USA > California > Los Angeles County > History of Los Angeles county, Volume I > Part 9
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this road only paid a dividend equal to about eighteen per cent a year ; hence was not a paying enterprise and was built no farther. Remember the date of opening this road to the public was February, 1856.
The Central Pacific road was incorporated under the California laws, in June, 1861, with Leland Stanford as its president. The capital stock was $8,500,000. The total amount subscribed, however, never reached but $158,000. The Civil war came on and other interests absorbed the minds of capitalists. But one thing favored the construction of the proposed ocean-to-ocean road and that was that the Congressmen and Senators from the Southern states were no longer in Washington to defeat such a measure. Hence in July, 1862, a bill to construct a railroad and telegraph line from the Missouri River to the Pacific Ocean, on the grounds of military and postal affairs, passed both houses and became a law. The bill provided for two companies -- the Union Pacific (a union of several roads contemplated) was given the right to build an iron highway from the Missouri River, commencing at Council Bluffs, Iowa, and continuing west as far as the eastern boundary of the state of California. There it was designed to connect with the Central Pacific road. The government paid $16,000 per mile until the mountains were reached, when $48,000 was promised to aid in its construction. In addition, the companies building the road were granted "every alternate section of public land designated by odd numbered sections to the amount of five alternate sections per mile on each side of the railroad on the line thereof, and within the limits of ten miles on each side of the road, not sold, reserved or otherwise disposed of by the United States." Mineral lands were also exempt. The United States bonds were really first mortgages on the road. Land was first broken at Sacramento February 22, 1863, Governor Stanford shoveling the first dirt in the vast enterprise. The Central Pacific received the same terms as the Union Pacific, as to money and land grants. Thus began the great Pacific rail routes, destined to build up and commercialize the vast and ever-changing West.
The Western Pacific was only a continuation of the- Central Pacific. It was organized for the purpose of building from Sacramento to Stockton, California, and thence to San Jose.
The Union Pacific did not begin its construction until 1865, under General Granville Dodge, a Civil war general, who was the chief civil engineer of the road. The Union Pacific and Central Pacific met and the "golden spike" was driven fifty-three miles west of Ogden at Promontory Point, Utah, May 10th, 1869. The rails were united to the telegraph wires which connected clear through to Washington, D. C., where President U. S. Grant could hear the tap of each blow that sent the golden spike into the polished California tie, used at the impressive ceremony.
The Southern Pacific Railroad Company of California was incorporated in December, 1865, to construct a railroad from some point on the bay of San Francisco, through the counties of Santa Clara, Monterey, San Luis Obispo, Tulare, Los Angeles to San Diego, thence east to the eastern boundary of the state and there to connect with a rail route from the Mississippi River. The route was changed, however, and built farther to the west than originally designed, but at present the company has two lines from Los Angeles to San Francisco-one via Stockton and their coast
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HISTORY OF LOS ANGELES COUNTY
line-both lines being popular routes north and south, extending to the Mexican line on the south and to Portland on the north. This road was only secured for Los Angeles city by great campaigns of effort. The county voted on the question of subsidy at an election held November 5, 1872, at which the total vote in city and county was: For the Southern Pacific subsidy, 1,896 votes ; against the same, 724. For the proposed San Diego road, 99 ; against the same, 29; no railroad at all, 26. The Southern Pacific road had a clear majority over all of 1,018. The city donated sixty acres of land for depot purposes. Work commenced at the initial point in the city, and continued east to Spadra and north to San Fernando, to which points the first trains were run April 4, 1874. Work on the Anaheim branch commenced in the winter of 1873-74 and the first cars run into Anaheim January 17, 1875. In July, 1875, 1,500 men commenced work on both ends of the San Fernando tunnel, which was completed in Septem- ber, 1876. It is 6,940 feet long, and cost originally $2,500,000. It is twenty-seven miles out from the city of Los Angeles.
The gold spike connecting Los Angeles with San Francisco was driven September 8, 1877, in the Soledad canon. The mayors of each city and numerous other officers were present at the ceremony which wound up with a grand ball and feast at Los Angeles in the evening.
What is commonly called the "Salt Lake Railroad," but now, in reality, a part of the great Union Pacific system, was the result of numerous rail- road adventures. In 1888 the people were enthused by the prospect of a new transcontinental line from far-away Salt Lake. It was, at the time, thought to be a Union Pacific scheme. A franchise was secured and the road was constructed south from Salt Lake City through Utah, but con- nections were never completed. The unused franchise was subsequently utilized along the east bank of the Los Angeles River, and a system com- pleted, in 1891, between Pasadena and San Pedro through Los Angeles, the same being called the Terminal. In 1900 this road was purchased by United States Senator, W. A. Clark, who used it as a nucleus for the present line, which is best known to railroad circles as the Los Angeles & Salt Lake division of the Union Pacific Railroad.
In 1875 Hon. John P. Jones built the Los Angeles & Independence Railroad from Santa Monica to Los Angeles, a distance of eighteen miles, at a cost of $375,000. Later this line was absorbed by the Southern Pacific system.
In 1889 the Los Angeles & Pacific road was completed to Santa Monica. It was built from the northwest part of the city toward Cahuenga Pass, thence along the foot-hills of the Santa Monica Mountains to the city of the same name. The road was built at first as a standard gauge line-a good railway proposition at all times. Its chief promoters were M. L. Wicks and R. C. Shaw.
In 1884 there was commenced the construction of the Los Angeles & San Gabriel Valley Railroad, by a corporation headed by Hon. J. F. Crank. It was finished to Pasadena September 17, 1885; two years later it was extended to the San Gabriel River, and the same year transferred to the Santa Fe system.
By reason of a contract with the Southern Pacific, the Santa Fe system ran its trains into Los Angeles City from Colton, beginning on November
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HISTORY OF LOS ANGELES COUNTY
9, 1885, and continued so to do until its own line was completed from San Bernardino. This road was built in March and April, 1887, from San Bernardino west along the foothills to a junction with the old Los Angeles & San Gabriel Railroad, at the San Gabriel River. Regular trains com- menced running on this road June 1st of that year. It was the property of the California Central, a local corporation, the stock of which was largely held by the Santa Fe company. This road also built branches to Ballona Harbor, Redondo Beach, Orange, connecting with another branch from San Bernardino to San Diego.
For some time there was a gap in the Southern Pacific coast line, which was finally closed and the first trains operated through from north to south, between San Francisco and Los Angeles. The date of this completion was March 31, 1901, about thirty years after the first section of the line had been built.
STREET SCENE, LOS ANGELES
In 1870, what was styled the Los Angeles and San Pedro Railroad was constructed from Los Angeles to Wilmington and it was later transferred to the Southern Pacific as an inducement to it to build from San Francisco, through Los Angeles, to points in Texas.
At present-1922-nearly every town and city in Los Angeles County is touched by some one or more of these great interstate and transcontinen- tal steam railway systems, while others are stations on the excellent electric roads, thus making the transportation facilities in the "Kingdom of Los Angeles County" among the best in the entire country.
INTERURBAN LINES
The commencement of interurban car lines in this county was in 1896, when Gen. M. H. Sherman and his brother-in-law, E. P. Clark, laid the
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HISTORY OF LOS ANGELES COUNTY
foundation of the present unequaled system enjoyed by Los Angeles and its environments. It was during that year that the whole steam railroad system between Los Angeles and Santa Monica was electrified between these two cities, and building a line to Pasadena was also commenced that year. The system of electric cars connecting the various towns of the county and adjoining counties, started by these men, has increased until today it gridirons Southern California with its net-work of rails.
HORSE, CABLE AND ELECTRIC STREET CARS
The old fashioned horse street car system disappeared from the streets of Los Angeles and the county, as well, just before the advent of the present century. These were pushed aside by more modern means of street trans- portation. None were seen here later than 1895.
In 1884 the first cable car system was started on Spring Street, and extended west over Second Street, Lakeshore Avenue and First Street to Belmont Avenue, Los Angeles. The property owners. on the western hills gave large aid in order to get people to purchase lots in their various plattings. The line was cheaply constructed and lasted but a few years, when it was abandoned, the electric car systems having superseded all such clumsy modes of locomotion on wheels.
The first electric street car line was built in 1885. It ran on Los Angeles, San Pedro and Maple Avenue to Pico Street, and westward on that street to the Electric Homestead Tract, west from the old city limits. This first electric line was not a success, as the power was not positive at all times, causing passengers to wait here and there many minutes for the "juice" to get strength enough to pull the car. The property was sold at sheriff sale and the unlucky promoter, Mr. Howland, died in proverty, although his tower lighting system in 1881, was a signal success for its time.
A second cable car system was tried out and proved good from 1889 until the electric car-the real true trolley of today-pushed it aside. A million and a half dollars were spent for a plant, tracks and cars, but all were discarded save the tracks a few years later. The Los Angeles Electric Railway system was begun in 1892. The first line was operated on West Second, Olive, First and other streets to Westlake Park. The people along the line gave the owners a bonus of $50,000.
But the best of all improvements in interurban systems was accom- plished in 1902, when Henry E. Huntington transferred most of his inter- ests from San Francisco to Los Angeles and commenced development of interurban lines. In 1902 he finished his line to Long Beach; in 1903 another to Monrovia and Whittier. Subsequently he erected the great Pacific Electric building-his union terminal headquarters where the various lines operated by his company leave and return on their trips. Of the various steam and electric roads within this county, especially in the city of Los Angeles, the city section of this county work contains numerous addi- tional paragraphs.
1881. MAIN STREET, LOOKING NORTHEAST
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1881. LOOKING NORTH ON MAIN STREET FROM SIXTH STREET
CHAPTER VI
BANKS AND BANKING OF THE COUNTY
The business of banking in Los Angeles County, like the art itself, has been a development springing out of the needs of accumulating wealth and diversified commerce. The bank does not come to an embryo town fully organized and capitalized, with great resources back of it. It does not come in on the first steamboat or railway train ready for business. Neither does it build its solid walls in a settlement of cabins, sod houses or tents. There must precede it some degree of maturity in business, some considerable accumulation of wealth, and an active commerce with distant regions.
So long as man uses his own wealth he is a capitalist. It is only when he begins to employ money of others and put forth an organized system of credit that he becomes a banker.
The different functions of deposits through banking, discount, exchange and circulation do not arise simultaneously, but are put in operation suc- cessively as the operations of business become diversified, and its needs pass beyond the facilities employed in ordinary transactions.
That great banker of Chicago-later member of President Mckinley's Cabinet-Lyman J. Gage, once wrote as follows: "An accumulation of money beyond the need of the present and which may be required at some unexpected time, calls for a place of safe deposit where it may be kept and withdrawn at the very moment when it can be profitably employed.
"As the business of banking is the outcome of the need of its facilities, so the men who assume control of its operations are usually those not trained by a long course of apprenticeship at the counter and the desk, but such as happen, by reason of their natural aptitude and the circumstances surrounding them, to be drawn into the vocation. Thus the first bankers in any given community are usually those not trained for bankers, but from other callings-successful merchants, lawyers and men of versatility and ready adaption.
"As a community passes out of the embryo, and assumes a more stable condition-when the frontier settlement has become the metropolis of a great productive region, these conditions change, and there arises a call for banking institutions, with large capital, carefully regulated by law. Also for managers learned in the principles of monetary science, and trained in the intricate business of the bank."
PIONEER AND LATER BANKS
The first bank established in Los Angeles city or county was organized early in 1868 by Alvinza Hayward, of San Francisco, and John G. Downey,
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HISTORY OF LOS ANGELES COUNTY
of Los Angeles. The firm was styled Hayward & Company. It had a capital of $100,000. The bank was operated in the old Downey block.
Later, during 1868, the bank of Hellman, Temple & Company was established. Hellman subsequently became associated with Downey in the former bank, which took the name of the Farmers & Mechanics Bank, which was later reorganized as the Temple & Workman Bank. It had a new bank building, three stories high, at the junction of North Spring and Main streets. In the eventful '70s when so many banks failed throughout the entire country, this institution went down and the many depositors lost all they had deposited in it. It is stated by former writers that the concern was badly managed.
The First National Bank was second in point of age established in Los Angeles, the date being 1875. A few years since it absorbed the Los Angeles National and the Southwestern National. At the end of the year 1906-sixteen years ago-this city had an even fifty banks, nine of which operated under National charters and fourteen under State charters, besides the five trust companies and thirteen savings banks. At the close of 1906 the estimated capital employed in banking in the city of Los Angeles was more than $11,000,000, while the amount in deposits was shown to be up- wards of $100,000,000. It is impossible in a work of this character to go into a detailed account of the scores of banks within the city. However, it is but justice to the subject to give in this connection the names of the banking institutions in Los Angeles city in 1922, which are as follows: Bank of Italy; Seventh and Broadway; California Saving & Commercial, Fourth and Spring; Citizens National, Fifth and Spring; Citizens Savings Bank of Hollywood; Citizens Trust & Savings, 308 South Broadway; Kohn, Kasper, 740 South Broadway; Commercial National, Fourth and Spring; Continental National, Ninth and Main; Equitable Savings, First and Spring; Farmers & Merchants National, Fourth and Main; Federal Bank of Los Angeles, 2201 North Broadway ; First National Bank of Los Angeles, Seventh and Spring; First National Bank of Hollywood, Holly- wood blvd. and Highland ; Guarantee & Trust Savings, Seventh and Spring ; Hellman Commercial Trust & Savings, Sixth and Main; Hibernian Sav- ings, Hibernian bldg .; Highland Park, 57 Pasadena avenue; Hollywood National, 7000 Hollywood blvd .; Home Savings, Eighth and Broadway ; International Savings, Temple and Spring ; Los Angeles Trust and Sav- ings, Sixth and Spring; Merchants National, Sixth and Springs; Morris Plan, 725 South Spring ; National Bank of California, Fourth and Spring ; Provident Mutual Building-Loan Association, Sixth and Hill; Security Savings, Fifth and Spring; Security National, 510 South Spring ; Southern California Trust Company, 426 West Third; Title Abstract & Trust Com- pany, 620 South Spring; Title Guarantee &. Trust Company, Fifth and Broadway ; United States National Bank of Los Angeles, 240 North Main ; Yokohoma Specie, 100 North Main.
In the decade between 1897 and 1907 the clearing house totals amounted to the following: In 1897, the total was $63,663,969; in 1906, the figures amounted to $578,635,517. This was a wonderful increase in banking business for a ten-year period. The total bank clearings, in 1921, in the City of Los Angeles, was $4,204,813,574.75.
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HISTORY OF LOS ANGELES COUNTY
PRESENT BANKING INTERESTS
The following purports to be a concise account of the organization, first and present capital, first and present officers, surplus and deposits, in the various banking institutions of Los Angeles County, outside the city of Los Angeles. Banking in the city, proper, has been covered in the sec- tion of this work which relates to the city especially. Where city banks have branches in side towns they will be represented where data has been furnished. This chapter has been largely compiled from information blanks sent out by the historian, hence may be safely relied upon. The banks will be treated by towns and cities.
PASADENA BANKS
The First National Bank of Pasadena was established, in 1886, by P. M. Green, who was its president, with B. F. Ball vice president and J. E. Farnum, cashier. The original capital was $25,000, but it now has a capital of $300,000, with a surplus of $190,000. Its recent deposits amount to $5,000,000. The First National succeeded the old Pasadena Bank, the first in the city, in 1885. In 1922 an artificial stone bank building was erected, the interior of which is beautiful marble. The total cost was $300,000. The present officers of the First National Bank are: H. I. Stuart, chairman of the board; J. S. Macdonnell, president; Francis E. Stevens, A. K. McQuilling and H. A. Hotaling, vice presidents ; T. W. Smith, cashier; J. E. Whitehouse, G. H. Wynkoop, F. R. Backus and H. C. Schaffer, assistant cashiers. The combined resources of the First National Bank of Pasadena amount to $11,929,859.66. The May state- ment shows for this year, resources of $5,490,844.90, with liabilities amount- ing to the same, including a circulation of $100,000.
Affiliated with this institution is the First Trust and Savings Bank of Pasadena, with resources $2,901,369.47. Its liabilities show over $800,000 in capital, surplus and undivided profits. The first capital of this company was $25,000. It was organized by the stockholders of the First National Bank, September 14, 1901. Its present surplus is $200,000.
The State Bank of Pasadena was organized April 5, 1907, by Clark McLain, Frank W. Hill and W. M. Eason on a $25,000 capital, the same as today. Its present surplus is $43,000 while its deposits are $450,000. The original officers were W. M. Eason, president; M. D. Painter, vice president ; C. McLain, cashier; Frank W. Hill, secretary and treasurer. The 1922 officers are W. M. Eason, president ; A. E. Dwelle, vice president, and Arthur H. Gage, cashier, secretary and treasurer. The bank building was started in May, 1907, and is built of brick with a handsome front of pressed brick. Its cost was $42,000, including vault.
The Security National Bank of Pasadena was founded March 25, 1912, by Ernest H. May, Harrison I. Drummond, Edmund B. Blinn, James N. Burnes, Peter Orban, Henry Sherry and Ernest C. May. The first officers were: Ernest H. May, president ; H. I. Drummond, vice president ; N. E. McBeth, cashier; Ernest C. May, assistant cashier. The present officers include Ernest H. May, president ; John W. Roach and Ernest C. May, vice presidents ; Charles L. Wright, vice president and cashier ; and Lansing
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HISTORY OF LOS ANGELES COUNTY
R. Rawson and James T. Wallace, assistant cashiers. The first capital of the bank was same as now-$100,000 ; its present surplus is $25,000. It has deposits amounting to $1,768,341.42.
Citizens Savings Bank of Pasadena was established in 1912 by'W. H. Hubbard. Its first officers were: W. H. Hubbard, president ; Charles W. Durand and Henry T. Hazard, vice presidents ; with M. Vilas Hubbard, cashier and secretary. It started on a capital of $100,000 but now has $300,000, with an additional surplus of $52,000. The present deposits are $3,150,000. The bank is housed in its own building-a fire-proof class "A" building. The 1922 officers of this prosperous institution are: W. H. Hubbard, president; Charles W. Durand, vice president; M. Vilas Hub- bard, cashier and secretary, with H. W. Lindsay and H. D. Machin, assist- ant secretaries. These men have charge of the various departments of an institution handling funds representing liabilities and resources amounting to $3,596,702.34. The concern is a member of the Federal Reserve system and is rapidly advancing in its business operations.
The Central National Bank of Pasadena was established June 27, 1916, by H. L. Mouat, William H. Magee, M. P. Green, S. Herbert Jenks, J. J. Mitchell, Arthur T. Newcomb and W. N. Van Nuys. The officers at first were: H. L. Mouat, president ; M. P. Green, vice president ; William H. Magee, cashier, secretary and treasurer ; and L. M. Jones, assistant cashier, secretary and treasurer. The original capital of this bank was the same as the present-$100,000, but it now has a surplus of $20,000. Its recent deposits amount to $1,303,466.14. Previous to February 4, 1921, the insti- tution was known as the Central Bank. The present set of officers are: William H. Magee, president; M. P. Green, vice president; Lawrence M. Jones, cashier; I. W. Ketchum and Allen B. Bixby, assistant cashiers. The last statement, issued May 5, 1922, shows resources and liabilities of $1,443,785.08.
The First National Bank of Lamanda Park, Pasadena, was chartered August 25, 1916, by N. B. Vanderhoof, John W. Rogers, Ralph S. Van- derhoof, R. R. Craig, C. W. Rodecker and Fred E. Vanderhoof. The first officers of this concern were: J. W. Rogers, president ; Fred E. Vander- hoof, vice president; R. R. Craig, cashier; W. W. Flatt, second vice president. It opened and still operates on a capital of $25,000, and now has a $5,000 surplus fund. Its May 5, 1922, statement shows deposits to the amount of $411,960.47. The bank building now used was built of brick and cement in 1916. The present officers are: W. W. Flatt, president ; E. Grimes, vice president ; J. M. Wilson, cashier. The board of directors are W. W. Flatt, E. Grimes, W. E. Throstle, H. P. C. Besse, Roy N. Richardson and M. Morgan. Present liabilities and resources, $444,345.98.
LONG BEACH BANKING
At present, May, 1922, the banking interests at Long Beach are as follows: The City National Bank was organized in 1907 by B. F. Tucker. The first officers were B. M. Scheurer, president; B. F. Tucker, cashier. The original capital, the same as today, was $100,000, but now the bank has a surplus of $100,000, making a working capital of $200,000. The recent amount in deposits was $3,200,000. The beautiful bank building to be
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HISTORY OF LOS ANGELES COUNTY
occupied by this prosperous commercial concern is twelve stories high and when finished will be among the finest structures in the county. The present officers are B. F. Tucker, president; C. E. Akers, vice president; Naomi C. Tompkins, cashier ; R. C. Lewis and O. H. Ady, assistant cashiers. The present liabilities and resources amount to $3,283,469.56. It is a "roll of honor bank," having earned a surplus of $100,000.
Farmers and Merchants Bank, member of the Federal Reserve System, with headquarters at Long Beach has resources of over $7,000,000. It was founded in November, 1907, by C. J. Walker, Stephen Townsend, W. H. Dunn, B. W. Hahn and T. W. Williams. The first officers were C. J. Walker, president; T. W. Williams, vice president. Present (1922) officers : C. J. Walker, president ; K. V. Ketcherside, vice president ; C. E. Huntington, cashier; A. R. Montgomery, F. A. Ziegler, R. E. Jennings, F. H. Archer, L. C. Kempton, V. W. Sylvester and E. O. Miller, assistant cashiers. The original capital stock of the institution was only $25,000, but today it amounts to $500,000, with an additional surplus of $500,000. The recent deposits were $6,117,301.73. The Farmers and Merchants absorbed the Citizens Trust & Savings Bank, of Long Beach, on October 11, 1911. The bank's home is in a modern ten-story office bank building of steel and terra cotta, construction, Class "A," costing $750,000, but not entirely completed.
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