I wrote you a fortnight ago & have since received your letter of 22d April when you were stirred by the grand tide of historical forces swelling & swelling over an inheritance of feudal arrogance. I wonder if you appreciated its strength sufficiently to at once regard the appalling event of Lincoln’s death, as a comparatively unimportant circumstance, an isolated rock on which the surges cave and pitch, but which does not affect the general current. Soon after the news reached us in San Francisco, I went to the Bank & found them full of consternation—vaguely fear[ing] revolutions in the East—anarchy & a dictator. I said I have not the slightest fear of anything of the kind. In the great excitement there [380]will be some passionate incidents, but you are in more danger of them here than anywhere else. And I urged that something should be done at once to turn the excitement in a healthy direction & to guard against tendencies to violence—so much so that the President, walked out. When he returned, he said that I was mistaken, there was not any danger, people were stricken with sadness, but there was nothing passionate or exciteable in their feeling. Three hours afterwards, buildings were gutted & their contents burned in the street on each side of the bank and the militia were called out & held the streets for several days. It was generally believed that New York & Washington had been burned & the military authorities held the telegraph & suppressed the news. How little, even yet, this people knows itself. I have not much faith in Johnson as a Statesman—fear he stands on less solid intellectual ground than Lincoln, but I don’t doubt he will respond to the people & the tide of popular sentiment & popular common sense will steadily rise & rise.

As to the S.F. newspaper your answer seems to be decisive as to a morning paper. An evening paper is less feasible, the best paper at present being an Evening paper, and I think such a paper as you and I would want—to have great commercial influence—must be a morning paper. A weekly New York paper is what we both want. The best paper in the United States, it seems to me, is a California Daily, published at Sacramento—the Union. Its plan is much simpler than that of the New York leading dailies. It has about as much editorial matter as the Post—all leading articles on the more important political matters of the day, and a very large & admirably selected, series of extracts from other newspapers, chiefly Eastern & foreign. It has the largest circulation of any paper in the State & is a very valuable property. It belongs to an association of printers, who employ the editorial corps. I send you two copies taken at random. The Springfield Republican is the next best paper in the U.S.—far more carefully edited—though without talent—than any paper in New York. It must be that careful editorship of the minor departments of a paper—which the Post for instance so much lacks, would in the end, tell. That is what I want to speculate on.

My latest official date from New York is March 5th. No reply to my telegram for funds, but yesterday I recvd a note from Hoy stating that he thought that there would be an issue of preferred stock and reorganization at the Annual Meeting 1st of July, and asking what are your views as to a continuance as Manager? I infer that they would like to drop me or reduce my salary. I think they should do so—the property cannot afford such a salary. I intend to play for a compensation for breaking their contract with me.

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May 30th I do not neglect your request for advice about investments in California, but shall not reply definitely, at present, to it. I am studying it for myself as well as for you. For if I return to New York it will be a question whether I shall leave my money in California. I should probably modify some of the statements which I made to you last year. “Navigation,” which I then considered a peculiarly safe stock, has since advanced very much in value. My investment in it has been a very profitable one, both on account of this rise & on acct of dividends, but I don’t think I should buy it if I were going East to reside, at present prices. The two water-companies which supplied San F. last year, were consolidated six months ago. There seems to be no way in which water can be supplied the city except from the sources which the consolidated company commands except at an expenditure several times larger than was required for the Croton. In fact I can hear of no water source nearer than the Sierras, an aqueduct from which would need to be at least two hundred miles in length. It has not as yet been suggested, and is not likely to be projected in our time. The company has therefore a monopoly, the city is growing, the company is expending largely in the construction of permanent reservoirs, yet has paid a dividend & is expected to continue to pay a monthly dividend of ½ pr ct. Since the consolidation the range of the market has been 50 to 52. It is now 50—48 offered, dividend on investment = 12 prct per an. The largest stockholder & principal hand in the managment is a brother of Governor Low, a substantial, elderly man—a Unitarian gentleman—a most trustworthy business man. He told me in January that he was buying at 50 and increasing his investment in it—being confident that in two years it would rise to par. Against these considerations you have the ordinary contingencies of knavery, peculation & bad management which I think are no greater than in any Eastern stock, but would be more difficult to anticipate and guard against, for an Eastern stockholder. I bought in this at 51 and if I were going East, without intention of useing my capital there, think I should sell other & larger dividend paying stocks, and buy more of it, at the same price or a little higher if necessary.

San F. City bonds, are I believe chiefly held in the East, and seldom change hands in the market here. I think they are safer than New York bonds. The last quotation is for 6 prcts offered 68, which is equal to +9 pr ct. I think you might buy them in New York so as to net you 9 prct pr an. and I should think it quite as safe & nearly as convenient an investment as Eastern R.R. bonds of the best sort. Loans secured by mortgage on S.F. City lots, corresponding in character to Chicago lots in value of security, are worth, steadily, about 1 prct a month—from that up to 3 prct or 5 prct, which is often paid, when of course the security becomes doubtful. I have no fancy for mortgage securities in Cala for there is hardly any such thing as an absolutely unquestionable title. At [382]least, it is not a business which could be engaged in satisfactorily on a small scale.

I believe that Ketchum has sold out my 5/20s which will set free some $5000, for which I shall be looking out safe investments. Before deciding I shall either go to S.F. or [seek] careful advice from there, and I will let you know my conclusion. At present I look to the Water stock with most favor.

A large parcel of stock can generally be bought more favorably than a small one. Please write me if you are favorably inclined in regard to the Water stock & if so what amount you are willing that I should purchase—as by buying for you in the same lot as that I want for myself I can perhaps do better for both.