom's economy underwent constant advance ment with sugar bein its chief 1tem of commerce. Spreckels' transportation activities greatly benefited - 243 California. The Oceanic Steamship Company, still operated by the :Matson Navigation Company, has served as a connect ing link with the Hawaiian Islands since 1881. In addition, Oceanic has been virtually the only freight and passenger connection with Australia, New Zealand, and other Pacific Islands for most of this same period. Spreckels' leader ship resulted 1n the establishment of the San Francisco and San Joaquin Valley Railroad, now a l1nk in the great Santa Fe system. Previous efforts to build.a road to compete with the Southern Pacific Company had proved futile. When direction of the effort was taken over by Spreckels, his reputation for shrewd investment was such that other finan cial men were also willin to invest in the road, assuring the building of the competing line. Savings in fre15ht rates and thousands of jobs created by the railroad mark this undertaking as one of Sprec~els' _ most important con tributions to California's economic well-being. Sprec~els' career as a utilities magnate was short but not without certain important benefits to California. Rates were lowered, and while rate wars seldom produce last ing benefits, this one did produce secondary and lasting advantages. In order to survive, the warring companies had to modernize equipment and management and to develop more efficient service to their customers, a by-product or • - 244 considerable importance. Then, too, the truculence of Spreckels convinced the warring factions that only through consolidation could stability be achieved. This consolida tion, directed and planned by farsighted business men, eli minated costly service duplications with a resultant effi ciency which has benefited customers and stockholders alike. Spreckels' power plant, modern and efficient, still oper ates as an important (and enlarged) station of the Giant Pacific Gas and Electric Company. Sprecltels directed his activities to\'1ard bigness. It was a symbol of success to him. He liked being pointed out as the founder of the largest sugar refinery in San Fran cisco, and he pointed with pride to the fact that the beet sugar factory at Spreckels was the largest in the ,~orld. As he once stated, after its building he would no lo~ger be the "Sugar King," but the "emperor of tl1e sugar industry." The "Claus Spreckels Building" was the tallest building in San Francisco. The Spreckels home was one of the largest and finest in the city. His gifts to unemployment, the German Fair, and to earthquake relief were the most gener ous. He subscribed the most to the stock of the San Fran cisco and San Joaquin Valley Railroad. Thus, doing things in a big way was Spreckels' method of demonstrating his success. --- -·· ·· ., --........ .. . . .. ....... _.. .. _._.... • 245 As Spreckels acquired more and more wealth, he demon strated his love of display and elegant living. The laying of the cornerstone of his California Susar Refinery in 1881 was made an occasion for engraved invitations, a silver trowel, and champagne. His great mansion with its furnish ings cost about $750,000 and was pointed out as one of the most elegant houses in San Francisco. The Aptos Ranch was also a showplace constructed for lavish family entertain ments. As befitting his position, Spreckels owned a pri vate railroad coach in wl1ich he would travel from coast to coast. The "Claus Sprec 1 {els Building" was ornate and beau tiful and in many ways typified Spreckels' love for ele gance as well as bigness. Sprec~els disliked sharing control or being denied what he felt was his just due. He began to liquidate his Hawaiian holdings when the government refused to follow his dictates and planter resistance to his policies stiffened. He turned to bet sugar development at that time as a means of forestalling any future sugar deficiency. When the fight with the Sugar Trust ·was over and Trust of'fic ials were associated with him in operating the refinery, he turned more and ore of his attention toward developing his beet su ar industry l 1 ere he had complete control. When t11e Su ar Trust purchased an interest in his giant beet sugar 246 enterprise, he began to turn more of his energies toward real estate development, leaving the management of his su gar affairs to his favored sons, John and Adolph. Spreckels' family troubles were mostly due to h1s own stubbornness. He was willing to give his children millions of dollars 1n gifts , but he expected an almost servile obe dience as his just due. Since he had raised his sons to be "eagles not sparro,"ls" that type of fil~al devotion '",as not possible. Therefore, when Spreclels pressed his point, an estrangement resulted. The lengt11 of the estrangement, about fourteen years in all, resulted from Sprecl·els' stub bornness and not from any wish of the disfavored children to offend him. Sprecl{els' most outstandin3 characteristic, ho~1ever, was his ability to en a~e in profitable undertakings. He boasted that he had never failed in anything, which was nearly, but not quite, correct. It almost seemed that any thing he did brought him profit. He arrived 1n America with less than five dollars. Some sixty yea~s later his estate was officially valued at $9,529,140.49, and he had pre- ' viously disposed of nearly $30,000,000 of his holdin s through gifts to his family. This great fortune ~as ac quired throu h his own diligence and not through reaping profits from other people's investments. Spreckels knew 247 what he wanted and worked persistently toward that goal. He was a financial genius. Claus Spreckels was an exceedingly important man, yet his name and accomplishments are virtually unknown by Cali fornia's younger generation. Thousands of people earn a livelihood working in industries planned and established by him. His activities have resulted in benefits equaled by few other men. Truly, California owes Claus Spreckels more recognition than he has received. 248 BIBLIOGRAPHY A. Books • Adams, fI. Austin. The Man John !2_. Spree els. San Diego, California: Press of Frye & Smith, 1924. Alexander, William DeWitt. History .Qf later Years of the Hawaiian 1onarchy and the evolution of 1893 . Iono- lulu: Hawaiian :azette Co., 1896. - Bancroft, Hubert Howe. History of California. Vol. VII, 1860-1890. San Francisco: The History Company, 1890. Bemis, Samuel Flagg, ed. The American Secretaries of State and Their Diplomacy. Vol. VIII. ~aw York: Alfred A. Knopf, 1928. Blacr.ey, Roy G. the Tariff. The United States Beet-Sugar Industri and rew Yor' : Columbia University, 1912 . 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Haiaiian Investigation. 57th Cong., 1st sess., Exhibits, .emorials, Petitions, and Let ters to Accompany S. Res. 260. Washington: 1903. U.S. Congress. Senate. Papers and Documents Relating to the Ha a11an Islands. 52d Cong.,· 2d sess., s. Ex. Doc. 45 and 57 in Ser. No. 3056, and S. Ex. Doc. 76 and 77 in Ser. l'o. 3062. Tvashington: 1893. U. S. Consrass. Senate. President's· I~essage Transmitting the Report of the Ha,aiian Commission. 55th Cong., 3d sess., Ex. Doc. 16. Washington : 1898. U. s. Congress. Senate. A Resolution Author1z1n5 and Directing the Committee .211 Pacif c Islands and Porto Rico i.Q Investigat.e the General Conditions of the Is lands of Ha aii and the Administration of the Affairs Thereof. 57th Con., 1st sess., S. Res:-260. \ash ington: 1902. U.S. Department of Agriculture. Statistics of Sugar in the United States and Its Insular Possesslons, 188Y: 1912, ed. by Fran t Andrews. Dept. of Agriculture Bulletin No. 66. Washington: 1914. U. s. Tariff Commission. Reciprocity and Commercial Treaties. Washington: 1919. C. California Government Publications and Documents Appendix to Journals of Senate and Assembl~. Legislature, 17th sess., Vol. III, 18 8. California \ppendix to Journals of Senate and Assembly. Legislature, 18th seas., Vol. III, 1870. California Appendix to Journals of Senate and Assembly. California Legislature, 19th sess., Vol. III, 1872. Appendix to Journals of Senate and Assembly. California Legislature, 2lstsess., Vol. I, 1875 . 255 Appendix to Journals of the Senate and Assembly. Califor nia Le~islature,28th sess., Vol. VI, 1889. Appendix to Journals of the Senate and Assembly. Califor nia Lagislature,3lst sess., Vol. II, 1895. Ap~endix to Journals of the Senate and Assembly. Califor nia Lesislature, 32d sass., Vols. II and V, 1897. Appendix to Journals of the Senate and Assembly. Califor nia Le 0 1slature, 34tn sess., Vol. IV, 1901. California. Board of :Railroad Commissioners. Biennial Report, 1895 and 1896. Sacramento: A. J. Johnston, Supt. of St4te Printing, 1896 . California. Board of Railroad Commiss ioners. Report for 1900. Sacramento: A. J. Johnston, Supt. of State Frint inc;, 1901. Galifornia. Bureau of Labor Statistics. Eleventh Biennial Report, 1904. Sacramento: J. ~r. Shannon, Supt. of State Printin, 1904. California. University. Board of Regents. gepor:t, 1880 (Contains the Department of Agriculture Report on "Analysis of A~ricultural Products" and "The Beet Su gar Industry."J. Sacramento: J. D. Young, Supt. of State Printing, 1 81. California. University. Colleee of Agriculture Experimen tal Station. The California Sugar Industry, Part I, by George ViT . Shaw, Bulletin l'Jo. 149. Sacramento: Supt. of State Printing, 1903. Journal of the Assembly. California Legislature, 18th sesS:, 1869-1870. Journal of the Assembly. California Legislature, 31st sess., January 7 - !- !arch 16, 1895 • • ., The Statute of California and Amendments to the Codes, 33d Legislature, extra session, 1900:- D. 14.anuscripts, Records, and 1-· !iscellaneous 256 The American Su ar Refinin5 Company. Annual Report, 1952. trew York, 1953. Annual Return of the lilitia of the State of California for 1871. California State Archives, Sacramento, Cali forr1ia • Annual Return of the 1~111 tia of the State of California for 1872. California State Archives, Sacramento, Cali fornia. Articles of Consolidation, Amalgamation and Incorporation of the Pajaro Valley Railroad Company and the Pajaro Extension Railway Company, Dec. 7, 1897. California State Archives, Sacramento, California. Articles of Incorporation of the Bay Sugar Refinery, 1864 . California State Archives, Sacramento, California. Articles of Incorporation of the Hawaiian Commercial and Sugar Company, April 3, 1882. California State Ar chives, Sacramento, California. Articles of Incorporation of the Independent Gas and Power Company, January, 1901. California State Archives, Sacramento, California. Articles of Incorporation of the Oceanic Steamship Company, 1881. California State Archives , Sacramento, Cali fornia. Articles of Incorporation of the Pajaro E°'Atension Railway Co□pany, January, 1890. California State Archives, Sacramento, California. Articles of Incorporation of the Spreckels Sugar Company, 1897. California State Archives, Sacra~ento, Cali fornia. 257 Articles of Incorporation of w·estern Sugar Refining Com pany, - !arch, 1891. California State Archives, Sacra mento, California. Assessment Book of the Property of the City and County of San Francisco, 1908. County Clerk's Office, San Fran cisco, California. Bancroft, H. H., ed. "Kearnism and the itforkman 's Party," Bancroft's Scraps, Vol. XXXXII. Bancroft Library, Berkeley, ca11~ornia. Certificate of Election of Pajaro Valley Consolidated P~il road Company, Ltd., to wind up and dissolve. Dec. 30, 1935. California State Archives, Sacramento, Cali fornia. Certificate of Incorporation of the California Sugar Refin ery, 1867. California State Archives, Sacramento, California. Certificate of Increase of Bonded Indebtedness of Hawaiian Commercial and Sugar Company, Sept. 30, 1896. Cali fornia State Archives, Sacramento, California. Certificate of Proceedin s at Stockholders' } , eetins of the Oceanic Steamship Company Authorizing the Creation of a Bonded Indebtedness, June 2, 1899. California State Archives, Sacramento, California. Dennis, I 'J !argaret Palmer. - "The I-Iistory of the Beet Sugar Industry in California." Unpublisl1ed 1 - !aster' s thesis, Department of History, University of Southern Cali fornia, 1937. Gill, Peter B. "The Sailors' Union of the Pacific from 1885 to 1929," I- IS. Bancroft Library, Berkeley, Cali fornia. Grfm Papers, VII. Index to Deeds by 1Jame of Grantee, 1850- 1880. Society of California Pioneers Library, San Francisco, California. Gutleben , Dan. .1.?otes and Extracts. Bancroft Library, Berkeley, California. Cutleben, Dan. "The Sugar Tramp, 1950, Hawaiian Issue~• 1 -1S. Bancroft Library, Ber {eley, California. 258 Hawaiian Islands land Commission. Index of All Grants Is sued EL the He.ilva11an Government Previous to iarch 31, 1887. Honolulu: P. C. Advertiser Steam Print, 1887. Inventory and Appraisement, Estate of Claus Spreckels, in Superior Court of State of California. San Francisco, August 30, 1909. County Clerk's Office, San Francis co, California. Kuykendall, Ralphs. Extracts from Foreisn Office and Ex ecutive Box 110 (lfinister and Special Commissioner, vashington). Honolulu, October 22, 1886. Kuykendall, !fillph s. Extracts from Foreign Office and Ex ecutive Box 110 (1-iinister and Special Commissioner, Washington). Honolulu, December 17, 1886. Kuykendall, Ralph S. Extracts from Foreign Office and Ex ecutive Box 110 (Minister and Special Com 1ss1oner, Washington, Honolulu, December 22, 1886. Kuykendall, Ralph S. Extract of Foreign Office and E}:ecu tive, British Consul Record. Wodehouse to "l-Iy Lord," ( No . 18, Political and Confidential). July 3, 1886. Kuykendall, Ralph S. "Hawaiian Kingdom, 1874-1893," 118. Author's personal copy. Morse, Percy r,1., ed. Scrap Book. Spreckels Sugar Company Office, Sacra~ento, California. Oceanic Steamship Company Certificate of Increase of Capi tal Stock, January 31, 1903. California State Ar chives, Sacramento, California. Palmer, Truman G. "The Beet Sugar Industry of California," MS . Bancroft Library, Berkeley, California. Record of Donations Received by University of Calif, rn1a, March 23, 1868, to June 30, 1940. University of Cali fornia, Berkeley, California. Sagar, Henry. "From ~{emery's Files," 11S. Spreckels Sugar Company Office, Sacramento, California. San Francisco Chamber of Commerce. Forty-fifth Annual Re port of the Chamber of Commerce of San Francisco. San Francisco: Commerc1arPublishingCo., 1895. 259 San Francisco Chamber of Commerce. Forty-eighth Annual Re port of t he Chamber of Commerce of San Francisco. San Francisco: CommercialPublishingCo., 1898. San Francisco Chamber of Commerce. Fiftieth Annual Reuort of the Chamber of Commerce of San Francisco. San - -- ---- - ---- - -- ----- Francisco: Commercial Publishing Co., 1900. San Francisco Chamber of Commerce . Fifty-first Annual Re port of the Chamber of Commerce of San Francisco. San Francisco: Commercial Publishin~ Co., 1901. San Francisco Chamber of Commerce. Report of Committee .QJ2 Beet Sugar Culture in California. San Francisco: Com- mercial Publishing Co., 1888. ---. Scrap Book on Rudolph Spreclrels. Haynes Foundation, Los Angeles, California. Sorenson, Ethelyn Benson. "John D. Spreckels and San Diego." Unpubliched !,faster' s thesis, Department of History, University of California, 1948. Spaulding, Thomas r~rahall. "The Crown lands of Hawaii," University of Hawaii Occasional Papers, ~ 1 0 . 1. Hono lulu: University of Hawaii, 1923. Spreckels, Claus (ca. 1880), 1S . H. H. Bancroft Collec tion, C-D 230:1, Bancroft Library, Berkeley, Califor nia. Spreckels, Claus (ca. 1880), l 11 1S. H. H. Bancroft Collec tion, C-D 230:2, Bancroft Library, - Berl"eley, Califor nia. - Spreckels, Claus. "The Beet Sugar Industry," California, the land of Promise. San Francisco: California State Board of Trade, 1898. Spreckels, Claus. "Pacific Steamship Line," lIB. San Fran cisco, 1 rovember 2, 1883. Bancroft Library, Berkeley, Calif orn 1a. Spreckels' Estate Papers. County Clerk's Office, San Fran cisco, California. Sprecl{els Sugar Company, Office Records. "Sugar" Scrap Book, Spreckels Sugar Company, Sacramento, California. 260 State Harbor Commission File. Letter from The San Francis co and San Joaquin Valley Railway Company to the Board of State Harbor Commissioners, l~y 10, 1895, regarding China Basin lease. Ferry Building, San Francisco, California. ~ State Harbor Commission File. Vinutes of a special meeting of the Board of Harbor Commissioners May 13, 1895. Ferry Building, San Francisco, California. State Harbor Commission File. Proceedings of a Special Meeting of State Board of Harbor Commissioners with San Francisco and San Joaquin Valley Railway Company, May 22, 1895. Ferry Building, San Francisco, Cali fornia. State Harbor Commission File. Record 110. 12, Minutes of Board l· Ieeting of State Harbor Commissioners, January 28, 1892. Ferry Building, San Francisco, California. State Harbor Commission File. Record !Jo. 13, r ~~inutes of Board !1eet1ng of State Harbor Commissioners, January 27, 1898. Ferry Building, San Francisco, California. Suit at Law for Infringement of Patent. Claus Spreckels, Plaintiff vs. The California Sugar Refinery, Defend ant. January 30, 1877. Federal Building, San Fran cisco, California. rleidel, Jos. "Santa Fe Splinters" (Scrap Book), Vols. 9, 10. Santa Fe Public Relations Office, San Francisco, California. E. Pamphlets Bennett, 1 - iajor C. C. Lecture and Sketches of Life .Q!1 the Sandwich Islands and Hawaiian Travel and Scener1. San Francisco: The Bancroft Company, 1893. Boutwell, Georges. The Reciprocity Treaty with Hawaii. Washington: Judd and Detwiler, 1886. Brown, Henry A. Analyses of the Sugar Question. Saxon ville, I- iassachusetts :LPublisher not given] , 1879 . - 261 Brown, Henry A. Concise Resume of Sugar Tariff Topics. Washington, D. C.: Judd & Detweiler, 1882. Brown, Henry A. Condensed Summ ary of the E..~istin5 CongJ_ t1on of the Sugar Tariff Question. Washington, D. C.: Judd & Detweiler, 1881. Brown, H. A. Ha a11an Reciprocity Treat} Blunders. ington, D. C.: (Publisher not given, 188€. Vlash- Brown, Henry A. Revised Analyses of the Sugar uestion. Saxonville, Massachusetts: [Publisher not given, 1879. California and Hawaiian Sugar Refining Corporation. How It Happened. San Francisco: C. & H. · · Sugar Refining Corp., n.d. Cushing, John E. Captain william Matson. San Francisco: The Newcomen Society in !orth Am erica, 1951. Dorn, Rev. J. George. One Hundred Golden Years. San Fran cisco: St. r~ark's Evangelical Church, 1949. Giffen, Guy and Helen Giffen. he Story of Golden Gate Parl{. San Francisco: [Publisher notSiv·enJ, 1949. Hilgard, E. ~ i. The Beet Sugar Industry and ll~ pevelopment in Cal1forn1a. San Francisco: J. F. Halloran, 1897. Oceanic Steamship Company. ! TriE to Hawaii. San Francis co: Union Photo Engraving Company, n.d. Sacramento Bank, ed. The Beet Sugar Industry in the State of California (reprint). Sacramento: A. J. Johnson, Supt. of State Printing , 1896. Saroni, Louis. The Hawaiian Reciprocity Treaty. San Fran cisco: (Publisher not given], 1897. Spreckels Beet Sugar Factory and Refinery, Salinas, Monte rey Co., Cal. Salinas City, Cal.: The Liverpool and London Globe Insurance Co., n.d. Stoddard, Charles 1 :{arren. ~ Trip to Ha,-1a11 (new ed.). San Francisco: Oceanic Steamship Co., 1897. 262 Strover, Carl. The Hawaiian Problem. Chicago: Cozzens & Beaton, 1898. Sugar-Beet Culture in the Pajaro Valley. San Francisco: Western Beet-Sugar Company , 1890. Sugar in the Making. 3d ed. San Francisco: ~astern Sugar Refinery, 1937. Thurston, Lorrin A. A Handbook 211 the Annexation of Hawaii. St. Joseph, 1~ich1ga.n: A. B. I~orse Co., n.d. F. Periodicals "China Basin," The Argonaut, "CXXVI (Jan. - June, 1895). Dosch, Arno. "Rudolph Spreckels, the Genius of the San Francisco Graft Prosecution," The Overland lv!onthly, L, no. 5 ( ov., 1907). Dozer, Donald ~iarauand . "The Opposition to Hawaiian Reci procity, 1876-1888," The Pacific Historical Review , XIV, no. 2 (June, 1945). Frank Leslie's, Aug. 9, 1890. Gird, Ruchard. "Su-ar Beet Culture in Southern California," __ nd_ of Sunshine, XXX.X (June, 1894). Hil ard, G. ii. "The Beet Sugar Industry in California," The Overland ~onthly , VII, 2d ser. (Dec., 1886). l.adenson, Alex. "The Baclcground of the Hawaiian-Japanese labor Convention of 1886," The Pacific Historical Re - view, IX, no. 4 (Dec., 1940). - r~a tsone,is, V, no. 4 (Dec., 1945). o' Brien, Victor ~-r. "Claus Spreckels\ .the Sugar King, 11 Ainslee's 1 agazine, (Feb., 1901J. Pratt, Julius v. "The Hawaiian Revolution: a Re-Interpre- tation," Tl1e Pacific Historical Review , I, no. 3 ( Sept • , 193 2) • 263 Rowland, Donald. "The United States and the Contract Labor uestion in Hawaii, 1862-1900," The Pacific Historical Reviev-1, II, no. 3 (Sept. 3, 1933). Rowland, Donald. "The Establishment of the Republic of Ha·waii, 1893-1894," The Pacific Historical Review, IV, no. 3 (Sept., 1935). · · Russ, W'illiam A. 1 Jr. "The Role of Sugar in Hawaiian Annexation,' The Pacific Historical Review, XII, no. 4 (Dec., 1943). Sprec kels (Sugar Beet) Bulletin, XIV, no. 3 (May - June, 1950). Sprec~els (Su ar Beet) Bulletin, XVI, no. 2 ( !arch - pr11, 1952) • "The Treaty 1 the Advertiser, iu-. Sprec kels and 'D1s-Crim1- nation ," Planters' ?-onthly, rv (March, 1886). Wagon Wheels, Colusa County Historical Society Publication, (!{ov., 1951). Williams, G. H. "The Su ar Beet," I.and of Sunshine, June, 1895. G. ewspapers The Call (San Francisco). Also known as The San Francisco Call. Castroville Enterprise. The Daily Alta California (San Francisco). Daily Evening Bulletin (San Francisco). Also known as San Francisco Daily Bulletin. Evenin5 Bulletin (Honolulu). Hawaiian Commercial Advertiser. Honolulu Star-Bulletin. Los Angeles Tim es. 'I C :New York Times. Oakland Tribune. The Pacific Commercial Advertiser (r~waii). The ~ajaronian (Watsonville). Sacramento Bee. San Francisco Chronicle. The San Francisco Commercial Hera d. The San Francisco Herald. San Francisco Journal of Commerce. -- ----- ---- - ---- The San Francisco Merchant. San Franc 1s co }Tews Bureau. San Francisco Post. San Francisco Sun. Watsonville Register. ... . . 264 APP IDIX A GE !EA.LOGY CF.ART DIE RICH SPREC ~ .=.LS LI - TE GE (Taken from the K. A .• feserole chart located 1n California State Library, Sacramento, California) Claus 1828-1908 nna Christina !, ... angels eter ichard John Diedrich Geseina Pach Christine Von der 1eden Bartold aret Fre erick Henning 265 Claus(l828-1908) Anna • -1angles (1830-1910) (d) -- died John Diedrich 185 -1926 Lillie a. Siebein dolph Bernard(l857-1924) lma De Brettville -iaus Au ust 1858-1946) roville Dore 1870-1924 atson d ohn Ferris d rthur I-Iutton h 1872-19 r Jollifee Grace ille ohn Diedrich Jr. laus Alma Emma h Bernard Constance urline ean Ferris Howard •leanor nn Claudine other children died in infancy Grace lexander Hamilton L1111e enry I-1. Holbrook Paul Wegeforth Grace Bruce Kelham Leila Philip rreill Frank Belcher 267 Alexander wson John G. avid H. John Diedrich John Lillie C. Siebein John Diedrich Jr . 1th Huntington Sidi Wirt laus Ellis I.Loon * -- divorced ..----- r.rarie arie C. ngel Elizald L. dolph B. r bara 1byl E. Jones orothy Endicott ohn D. III lor1a Roxana G. Bro,vn ~ ary Lavinia Lou Dell GAraldine Ann dolph B. Spreckels Andrew Fuller Claus Jr. lcarol it• Lo 1 s Si 1 v a Jane Turner rank heo . Brown rbara Ellis (Too kie) tortl1cutt j Adolnh Bernard Alma De Brettville Claus Au ust Orville Dore ◄mma Thomas vlatson John Ferris d Arthur Hutton d -- divorced (d) -- died 268 John 1'J. Rosekrans Jr. Alma Emma h S. Rosekrans John i. Rosekrans harles Rosekrans Lois Clark deRuyter loria de Bevoise eraldine Ann Spreckels ily Hall Van Romberg ~athleen G. lilliams orothy Constance -tJean Dupuy :Andrew 1 - icCarthy urline Spencer ..-ddy d Joseph Kuznick Lois rdolph B. III nn Edd Jr. 1. Livingston John Harris Jean Ferris lizabeth Harris Irving D. Harris Charles d 1 -spina y fChantal d'Es: 1nay 269 }award fGertrude ~1rs:n· :-1-,1. Newhall ... dwax~ Walsh ◄~eanor r enneth Walsh (Eleanor tlalsh h r Jolliff Ann 1ontgomery nn Claudine e G. Mont George G . liontgomery ]lontgomery APP NDIX. B "Sugar Refinin./' San Francisco -··;... .. Commercial Herald Annual Review January 15, 1880 270 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •••••••• The old method is, briefly stated, to.dissolve and filter the raw sugar, passin5 it through what are known as dis solvin pans, in which the liquor is lept at a temperature of 165 Fahr., and its stren th to about 29 baume. If it appears necessary, lime is added to neutralize the acid. After various filtering procGsses, the liquor, which is of a dark sherry wine color, 1s whitened, either by being fil tered through beds of granulated charcoal, contained in cast-iron cones, which are five or ten feet in diameter and from ten to fifty feet high; or, by the use of centrifugal mac111nes, ·which consist of a drum of wire auze attached to a revolving shaft, and whirled at a rate of speed sufficient to throw the molasses through the meshes of the wire. In either system a large extent of floor surface is required. By the best form of the centrifugal system, as formerly practiced, what is known as ttwhite liquor" is poured over the soft granulated sugar i!i tho iron cone, and this com pletes the first step of the process of clarifying. It then ta~es about three weeks for the drainage to be completed, and the :1ard loaves ready to remove to the drying-room, where they must re ain for at least as long before the re mainin moisture is entirely evaporated •••......••..•.••••• ... APPEl\lD DC C Claus Spreckels Pacific Steamship Line San Francisco, 1883 Friday, November 2nd, 1883 Statement of Claus Spreckels 271 The Oceanic Steamship Company was organized the 24th of Dec., 1881. There are tw·o steamshlps, the " lameda" and "l!ariposa." Both are 113hted by electric1 ty. ~-Ta have nine other sailing vessels. The capacity of the steamships is three thousand tons each, though th~ Custom House Offi cials place it at about two thousand tons each, but their real capacity is three thousand tons. There are five bri 0 s. Five hundred tons is the least. I have raised about ei 0 ht thousand tons of sugar this year. Reclaim1n the waste lands 1n the Islands has been successful. 4tThe corporation papers show that tl1ey'" were signed on December 22, 1881. Spreckels' memory thus is two days off • . . 272 APP~NDIX D Board of Railroad Commissioners Report for 1895 and 1896. Page 60 REDUCTIO~ OF RATES. The contention of the Southern Pacific Company is and has been at all times, that a reduction of rates v1ould be confiscatory of their property, and that the rates as no, established and charged are just and reasonable, and as low as they could be made so that the company \-Tould be enabled to pay operatin5 expenses, fixed charges, interest, etc. The Commissioners did not adopt the resolution matin a reduction of 15% and 20}& as proposed, but did, after a long and careful examination and consideration of the ques tion, make, by unanimous vote, a reduction of 8% upon all grain rates as then in fc1,ce and bein charged upon all shipments of grain from the interior to tide-water, over the roads of the Southern Pacific Company. The company claimed that this reduction would be con fiscatory of their property , and that it was unreasonable and unjust; therefore, they commenced an action restraining this Board from enforcing compliance with said order reduc ing rates. Since the commencement of said action above referred to, the San Francisco & San Joaquin Valley Railway Company has been constructed, and 1s now in successful operation from Stockton to Fresno, a distance of 125 miles, carryin both frei ght and passen6ers, and affording additional trans portation facilities to the farmers and business community enerally of that rich and fertile country through which the road is operated. It is paralleled on each side for the whole distance from Stockton to Fresno by railroads owned and operated by the Southern Pacific Company. As soon as the Valley Road was so far completed as to enable it to transport to market the grain crops of the section of country throu -h which it passes, the following schedule of grain rates was submitted to this Commission, and, after consideration, were apnroved and adopted: 273 APP~NDlX D Board of Railroad Commissioners Report for 1895 and 1896. Page 61 1 · 11les to Stock ton 10.4 21.3 30.1 33.7 37.0 43.2 60.1 66.7 72.3 75.6 78.5 81.4 87.1 90.5 92.5 96.7 103.3 108.7 Grain in Carloads of 24,000 lbs. and Upward San Francisco & San Joaquin Valley Railway Co. (In cents per ton of 2,000 lbs.) From Burnham------- Escalon------- Clauston------ Empire-------- Hughson------- lmwood------- Gracey-------- lJ ierced-------- Turner-------- Geneva--------- Burchell------ Le Grand------ Iv!argueri te---- I.augenour----- Sharon-------- :rJ iller--------- lankershirn---- Patterson----- To Stockton and tlarehouses 1111 th in Stockton City limits to which access is provid ed for cars of the S. F. & S. J. V. Ry. Co. 50 80 110 110 125 140 170 170 175 180 185 185 190 190 190 200 200 205 To San Fr~ncisco, ?~vada Dock, Port Costa, Crockett, Benicia, and South Vallejo including unload ing at destina tion. 100 130 160 160 175 190 220 220 225 230 235 235 240 240 240 250 250 255 ----- The "Y" (a tem- porary switch) 205 255 117.2 Bullard-------- 215 265 124.7 Fresno--------- 215 265 The following table, inserted for comparison, 1111 show the grain rates as charged by the Southern Pacific Company in September, 1895 , the rates as fixed by the Railroad Com missioners, and those now charged by that company , from and to stations given therein: • 117831 • . - . .. aADMAD t t f I: I • •· . 118&.I• C. ·L IID. ft. II.Ill LIi. <••--.. - - ----------:-------------...._ __ _ UiWm (XI IIM ..... ) • .......... ' .... i f ... ... . i AllD Ou1AD4W1aarf. . ,. . ... ~ ·r • 0 I . . ,_,. ; !i • ,, ;aa· ~ i p .:;Q ji ... I .. PorlC~ 1' ..... .... ,: ; • ' I ~- I • ' ,a ~ ... ~ _,. ~I r • - - · ~i, = ,.._,11 ·········-··-······· •.•••.. ·••••. ••••.. .•.••• 60 '6 60 .••••. 80 46 IO Oak ha4 WMd ·-·············· IO '6 60 .••••. .•••.. ·•·••• ...... .•.• •. 60 46 60 hed (Ma II.) .. .. .. .. .. .. .. . . 60 : 60 .. .. .. 46 40 46 .. .. .. eo 46 10 =--.., .••······················.. .. IO 60 ...... 60 '6 tiO •••••• 60 46 60 , •...._···············-····· 60 • 60 ..•••. 60 • 60 ••... . 60 46 ao .._ Yuk. ......... -............ IO 46 60 .•••.. &> , 46 60 .•.••. · l'lO * 60 • z«•~ --.co.·, 8w1&dl ...... 60 a 60 ...... 60 e 60 ..... 60 a ao ·-........... ·-------·----·· 60 41 60 ...... 60 46 50 ...... 60 46 60 .,, 1 -. ·----------·-----·~------- • ao • 60 ______ ao 46 60 ..... . 60 46 ao • .._. ••••••••••••••••••••••••••• .. IO 46 60 .•. .• 60 46 60 .•••.. 60 46 10 .-. .............................. -.. oo 46 ao ...... 60 46 60 •••.•. 60 46 ao lali .................... ...... .... 60 • 60 •••••. 60 46 60 .. • •• . 60 46 ao 9'lat ••.... ...••.................. 60 46 60 .••••. eo 46 ao ...... 60 46 60 .................................. eo 46 60 .••••• 60 46 60 ...... 60 46 60 . ...... Ou•••••uuuu••--•••o 60 46 60 ...... 60 46 60 ...... 60 46 60 l !='••L......................... ao • 60 ...... 60 46 ao ...... 60 46 . 60 ~-£ .... 1............................. &, 46 60 .••... 60 46 60 .• -·· 60 46 60 T81LJ,t ...... .... ----·----------· 80 46 60 ...... 61 46 60 .~.... 60 46 60 ~·--·····-···················· . 80 46 IO •••••. 60 46 818 ...... 60 46 80 V.U.,O Ju ltha ................. IO 46 eo ...... 60 46 60 .• . . . · 46 • 46 01111i.._ ............... ........ .. 60 • ao .. .. • 46 ao ...... :» 26 26 _.., ........... ••••••••••••.. .• . 60 46 60 •••••. 60 46 60 ·••••· Z 26 26 Orn JCC?JMI .. -- ·- .......... .. . . 60 46 60 -----· 60 46 ~ ..... . ~ 26 26 ,-..o.ea ·-····················· ·IO 46 --10 •••••• 60 46 IO .••••.•••.•..••....••••• -...-._ ........ ,.,Doak..................... ao • ao ...•.. IO. 46 60 .••••• z z • ......... ·-··-········-·········- • _, • -~··· · 16 • 16 ...... ■ _, • ........ ,........................ 76 'JO '76 .••.•. 76 'JO 76 .•.••. 40 • 40 ------;z:--•·----··------·----·· 171 HO flfA> --·--· 1'10 W tUO . . .. . . 126 115 flOO -J•1'-matdp , ............... 111 1• tUO ...... ~ 186 tlfA> ...... ll6 m tlOO ~ .••.•••••••••••.•.. ..••••. 171 MO fllO 116 170 W tl60 115 ·H6 116 tlOO .... • C.., .................... 171 1• tUO 116 170 W tl60 115 126 116 ttOO ---•·--·--··------···--·----· 17& le tllo 116 1'10 1M t160 115 126 116 tlOO ~E·----------·--•--·---- .. D lll6 tlAIO W 200 1M tUO 116 160 140 ti• Wall~-•---····· ···· ·•··············· JD0 116 f:UO W • 116 tUO 116 160 140 tlOO E ... ........... . ........... tD0 Ji,6 fl.60 lU 200 116 tlfA> 116 160 140 t100 ................ '.' •••• ,........ - JM flllO 11& 3JO 116 tl60 116 1tJO 140 tl• .... , ........................... - - t• •• IC6 226 tie& 110 116 180 t116 lfflt 7 ........... ....... ......... tlO tlO tllO 1IO 260 2IO tlto 1f!O 200 )16 fl4D ..,_lqUc ,.... ................. r» -6 tHD · lll 226 • t180 11' 175 1• ttlO ,_ ___ :::::::::~:::::::::::::: a e I a a : 11 - e a a 11 --------····-·····----· ···············------·----···· .111 .. 11 ••••••••••..• , •••••••••••• .. ........ .................... .. - . - t1" -- - . ., - - ....................................... 1'JI •.•..• . - 171 ........... - la ......... - ............... - .... = - · 1 ......... = .. -····-· ... la 111 •••• .......................... . •••• •• • • •••• ~f 111 lill -Ill ............... .......... - ..... · -j ...... I.II 1411 I.II .... ···=-.:::: .. ====:====: I i .. ====: • · = :::::: = =· -• • ::::L ....... • .. • •• ·••• .... •• .. - ••••· - = . -:'9... - ........................... •••••• ..... Ill • . ......................... . ...... -...... - ... - - t1ta•• rrusla ,c ..... t,1 ... ta,ilrlaw..,•••• .. .., .... , Mtlt111.-. / . 274 ,. Biennial _eport of the Board of Railroad Commissioners of the State .£f California, 12958n 1896. - . ... MKl'ORT or ROA kD or RAIi.ROA lJ w .... JN,JO~ kk,.. 80UTIIKU~ PACIFI C ('OMPA~Y. ton of 2,000 1 h1.) Benicia. ~acrame11to. Htocktou. - = 75 I 75 I 75 75 I 75 , 75 I 75 I 76 75 75 75 75 I 75 I 75 1 75 75 75 75 75 75 75 75 75 60 76 m 76 126 t26 ~ 1.26 1~ 160 160 u.o 160 lg6 a,o 176 190 a>O - 210 210 - - - It& - - .. •• •--i ~ Ill ~;:t' = '✓ .--: 00 :....~ - I • 4 I "'1 •:; 1111 2 -; 70 I 70 f 70 I 7o I 70 I 70 7\) I 70 iQ I i0 I 10 I 70 70 70 70 · 70 7.\ 7 :., ' 7,- ) I i 5 i f, : 15 I " ' I ,) 70 7.''> 70 75 ' 10 7, '> I 70 75 I 7J 75 I 10 15 I ◄5 ;J() ' 70 7:., 70 75 70 75 l15 tIOO 1 l.'> t 100 115 t 100 116 tlUO 115 t 100 14() tlOO 140 tlOO HO t}OO UO tlOO 180 t 115 186 t 140 160 t 110 176 t 1~ 185 t 130 1 1'6 tUIO t6 f 146 196 f 180 ~ tlM 210 tl&O 230 tli6 %» tlto 2IO t~ · 2IO I -i~'O 210 ta» UO 140 141 UIO = ' HI lJ6 - .. ... = - - HI 1M - 1• di 196 Ill ,ao = = .... • I 9(J ' ' l(J 00 90 '. I() ~ 90 \l() !JO !IU '. IO W : 90 I oo I 9() I : 1 00 I 9Q I 90 90 90 90 90 10() I JOO I 100 150 150 l .'J() 1.·i0 J.'j() 150 150 150 150 196 200 176 190 200 200 210 210 -a, 280 240 246 260 260 2bO 140 ll\O 166 . 166 JJO ·t• - 216 - 80 ~I 80 ' 80 Hl kO HO ~ X(J NJ I I'll} ' 80 I 80 ' 80 I MO I 80 I MO I X() : bO I XO I &J I &J I 80 I KO 9() I 90 90 140 14(1 140 140 140 uo 140 HO 140 180- 185 160 176 186 186 196 196 D) 210 2'JO 226 2ltO 280 :l!JO UD HO 1'6 U6 116 - 116 - - - • I .., . ' ..... -, ;a. .... _ _,... ~ -✓ • - . C ~ .... ::, oo :._)il(J ' Hr, , !jij 1 !l:1 ' 1 ~ w • 1.·,o 1- tu I 9o 1 .· u I 1-to <JO 1:,0 140 I !JO I :,u 1-IQ ' 9(J J :,0 I )40 '. 90 ~ ,o I HU !lO 1: ~> I 1-w 90 1:.0 i IO W · 1:,0 1 , JIU 90 , l .",O HO 00 };Al I HO !JO 1:J() , llO 00 I ].JO : )40 fl(} ){JO I 140 9090 . I 1:l(J I I 10 , 1:,0 I 140 I 90 1 l f,o I 140 ~l I 15() 1 l'J : i ~~ 1 ·~~ I 90 l."JO l,tv 90 ). )() 140 100 };J() I 140 100 150 140 1(¥) 150 140 tlOO 150 140 tlOO 150 140 tlOO 150 l~O tlOO 150 llO tlOO 1;,o 140 tlOO 1:i0 110 tIOO 15o 140 tlOO 150 140 tlOO 150 · 140 tllo 165 150 tUO 185 170 tllO 150 140 tl'..!O lw lf'iO tl80 165 160 tlOO 186 170 tl◄6 185 170 tl60 185 170 tulO 200 U16 tl60 216 200 t176 223 ~ tlto 216 216 tl06 286 m tr~ 236 216 ti:» . 236 216 140 126 116 1M lll6 126 166 140 1• 166 140 UO llQ. lei leG 11f· 1• le& - 1• 170 :Ill 200 116 • IOI llO - - · _>L() ]'j.') J,-0 1 ;)(J l .j() 1:,u 1: ,o 1:,0 1.,0 .::: I 17fl 1 I 170 I I:.!.:. I l '.!.J I l:.!.- , I I :i0 I - . - - I I ;,o -- - - - l :!,'l I i:.!.', I 1 · 2 : , 12.'> 1:i0 I ____ __ : l'.!.J J.-JO I 1'2. '> 1:i0 150 ___ _ 150 J5(l ' -•. - .. l.'j() 1- - . . ·_ - ) ~ l(J - ---- - 1,IO I •• •• _ . rJ() 1 - - - - -- . ,o -. . ri0 I- -· -- . :x, .. - - - J . ' ,o I :" -. --. I 1 :.t·, l~ I I l'.lb 15v I -: : : : : 125 l.x.1 _ . __ . 75 150 75 150 75 }[J() 75 150 150 150 -1 :-Al 150 166 186 150 166 IM 186 186 186 200 216 2'.l6 - 116 216 2IU 1• •• 140 140 116 -..... 116 -··•-• · - ,...... -, ·..:, "A I .... -- - I .. • ' ., - ~ .=::. ~ ::: 1( .. ! I 17.', h> 170 11 :1 u:, 1 ) ;· 1 I I_..-. I 1 :, !'2,;, }l . 'l )~I 11 :1 )2.) 11 .-. 1 ).') 11 5 11 .-, I I:. 1 ).", 115 115 ) ).'} lJ,') 11:1 Jl[) 1 J.'> 115 1 l.'> 115 11 .) 11,') 115 11 5 70 70 70 70 1 !,;·, I .,. _.., 1 . 1- -1 1 :.!:) 115 l :!5 12.5 l:!5 12'> I 1 ".!.'> 1 .,, I ~· l !.5 I 12.) I l '...'..'> , i :.::, I 115 l.:l.'> I 125 t65 -, h i t50 t5o Maryul :le .. :!: ,() : .::,o :2.·, I :.!.",(J ~,u :.::o() ::: ,o '2.",0 :.::(.I I :!,",() I :2: ,0 I '2.·,o :.::,o :l)() :2.·,o :!.',(} I :.!." ,O :2;,o I ~.,o ~ :.!." ,O : .!:1 0 I '.!.JIJ : :z,o 1 :!40 :!-40 I ~ ~o :.?-tO :!-10 :.!40 215 ~ I 300 300 31~ :t~ 300 316 31.\ SM ~ .:136 30t) 8M m :t - - ffl - - .. Ill - I - :s. .✓,_ . C::; :.!,:~ ~:.J ~iU :l :0 :!:lU Z.IO Z)ll :!:~ ".!JI l :!:iO ~ ~ :!:iO 230 'LIO 230 ~ 'l:W '!: iO :!.:iO ~ :t_'() '.!2ll ti(.) 22() ' 2ll) ~i ~ 21.10 'l7,') '1i~ I -n.r, 'n5 ~~ Sl0 1 r,5 I ~ I 29() I . I 110 I SlO 110 I : 1 ~ I 166 1116 - ti 116 M , - - - - ... .. · • ~ ., 2'JO 250 :!50 2{-() '.!:JO :.?50 2.:,0 2.iO 'l.50 250 250 ~ 'l.50 2fiO ~ 250 250 250 'l.50 t50 ~50 :t.'JO 1,0 :!40 240 240 2«) 240 2«) 2-«> U6 300 300 IOO 300 lib 116 - 116 116 - - - - - 171 - I I II = • ,._ ........ Wllarf. .. ... u. ....... .,., .. _ ............................ ,. / Board of Railroad Commissioners 1895a'nd 1896. Biennial Report oft e the State of California, - 275 of . . • auon U aoAaD 01' UIL&OAD COIIIIIIIIO ...... ,, OR.\IN C. L. lllN. WT. 24.000 LB8. ("In ceota per BET\VEIS (Except u noted) -, {~,~mar ............ ..... ....... ! Loe Ba. no.. : : : : : : : : : : : : : : . : .. : : : : : : I Aptba .. . . . . . . . . . .. . . .... .. ' Doe Paloa ..... . ........ .......... . Oxalia ....... .... . .. ..... ... . . Firebaugh ._ ... _. _ ...... _ ... _ ... . Mendota . . _ ...... ... .. _. _ .. W bite'• Bridge ....... __ . . _ ..... . Jameaan .. ... r · -. - .. .. - ....... - Collla _ ... _ ..... __ .......... _. _ Roltnda ... _ .. ..................... , Pntton .. ...... _ ... . _. _ . . _. _ ... __ Mc~ullin .... . . __ . _ .... _ ........ . Ormus . . . ..... .. .. ... ......... . Carutben .. _ .......... . ...... _ . . . Cando ...... . .......... .. . Ltllls . . .... _ .. .. ........... . ... . _. Hardwick .. . .. ..... _ .. ......... . Morrano ... _ .... . . . . Ripon . .... _ ...... . . Salida .... .......... . Mode&to ... .. _ ..... .. ....... . .. . < ·er~ .... ........... ........ .... . Kere• .. .... .. ........... .... .. . . . Turlock .. . ............ . Delhi . . . . . . . . ..... . Lh1nr11ton . .. . . . . . . . . . . . . . . .. . Areua .... .. . ................ . ... . ~t•ater . ...... ... .. .. ... .. .. . Bubacb Switch ._ ._ ............. . A1ht,y ..... ....... .. ........ . . .. . Merced .. .. .... ........ .... ..... . Lingard . _. . . . . . . . ........ ..... . A th lone . . . . . ...... _ ..... .. . .. . :W l n turn ............. .... ....... . Callfa .. .. .......... . . .. ... . . . . ... . hrenda ... ... ... ... ......... ...... ' Talbot ... ..... _ ... .. . . . ....... . ... 1 IJaulton...... .. .... .. . . . . . . . . . . . ' Herber1 ..... . .. .... ......... .... . . Raymond . . . . ...... .. . lladera ...... .... ... .... ....... .. . BoTden . ...... ......... ....... ..... · Jrrtcoea .. .......... . . • -• · • · • • • • •·l Herndon . . . . . . . . . . . . . . . . . . . ..... . II aeeat.l ....... . .. .. .. ..... .. · .... . F,..no .... .. .... .. , ...... . . . Bartoa·• l'!pur . . ...... ..... ...... . l..u Palmu ....... .... . .. ....... . ~•8pur ... .. .. ... . . .. ...... . Tarpey'• ijpur . . . . . . . . . . . . . . . . . . . . Clot'la .... ..... . . ... . .. . ·. · · · · · · · '~ · · · • · .............. ~. PollukJ . . .. . . ... .. ·········· • .. San Franel90(). ~I 28.", 300 WO ~ : no 3:..>t> I 3:..)() ')'.HI I ->.JV I 3-tU I 3-t0 I 3:,0 ' 3-40 I ;)-·,o I 3ti0 3ti0 I :~'.4) 36,·, :..-'O) :.!lU :8lO :!,·,o '.,'ti() I :..>tiO r,:► ·'2~) '.b',4) ',!x.·, ~1:, 30) : aw :x,u :l()() I :'(K) : 310 I ~ · :u> 300 340 : uo ;tl) I 3.10 330 340 I 340 I 3."JO ;J.')O ' :f60 300 YJO / 8flO aM J66 ' . r. ' ,,. I 2-.t) I • )-~ • '"iO - I ,) I .•. .. ... , :!XO 1 ••• •• . ~fi(} I '.!X,') : . , .• . . ' :Li,, ~ ...•. . ~7. ) ·~ I 'L75 :.,0 1 ·:~ ::: °L&'> :110 l . •••• . :..'9.", :ll" I I t, ,) ·•-·•· '..,'9:, : t31.'l .. .... I 30.-:, I rt~l-'> ! .•••. • ~ : n 5 t3t5 1 315 t315 : .. . .. · I 3·.)() t :J 1.; . . . . . . : n 5 r :-2-", .. · .... ! :t .. '() I fJ:~ :;:m t3-W 3:rt) ~iO ::: :: :i :i:iO '.)iiO ..... . r ::l:l,·, ; > I-.) JI',.·, t170 l ~·, t l HO '.210 t-__'(_1.·, ~;O t:!10 · 2-to t '2"2.'", '.!-tO t'L~i '2:,·, t'LW '..'f,O f2:,,:, :..w t '2f~"► :.?60 t '..,>t,:, :!70 t:liU '.!, .", t:!iO 1 3:► ' 1 · ..() lf,O I l ,:, I!i:, : · 110 -•1 1 ·1 I • , I 2-..)() '.2.1;, I 24> I :.!-·,o '..,>fjl) '2i [) t '.!i O '.!7 0 '!i :, f!iU 'li j r,:, t.!:HO '.!i :, t -ix.·, '}>'..", .~~ 29;:, . f'...,W 29.> \lt:w :i(}.•) I t :Jo(} I ...• . I ..... · 1 . .......... . 3()[, t:100 ...... I :n5 , r:10 .····· ·I 315 81[, .• ••• . / ~-, t~ ····· ·I JO.'> P•).'l I • ••••. 00;'> t~).-, ... -.. :nr> ' t:«> I . .. . . . :Jl.~ t31Tl I ... .. . :t.&) I tll~-'> I· ... . :t.'O I 8,'j(J . ••••. ~ 3fj() . - . - • . &'l> I 860 ..... . 880 3RO -••• •• 1 330 / tl'l5 ....• : Jl36 I tl'.l6 l ...... I 336 j tMO .••.• 1 - - - AXD Oakland Wharf. ..,?= • ::!. ,, ~ · -✓.: - o· c· -- - ,, ... .'- ~ ~, -:--= '.!i:, 2,');1 I Z";; i I .•.•. . : .!:HO I ;ltiO I :b'O '· ···· I 2X.'> I ~1 I 2K1 - •• .• . I ~IO 1 17,) 300 • . • . I :300 '('5 1. : JOO . •••• .I :~ 'flf> 300 ..... . 1 310 ' ~·, :no , _ .... _ :rio I 1'X> I t:Jlf> I· ... ·.· ' 3"20 :..!'9:> t 31;·, , I 3,100 30.> / p1:, , .•... . , !t :H~ ' t:JI; ! \ · . . . 3-10 31., f:ll :, , ..... 3:J() I :t20 t:!1 5 ' 3-tO a 1 : ·, t : ,2;·, I ..... :;.·,o :I:,!() p:-.i '{ti() I :t~ t :H<l ~ -I 3;.I() :',f,O !lf,O ;J:!O ~liO ~ .. -, , : ci:, : 11-..·, :.>oo J~:, t 1,0 1 :r, 210 1:i:, t 1/() , ] ." J() :no :210 t-..'0-·, , 1w ' ·:.l~ '.2:l.l t'LlO 1,:, '_.)fi(} :l-KI f.!2-'°> 19.:, ~ ' 'L-tO f.!:-,5 '210 '.2i5 '];)[1 f2l0 I 'LL"> I ~ 'L1i0 r2:.-, 1 ·.uo 1 '.!MO I '1.f-.O t'2f,.-, 1 1:v, :!W°> ~iO t:..'6-·, '2· 1--, ~j I 'rij) t'liO :.!.'"ill I :~() I 'Li~ t'.270 21i0 :':O., I r,:, f'liO :..'iO 30() · • .!-;:, f.!7~ - '.27:, :m . '.21-" 1 t'LXU :~~ 1 :n:, f ..'K.·1 :Ho , ~ ·, f-.!'.11> :t!O :..~1: ·, f-1<:IO :t20 ~ .. ~, t :\4)1) x-.i :io:, ,: 100 :ciO , :~,.-, t:~ : .. :{.tn :n:, t31 :1 ' :!40 : :!1:1 :n:► :l; !(J I : l).-" 1 t:l()I :~ ' :in•, + :in•, I ~ :10:, po:, . ··- :HO :u:1 t:10:, ..... . :~ :115 t:11:, i • , . . !i."JO :w t:31 :-, 3."J() I :r.a> 3[iO ; .•••• . . = = · = 1······1 360 ;i.1N) !WJ() , . ••••• I 38() 330 i f 3'.ll', I _' .' .• . I 3M 3:'6 I f :rJ:1 I . • • • • 3M I ~ tMO ·-···· ' I a.a- uebd lbUI t ,.,,1, lD 06' dlnOUoo. (. ··• Co kn fr11nohoo, etc. Por1 COit& Sevada Dock. '2'.lll '.l:)O : :.!3.'> '24,) '.!-'--AJ '.2:,o '2:,0 ~--,0 ".!:,o ".!1;1.1 w.·, f 210 I ~ , 'l.10 2:l) 240 I 2-'J() I 1:i0 2f,() :..>ti., I :..>fi!, ?it) I :tri:, I -n:, ' ~""' I 'LX."1 '..!X.", :..'90 HO u:, 11,:, 18.·, 1i1:, 195 :.. .. .:, I '210 ~no 1 '.!l r> · '.!· ~ :, '.,!:!O '2.:o :.!:lO '.2,0 '2:-!0 '2·10 ~00 ; ~:~ . ' ,._ -.., '.!XO '...lfiO :.!NJ :..ii· ,o '..,"!)U :.!fi.'"1 . :..~IO '..!.>wl :.!NI ~, '.,".I() '...".I() :01 1 :100 , :no :no I lllo :no I 31h 31, 0 1 :.. .. ,.-, '..!liO '...'liU '...'tJI i :_'t;:, :..>t;.·, '!i. ·, Ti:, ~-, 'tt',!, :lK,') ~ : :at) I :llO I I 2'~5 :m 235 250 250 2.'"iO 26() t~> t.!65 f 2&'°> t:.£'> t~ .~, t275 t~ .~ 310 :no 315 t 1:lO tl30 t l , Go t !GO tli[J t IK.'; tl90 t 20:, fLl.'°> t'.!15 t '1.'_>() t'.!'..)() t:!'20 tU> t2:JO tZ~ 1240 t'.!40 t:!'iO t '!.'.O f!;",O f '...'f,.'> ~I() t'.!; ·,o t:.!-·►-) f'!. . ..'> f :!'►·I .. _ .. :,;, t:..'t .. "i :u> :no 310 310 f17,\ ♦176 .~ ,,... _,ier:n1al Report of the Board of Railroad t1e State of California , 18S5-and 1896 . Comm1 s s ion e.r•s 0 276 of ,. REPORT OF .fl()ARI> OF RAll,ROA_ D 0011)11881_ 0.St;kM. 80l"TIIERS PACIFIC CO)IPA~Y. ton of 2,000 1 bs.) Benld&. - - - ~2:, '..l.:JO :!3. ", : ~ 250 I . :l;j() ; 26()"1 2i0 t70 280 : 290 I 290 ' :JOO I 290 I 300 I 310 1 · .310 310 31:", J.:,O 160 11,(} :.!00 t!J :.!IO Zl.", ~1 2:15 24.·, :CJO I 2:JO 2.iO ~1 XJO ~ .. 270 2i0 280 280 290 - - · - M - - - ... 111 . ... '·= Ill - ,, -. .., ·.; 11P :,..,...- - ::: 8outb \'allejo: - -- - Stt.rramentg. Stockton. -- ,,, .. .., ... - ' .., - · ·~=- X '#. ~ -.-3---- ~ .. -.--- .. -..a•.-~-,- .. -,-.,-. - •• ----~---- .. -.- ......... --.,11 _ -.. -•• \.,.~.- .. -_-9"" - ,. - - ---,_ ... ( ' 277 65 - - - ]iennial Report of the Board of Railroad the State of California, 1895and1E96 . Commissioners of - 278 _,oard of Railroad Com missioners Report for 1895 and 1896. Pae 66 Comparison of the rain schedule of the San Francisco and San Joaquin Railway Company, with the rates adopted and published by the Commission, demonstrates that the new road, in many instances, adopted the official rate, be1n ~ a reduc ti on of about 8~ from t~e rates charged by the Southern Paci fi c Company between Stoc K ton, Fresno, and interm ediate points prior to the completion of the San Francisco & San J oaquin Valley Road. In addition to the above noted reduction, the San Fran cisco & San Joaquin Valley Railway Company abolis11.ed the switching cha r ge of 15 cents per ton at Stec . ton, as charg ed by t 11e Southern Pacific Company, prior to the opAration of the Valley Road. Te Valley Road supplemented these reductions by mak in0 arran ements with water transportation comuanies where by rain tha t is shipped from stations on the Valley Road can be transported to Port Costa or San Francisco for 50 cents pe r ton additional, to either point, being a reduc tion of 50 cents per ton from Stockton to San Francisco unon rates char ed by the Southern Pacific between said points • . otwithstandin the contention made by the Southern Pacific Com any in the case now pending before the United .otates Circuit Court, and at all tim es to this Board, that the rates then established and charged were as low as could be ma.de , and pay a reasonable profit, and that the reduc tion as uroposed, if adopted, would entail upon the company losses so great that they could not operate, and t11at the c ompany would be thrown into insolvency and their railroads and othe r property placed in the hands of a receiver: Im mediatel y, upon the openir.g of the Valley Road , and the adoption and publish1n~ of a schedule of grain rates in con formity with the rates established by this Board, the same bein ~ a reduction of 8% from former rates, the Southern Pacific Company did reduce the rates from Port Costa and Stockt on to all stations on their resuective roads that are in com_ etition with t he San Francisco & San Joaquin 'Talley Railway . The rates so made by the Southern Pacific Compa ny are, in m any instances, lower t ha n the rates established by this Board , which were by them declared and charged to be unjust , unrea sonable , and confiscatory. The reductions above referred to as made by the Southern ·aci fic Com ~any wil l average mo.re tr1an 15} i lower than t he rate 0 of Jan ary 1, 1895 , being a reater reduction 279 Eoard of Railroad Co mmissioners Report for 1895 and 1896. Pae 66 (cont.) t han t h e ori g nal resolution asking for an average reduc ti on of 15t on the grain rates of 1895. 1th the competing road running from Stoc ~ton to Fres no, havin water connections with Port Costa and San Fran cisco, the business being divided; a short crop, with less t onna Le t o move; and with a material reduction in rates, av era ing (includins the a~olishin of the switching charges at Stoc kton) more than 15% from former rates, the Southern Pacific Company is still being run, presumably, at a refit, and we have not yet heard t11.at it is unable to pay its current expenses, fixed charges, etc., or that from t his sl13ht reduction and competition it is li kely to be com e i nsolvent and pass into the hands of a receiver. The reduction proposed in grain rates, if accepted by t he comp ny and enforced, would have saved the grain- sni ~ ers of the State an amount equal to the expense of m aintainins t he Railroad Commissi on since its or anization. . . .. SAN rLUfCIIOO & . ~·· . .. ./ Osnom.· .... ,.. Title. Name. Chairman of the Board, and President~ Clam 8~'9C)tei. ..... ________ __ .... SAD J'rucdllO. Fint Vice-Prealdeat. _ ~-: ______ .. ____ •. Robert W &tt ____ --.. --.. ---- .. -- .Saa 1'laDOlloo. 8econd _ Vice-PrNlden· t _______ ---- ______ Capt.. A.H. Pa199n ____ _____ ..... ~ l'raDollOO.. Secretary- ~-- ____ .:. ... ------ ______ ...... Alaander Kaclde ... ;· ...... -----Bua PnDelloo. \ Treuurer ...... ____ ...... ______ .... fl-- Bank of C&llfornla ...... ---- ..... San l'NDOIIOO. General Solicitor ........ ______ .... _____ E. F. ~D---~-----------· ....... ln.Dllaoo.· Chief Engineer ••••.. _._. ___ . ___ •.. _... W. B. Store,, · Jr •.••.•••• ~--· -··· -~ ••.••• ----~•-· . ' , - · ----------------'------------------ .. ·i C.A:PITAL 81'ocL· . . The total par valu. of authorized capital atoct la 1000.000. 41.tded Into ID.GOO lbUII . ola par value of ,1ooeach. None illued to the pub uoepi IO ---~Noh.of Iba Directors; balance ($2.'86,800) to truateea. No di?iden were declared dmlng-Ule ,-r . .. MAN1'SR or PA TllDT roa CAPITAL STOCK. ' ... Cub&.U■-d N ...... .._ I _ i Numberof OD AIDOIUlt -IIIMdudCullP•JI,_ ' 8b&re1 l1111ecl Oull&imclla1. , : IIIDed. - I h--·-·· ···--· ··-·' . N,168 ,1, .,.,., 00 - ... luued for cu Dona tlon1. _ . _ --·--·----------- 1·------·-----· 7.000 00 ------------·-·· - , -- Total,.· __ ..• . 2'168 ,1, 711,880 00 M,118 --· -- ·----- ··-. ·-·1 ' I I ~ ---· ' •· CouuT A1111n ••D L1Aa1i.1T1-. . . · •1,-- ,.- - ,i,,.. • ., 00 A· uh add Current A-ti A ft!Jable for PaJIDllll . CIIINDl UeMltllll A•Did to uacl 1 ........ of cu~t f.lebllldel. . . ;. · , · l~ a. JIii. . . ----·· ·- ·· - ·---~--------- --- - ---'- . ' . . •·ub ..... . ····-· ~---······ ~--- tltt,•t ■ A.Uted Yoaobln acl eo- · JUJl1 recel,able. ... . . .... ...... , . It■ . . ._ . ....... ~ ... :...... ..... f!JIJII\ II . • Tat.al • . ~ •.•. •..•••.•••• ~ ••. - ~ienni 1 . eport oft e oard of oad Co sione r of 1he State of ~al_fornia , ✓5an 6, ~ . 2 ·9. • . ' . •. • 1 ~ ~· ··············~·~·~--····· •••••• = .~ •• ~ ·- . ., ~-· •· . ...,.. ......... . , ,--1. • • · . . Con ow Ro•o.· Jr.Qo,,,..., .. •n •aiu--~ . j . . , CoDaracUon: . . . , . :-- . I . ~btof war.-···-·······---····-···--··----· ......................... ,· ,-; 1 ..• · ll'IIION ...•.. ~--·••.· .•....... ·:-·· ~.-•· •.........• · .............•.••....•. ..•. j .._._ .,. On4lng. and brld.P ancl cul Yen ~--,y ........... -------· ~ .. ---......... I . .,. J:!\f:- and -.Uea ........ -~-·-- ---· ..................... · ...•. -----~ ...... : _.II _ ----- ---- -----. ----· ------------ ·- -- ---- ---- --••. --· ·----- ___ ( ___ .. ·•-•. •~ 'fl• ..... _______ .... --~------- __________ .... __ ...... ____ --·----~-.... •.. .... 1--II Other111~oture ••••••• a •••••••• ~----•------ ···•----~- -~: - --~-------- - 117111 • BuildinPt furnliure, and ~-····· .•••...•.•....•••••.•.•••• ~. •••••• , • . 11 Shop machinery and tooll •••••...•... ..: .. ___ _. ____ ..... ~~-----·~··· ••• .-.~-~I '-Ill .a· EngtD~g eipen- .................. --·- .... .... ......... ...... .. ....... 7UII ■ Tel~ph Hne •. __ . ___ .• __ .. _ ............................ ~ .. ~ ....................... .: . J · · .,.. • ' l3ldbip and Jard e.xtenllon, ... ____ ...... -----· ____ ...... ---~------•.--·-- -.111·11 Other it.ma ••.. .: •..•... ~ .............. _ .... __ ......••... __ ............ . i .!'~ .. - •• ·•••• _.,.: II . Total oonatruction .~ .. ~-- .l .................. ---~~ ... -- ----·----·---- ... ;.J ti-;•• EQuipment : . . · ' . · . · j --.• • ·. . IA>oomoUTea ........ .... ~·- · ............. _ _ ___ ....... -. : ••. ..... _ ••.·· ..... ~-·· I ..,..._ ~h& can.-.&- .. . -· --- . ---·-. ------ ---· -----· ------- ---· ---· -- ····••- ----·· . · · '~-• ~her can of all clalae1 .... -·-- -·--·· .••••.•••••••.••...•••••••• J .. ., ..... · I .. 1'm 20· · . . . ~ . . Total equipment ........... · •• ·:-....... .............. -r .. ••• ... ,;. ........ ._ ••• · .--~! -·~. , Total coei con■truction, equlpmen~ etc.·------ ··--·· :- ~·- --···----: ·----··1 . •~ 08 . __,.-~---·- - . • • •• f CoMPAU nv•. Gu--.u BALAJrCII 8am . A.ueta. . ----1 June~JM. I i . "'UaldUU-. r -- I - . eo., of ro.d ....... .: . ........ · ... ,lM','IGI 2f ·c.~ atock' •• ~-·- .~ ••••••• :. · ,i.,.., 00 Coat of equipment ......... ~.... • .. 81 Donadooa .•• ~::-... ··~·-·· · ••. - ,. · . . ,;eao 00 · . , ~~~d anent ln,nnznentl ft1;ffl OI•· ~ 11 t llabtµ~ ... ! .... .... . •~• • . · .- . '-J919DAD carnntaw&I....... --~- aneou .•••.•.••.•.••.. · __ .,... __ ,· , ~ , · -------11. . . ,- . . To&al .... · ... ~ ................ fl,IIO,ffl N · Total ...... -~- --- .- ...... · ... 11.IIO.dT N . . . . . ' iennial :teport of the Board of Railroad C mi. iss1on ers of the State of Californ1a-:-1895and 1296. -- - • . : .- . . .. . . .. · . . UNn · or. ·Id· ftdO .. AIID Id .. ,VIII YAI.Ulr · - n ~ .. · .• . . ·, - • • ,.· • • ' • • . .. + • · . KDIOni AD Mi.oaaia. -· . . . •.Tbtn ue DO operalla1 · odloen. • ,,. .. ·- . ), .. . . . . . . ---·· .. . , . . ,• -, . .; I • I • - . . .. .J . ---- .. r •. . ' .. . . . ' .... __ .. ' . . • .. : ···1~. ·· .. ·-~-· -.· '. . :- . . . - .--,:-:,' . •· •• I • , . . . ~ ., .- . ' . • ·•· ,· . A • ., • ( ' . . !' . • • ., . .... . . J ·' · ~ ·' ... . .. . --- . .. - .. 2u2 Biennial ~e~ort of t ~e - ---- - 0 of tle ~tate of 8alif r r la, 5 _ ... __ . . . .. ... I . \ \ . -~------- - ------ ------------- - -TIU.. J· . ... '. . "'t ' ' , r-, - . . .. .. :,. . Bac,Ufl'DJ,Al'IO•. ..-r• · / ,., ·-- . ~ :~ •. . . clit_.,.,,. . :_ . - --- ---- -----~-~-- · ..... , ----· --·~-,---- ------------ A ..... i- "' 1'IMlii ·. · . . . JIU.. . •nu:. . . . • . . . .. . · , . , . ., •• •✓ ....... ·.~ <> .A. • ._( I • • ~ / • t of t h · ., of ? il ------ - - - -- -a-- - ne ~ . e ~ ua l ifornia , / a ,d l e . 2 3 of . ,' ., . - - ... . .. ·. . . . . . . . . . . . .. . • • ., • f ,.1, • I Groa1earning1.from operation ....... .:-•.•• · . ~ ••.•• .: •• : .~.~ •. ' . ,10.N& 11.r · . · Leu o~rating_ ex~n~,--- ._~. -- ~ - · ,.-:--·--·-~-~ ·. -- ~--· _ ..... - ~1,e;~.·, _:· .. · ·. _ ·. . Incom~ ~rom o.perat1on .••••.•••.... r····~ --·--~- , ~ - -·. ···-~·1 --·· - ~ - .--·-:. ' · • . 1 '-°'· 79 · lliaceJlaneoua 10come-le11 ex}Sen"•·· ....... ---- •••. ·"··-· ·'-·· ......... - •. •• , . 171 81 , ~ :,..,_ . • . ·,, • • - ., •• • • _1 • ~ ~:.. .. • .~~- ,. --- Total income· .. , ..••...••...•. ~---~--··· ........ .!":~ . ..... .: ."1 •• •• : • ...... -·-· . ,1~810 • · Deductions from income: . . · . · .. · · · ·· · I · . · ·. ~ ., Taxe1 .. ~-~.- -------·---~--~-... --~----- ·••'-·•·····~- ----~• : .... ! · 12,881 '68 ·_ ... Perm~entimp!OJementa~·r-· ••• ~ .• _. ... ~ .::-_ --- :~:~/.;- ~ _ :.: . · :·--~'.._ 11;_ 1~ 19 -._-:,~· ~ ; .. . · . •·. : _ . ~~tal dedoc~?n• _ !)'.om incom~--- . . · .: ••• -_-. ·.~--- : .•. .: •• ~ ~ :.: 1 . ~~~ -·--.- .--·-."'· · 1,791_ n~~ .. ·. • •. , • (I . . • • ~ • • I .. · Divid!i~,i~c~~:;~~-;~=~~~~~; ·i 1fiM~- ~ · :;;~:::;~~:,:c · · --~ --,1°&:ooo ... , '5,()ll 6I l t . · . • ':, t 1885 ••• •r•'• • ••••• • • • . ~ • 16,000 • · T · 1 . · , ... · ... \t:. ·-·~·. : .. . ·· '-··. ·,· · _ .,· i,, ·• . ·, · • • .n _'- ~ • ... _· ota ----; · -- -·-.---·--· --~--- --~,.-·--~~----.. ~~~-.--_ -- -----~-- · .---~~- ---· ~ . ~·--.t- : - v,-., "" . ·- . . \ · .. . . ....._· , . ·. . . ,~ .. . ----- ' . »-,_ ftc.lt from operatl()n1 pf 7earending Jone 30; 1886 •• ~ ~.; •• , ........ :--~· ~-·· : _ . ~•t· •t . ' :. ' .,,' . . . . . . . . : . . . . . . · . . --·----- .'· • ~ ,r • - - ---· . I. \ . EAUIB81.· / I I ~ ,. . 1ss1oners of I • .. . ,. '• . .. ... ·. " ,,,, • • .; - C ~ • - . T ta1 , . . . 0 - -~---. --· •• -k. -~---··---·-·-· ·--·-~·-·- ----·- •••• ., •• _ • .., ... 9'••--· ·------ , General expeDNI: ··. . · . . IDIII.IIP.DCe -- __ ... __ ·--- ----:. -- - ••• ----· · - ....... :... -- ----. --~-- ·-- - ---- --~--~- ~ . G d '--~-' ', ._ . ' ..... _ -....,:.· \~ . ... · , · . :. . .· '.-- . ......... ~.,.~ • ~ ran .,.., . .... ____ ···· ·------11t---· ~-------------· ..... _ . .; ........ - . ----~ ···-·· · ... ·. .., • • • • • ·- • • • ,. · ' • • • • • J • .. • • • • ._ . • ,= . =--= ~ :=:11!! . ===ii Pe~ntage of operating ~peDIU~ to Ml'IUIJP·-> ·-· --~·· ·"1·· ••• ; .• ~ ~ ~.;.·---~ ~ - · . .. , ' . . . ,,,. . . " . . ' 4 . I • ~ , . • - '! \ -----.- ._- . ~ - .. -- --=.; -- --~ ; -=- .!- ... - ~ ~ ·-- · - "" ' . - . ' CoKPALln'Y• : G~DAL B.U,AS0m 8am. , • • l.1._ .· . . Ja~.- ~ 1896 _ • . I ·A--~ . · .. . . ·I Jn~~~ · - · _·: 1,a••·i~1 J• .... --.. · .. ':" -- . - , . _· ,........_ . _ Dw1w · -------,-1------- -- • • - I . ' ! • ,I • I . • .. ~ . . . ... ,-.eao as '.' ·i ·of l'Q&d .••••• ~: •• ~~~. - ~..... ..._.,. • . ·$11.UO 18 1 .fM,,JS 81 01t of f!ClulptneQt •• : •• _ •• ---·~ "9'11 ■ · I s:- 8',8'7 .ao band current UNta .... · ..... 9,111 oe. ------........ , ,. ·Pl,lll a N,82186 _ fttandlou .; •••••. . .; ....... .. .. ,1.070a .:-.;:-: .. · ... :! .. · 11.111 • --.aa \ 80 Total, ... · .~ ..... ~ .- .: _ ..... ~ .. .-;~ :-- saa.140 M --fll,IIO - ~ -: Pl.Ill• , . ' . Jane 30, ~ l labWU.. · . · I .Jliat ~ 1 • I ia..-..:, 1 -- __ -..-----;.~--- -·- ----.-~...-_,._~---;------- -i------ . ·, I r,,.;. . l 1 . 1...- .· '. .•• . • . ' 1. '-'tip ta, ltoca..: •• • -"'··--- ••• .: •• ; ___ . i --· · ,, __ . PJ-oftt and IC>II. ______ ---~-- ~ •••• ______ ......... . • • 1 .... . :. . , . T~• ~ ·-··· .- ._ .: . .•. .,:. .. ,. ?-· -~ · --:· · ···· • :•-···· ~ · : .. , . - . . . ~- . . . . . . . · Co,an.un~,. 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University of Southern California Dissertations and Theses
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Creator
Cordray, William Woodrow
(author)
Core Title
Claus Spreckels of California
School
College of Letters, Arts and Sciences
Degree
Doctor of Philosophy
Degree Program
History
Degree Conferral Date
1955-06
Publication Date
05/06/1955
Defense Date
05/06/1955
Publisher
University of Southern California
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OAI-PMH Harvest,Spreckels, Claus, 1828-1908
Format
theses
(aat)
Language
English
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Advisor
Kooker, Arthur R. (
committee chair
), Becker, Ross N. (
committee member
), Bowman, Francis J. (
committee member
)
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https://doi.org/10.25549/usctheses-oUC112724840
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UC112724840
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Ph.D. H '55 C796 (call number),etd-CordrayWilliam-1955.pdf (filename)
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etd-CordrayWilliam-1955
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theses (aat)
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Cordray, William Woodrow
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University of Southern California
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University of Southern California Dissertations and Theses
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Spreckels, Claus, 1828-1908