Los Angeles daily herald., 1889-04-19
E. C. WEBSTER's FAILURE.
A Great Plunger Who Plunged too
Deep by Far

A Great RHumKeE VINO EAuM&eO kOO
Deep by Far.
The marvellous growth of Pasadena
during the past few years has been one
of the wonders Of the age. Energy and
enterprise abetted the glorious climate in
this work. Foremost among the very
best men in tie "Crown of the Valley"
Las been 4. G. Webster. He came there
in the opening years of this decade
when the building of houses was the one
thing all Pasadena seemed intent on.
Being a carpenter, Mr.. Webster soon
found renumerative employment, and
being full of pluck and enterprise, he
soon found better employment than that
at his trade. The story is that he bega n
his great speculation on fifty dollars
which he saved out of his earnings. 1t
has been currently reported that with this
insignificant sum he bonded a lot of
ground which he sold in a few
DAYS, clearing up several hundred
dollars. With this he bonded
larger piece of property for
longer period, which in due time was
sold al very substantial advance. So
step by step he mounted the boom lad
der, becoming richer with each step. He
was plucky plunger, even to rashness.
His name became a synonym OF the
boomer, and all the people of the section
soon knew him well. From holding a
bond on single lot he came to be the
owner of many lots, of whole tracts, OF
blocks, of hotels, and, finally, he built
the big opera house, which is the pride
| of Pasadena. He was into all sorts OF
projects and took hold of every scheme
proposed for the furtherance of the in
| terests of his town. At one time, it is
believed by those who are best informed
about bis affairs, that Mr.. Webster could
have cleaned up his holdings and quit
with full half million dollars in cold
60 n.
! The trouble is that his temperament is
that of the speculator. AS the first $50
had proved go good a nest-egg, he
thought man could not have too many
eggs in the incubator, nor could the fire
| be made too hot. Here is the way OF
the boomer. When he had $50 he
bought $500 worth of property-that is,
he bonded that much. When he had
$500 he held contracts for S., 900 worth
of property; when his gains rose to what
would clear IS 900 be was under obliga-
tions to pay $4,000, and when his pile
rose to the last named sum it would have
taken half a million to pull him through.
Property was saleable at sight, and
Mr.. Webster forgot that there was
limit to the game. There is of course.
When property rose to figure where
there was no further room for greater
speculative expansion, the sales fell to a
more normal degree. Here was Mr..
| Webster's Nemesis. Sales became slow
and his paper was rapidly maturing. For
year past it has been known that he
was heavily overloaded, and that unless
relief came in the way of an active mar
ket, he must come to grief. There is not
much activity in any line of business
in any part of the Union. Real estate
sales here are not consummated at the
rapid rate they were of yore. But notes
will become due, and interest is like the
grass OF the field. 1t grows
while you sleep. Therefore, Mr..
Webster, seeing no hope of escape, has
gone into insolvency. More is the pity,
for Webster is one of the most progress
i've citizens of the section. He, of
course, has lacked the balance which
always saves conservative business men.
He was plunger of the rashest type.
He has always been highly honorable
man, and he claims that he will be able
to pay cent for cent on all his debts.
His statement shows assets as follows:
Value of.real estate e..................$1 .$169. 800
Value of personal property. ............ 33,054
Solvent debts due Linn. .............. 50,56O
Total assets ......................$ .$25s, ,115
The liabilities he shows are:
Due on real estate e....................$1 $151 ,448
| Due on personal prOperty..........., 64,S02
| Total liabilities. es................... $216, $40
There is not pauch margin in the state
ment, but from what is currently report
ed of the real property held by Mr..
Webster, it would appear as if he had
adjusted his affairs to q basis of actual
present value.
1t will appear patent to the dullest
comprehension that Mr.. Webster has
been plucky plunger, by the fact that
he shows creditors to the total number
of 156. How much he was trusted will
appear in the fact that of these $50 hold
no sort of security for what is due them.
Fifty-two hold Mr. Webster's notes for
what he owes them. His plunging pro-
clivities Will be seen also in the fact that
he is at this present time in no less than
seventeen real estate deals.
During the days when the sun was
shining brightly Mr.. Webster enjoyed
life to the full. Among his debts it is
interesting to note that he owes $162. AT
for sugar plums, and that he owes 81 400
for buggy hire. His furniture cost him
s., ,290.37. That Mr.. Webster is in real
straits appears from the fact that
he owes $117.50 for family sup
plies. Mr.. Webster's career for
many months was one of the
most dazzling success. All he touched
turned to gold, as was the case with
Midas. His collapse has not come be-
cause the property he was dealing in
was not good. He was an excellent Judge
of real estate, and all he holds to-day is
worth every cent he agreed to pay for it..
The property is not saleable just now,
and he is overloaded. That is all. His
debts are largely on other accounts than
for real property. He built solid blocks
of brick and mortar, and he owes on
these large sums for the material and
labor. His own home is one of the
most exquisite in Pasadena. 1t cost not
less than $4,000, and nearly all that
went for lumber, brick, labor, cement
sidewalks, fine shrubbery and other
things that do not figure as part of the
boom. He will probably save good
deal in spite of his hard fate. Gould he
but pull out his own home, worth $50, 900,
it would be a good deal to get out Of
so small beginnings; and there is prob
ably not one man in this community