Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-06-29
HISTORY OF A BOOM.
Rise and Fall of a Visionary En-.
terprise That Resulted In
RUIN TO MANY WORTHY PEOPLE.
Business Principles Disregarded in q
Scramble for Filthy Lucre.
REAL ESTATE HoIsTED OUT OF SIGHT.

The story of the panic of 1873, so far as it
touched real estate in this vicinity, has
never been told Three or four years before
the period in question corporation, the
title of which it is unnecessary to mention,
went into operation in Pittsburg under a
blanket charter which covered banking,
railroads, real estate, and, about everything
else that could be bought and sold.
Among the stockholders, who numbered
probably 1000, were many of the best men
of the city, the majority of whom were
boomers. overruling the conservative minor
ity on every point. 1t was in dourishing
condition, so tar as could be judged from
surface indications, when the panicswooped
down upon the community.
$50
A year or two before the crash
the officers of this institution thought
they saw millions in real estate, somewhat upon
the principle, perhaps, that influenced Colonel
Sellers, in placing high valuation upon his
eye water, and they bought up large quantities
of vacant land along the lines OF the principal
railroads and in the immediate vicinity OF the
city, which they laid out in thousands of lots,
and to which they drew attention by liberal
advertising. brass bands, free lunches and lin
itless quantities of lager beer.
The scheme worked so well that in short
time hundreds of lots were sold on small pay
ments and long time on the balance. A large
number of houses were soon put up and occu-
pied and arrangements made for great many
more. In many cases values rose TO almost
fabulous heights.
Now for the sequel. In the midst Of this ap-
parent prosperity, at the very climax of the
boom which was expected to lift hundreds of
people from poverty to afauence and make
their last days easy and comfortable, the panic
came. ''Oh. what fall, my countrymen n
Trouble came thick and fast Creditors be-
came clamorous for their money, mortgages
were foreclosed, suits lnnumerable instituted
against the officers and stockholders of the cor
poration, many Of whom lost all they had.
Some of these suits are still pending. and are
likely to be left as legacy to the next genera
tion.
So rose and fell rainbow-chasing scheme,
which was entered upon without due considera.
tion and prosecuted In utter disregard of busi-
ness methods.
This brief account of one of the many vision
ary enterprises of that time clearly shows the
bad effects of a boom.
The experience was costly but necessary to
prevent other and possibly greater disasters,
and Pittsburg people seem to have made good
use of it. Booms are so unpopular here that
the mere mention of them is received with dis
favor. Real estate has recovered from the de-
preston; but there is nothing abnormal in Its
conditions, which are conservative and healthy.
The Committee on Magnetic influence of
Iron and Steel in Locomotives on the Watches
of Engine Runners, consisting of T. W. Gen.
try, James Meehan and Harvey Middleton.
made very thorough and painstaking investi-
cation of the subject. the following being the
more important points of the conclusions at
which they arrived:
We find that the magnetic influence of iron
and steel In locomotives, while it may affect the
watches of runners to a very slight degree, as
rule it does not amount to a serious disturbing
element; and that If a watch is not exposed to
any other more powerful electrical agent than
the ordinary locomotive engine no difficulty
would be experienced in keeping accurate time
pieces.
Your committee in going over the large num-
Der of statements from locomotive runners, are
convinced that much depencs upon the
handling of the watch and the care given 1t by
the man in whose charge it is; and that an infe-
rior timepiece in the hands of careful man is
sometimes more reliable than the finest watch
in the hands of a runner who has no system in
his method of winding adjusting, etc. We
mention this fact as having some bearing on
the various causes of disturbances which the
magnetic shield could not be expected to rem.
edy.
An informal meeting was held on the floor Of
the Exchange after the stock call yesterday
afternoon, in which all theIbrokers present took
part, looking to the enlargement of the field
Of operations. W. ]. Muslin presided and John
Mckee, in a long and forcible speech, ex-
planned the object in view.
He said in substance. that the rules govern
ing stock trading in Pittsburg were too narrow
They should be expanded and liberalized, SO as
to draw in the outside interest, which is now
controlled by the bucket shops in the interest
of foreign corporations. We have remarked,
large number of good securiti es at home,
whose condition can be ascertained at any
time, and this fact, once brought to the at
tention of the people, would secure for them
more consideration than they have been re-
ceiving, Keep money at home and assist ma
terially in giving Pittsburg her proper rank
among the commercial cities of the country.
Pittsburg is full of enterprising men. with
abundant capital. 1t is certain that they will
speculate somewhere. They refuse to operate
under our iron-clad rules, and hence send their
orders TO New York This is detrimental to
the city and has a depressing effect upon local
stocks. Let us open the door to these people.
BY so doing we will benefit ourselves build up
the Exchange, and prevent home money from
being scattered abroad.
His plan is to extend the delivery period to
two weeks, the purchaser in the meantime, by
putting up a margin. to have full control of the
stock, so as to be able to take advantage of any
advance in the market. At the end of the two
weeks he could either take the stock or allow
it to be sold on his account. If it should have
declined his margin would make good the diff
ference. This would give him two chances to
make turn instead of one, as now, and in
stead of paying in full for what he bought he
would only be required to put up small per-
centage of the full value, paying the rest at the
time Of delivery. A manifest advantage of
this system would be that less capital would be
required, less risk encountered, and more
chances to turn the investment to a good ac-
count
1t is thought the adoption Of this plan will
draw in large outside interest and stimulate
trading on the Exchange. A committee was
appointed with Mr.. Muslin as President, to put
the proposition in proper shape for submission
to full meeting of the members of the Ex.