SAN FRANCISCO'S TRADE WITH ALASKA
~y XCEPT for rhetorical purposes
j San Francisco does not care for
| f the Alaskan trade," says Dr. Ca
t* bell WHtehtad. president of the
Alaska Bank and Safe Deposit
Company of Nome, and prominently Iden
tified with many Important undertakings
in the Far North.
"Oh, yes, I know that when depart
mental reports come from Washington
with a. deadly parallel of the business
done from this port and the business done
by your Puget Sound rival, there Is some
distress over the showing and you won
der about the reason. But It ends in
wonder, doesn't It, and nothing is done to
change the balance?
"San Francisco is too big to be jealous
of Seattle or any other place, and should
admit that that city has won fairly all the
trade she has secured In Alaska, won
without many of the advantages this port
enjoys. Seattle takes care of that mar
ket, fosters the feeling that no other deal
ers are so well able and co well dis
posed to serve it, and In season and out
of season solicits and seeks to develop
business.
"It Is not . essential to send traveling
men on regular trips through the Terri
tory, though certainly every firm seek
ing to establish an Alaskan connection
should have Information that can be de
pended upon as to conditions and require
ments there. There are prevalent more
misconceptions of the life and conditions
in Nome and along the Yukon than would
seem possible In this day of widely dif
fused news.
"A business invoking millions of dol
lars—and the Alaskan trade has grown
till it deserves to be referred to so re
spectfully—cannot be successfully handled
without careful study of the buyers. But
it should be a simple matter to get at the
true needs in this case, for the buyers
come to Seattle and to San Francisco,
and may easily be seen. How many,
Nome merchants and business men do
you suppose are in San Francisco to
day?"
I cannot hazard a guess, and Dr. White-*,
head says, "Not less than one hundred,
1 am certain. In Seattle, when we come
through, we are besieged with business.
Dealers want to s«U goods, transportation
companies want to carry freight, and on
all sides are evidences that Seattle es
teems us very highly, indeed— is devoted
to our Interests— considers' our Interests
her own. It is very different here, and
while I personally like the peace, I men
tion the fact merely to prove what I said
in the first place— Sac Francisco does not
care for the Alaskan trade.
"Perhaps it Is because San Francisco is
rich, and is satisfied with markets al
ready established- Certainly It Is not be
cause the problems of trade with the
gold country are greater than this city's
business men can master. San Francisco
has done, and It still Is doing, wonders
in a mercantile and commercial way, and
nothing about the business of Alaska la
too difficult, too trying of accomplish
ment. If this city really goes after It.
"The merchants — exporters and com
mission men— do not have to have some
one come In from the outside and tell
them how to handle any branch of their
affairs. When they determine that the
possibilities In Alaska are worth atten
tion they will do the rest Of course*
my opinion U that these same possibili
ties can hardly be overestimated. I have
been In Nome for five years and have
seen the town grow from an lrregulan
ugly mining camp, a provisioning station.
Into a city offering all the conveniences
to which civilization has accustomed us.
Throughout the Territory development Is
general and thorough. Outside capital is
Interesting Itself there more and more
every year, exploiting new avenues of
wealth, and so to those of us who know
it Alaska has arrived.
"The Pacific slope has no conception of
the future of what Is \*lrtually a separate
empire and what the unfoldment of that
future may mean to every Interest here
represented. Gigantic things are planned
and not alone in the mining of gold are
we to command the world's attention.
"The projected 250 miles of railroad to
connect the fabulously rich copper coun
try of the peninsula with Valdez and the
establishment of great emejters at that
port will make jwsslble an enormous out
put, a production that will shift the cop
per center from Montana to Alaska.
"My opinion and suggestions regarding
San Francisco's trade with Alaska is, of
course, from the outside, for I am Inter
ested only because I want to see the new
country best served. There Is a world of
business to be done there In- almost every
line, and when San Francisco merchants
are in any degree concerned with it. they
will enter the race. So far they have
been—^ith one or two exceptions—con
sistently Indifferent."
We are taught that to be content with
our achievements, cither as individuals
or communities, evidences the arrest of
progress and to it Is a serious charge Dr.
Whltehcad brings against us.
I becin to cast about for comfort. I
want the opinion of some one of our
selves who, experienced in the Alaskan
trade, knows Its problems from our point
of view and who will have a word of en
couragement to offer.
I vrr.nl to hear some one say that
though our enterprise has not been as
vigorous as It might, yet we are making
an increasingly better showing with flat
tering outlook for the future.
And In this mood I seek out Captain
'?#orsre Baldwin, successful manager of
the Alaskan interests of the Pacific
Hardware and Steel Company.
MABEL BEESON
"I can't talk about San Francisco in
the* Alaskan trade without commencing
with Seattle," says Captain Baldwin.
"Not that Seattle came in on that busi
ness first, but that it is up to us to
learn a lesson from the method by
which the Puget Sound dealers have
gained an eminence that should have
been held by ourselves. ,
" The advertising campaign by which
the whole country was assisted to be
lieve that It was possible for Alaskan
gold-seekers to* equip themselves .only
at Seattle has become a part of his
tory, and so effectively was the plan
carried out that most of the prospectors
did outfit at that port, and naturally
placed their subsequent orders for sup
plies and provisions at that place.
"It has made Seattle, and as the same
enthusiasm has characterized their
handling of the regular business, It Is
only fair to say they have earned thir
victory. • . " - \u0084
"iian Francisco lost control of .'the
Alaskan business through an Indiffer
ence that has led us to Ignore the pecu
liar.methods necessary to serve the far
northerners properly. \
"Because the open season . lrj Alaska
is so very short, the business of pro
viding- for the thousands of people who
remain" In the Territory through v the
whole "twelve, months," as well as the
oxtra thousands who enter for the sum
mer only, must be- transacted in about
four months. That means That every- \u25a0
body must rush things while there Is a
chance.
"Time comes near to being the ' all
important consideration, but it' la not
true, as some of our dealers 'say. that,
our distance from Alaska puts us .un
der a fatal handicap, in competition
with Seattle, for we are only twenty r four
hours farther from Nome than the! Pu
gret Sound city,' and that is hot-prohibi
tive. ' . \u25a0 ' . ''•*" t . v ' ":}jl^'
"Granting that ' on* account of
nearness Seattle can handle, the regu-
lar business that comes from Skagway
better than ,we, it must still be 'ad
mitted that If San Francisco firms. were
rightly knovv-n among the dealers in -trie
distributing centers * of ' Southeastern
Alaska we could *; eecure enormous \ or
dersNfor 'delivery 'at the opening' of , the
season, lettingr. - the subsequent-; rush
orders be filled from 'the nearer supply
source. • -
/THE; \S AN, V FRANCISCO > SUNDAY;! CALLg
"Most of the imports, however, go
through Nome and St. Michael for the
important Yukon Territory, and ; we
have every advantage there that , we
ought to ask. . . '\u25a0'
"Roughly speaking, It takes about
three 'weeks for a steamer ?to make
the round trip from Nome to Sari
Francisco, allowing three days for dis
charge and loading of cargoes. Say
that the same roundtrlp can; be: made
to .Seattle from Nome in nineteen days,
does any one believe seriously; that for
the two days saved the Alaskan buyer's
would give up "the benefits of buying
from the larger stocks this city offers
and of not putting air their eggs into
one basket?.
- "I have spent several seasons in the
gold country and I know of the dissat
isfaction felt over the treatment re
ceived from Puget Sound firms. Stocks
there are so limited that orders have {o
be placed subject to substitution in case'
the ' specified supplies are hot immedia
tely available, and an absence 'of prop
er, competition has ' kept ', prices high.'
" "Settlers in new gold; countries', are
accustomed to pay^ well \ for everything
they get, and conditions have. tbbe very
arbitrary Indeed; to provoke a, pro'test. j
-But: protests, are .; the. rule
among .Nome dealers." and- this is our
opportunity.' "' , .1 *-•,' \u25a0"\u25a0:'- :
' :"Seattle « merchants replenish ' their '
stocks' from our -'wholesalers.'-. Why
shouldn't ouK wholesalers., go I after j the
Alaskan business ; : themselves and -save
to ; the buyer <: the ; cost .'of; freight '\u0084 to
' Seattle, two [ wharfage 'charges on the
Sound and' the Jobbers' profit?,^ There Is
absolutely" no business reason why we
shouldn't.' ';'"\u25a0 '.;'~-"'l~'i. '{\u25a0'.!•'. ; \u25a0'.\u25a0' .\\'' ;\u25a0\u25a0
V_ "Illustrating. / the | ; enthusiasm , with
-jvhlch Seattle?improves;her'opportuni
ties, I ; have seen ; a. 'jniessengef.meet the .
incoming; Norne \ steamer,*, get sthe5 the order,,
for ; his? flrrhr and; dash ! up;. to 7 the" store
with It; as) If : the' thinsr^were ; a " matter
of minutesf— as' If the? boat Intended
\u25a0 5 ' starting' Joa^Usi return Hn? the -course'? of
\u25a0" - ' --' ."' "'\u25a0 \u25a0 • - . . ." ',' \u25a0 " ,i-t hi. k." Hi.mffl-. \.,,J
an hour or ; so and the order,.; must be
filled and loadedat ? once. 'The, same ex
pedition characterizes; its handling^ all.
along the line. ;" No .time is wasted. \; The
Alaskan trade is the goose that lays the I
golden I'egffs for Seattle., rand .every,
proof is given that the city appreciates
its good fortune.,' v)- .
"We ought \u25a0 to- profit by the lesson.
Every merchant In:, the "territory/ .ought;
to know • this r city and \ its J wholesalers
•ns a practical,; business:, proposition.!
Trade isn't a' matter of sentiment :'; lt is ;
a. matter .'of quality, ; price ; and prompt- -
'. ness. ;\u25a0*-'\u25a0 "\u25a0^C:"-.?'/-'. ': "." ':\u25a0/\u25a0\u25a0' \u25a0 -'•' >. - : .\u25a0'\u25a0'•-'\u25a0•''\u25a0 - :
"'\u25a0"ifi all ; : provisions"; we. can rmeet" the
prices ; of J the ., north," in 5 most l things we
'\u25a0 can betteriUhom.Vnndswe£have,> more-ij
over.Ygehuine: wholesale ; stocks; of = gen r '\u25a0
eral merchandise} from .which' to ;filli our
ordera-^-the > largest ; and .'best .west of
: Chicago!:: .A little \u25a0push./a.^littleJstlrhu--:
latins: enthusiasm.! and. we" shall, secure
\u25a0 our own. . As to i. whether; or i not *It * is.
', worth- while-— well; we * need *6nly; refer.'
'tothtr- reports of ; the Department, of
Commerce and' Labor, to determine.
',^'Fdr,/,tire|flrst'rtightf months i of Jthls.
f;year?Aliiska's"(tra*de.' amounted (tojprac??
one-fifth— Tes3 than $2,000,000 was han
dled by this port.. All the rest went
through the'Puget Sound cities. That
tells th« whole story as to, how we have
been overlooking a market we should
have held.
"And It is becoming more and more
worth while with every year that
pagsea. More people are going in, more
people are locating: permanently. . What
were once temporary mining camps have
become populous- cities, well built and ,
substantial, with an ever-increasing de- ;
mand for life's comforts and luxuries.
"Nome now ha 3 4000 inhabitants dur
ing the .winter months, a number that
is doubled during the summer season.
"Dawson, the center of the Klondike
field, has a population of 9000, and
Fairbanks, center .of . the latest sensa
tional strikes, Is now the home of 6000
people./ '
t "Other centers ere growing similarly,
and the number of small camps is be
yond count. This means business— how
arid to come— business we •ought to be go
\u25a0"lns after.'v V\u25a0 • ; '\u25a0'\u25a0 . .'. : '
Do you wonder why I should be con- •
cerned, with the general trade, with
Alaska, so 'long as our own business is so
.prosperous? It; is, because a general in
crease would . affect us In making ; pos
• sible a - better.'-, transportation service dl- 1
rest to Nome, and because. l have a very.
genuine interest in the growth of this
'\u25a0 city V.along. along every, line. /..-.- -'.--',,
"Every local, shipper to Alaskan ports :
| will feel; the . uplift of business .when j that .
neld;is;eiploited by ah \u25a0Increasing number ;
of our firms. \ Meanwhile we ; are ; missing
'large 'profits that we need, and we will "
I feel . the need [ keenly enough later on."
" San. Francisco hus achieved high place
in" so many t and -so ./varied lines of effort
that we, . her. citizens, nave felt abundant \u25a0
/warrant for justp'ride... It Is hard indeed '
/'to face a clear. statement of opportunities
\ overlooked. We ; know, however, that
' he"; is not our i friend who encourages us
in an unwarranted satisfaction with our
accomplishments, and if San Francisco is
Vmisslhg'nn: Increase , of .wealth,, and ex- :
lerided prestige; it heeds be ; pointed out
withdeflnlteness. '
Though we ~ feel' that to 'provide Alaska
with only one-fifth of her Imports Is In
. Itself a •\u25a0' reflection upon .this < port. It ap-"
pears 'that- the \u25a0 proportion.; would • have
been much, leas but for ,-the volume ; of
V trade ; ? handled by -a . . single firm— the
Northern \u25a0': Commercial ' Company,
v A combination t of . three supply "and ,
" transportation { firms ' is": doing business 'in
'\u25a0Alaska and .Yukon ; Territory. • This com- 1
? ..pauy;has; apparently;, wrested, a consplcu-J
•*ous:success from; the; land of Ice 'and gold.*.
; Before I the States "acquired jtheT
Russian province its; pioneers had nurner^ i
;*" ova ' fur.,;, trading ;\u25a0 posts; established along -
the ! and .when'the discoveries |
' : of; gold were made these^posta became the?
_' I6glca)|dl6trib.utlve centers for provisions
' . and'-lgquipVheht. \u25a0 . • - "M
•{\u25a0 t Compared, wjth s the chain of stores and
-- wa re hou ses ;-'.. now ; . from -"\u25a0 St.:
\u25a0 ; Mlchcal^ to ..Dawson; "these early"! camps -J
i.were? primitive £to^ a /'.but jj they \u25a0
'•> served V. their i and ;. without them
J.tofday's larger, posts .would hot have,been
/possible.';.; ;/ .v- '*'•:•- .1 :;•\u25a0"". '\u25a0'\u25a0\u25a0'.'.
"\u25a0: : , >;The fi cargoes ;< by: whlch^th* \u25a0 stocks : art"
:f . kept !up ] are sent ; from? Ban ; Francisco" ana
%: i Seattle/ ; and it is concerning ! these - that i I "
'\u25a0\u25a0\u25a0 \u25a0 :.:\u25a0-, -• . \u25a0 \u25a0 -~ \u25a0-\u25a0...\u25a0\u25a0-•\u25a0-... , ' .\u25a0 \u25a0 . - '
ask. lnrormation of A. F. Zlpp, agent
for, the company at St. who Is
now in this city.
"We; hove a number of our own boats,"
said Mr. Zlpp; "boats that we own or
charter, and these are kept busy during
the entire open season. They comprise. a
full complement of river steamers _\u25a0 for r
carrying., general freight and passengers,
as well as ocean steamers.
"This year we sent out five full car
goes from the jort of San Francisco, and
would have forwarded even more if we
could have secured transportation. We
do not depend upon our own vessels ex
clusively, but use space in general
freighters whenever we can. So, though
we had only six or seven full cargoes
out of Seattle In our own bottoms, we
Sent a great deal more freight from that
port than from here by. using steamers of
other lines.
"I think' it is safe to say that of the
50,000 tons of freight that went into Alas- .
ka through the port of Nome this season
at least one-third originated in San Fran
cisco. .That is to say, at least one-third
qf the provisions, clothing, hardware and
general supplies came from California in
the first place; though it was not shipped !
direct. Wry -wasn't It?
'.'Well, th»re are no. regular boats mak
ing the trirs, and neither buyers' nor
shippers can say definitely "when goods
cculd be forwarded or when 'they could
arrive if th'sy wait for direct service from
here.. This might be changed by concert
' ed action on the part of -our dealers and
the transportation companies.
"If representatives of local firms would
meet the Alaskan buyers in Seattle, where'
they congregate to place their ordera, and
let them understand what thia city can
<50-for them. in stock, prices and service,
taking.care.toarranse for quick." regular
: sailings, l encugh \ advance business could
be; booked to g»ye both shipper and traris
; portation 'company a working basis. '
i'You see, there are thousands and thou
sands of people in Alaska and the Klon
dike who consider San Francisco a small
ccast r town, hardly important enough to
rank as a rival of Seattle.' Seattle made
a .drive' for their business in the first
place, .offering cheap transportation by
. rail and boat, and once the tide turned in
that direction It was not hard to main
tain it. , . . . .
"Many of Seattle's citizens honestly be
lieve that their city is larger, than ours, ..
and they pass' the^r confidence along.
; That is hard for us to 'credit.' but it is
ti ue for • all ..that, and until we give the
gold-seekers some live sign of our ability
to serve'them well . vre must not blame v
• them. for.; forgetting; us..
:._ "Certain -cargoes can be handled -more
.'.profitably. from: Puget Sound. Hay, grain,
.lumber and, of course! coal are cheaper
there than here, | but it seems ridiculous
„ for a cltyMike ours to do '\u25a0 any part of Its
expoit- business; through a, rival "center,
{and .when we \u25a0 ship : fruits, meats, wines.
t cannedj. goods, : hardware and machinery
\ via ;\u25a0 Seattle r_.w"e \u25a0 are simply mlnimlaing
, our. own Importance In the. eyes cf the
buyers and assisting to hold up the hands
-;Of:our;com??tltor. • '*.
"Our company is enthusiastic over the
; future pffthc great gold: region. Its prog
• ress and /Increased development, are as
. sured.;. The;ttppllcat!oh cf Improved mln-
V Ing methods will lead to thu extraction of
-mllilohs^from ruris already worked \n a
> crude way, tind a» the country^ has hard
prospected'lt?ls-'lmpossible to set
: any limit on what It may <!evolop.
.'""Falrbanke,; on .the ,Ch«na \u25a0 River, . a
branch of the Tiiiianji. 300 miles from the
' junction fi'of i the Tanana with the Yukon,
is the ticwost of .the. important .towns ami
Chas^the ot ; being the
largest loc-cabin city in the world. It is
really less than two years old. though
the first strikes were made there aa long
ago as 1302. There will be many other
such finds, that is certain. From, each
new center the prospector* go out to
widening circles, and not until the coun
try has been thoroughly worked over— a
matter of v^ many years— will Alaska.'*
wealth be known. „ .
"Though they would, be competitor*
of ours, we would like to see the local
wholesalers go after some of th« In
creasing trade, for thers is bualnes*
enough for us all, and we have equip
ment for handling and transporting any
amount of freight, our own and others,
that may be sent In.
"It has been five or six years sine*
the dead-tn-earnest rush to the sold
fields began and I think that aaid«
from the shipment* of one or two
firms, San Francisco exports to Alaska
have . decreased rather than Increased,
I'd be afraid 'to prophesy what will
develop in the next five years,
• • •
"As a plain matter of business, th*
Pacific Coast Steamship Company
.would welcome an opportunity to run
a line of boats. direct from San Fran
cisco to Nome." -
Mr. F. F. Conner, freight traffla
manager of the line, turns In .his re
volving . desk chair and looks at me
very severely Indeed, as if I had sug
gested a lack of appreciation, on the
part of his company, of "a plain matter
.of. business." , ' Z.' .;*>'
"We have one or two steamers out
of this port at the opening: Of the sea
son," he " continues, "with cargoe* at
heavy machinery, provisions and gen
eral supplies and if there were other
freight in quantity we would have
regular sailings.
"But it costs to send a .steamer to
Nome and return and as there is no
freight to be had for the home run, wa
must be assured of a full cargo wherv
outbound, or lose money. If there are
200 or. 300 or 500 tons of freight 'In
sight.' as we say, and our solicitors by
hurrying around cannot find . enough
more to complete the vesaul. there is
nothing for the shipper to do but send
hU goods to Seattle, where they can
help fill up one of the regular steamers.
"We have tried repeatedly . to estab
lish a run from San Francisco to Nome
and San Francisco to Valdez. duplicat
ing the rates scheduled on freight from
Scuttle to the same ports, but have
been unable to find cargoes and so had
to give It up. . .
' •\u25a0"Considering the business as a whole,
we can say that our curg;oe3 to Alaska
are growing in volume. Importance and
vartety. That country is far richer
than any one dreamed of In the be
ginning "and the 'needs of the peoplo
are Increasingly complex, so that as a
market It will more and more attract
attention,
"Coal for the Nome run here costs us
twice as much as it does on the Sound,
water is an Item of expense, and we
have, besides, the additional two days
of \u25a0• travel,' so. that, shipments from the
two porti brlnjr. 'cnucl.' wur margin of
profit on ' business 'from San Francisco
la less than from Seattle.
"Nevertheless. I'd like The* Call to
say that If the export firms h«re, the
wholesalers. Jobbers and commission
men, will secure the business, we will
fclv« -hem Ju»t as many boats,. and as
blsr boats, and as fast boats us they
may ; require; for handling It. We:rec-0
osrnixo that what Ist jrooil for. the lQCjftf
dealer. Is good (or us and we will do
our share every time. It we try to do
Vnore than our snare, it spells 1-o-s-d
and that helps nobody."