Yolo County CA Archives History - Books .....Commercial History Of Yolo County 1913
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Book Title: History Of Yolo County

CHAPTER XVIII
COMMERCIAL HISTORY OF YOLO COUNTY 
By C. W. Bush

    The commercial history of Yolo county practically began in the year 1869.
There were two events in the preceding autumn which gave impetus to commercial
activities: the incorporation of the Bank of Woodland (the first bank organized
in the county) and the beginning of the first railroad. The track was laid from
Vallejo to Sacramento at this time, and during the early months of 1869 a branch
was built from Davis to Woodland. The writer well remembers his trip up from
Vallejo in the spring of 1869, which consumed a good part of the day over
unballasted rails, his overnight at Davis and ride in a mud wagon to Woodland
the following morning.

    Yolo county was really isolated from communication with the outside world.
But with the completion of these roads conditions rapidly changed. Soon
afterward a connecting road was projected, through the instrumentality largely
of N. D. Rideout, a pioneer capitalist of the Sacramento valley, connecting
Woodland with the city of Marysville. The construction of this road required the
expenditure of a large sum of money, as it was necessary to cross many miles of
the overflow lands, and trestles had to be built covering this portion of the
construction. The scheme was financed with great difficulty. The construction
was necessarily cheapened, and during many of the winter months the road was not
in use, owing to the insecurity of the trestles. Subsequently it was taken over
by the Southern Pacific Company at considerable profit to the original builders.

    A few years later another road was constructed, tapping the main line at the
town of Elmira in Solano county and extending up through the Vaca and Pleasant
valleys in said county to the town of Winters in Yolo county, thence along the
foothills and up to the head of the Capay valley in western Yolo. Many
tribulations followed the erection of this road, as the projectors were without
means and depended upon the land owners for financial assistance. George W.
Scott furnished teams, graders and men to grade the road from Winters to Madison
and subsequently paid a debt of many thousands of dollars, for which he became
liable as endorser. Mr. Scott died recently, honored by all who knew him, the
possessor of a large estate. To the writer's knowledge, this was his last
experience as an endorser. He was liberal to a fault, and many times
subsequently loaned money directly to people desiring assistance, rather than
endorse their notes.

    If the building of the road was a calamity for several individuals, there is
no doubt of the benefit it proved to be to the county at large, as it opened a
market for all of the western portion of the county south of Cache creek. Prior
to the construction of these roads the Sacramento river supplied the only means
by which outside markets could be reached. Knight's Landing was the most
accessible shipping point, yet there was a good deal of team freighting during
the dry season across the lowlands lying between Woodland and the city of
Sacramento. It was quite customary to take to Sacramento a wagonload of produce
and return with merchandise for household use. A very large proportion of all
the merchandise was purchased in Sacramento, to the injury of local merchants.

    Knight's Landing became an important shipping point for all kinds of
produce, yet, considering the possibilities of production, the totals were
small. Farming was in its infancy. For many years the country was given over to
grazing. The first trekers with their prairie schooners and small bands of stock
were attracted by the extensive growth of wild oats all through the valley,
sufficient to furnish inexhaustible feed. They pitched their tents and herded
their stock and drove their beef cattle to Sacramento for marketing. Titles were
gradually acquired by pre-emption, use of script and through Spanish grants.
Many thousands of acres of the best lands along the water courses had been
granted by Spain and Mexico. On Cache creek were the Harbin, Gordon and Hardy
grants; on Putah creek was the grant Jesus Maria. William Gordon, the grantee,
was probably the earliest settler in Yolo county, although the Wolfskills, who
held under the Jesus Maria grant, might dispute this statement. The Hardy grant
was long in litigation. The holders were contesting alleged claims of
non-resident heirs, but eventually won out in the courts. The population was
necessarily sparse and scattered.

    In 1868 the lands under cultivation were quite generally planted to wheat.
The virgin soil yielded abundantly, and the prices paid were good. With stock
fattened on free range and crops realized, the early settlers' prosperity was
exceptional, as is proven that they lived and gradually increased their holdings
while they were paying for the use of money, interest ranging in rate from
fifteen per cent to twenty-four per cent per annum.

    During the Spanish possession about the adobe homes small vineyards had been
planted of what were known as Mission grapes. These grapes had no marketable
value, but were for home consumption and the manufacture of a heavy, sweet wine.
These vineyards during the dry season offered the only relief to the broad
plains of yellowing grain and grasses. Farming was extravagantly conducted.
Ground was carelessly broken and crops carelessly gathered. Machinery stood in
the field neglected and exposed from one season to another. A quite uniform
custom was to gather two crops from one plowing. The second was known as a
volunteer crop and often yielded abundantly from the grain wasted at the
previous harvesting. Principally to meet local requirements, in due time an
occasional flour mill was erected; the earliest, I believe, were at Woodland,
Yolo (the former county seat), and at Madison. These mills were never profitable
as investments. The Woodland and Madison mills were in time destroyed by fire.
The Yolo mill is yet standing, but for many years has been out of commission.
Steam was the only possible available power for grinding, and the heavy cost for
transportation made it impossible to compete with mills at Sacramento and other
river points. These conditions have continued to hamper the .growth of Yolo
county until within very recent times. Now, with sufficient electric power and
reduced transportation rates, through competition, Woodland is making good in
manufacturing, as is proven by the success of its large flouring mills, which
are conducting a profitable business aggregating in volume $50,000 per month
from their output.

   With the opening of the first railroad mentioned quite an impetus was given
to business and to grain raising. A strong market for grain was immediately
developed. At the time a very large proportion of wheat was taken from San
Francisco to Liverpool in sailing vessels. During the harvest time San Francisco
bay was filled with vessels awaiting cargo charters, and at times the
competition between vessel owners was very sharp. Charters were bartered on the
exchange, and often big profits were realized by speculators. The prices to be
paid for grain were largely determined by the price paid for the charter. When
the ship was loaded it was quite the custom to sell the cargo before it was
cleared; very often it was sold when afloat, prior to its arrival at
destination. Generally payment was made by a ninety-day bill drawn against the
consignee. The banks realized a profitable business discounting these bills for
the cargo sellers, thereby furnishing them capital for new ventures. There was
an undoubted element of chance in the purchase of cargoes, as the market was
bound to fluctuate between the time of selling and marketing. I have in mind one
local speculator who practically bankrupted himself by floating cargoes and
speculating on the price to be realized at time of arrival at destination.

    There were many grain brokers in San Francisco, and they established
purchasing agencies at all points in the interior where grain was marketed. When
tonnage was plenty and charters were low the rivalry between these men was very
keen, often the price of wheat was forced up $4 or $5 per ton within a few days.
The ships were chartered and unless immediately loaded there was a heavy
demurrage charge imposed at the docks.

    With an active demand, the temptation of the producer was to hold his grain.
To speculate is a characteristic of the Californian. The habit was undoubtedly
formed during the time of intense excitement when such great fortunes were won
and lost in mines. Mr. Friedlander was the king of all grain operators in this
day, and many farmers were indebted to him for prices paid in advance of the
market. He had a perfectly organized connection with all parts of the state and
handled a large proportion of the grain raised.

    Among the pioneer agents in Yolo county were Frank S. Freeman of Woodland,
Laugenour and Brownell of Knight's Landing and William Dresbach of Davisville.
The latter achieved fame and reaped disaster from his attempt, assisted by San
Francisco capital, to corner the wheat market in California. The losses were
enormous, but the money lost was distributed among the farmers, to whom he paid
prices for grain away beyond what the market would justify. Laugenour and
Brownell were advantageously situated at Knight's Landing, on the banks of the
Sacramento river, from which point grain was shipped to tidewater on immense
barges in tow of steamboats, at a much reduced freight rate. All of these men
had warehouses for the storage of grain, from which they realized handsome
profits. While a good proportion of grain was stored in these local warehouses,
a large quantity was shipped for storage to tidewater. There were certain
advantages. These houses were generally recognized by the grain exchange. When
stored the grain was graded, and the storage receipts of the better quality
passed in the stock exchange. Then the grain was on hand for immediate shipment,
and it was well known that the moist coast atmosphere increased the weight.

    In active times great difficulty was realized in obtaining cars for shipment
from the interior. At such times there was no market for grain stored in the
interior. Since the robbing of the warehouses several years ago of grain stored
from the interior by the Eppingers at Port Costa but little grain has been sent
to the coast for storage.

    Yolo county was at the time a distinctively grain-raising section and
profited greatly. Money began to accumulate, and most of it was sent to
Sacramento banks. Some of it was deposited with merchants. Laugenour and
Brownell of Knight's Landing and F. S. Freeman especially can be called to mind
as custodians of quite large amounts from time to time. The necessity arose for
a local bank. The first steps were taken by John D. Stephens, a pioneer settler
on the Gordon grant, who with his brother owned large tracts of land. Stock to
the amount of $100,000 was easily subscribed, and immediately following, in
November, 1868, the Bank of Woodland was chartered. In the February following
its doors were opened for business. This bank is yet in existence; from time to
time to meet increased business requirements its capital has been increased. At
this date it has a paid-up capital of $1,000,000 and an accumulated reserve of
$250,000. Mr. Stephens was elected its president and F. S. Freeman its
vice-president. The latter immediately transferred his business to the bank and
remained a valuable customer to the time of his death. His memory is treasured
by many of the old settlers. He carried in his store everything required by the
farmers, from grain bags to machinery, and it was not uncommon for him to carry
debit balances from year to year to protect his customers from failure, often to
his own disadvantage, as his personal fortune was moderate. For fourteen years
the Bank of Woodland was without opposition and prospered greatly. With
increased demand for grain, local brokerages multiplied; Messrs. Laugenour and
Brownell removed to Woodland. Mr. Brownell became associated with A. J. Hall and
C. T. Bidwell in the grain business. Mr. Laugenour opened a loan office for the
employment of his own fortune. C. S. Thomas, formerly of Knight's Landing,
associated himself with W. G. Hunt of Woodland.

    Notwithstanding the fertility of its soil, the development of the county was
very slow and from one decade to another there was no appreciable increase in
population. Lands were farmed in large tracts, and the policy of the owner was
to buy out the holdings of his neighbor rather than to sell. In time the old
vineyards of Mission grapes began to disappear. They were supplanted by many
imported varieties, which had value for shipment and drying, and many vineyards
were planted to grapes suitable for wine. It may truthfully be said that in this
industry E. B. Blowers was the pioneer, and by his knowledge and advice, freely
given, added greatly to its development. Mr. Blowers is said to be the pioneer
raisin maker in California. His muscat raisins brought a gold medal at the
Centennial exposition in Philadelphia in 1S76. On his place he dug large wells,
which demonstrated the fact that there is underlying the surface of this section
an inexhaustible supply of pure water.

    The county also became known as a section peculiarly adapted to the raising
of livestock. In different lines of this industry Yolo county men have achieved
national reputations. This became and continues to be an extensive and
profitable pursuit. Frank Bullars was the pioneer in fine sheep raising. Long
since deceased, his sons are now conducting the business. William B. Gibson was
the shorthorn cattle man; he, too, has departed this life, but his son, T. B.
Gibson, accumulates each year a string of prizes captured at various stock
exhibits. George W. Woodard was the horse man. Horses bred by him have made
reputations in all parts of the country. Dr. H. P. Merritt dealt in and reared
mules and jackasses and accumulated a large estate.

    Among the most notable of local business men was A. D. Porter—undoubtedly
the most public spirited resident of Woodland. For many years he conducted a
profitable grocery business, and as his fortune accumulated he invested large
portions of it in Woodland property; he is recognized as the largest property
owner in the city. In the year 1883 he conceived the idea that another bank was
needed. His idea was that it should become a popular institution, and he started
out with the determination that stock should be subscribed in every section of
the county and that no single subscriber should be allowed more than $10,000 of
stock. Three hundred thousand dollars was subscribed within a short time. The
bank was immediately incorporated under the name of the Bank of Yolo and opened
for business May 31, 1883. Dr. H. P. Merritt was elected president and W. W.
Brownell vice-president. In due time, with his indomitable energy, Mr. Porter
organized the first savings bank in the county, known as the Yolo County Savings
Bank, in which institution he accepted the position of president. The bank now
has upwards of $1,000,000 of deposits. In 1893 the Farmers' and Merchants' Bank
was organized, principally through the energy of Hon. M. Diggs, Hon. R. H.
Beamer and Dr. George H. Jackson. This institution was afterward reincorporated
under the national system as the First National Bank of Woodland, and it
maintains under the same management the Home Savings Bank.

    Like all new countries, all new enterprises developed slowly in Yolo county.
It required years of infinite patience to make the raisin industry profitable;
markets had to be sought and established. For a time raisins hardly paid for the
packing. There were instances where producers went east with their stock and
peddled them out. Alfalfa hay, too, at times hardly paid for the cutting. But as
the quantity of stock increased and creameries were established and alfalfa meal
mills were erected, the demand became, and is now, great. For several years it
has been one of the most profitable crops.

    As fruit and alfalfa raising began to be profitable there sprang up a demand
for small tracts of land at increased prices—prices which tempted the owners to
sell. In all parts of the county one can now find comfortable homes on small
tracts of intensely cultivated lands. The owners are thriving because the
cultivation has become diversified. During the wheat era the land owner had
money only once a year, when his grain was sold. Now there is a continual stream
of money coming to him. Twice a month he draws his creamery check. The Woodland
creamery alone distributes $125,000 each year to the dairymen, and there are
several competing creameries. The land owner also has proceeds from eggs and
chickens and hogs sold, besides the five crops of alfalfa cut each year from his
hay field under irrigation.

    Referring to irrigation, James Moore was the pioneer irrigator in the
county. He was a man of great determination and tenacity of purpose. He secured
water rights on Cache creek and erected and maintained ditches for irrigation to
the limit of his means. For years he was litigating with claimants above him on
Cache creek, but finally obtained his undisputed titles. After his death his
interests were sold to a corporation known as the Yolo County Consolidated Water
Company, which company has in turn sold to others of sufficient capital to make
this one of the finest irrigating systems in the country. I say this advisedly,
because the Cache creek possibilities for irrigation have been pronounced by
government experts to be the most satisfactory of any in the west. This creek
has its source in the large body of water in Lake county known as Clear Lake.
The creek divides the county into two nearly equal parts and the lands slope
from the creek to the north and south, making it possible to irrigate nearly
every portion of the county east of the foothills, and much of it lying in the
valley of the mountains. The creek furnishes water for irrigating each year
until July 1, independently of dams; at this time the new company is erecting a
large concrete restraining dam which will furnish water at any season of the
year. In addition it is generally understood to be the intention to furnish
water for power.

    There are now in Woodland six banks including a savings bank recently
inaugurated by the Bank of Yolo.

    The following is a condensed summary taken from the sworn reports under date
of August 14, 1912: Capital stock fully paid, $2,602,100; reserve fund,
$573,025; deposits, $3,682,741: total of capital and reserve and deposits,
$6,857,766.

    The population of the city is probably a scant four thousand. The banks will
therefore be holding in money an amount equal to $1700 for each inhabitant. In
the town of Winters, in the southwestern portion of the county, there are two
banks, and in the town of Davis is a branch of the Bank of Yolo.

    Davis has recently come into public notice as the site for the State
Agricultural School. A commission after inspecting lands in different sections
decided upon the location at Davis. It is an exceptionally fine body of land.
Fertility of the land considered, and climatic conditions, the judgment of
experts is that this will become one of the best schools in the country. At this
session there are enrolled one hundred and fifty pupils.

For many years it has been the dream of citizens of Woodland that the city would
be connected by rail with Sacramento, lying eighteen miles to the east. Many
years ago John D. Stephens started a subscription list to build from the head of
Cache creek canon through Woodland to Sacramento. A large amount of money was
subscribed, but not enough to carry the plan through and it was abandoned. At
the time the physical difficulties were almost unsurmountable, because of the
flood waters and primitive methods employed in construction. Nothing could be
considered but steam roads. Electric roads were not dreamed of.

    A little more than a year ago the local banks were approached to furnish
money by purchasing bonds which were to be laid upon a proposed electric road
extending from Woodland to Sacramento. In the judgment of the financiers of
Woodland there could nothing else occur which would so greatly stimulate the
growth of Yolo county or contribute to the advance in land values. The
proposition was a serious one because the Yolo flood basin would have to be
trestled for a distance of two miles, and extensive levees would have to be
erected and fortified to resist the current of the great body of water which
fills the basin each year.

    It was estimated that more than $750,000 would be needed to complete the
work, but a company of San Francisco capitalists agreed to complete the road and
equip it if subscriptions could be obtained for this amount in bonds. The Bank
of Yolo, the Bank of Woodland and the Yolo County Savings Bank were the initial
subscribers for large blocks of the bonds. They were firm in the conviction that
the investment would prove profitable. In a short time the balance of the bonds
were sold and construction begun. On July 4, 1912, the road was so nearly
completed that it brought several thousand people from Sacramento to celebrate
the day in Woodland. Since then it has a good deal more than paid expenses
—interest charges, and sinking fund requirements—and has ,given the residents of
the two cities an hourly daily service, the trip consuming about thirty minutes.

   As was anticipated, business has been stimulated by this enterprise, and the
prospects of Woodland and the county generally are brighter than at any previous
time. Extensive improvements are being made in Woodland in public and private
buildings, streets are being macadamized, and the sentiment is decidedly
optimistic Within three years the best lands have doubled in value, yet the
demand for the same is increasing. Beet culture has done much to stimulate
values. There are possibly six thousand acres under cultivation, the yield has
been good and of exceptional quality. Through the example set by beet men, many
fine wells have been developed for purposes of irrigation by electric power in
different sections of the county. The near future promises cheap power, as
several power companies are headed for Yolo county and are seeking franchises.
With but one disastrous exception we have escaped booms, but are confident of a
bright future and are firm in the convictions that lands are reasonable at their
present values.


Additional Comments:
Extracted from

HISTORY OF YOLO COUNTY CALIFORNIA
WITH
Biographical Sketches
OF
The Leading Men and Women of the County Who Have Been Identified With Its Growth
and Development From the Early Days to the Present

HISTORY BY
TOM GREGORY
AND OTHER WELL KNOWN WRITERS
ILLUSTRATED COMPLETE IN ONE VOLUME

HISTORIC RECORD COMPANY
LOS ANGELES, CALIFORNIA [1913]


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