The builders of a great city : San Francisco's representative men, the city, its history and commerce : pregnant facts regarding the growth of the leading branches of trade, industries and products of the state and coast, Part 30

Author:
Publication date: 1891
Publisher: San Francisco : The Journal
Number of Pages: 556


USA > California > San Francisco County > San Francisco > The builders of a great city : San Francisco's representative men, the city, its history and commerce : pregnant facts regarding the growth of the leading branches of trade, industries and products of the state and coast > Part 30


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His ancestors were among the earliest settlers of that State, being of English descent. His father was a farmer of the sturdy old'New Eng-' land class, that more than any other may claim the credit of laying the foundation of American national character. His mother was distin- guished by her strong common sense and unusual kindliness of feeling, and it was from her that the subject of this sketch inherited his peculiar characteristics.


John Perry, Jr., like thousands of other New England boys, felt that in certain cities, the South or the West, he could do far better for himself and for his parents than he could possibly do under the disabilities of his native town.


So at the early age of sixteen, with twenty-five cents in his pocket and a bundle containing his spare wardrobe in his hand, he started out amidst the snows and slush of March, 1831, to walk to Boston, one hundred miles distant, where he hoped and intend- ed to earn enough money to pay off the mortgage on his father's farm be- fore he reached his eighteenth year.


But on reaching Andover, twenty miles from Boston, weary and foot-


sore, he heard of a situation which he succeeded in obtaining. His em- ployer was the Rev. Bailey Loring ; his salary one hundred dollars per year and his board.


Before he was eighteen years old he had fulfilled his intention of paying off the mortgage on the farm, and thereafter throughout their lives he continued to contribute amply to- wards his parents' support.


In April, 1832, he resumed his pedestrian trip to Boston where he obtained a situation in a wholesale West India goods store at one hun- dred dollars per annum, with board. At the end of four years, answer- ing an advertisement, he obtained a clerkship in Charleston, South Caro- lina, at a salary of six hundred dol- lars per year and traveling expenses. But the financial crash of 1837 car- ried down in its vortex the house in which he was employed.


He returned to Boston with only a a few hundred dollars as capital, but with enterprise, close observation and determination to succeed, he resolved to enter the brokerage business on his own account. So he took an office, hung out his sign and made his bow to the public as a full-fledged broker at the age of twenty-two.


His energy and business tact soon attracted attention. Through the in- fluence of leading firms, in 1839 Mr. Perry was admitted to membership in the Boston Board of Brokers, which then consisted of sixty gentlemen of wealth, honor and integrity, and wielded great influence throughout New England.


By 1842, his accumulations reach- ed $30,000. A false rumor in those anti-telegraph days to the effect that Great Britain had declared war


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against the United States on the Northeastern boundary question caused a panic in the stock market of Boston and New York. In a single day Mr. Perry, like many of his confreres, lost his entire assets, and found himself several thousand dol- lars in debt. He recovered gradually from this first heavy blow, kept his seat in the Board, justified the confi- dence reposed in him by the ultimate payment of every debt with interest, and again prospered till 1849, when a second disaster forced him into bankruptcy. This time his debts reached $30,000. He assigned all his property to his creditors, obtain- ed a discharge from the Insolvent Court, and with fifty dollars in his pocket, after his passage was paid, he joined the crowd of gold seekers and sailed for California, via Pana- ma, April 15, 1850.


At Panama tickets per steamer for San Francisco were selling at enorm- ons prices; about $1,200 being paid for the cabin and $800 for the steer- age. Perry invested $6, his entire capital, in a bulletin board, leased an office, and charging a commission of $10 to both buyer and seller of tickets, he soon accumulated so much that on reaching San Francisco, Sep- tember 6, 1850, after a passage of thirty-six days from Panama, he car- ried with him $3,500 as the result of his brokerage.


He went to the mines, and lost some months in an unsuccessful at- tempt at keeping store in the mining town of Ophir. But he soon aban- doned the rough and uncongenial surroundings of the placers for the city, where he was not long in turning his skill as a broker to good account.


In those early days the expenses of both State and city were defrayed by the issue of script bearing three per cent interest per month, of which, in the Spring of 1851, the State had issued about $700,000, and the city $1,500,000. But these bonds could not be sold in California on account of the higher rates of interest on


ordinary transactions. Here was Mr. Perry's opportunity, and he in- stantly availed himself of it.


He made arrangements with the agent of the once great banking house of Page, Bacon & Co. to ad- vance all the money necessary to pur- chase all of these bonds, or as many as could be procured. The rate of interest on these advances was to be three per cent per month. Mr. Perry then opened the first broker's office in San Francisco, on the corner of Montgomery and Merchant streets, and he succeeded in purchasing dur- ing the next eighteen months more than three-fourths of the entire issue -thirty per cent and upwards for the city, and forty per cent and upwards for the State issue. The result to Mr. Perry was a fortune within two years after his arrival. His first use thereof was the full payment of all his Eastern creditors, principal and interest, though he had been legally discharged from all his debts.


He then opened a banking house, and realized large profits from mer- cantile loans and exchange and handling gold dust. As one of the founders of the Unitarian Church in San Francisco, he contributed liber- ally to its funds, and as its Treasurer, acted on the unusually liberal prin- ciple that it was the Treasurer's busi- ness to pay the bills, whether there was any money in his hands belong- ing to the church or not. He at one time advanced some $16,000, before arrangements were made for his re- imbursement. He was elected to the City Council and to the Board of Education.


In 1853 he left his flourishing busi- ness to the care of an agent and started East with the intention of visiting Europe. When on a visit at the residence, at Philadelphia, of the late General H. M. Naglee, he met Miss Sallie C. Greene, a lady en- dowed with rare gifts of mind and heart, and a purity of character seldom met with on earth. Within six weeks the couple were married


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and he returned with his bride to California, then beginning a wedded life that for more than thirty years (until her death in 1885) was signal- ized by unalloyed happiness.


Unfavorable reports from his busi- ness enterprises had contributed to Mr. Perry's speedy return to San Francisco. He did not find another opportunity to retrieve his losses un- til the discovery of the great silver mines in Nevada, in 1861, lighted the fires of universal speculation, and de- veloped the brokerage business in San Francisco to a far greater de- gree, compared with the population and proportionate other interests, than was ever attained by it in any Eastern or European city.


But this culmination, preparatory to the terrible crash, was the growth of years. At the beginning, when the demand for shares was confined to strictly mining men, yet had in- creased so as to require special facili- ties for the transactions of the busi- ness, Mr. Perry's experience as the only well known broker in San Fran- cisco who had been a member of an Eastern Board was availed of by his associates. Largely through his ef- forts the Old Board (or Big Board) was brought into existence. Mr. Perry was one of the first members of this Board, and its first Vice- President. He continued his con- nection with it until 1876. During all that time his transactions were large and his clientage numerous. He made heavy profits at times, but


his organ' of benevolence was too prominent to permit him to retain his accumulations. He often dis- suaded poor people venturing upon a risk. Like all other brokers, he was obliged to carry his customers. Consequently his losses were fre- quent and sometimes heavy, and about 1876 he executed his resolu- tion to confine his future efforts to transactions in bonds and other local investment securities, which were sought by conservative purchasers for safe and permanent investments.


During the war he had exerted himself in placing the bonds of the Government on the San Francisco market, a difficult task here, on ac- count of their low rate of interest. But he succeeded to a large extent.


After his retirement from the min- ing stock board in 1876, he turned his energies in aid of the formation of the San Francisco Stock and Bond Exchange, of which he was elected the first President, a position he has held from its organization.


John Perry, Jr., has only friends among his thousands of acquaint- ances. He never had an enemy. A firm disbeliever in the doctrine of natural depravity, he sees in every human being the elements of good and takes pleasure in contributing to the growth of that good by the exhibition of kind sympathy to all. He is thus a true philanthropist, a real lover of mankind, and conse- quently he is loved and respected by all who know him.


C. T. HOPKINS.


JAMES PHELAN.


JAMES PHELAN.


S the years roll on and the ranks of the once numerous band of pioneers of our State become thinned by time, the history of the lives of those who have taken an act- ive and prominent part in the devel- opment of its industrial and commer- cial affairs becomes more and more interesting and valuable to the pres- ent and to future generations. Asso- ciated as he has been for more than forty-one years as a business man, financier, capitalist and representa- tive citizen, with the progress of San Francisco, the name of James Phelan stands out prominently in her history, and the publishers are glad to present a condensed account of the principal events in his long and successful career, without which a work of this kind would, of course, be flagrantly incomplete.


By nativity, James Phelan is an Irishman, having been born in the year 1821, at Grautstowu, Queeu's County, in the Emerald Isle; the brain and muscle of whose sons have aided so much in the development of the United States. He came, how- ever, with his father, when but a child, to America, and while retain- ing the mental and physical pecu- liarities of his sturdy race, has become thoroughly Americanized and a staunch supporter of and believer in the principles of his adopted country. Receiving his edu- cation at the public schools of New York city, in early youth he evinced a marked predilection for trade, and entered a store, where he acquired the knowledge of business which, supplemented by great natural ability and tact, has placed him in the front rank of San Francisco's wealthy and


influential citizens. Commencing at a modest wage he rapidly advanced, and by economy and good manage- ment accumulated the capital neces- sary, and entered business for hin- self while yet a very young man. Mr. Phelan engaged successfully in merchandising in Philadelphia, New Orleans and Cincinnati, and was in the latter city when the news of the great gold discovery in California was confirmed by private letters aud by the official reports of Thomas O. Larkin, U. S. Naval Agent at San Francisco. With therare prescience or insight into the future which has always been a predominating char- acteristic of this gentleman, Mr. Phelan at once perceived that the distant El Dorado offered superior inducements to a young and ambi- tious man, and though engaged in a prosperous business throughout the Mississippi Valley, he concluded to make California his base of opera- tions.


With him, to resolve was to act. Quick to perceive, he was equally prompt to execute. Closing up his business, he proceeded to New York, and there secured a large stock of such goods as would necessarily be in demand in the land of gold, con- sisting of general merchandise, and including liquors, tobacco, beans, nails, glassware and hardware of every kind. These he shrewdly shipped on three different vessels bound for California "around the Horn," and he himself took passage on the schooner "El Varado" for Chagres. Here he was attacked by Panama fever, by which he was prostrated for three weeks. Having partially recovered, Mr. Phelan was


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fortunate in securing passage on the historie vessel "Panama" and finally arrived at San Francisco without fur- ther adventure, and gradually re- gained his health and strength under the vivifying influence of our "glori- ous climate." Mr. James Phelan was now 27 years of age, full of youth, energy, determination, and with a wide business experience. The field before him was indeed a promising one. Money was plenty, values un- settled and prices high. His brother Michael was already here, having come to California with the party organized in New York by the la- mented David C. Broderick, and with this gentleman he formed the first and only partnership of his life.


The firm of J. & M. Phelan was a prominent one, transacting a heavy business and making money rapidly. They were represented in New York by Mr. John Phelan, the only other brother, and himself a leading mer- chant of that city. The recollections of Mr. Phelan of the fluctuations in values and the opportunities for suc- cessful speculation, guided by judg- ment and shrewdness, in " the early days," are extremely interesting. In one instance an invoice of five casks of saleratus of 1,000 pounds each, which had been billed to Messrs. J. & M. Phelan, at five cents per pound, was disposed of for no less than two dollars per pound, the purchaser being C. Lambert & Co., of which firm the subsequent Gover- nor, F. F. Low, was a member. Thus an investment of $250 in saleratus netted to the fortunate possessors a profit of no less than $9,750 in cash. Another instance showing more par- ticularly the business judgment and foresight of Mr. James Phelan is af- forded by an extensive operation in oil. Gas was as yet unknown in California, coal oil had not come to the front, and whale oil was the fa- vorite for illuminating purposes. An immense quantity of this article had accumulated, and the market was


overstocked. Prices fell very low, and Mr. Phelan here saw an oppor- tunity of which he at once took ad- vantage. He secured control of the market, buying all in sight at from 10 to 12 cents per gallon, and sub- sequently when lamps arrived elosing out at from $1.50 to $2.00, with a profit of from 1,500 to 2,000 per cent.


In the memorable fire of June, 1851, which destroyed the commer- cial portion of the young city, Messrs. J. & M. Phelan were burned out, and sustained a loss of $75,000, but the business rose Phoenix-like from the flames, new arrivals by sea re- plenishing their stock, and the firm re-entered upon its prosperous career.


Mr. M. Phelan died in 1858, and his interest reverted to the surviv. ing partner.


James Phelan then made a spe- cialty of imported liquors, though also extensively dealing in other lines. In 1865, this gentleman entered into the wheat trade, and was among the first to ship this cereal to Great Britain, continuing until 1869, in which year he retired from active commercial affairs and sought a well- earned rest and recreation. He made an extended trip to the old world, visiting the principal capitals and cities of Great Britain, Ireland and Continental Europe. In the meantime, having unbounded faith in the future greatness of San Fran- cisco, he had invested largely in real estate, which rapidly increased in value. As far back as 1854, he had be- come the owner of the lot upon which stands the magnificent structure which bears his name, and which may be considered an enduring monument to his enterpriseand fame. The Phelan Building was erected in 1881-82, at a cost of half a million dollars, and is among the prominent edifices of Market street.


To Mr. James Phelan our city owes the First National Gold Bank, now the First National Bank of San Francisco, which he organized in


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1870, and which was the first in California, and the second gold bank to be established in the United States. Mr. Phelan was the first President of this popular and stable bank, which has a surplus at present of $500,000, and has paid its stock- holders $2,000,000 in dividends since its organization. The new bank building, a tall, elegant and stately structure, completed in 1889, is one of the most imposing architectural ornaments of our city. Mr. Phelan was also instrumental in organizing " The American Contracting and Dredging Company," having for its object the dredging of the Panama Canal, and was elected to the Vice- Presidency of the company. The stock which was offered on its foun- dation in 1882 at $30, has paid 38 dividendsaggregating $335 per share.


In 1859 Mr. Phelan led to the al- tar Miss Alice Kelly, eldest daugh- ter of Jeremiah Kelly of New York. Hle has had three children, two daughters and a son, all "native here and to the manor born." The


only son, Mr. James D. Phelan, has charge of his father's banking inter- ests, and the fact of his being in- trusted with the responsible duties, is the highest proof of his ability and managerial skill.


Theresidence of Mr. James Phelan, located at the Mission Dolores, stands in the midst of three and a half acres of ground, charmingly laid out and planted with a variety of trees, shrubs and flowering plants. It is a home of quiet ease and comfort, well adapted for a gentleman of unosten- tatious habits and domestic tastes, which are among the personal pecu- liarities of its owner; and at Santa Cruz by the sea Mr. Phelan has his summer home.


Mr. Phelan is a member of the Society of California Pioneers, of which excellent association he has acted as director, and his connection with other organizations is very lim- ited. Personally he is of sturdy frame, hale and vigorous in mind and body, and bids fair to welcome the coming century.


WILLIAM M. PIERSON.


WILLIAM M. PIERSON.


HEN I arrived in San Fran- cisco, fifteen years ago," said a well-known citizen to the writer, " I had occasion one day to visit the courtroom of the old Fif- teenth District Court, then situated at the corner of Montgomery avenue and Montgomery street. The late Judge Samuel H. Dwinelle was upon the bench, and when I entered the room a young lawyer was address- ing the Court. His tones, as well as his presence, impressed me, and as I listened to his argument, I was at once astonished and pleased. His reason- ing was convincing; at times his lan- guage was really eloquent. While his handsome face and grace of man- ner would have been sufficient to ar- rest attention anywhere, the sound logic of his utterances secured the careful consideration of the bar as well as of the Court itself. I found upon inquiry that the young lawyer was William M. Pierson."


Perhaps no higher encomium could be paid the subject of our sketch so far as it gives the cursory views of a very close observer of human nature. But Mr. Pierson is more than a showy, eloquent and logical speaker. He is a sound lawyer, in the broadest sense of that term. His mind is of an analytical turn, and beneath the Chesterfield- ian grace of his manner there lies an active, never-slumbering intellect that is ever ready to avail itself of any weak spot in his opponent's armour ; to meet with deadly foil any false thrusts from his adversary's weapon.


William M. Pierson was born in Cincinnati in February, 1842, where his parents were living temporarily. He comes of Knickerbocker stock, his


mother being a lineal descendant of Anneke Jans, the grantor of real estate to Trinity Church in New York city, which has made that institution the wealthiest church corporation in the country. He came to California, via the Horn, arriving here on Inde- pendence Day, 1852. For a while he attended a school then kept by Ahira Holmes at the corner of Broad- way and Kearny street. There the restless spirit of the lad asserted itself ; he left school and found em- ployment in the picture and station- ery store of Marvin & Hitchcock, located on Montgomery street, be- tween Washington and Jackson. After eighteen months of this work he attended a session at the High School, and then entered the office of the late Judge Nathaniel Bennett as a law student. After- wards he studied with Frank Pixley, and completed his studies in the office of Henry H. Haight. He was admitted to the Bar in 1862, at the age of twenty years, a special act of the Legislature being passed for that purpose. He formed a law part- nership with Mr. Haight, which eon- tinued until the latter was elected Governor in 1867. Mr. Pierson has a vivid recollection of the Vigilante Days, and witnessed from his home on Broadway the taking from the jail of Cora and Casey, when they were executed.


In 1863 he was a candidate for the Legislature on the Republican ticket but with the other nominees suffered defeat at the polls. Some years later he left the Republican party and has ever since acted with the Democracy. In 1875 he was elected to the State Senate, where he served with credit to himself and benefit to his con-


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stituents. One of his measures was the "Retraction Bill," by the terms of which newspapers were to be com- pelled to retract libellous articles, am! that there might be no hiding behind the ambiguous "we," writers were compelled to sign their names to their articles. The bill passed the Senate, but was killed in the lower house. He also framed a divorce bill, limiting the grounds for divorce to adultery. This also passed the Senate, but failed in the House.


While Mr. Pierson's practice has been general, it is mostly confined to civil cases, his specialty being corpo- ration law. In this class of juris- prudence he has been eminently suc- cessful. One of the most important litigations in which he has been engaged was the case of the Peo- ple vs. Wells, Fargo, where he appear- ed for the people. The Commercial Banks, when the act creating the Bank Commission went into effect, refused to submit to examination by the Bank Commissioners, claiming that the Act only applied to Savings Banks. Half a dozen of the most prominent lawyers of the city took this ground, and advised the banks accordingly. Mr. Pierson argued the case with great ability, and the Supreme Court sustained him, and compelled the banks to sub- mit to examination. He was at- torney for the plaintiffs in the great case of the People vs. The Amer- ican Sugar Refinery, an action


brought to dissolve the corporation because it had joined the Sugar Trust. This action was begun simultaneously with one of a like character in New York city. Judge Wallace recently decided the case in favor of the people and against the Sugar Trust, taking the positions as- sumed by Mr. Pierson in his argu- ment.


Later a Receiver was appointed by Judge Wallace and the Refinery closed. The proceedings were sought to be restrained by a writ of prohi- bition issued by the Supreme Court, and the whole matter was reargued by Mr. Pierson in that Court.


A member of the profession has said that a mere lawyer is at most a moiety of a man-heathen and soul- less. Mr. Pierson is not a mere law- yer. Besides having fine literary tastes, which his means permit him to enjoy, he is a fine amateur astrono- mer, and at his residence on Van Ness avenue he has the largest telescope in the city, the object-glass being 83 inches in diameter. It is mount- ed in an observatory attached to his residence, and here of a cloudless night Mr. Pierson spends many an hour gazing at "the starry cope of Heaven." Mr. Pierson is a member of the Pacific-Union Club and of the Bar Association. He is married and has a family consisting of a wife, who was the daughter of Capt. L. B. Ed- wards, and two sons, both of whom are in mercantile employment.


E. B. POND.


EDWARD B. POND.


DWARD B. POND, who, in his high office, represents the repre- sentative men of San Francisco, the men who have builded the com- mercial metropolis of the Pacific, is a native of Jefferson County, New- port.


He was born on the 7th of Decem- ber, 1833, the fifth of eight children, three brothers and four sisters. His ancestors came from England about fifteen years after the "Mayflower" landed the first stock of sturdy Puri- tans, and were of the same sort. His grandfather served with distinction in the Revolutionary war, and won the rank of Major. His father was a Con- gregational clergyman, a gentleman of liberal education and honorable repute.


Young Edward received an acad- emic education, principally in Gov- erneur, N. Y. But after having been prepared for college he was impelled by the spirit which in these latter days controls so many young men- to enter upon political life, and establish an individuality of his own. In this case the venture has proven more than usually successful. The California epidemic seized him, as it seized thousands of the flower of the East, and in 1854, when scarcely twenty-one years of age, he started across the great plains, lying over to winter in Salt Lake, and reaching this coast in the Spring of 1855. He tarried in Butte County and engaged in the live stock business with some profit. Two years later, in 1858, he returned to Texas, bought more cattle, and in the following year drove them across the plains, again stopping in Butte County. Having disposed of his stock he located in Chico, and engaged in general mer-




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