The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-02-05

is remarkable not for the vast "ealeH' oo'
for the huge debts he has amassed.
Francis P. Owings-fitting name, that
had about $50 ten years ago. Today his
liabilities are exactly $5,564,917 If he had
accumulated that sum in decade ne
would be worthy of much study and de-
scription, but considering how much more
difficult it is to owe money than to make
it he easily takes first rank in city noted
for its remarkable financiers
The story of the man who deals in DEBTS
splendidly, and who has failed on the
most magnificent scale yet known, is
part of Chicago history. Francis T. Ow-
ings is the man who originated the IDEA
of using the ninety-nine-year lease as a
basis for building operations. He in
vented the process, coined the idea, SO 10
speak, and put up at least thirty oul!o-
ings in the business district of the city.
For ten years the theory which ne orlsl-
mated controlled real estate values In the
downtown district and led to. the erection
of three-quarters of the skyscrapers In
Chicago.
Owings started practically without
dollar. A few years ago he operated
roller skating rink. Then he got options
on some leaseholds. and presto! the
thing was DONE Francis P. Owings went
up like a rocket. There are people VINO
think that his business career will not
end with going through the bankruptcy
court successfully. He Is a born pro-
moter.
Hes quick as chain lightning"
"Shrewdest fellow 1 ever saw Has a
- MAILING q for
tune"
These are few of the expressions that
business men use when they speak of
Francis P Owings. 1t is said that he can
today, as soon as his affairs are straight
ened out, secure unlimited backing for
fresh start.
The man who Is now petitioning to be
released from over 100000 debts is clerk
ing in brokers' office on the second floor
of the Stock Exchange building. When
correspondent called there owings sat
on a high cane seat in little pen back
of wire grating, adding up long col
umns of figures in a greasy ledger.
rs Mr.. Francis P. Owings in?" asked
the correspondent, thinking that man
who could get in debt for $5,000,0OO must
be at least six feet tall and weigh 200
pounds
MY name is Owings,' said the clerk be-
hind the screen, stopping a moment and
marking the place in a row Of figures
with curious weakened, knotted brown
finger. At a glance Owings Is very
small, yellowish-brown man, who wears
his short black hair parted a little to the
side of the middle of his head, and who
has pair Of sharp, dark ferret eyes. De-
spite what are admitted to be brilliant
abilities as a f1nancier, the little man
looks like a very clever lightning rod
agent. He wore a purplish colored coat,
red tie, and was very intent on his led
ger.
This is the man who helped to build
Chicago and who probably put up more
downtown buildings than any other one
man. He came to Chicago in 1879, and,
according to an old real estate man, his
first building operations were on Franklin
street. 81 have heard it said,'' remarked
the dealer in real estate, that Owings
built the OWings building, corner of Dear
born and Adams streets, on $40 note.
That is a mistake Owings put up his
Franklin street building on less than $50.
times when a shrewd promoter could sell
his ideas for a good deal. Owings Sc
cured the leasehold and induced some
man to loan him money on that. When
he got ready to put up second build
ing he took in partner Mr.. Bridges, OF
the South town board. l loaned them $780,
900, and they built on Fifth avenue, and
after that Owings put up the Indian
building, southeast corner of Monroe
street and Fifth avenue, the only speci-
men of Indian architecture in the country.
1t was sort of superstition, [ believe,
as well as a matter of pride with Owings,
to have every structure he put up bear
his name. At one time there were thirty
OWings buildings in the downtown dis
trict.
"What about the Owings building which
is now the Bedford corner of Dearborn
and Adams streets?''
THAT was the beginning Of his fall,
rather than of his rise, as is gen.
orally supposed.
about that time the ninety-nine-year
lease on downtown lots came to stay.
Property was going up, up, and nobody
could predict what it might be worth in
another thirty days. Owings was the first
man to see that man could secure one
Of these leaseholds and borrow money on
1t to put UP a building. In short, he
originated brilliant financial scheme,
and it made the fortunes of scores of
men who are rich today. And, on the
other hand, 1t was based on an uncertain
value, SO far as Owings himself was con-
cerned, as the buildings were put up on
wind, so to speak, and the proposition
wouldn't hold good to the extent of CIV
ing him profits. In those days the policy
was considered sound, but now it isn't
although it was always legitimate. This
in general was the method by which Mr..
Owings could put up skyscrapers on $50
notes, or, at least very little money, and
often realize a handsome return for all
concerned. He secured an option In a lease
for thirty days, putting up 500, so the
story goes, to bind the option. Then he
would say to a man who had money to
invest: 1 have here one of the finest
leaseholds in Chicago. 1t is increasing in
value all the time l can put up an office
building on it which will bring in an In
come of over $4,000 year. Lend me the
money to erect the building and take the
leasehold and building as security
when an uninterested expert was ask
ed about the project he would say: Yes,
the rent roll can be made easily $50, 600,
and the building can be put up for the
money named So up It went, and ex-
penses and income, for the purpose of
illustration, might be figured about this
way-$100OO annual ground rent, $40, 600
interest on money invested, SIS, 900 fixed ex-
pense: total annual expense, $25, 000 Sub
tract this from a rent roll Of $4,000, and
you have $4,000 profit left for the pro-
moter. That's an ingenious but straight
proposition, and a great deal from finan-
cial standpoint. But 1t was even better
than that. The owner of a SEE, 900 income
is drawing interest on 100000, so he has
an equity worth that much. He can sell
that equity and get out Of the deal with
n H.