The National tribune. [volume] (Washington, D.C.) 1877-1917, 1896-06-25
SHERMAN'S MEMOIRS.
A REAL ESTATE INVESTMENT.


900. | then made contract with the
builders, Keyser q Brown, to erect a
three-story brick building, with finished
basement, for about $4,000. This
made $4,000 instead of $4,000, but ]
thought Mr.. Lucas could stand it and
would approve, which he did, though it
resulted in loss to him. After the
civil war he told me he had sold the
building for $4,000, about half its cost,
but luckily gold was then 250, so that
he could use the $4,000 gold as the
equivalent of 100000 currency. The
building was erected; | gave it
my personal supervision, and it was
strongly and thoroughly built,-for |
saw it two years ago, when several
earthquakes had made no impression
on it; still, the choice of site was unfor-
tunate, for the city drifted in the oppos-
ite direction; viz, toward Market street.
| then thought that all the heavy busi-
ness would remain toward the foot Of
Broadway and Jackson street, because
there were the deepest water and best
wharves, but in this | made mistake
Nevertheless, in the Spring of 1854, the
new bank was finished, and we removed
to it, paying rents thereafter to our Mr..
Lucas instead of to Adams e. Co. A
man named Wright, during the same
season, built a still finer building Just
across the street from US; Phoebe, Bay
cirque & Co. were already established on
another corner of jackson street, and the
new Metropolitan Theater was in pro-
gress diagonally opposite US. During
the whole of 1854 our business steadily
grew, our average deposits going up to
half million, and our sales of exchange
and consequent shipment of bullion
averaging 100000 per steamer. 1
signed all bills of exchange, and insisted
On Nisbet consulting me on loans and
discounts. Spite of every caution, how
ever, we lost occasionally by bad loans,
and worse by the steady depreciation of
real estate. The city of San Francisco
was then extending her streets, sewering
them, and planking them with three
inch lumber. In payment for the lum-
Der and the work Of contractors, the city
authorities paid scrip in even sums of
500, $500, ST eco, and $4,000. These
formed favorite collateral for loans at
from 30 to 60 cents Oh the dollar, and
no one doubted their ultimate value,
either by redemption or by being con-
verted into city bonds.
HENRY ME1GGs.
The notes also of II. Meiggs, Neeley
Thompson & Co., etc, lumber-dealers,
were favorite notes, for they paid their
interest promptly and lodged large mar
gins of these street-improyement warrants
as collateral. At that time Meiggs was
prominent man, lived in style in a
large house on Broadway, was member |
of the City Council, and owned large |
saw-mills up the coast about Mendocino. |
In him Nisbet had unbounded faith, but, |
for some reason, feared or mistrusted him, |
and remember that | cautioned Nisbet |
not to extend his credit, but to gradually |
contract his loans. On looking over our
bills receivable, then about 100000, | |
found Meiggs, as principal or indoser,
owed us about SS0,000-all, however,
secured by city warrants; still, he kept |
bank accounts elsewhere, and was gen.
orally borrower. | instructed Nisbet
to insist on his reducing his line as the
notes matured, and, as he found it in
delicate to speak to Meiggs, l instructed
him to refer him to me; accordingly,
when, on the next steamer-day, Meiggs
appeared at the counter for draft ON
Philadelphia, of about $4,000, for which
he offered his note and collateral, he was
referred to me, and / explained to him
that our draft was the same as money;
that he could have it for cash, but that
we were already in advance to him some
SIS, 1000 or $4,000, and that instead of
the amount | must insist on
its reduction. He inquired if | mis-
trusted his ability, etc. | explained GER
tainly not, but that our duty was to assist
hose who did all their business with us,
and, as our means were necessarily linn
ted, | must restrict him to some rea-
,onable sum, say, $4,000. Meiggs
invited me to go with him to a rich
mercantile house on Clay street, whose
partners belonged in Hamburg, and
here, in the presence of the principals
If the house, he demonstrated, as clearly
Is a proposition in mathematics, that his
business at Mendocino was based ON cal
ulations that could not fail. The bill
# exchange which he wanted, he said
would make the last payment on pro-
'eller already built in Philadelphia,
which would be sent TO San Francisco,
o tow into and out of port the schooners
nd brigs that were bringing his lumber
Iown the coast. admitted all he said, q
'ut renewed my determination to limit
lis credit to $4,000. The Hamburg e
irm then agreed to accept for him the 5
,ayment of all his debts to us, except
he $4,000, payable in equal parts for ?
he next three steamer-days. Accord
ngly, Meiggs went back with me to our +