CHAPTER 10

GIRARD ESTATE[1]

When Girard died in 1831 his Estate was valued at about seven million dollars, the equivalent of approximately $30 billion in 1999 money. He decreed that no more than two million should be used to build the college. Another half million was willed to various causes and family. The remainder of the assets including real property and investments was intended to sustain the cost to operate the College. He also said that none of his holdings were to be sold and the revenue from them was intended to sustain the college. Today the estate is valued at about $400 million. Should it be more? Is the Girard legacy in trouble? Are there sufficient funds to sustain the College? If so, for how long? Could the Trustees have done a better job in administering the Trust? These are important questions because the answers involve the future of the Girard legacy.

Between his death in 1831 and 1860, the estate’s growth was slow and unimpressive because the governing body was constantly changing because of political affiliation. Most of the increase came from rental fees from the numerous properties. Beginning in 1860, the coal mining lands were leased. Mining increased because coal was replacing wood as the main source of fuel. Royalties were received from each ton of coal shipped from the estate-owned land. In 1869 the State established a permanent Board of Director’s of City Trusts and the estate began to grow rapidly. Between 1880 and 1930, the total value, real estate and financial investments, rose from $6.3 million to $89.5 million. Table 1, Girard Estate Statistics, charts the increase in residuary value, excluding the worth of the real estate.

Today the College and the Estate is controlled by a Board of Directors of City Trusts. Appendix C of the 1870 Board report explains the following evolution of the Board from the death of Stephen Girard. The City supervised the construction of the College through a Building Committee appointed by the City Councils. When construction was completed, management of the College was turned over to a Board of Directors appointed by the City with each member to serve no more then four years. However, control and administration of the property and the Trust was retained by the Councils through a committee designated the “Committee on Girard Estates”. This awkward arrangement existed until the State Legislature passed, on September 2, 1869,[2] an act that created the Board of Director’s of City Trusts. The discharge proceedings of President Smith revealed that the Board’s two political parties fought over every action involving Girard College and control of the Board depended on who controlled the City Councils. The reports also reveal that the constant membership changes retarded the growth of the Estate. “Frequent and violent political changes in the City government induced partisans to use sacred trusts to a greater or less extent for party patronage. The tried officers who had become familiar with their duties were removed and replaced by professional politicians who were compelled to pay a percentage on their salaries to the dominant political organization, and to employ mechanics who were influential in the party. The most rigid party rules were also applied by Council to Girard College, by removing every director who did not belong to the dominant party. As no nation, nor state, nor city government could long survive under such a rule, so the usefulness of the College was being curtailed and imperiled by it.”[3] These actions led to the State act passed in 1869.

The act designated that the new Board consist of 15 people, including the Mayor, the Presidents of the Select and Common Councils and twelve citizens living in Philadelphia, selected by Board of Appointment consisting of judges from the Pennsylvania Supreme Court, District Court, and Common Pleas Court of the City. The members would serve for life “during good behavior” subject to removal only by two thirds of the Board of Appointment. Not wanting to lose control of the College, the city challenged the Act on the grounds that the State could not dictate matters of this type. The Act was found constitutional and implemented. Between 1869 and 1930, Board members voluntarily retired or died in office and the average number of years serving on the Board was fourteen.

In 1870 the new Board immediately initiated contracts to build additional houses and buildings on the Estate’s properties so their rentals would help expand and sustain the Estate. In 1870, eight houses were built on 6th Street, below Brown, and they cost an average of ten thousand dollars to build and were rented for between a thousand and twelve hundred dollars a year. Three dwellings on Chestnut Street were converted into stores and together they rented for $13,000. In 1871, 11 houses on Marshall Street between Brown and Coates were nearing completion. In 1872, ten houses were being built on the east side of Sixth Street and two on the west side. The 12 houses cost $143,000 to build and were expected to produce $14,000 in yearly rentals. Another row of houses was being built on Fifth Street and Brown, and on the east side of Fifth Street north of Chestnut. The Estate owned the entire front on Marshall Street from Coates to Brown. In 1873, the building of rental houses continued. At least four rows of houses had been built between Coates and Brown Streets and many on Fifth, Sixth and Marshall Street. A bank was built and rented at Chestnut and Ranstead Street. The bank was designed by James H. Windrim, the Architect for the Estate and a Girard College graduate. By the end of 1874 the Estate in the City “comprises two hundred and thirty buildings, three piers or wharves, and five hundred and fifty acres of land in the southern portion of the city waiting for development in the near future”.

In 1875, the Estate enlarged Pier No. 3 and stores were being built in the 1100 block of Chestnut. A building was being erected on Hudson Street, in the rear of the Girard Bank, to be rented to the Board of Brokers. An economic depression occurred in 1878 that caused the Estate to reduce rents and curtail expenses. In spite of this, two additional blocks of offices were built south of the Girard Bank building on Third Street and the house on the corner of Girard and South College Avenues was purchased to prevent “undesirables” from living near the entrance of the college.[4]

By the end of 1879 the Estate owned 275 buildings/houses that were rented at various rates from $225 to $18,000 per year. Most of the houses had been built since Girard’s death. In Schuylkill and Columbia Counties there were eleven coal collieries in operation under ten leases. According to the 1879 Board report, the first coal removed and sold commercially from the Estate’s mines occurred in 1863. That year 40,788 tons were sent to market. In 1879, the amount marketed was 1,600,000 tons and royalties grosses $463,644. The Estates coal mines were leased with a royalty of forty cents per ton and progressed to fifty-four cents. Three- fourths of that was reinvested “in the real property in the City, so as not to diminish the fund upon which the support of the College must ultimately rely when these lands shall have been stripped of their mineral resources.” The Estate also owned 2,511 acres of land in Kentucky[5], that were mostly woods of little value.

The security of the Estate owned house at the corner of Twelfth and Girard Street

(Girard Street is a small street just south of Market Street.) was improved in 1882 and all the deeds and Trust of the Estate were moved to that building while nearby a building was being constructed in which the Board’s offices would be located. The following table reflects the properties owned by the Estate in the City of Philadelphia in 1882.

LOCATION OF GIRARD ESTATE PROPERTIES IN THE CITY - 1882
LOCATION	ANNUAL RENTAL
Nos- 306 8-10-12 S. Second St.	$2,450
Comptroller St., (11 houses)	$2,875
Nos. 206, 326-28-30-32-34 Spruce St.	$3,400
No. 106 to 136 South Third St.	$27,855
Building N. E. Cor. of Harmony and Hudson Sts	$6,870
Philadelphia Stock Exchange, 125 Hudson St.	$5,560
Nos. 304-6-8, 433-35-37 Chestnut St.	$28,200
Nos. 1101 to 1131 Chestnut St., (16 stores)	$56,000
Girard St., from Eleventh to Twelfth, (40 houses)	$33,839
Market St., From Eleventh to Twelfth (22 stores)	$32,812
Nos- 31, 33, 35 S. Eleventh St.	$2,900
No. 119 N. Eighth St.	$900
No. 3 Winfield Place	$225
Nos. 19, 21, 23 , 25, 27 S. Fifth S	$6,525
Front St., above Market, (11 stores)	$13,563
Nos. 103, 105, 107, 109, 111 Church St., (5 stores)	$4,900
Nos. 25, 27 Hudson St.	$850
Water St., above Market, (11 stores)	$19,800
Delaware Ave. above Market St., (5 stores and 3 piers)	$18,100
Fairmount Ave., from 5^th to 6^th St., (14 houses)	$6,100
Lot N. W. Cor. 6^th St. and Fairmount Ave.	$1,815
North Side of Brown St., from 5th to 6th Sts. (12 houses)	$6,300
South Side of Brown St., from 5^th to 6^th Sts. (4 houses)	$2,400
Fifth St., Fairmount Ave. to Brown St., (10 houses)	$7,800
Sixth St., Fairmount Ave. to Brown St., (18 houses)	$13,650
Marshall St. Farimount Ave. to Brown St. (11 houses)	$6,150
527 Acres of land in 1^st and 26^th Wards	$8,228
Total Rent	$320,067

This list was attached to the 1882 Board Report and strangely “Girard’s Farmhouse” is not listed. The 587 acres of land in the 1st and 26th Wards is mentioned but not the farmhouse(s) on that land. Also, attached to this report is a list of the Estate’s 14 farms in the 1st and 26th Wards. The location of the farmhouse would have been in what the report calls “Farm No. 4--Between Porter and Johnston, and Twentieth and Twenty-fifth Sts. containing 65 acres.” Could it be that the farmhouse, if there, was considered so insignificant that it was not mentioned? Perhaps it is not mentioned because it was not revenue producing. What makes this more puzzling is the fact that a 1909 newspaper article reads “Old stonehouse in the Neck razed for improvements and to make way for new buildings. Famous landmark was once the house of Stephen Girard. The Stonehouse was built in 1756 by Thomas Willing. A short time later he sold the place to Stephen Girard. According to tradition in the neighborhood, it was one time used by the great merchant as a residence and is still owned by the Girard Estate. They are directing the work of razing the building.” The article indicates that the house was vacant for the last fifteen years and that in the past it was used at various times as a residence, a factory, storehouse, blacksmith and during the Civil War it was a prison for Confederate prisoners-of war. The house stood on Stonehouse Lane, near Front Street and Packer Avenue and would have been in Farm No.13.

In 1883, the old Girard Bank was completely renovated inside and rented to Peoples Bank. The Girard Estate offices that had been at 19 S. Fifth Street were moved to 1138 Girard Street. On December 27, 1886 the Estate took possession of the newly completed building at Eleventh and Market Street. This department store was built to be rented by Hood, Bonbright and Colonial, who later were bought by Snellenberg’s Department Store, and the building was described as “the largest and most imposing of its kind in the city”. Six other stores were being built in that block[6] and cost the estate a half-million dollars, a great amount of money in those days.[7] By the end of 1890, that block, 11th to 12th of Market Street, was nearly completed. Nearly all the store were rented and construction of the new Reading Railroad Terminal, across the street, was expected to make the new stores the most valuable rental properties in the city.

In 1889, the real estate holdings within the city produced huge rent money,$396, 302, the largest ever. Also, “the income from the 35,407,710 tons of coal shipped this year has never been equaled in the history of the trust”. Also, this year the Estate began building homes at 25th and Poplar Street, a five acre section of the Peel Hall farm that was not enclosed within the College wall. Construction of these beautiful row houses continued into 1892 and they were in such demand that they were leased before they were completed.

A detailed map of the Estate’s south Philadelphia farms is appended to the 1890 Board report. In the area of today’s Girard Park, the map shows a cluster of nine buildings, one I assume to be today’s Farmhouse. Near 22nd and Ritner there is a cluster of five buildings, including a large furniture factory built by the Estate and rented in 1890. That factory was the first construction since Girard’s death, in south Philadelphia. At 28th and Ritner there is another cluster of four buildings. Near 23rd Street and the Naval Base there is a cluster of 6 buildings. Near 3rd and Shunk there are two buildings. None of these buildings were ever included on the list of rental properties attached to earlier Board reports.

In anticipation of developing the south Philadelphia farms, the City began building new streets and installing utility lines in 1892. Also in 1892, the first electric lights were placed on Delaware Avenue and Front Street, paid for by the Estate. Conforming to Girard’s Will, large amounts of money were spent each year removing wooden buildings in the city and maintaining Delaware Ave and adjacent streets.

In 1894, the eastern boundaries of the farms at 17th and Porter were “square off” by additional purchases to configure the presently owned properties to the new streets being built. The 1895 report is the first since Girard’s death to mention his “country residence”, what we today call the Farmhouse. The city intended to confiscate 26 acres of the Estate to be set aside as a park. Instead, the Board suggest that it would develop Girard Park which would “contain the country residence of Mr. Girard”.

In 1894 the Estate was valued at $14.5 million but revenues had decreased because of a country wide major depression. Between 1863 and 1895, the receipts from the 32 million tons of coal shipped from the Estate’s coal lands amounted to $11.2 million. It was the coal revenues that enabled additional construction in the College that led to the school’s dramatic population increase (Refer to Chapter 4).

In 1896, construction of the thirteen story Stephen Girard Building at Girard and 12th Streets began and when completed it was expected that the Board’s offices would move there from 120 S. Third Street, the building rented to the Girard National Bank and formerly the banking house of Stephen Girard. The new building was designed by James H. Windrim, a Girard College graduate, and the contract was awarded to Doyle & Doak.[8] The Stephen Girard Building formerly opened on December 18, 1897 and it was nearly completely rented. The Board moved to the new Stephen Girard Building on November 21, 1898.

A fifteen year lease, to commence Jan.1, 1898, was granted to Snellenburg & Company to operate a department store in the Estate’s 1120-1142 Market Street building. The demand for anthracite coal declined and most of the mines were worked less than half of the year. Chestnut, Pea, Buckwheat and Rice coal had become more popular and were being shipped from the Girard mines.

The Estates impressive Mariner and Merchant Building was completed in 1901 and a power plant for all the Estate’s buildings in today’s Society Hill area was placed into operation. Also, inside renovation work began to the Bank of Stephen Girard, then rented to the Girard National Bank. In 1903 the Estate bought the nearby four story Frederick Brown Building, at the corner of Fifth and Chestnut.

In 1903, plans were drawn for the first homes to be built on the south Philadelphia farms. They were intended to be built on the north side of Porter Street from 17th to 18th. Eighteen semi-detached house, the first built in what became know as the Girard Estate in south Philadelphia, were built in 1906 and addressed 1701-1735 Porter Street. Most were rented before they were completed. Another row of houses, 1801-1835 Porter Street was being built in 1907. In 1908 ninety-seven new houses were being built on Porter and Shunk Streets and on 17th, Colorado, and 18th Streets. All of the homes in the project would receive their electricity and heat from a central heating plant that the Estate was building at 20th and Oregon Avenue. In 1909, an additional 72 homes were being built between Porter and Shunk Streets on Cleveland and 19th Streets. With the completion of these homes there would be 205 houses in south Philadelphia that cost the Estate approximately $715,000 to build and their rents were expected to yield $85,000 annually. In 1910 Garnet, 20th and Shunk Streets where completed and at year’s end 281 were completed or near completion and plans to renovate Girard’s farmhouse were being made. Near 20th and Shunk Streets a lot was selected for a Free Library to be construction using, like all Pennsylvania libraries, Andrew Carnegie funds.

Another 54 homes were built in 1911, bringing the total to 335. In 1912 building continued and the number of houses would soon number 371. In 1913 rentals for 316 completed homes amounted to $174,126. Houses were beginning to be built on the four streets facing Girard Park and in 1915, Girard Park was finally completed and the Board was still talking about renovating the farmhouse. The completed south Philadelphia Girard Estate housing development contained 404 two story houses, 77 three story houses, a store, and flat-house building. They yielded $419,238 yearly in rents. The garages were built in 1930. As of this writing, 1999, only the garages still belong to the Estate.

Every year the properties of the Estate continued to grow. The 1905 report presents a detailed financial statement for the properties listed in the following table.

Properties Belonging to the Girard Estate in Philadelphia in 1905

306 to 312 S. Second Street	four-story brick stores and dwellings.
217 Delancey Street	1 three-story brick dwelling.
301, 307 & 309 S. Philip Street	3 four-story brick dwellings.
315 S. Philip Street	1 two-story brick factory
304 to 314 S. Philip	6 four-story brick dwellings (tenements)
206 Spruce Street	1 four-story brick dwelling (tenement)
326 to 334 Spruce Street	6 four-story brick dwellings
3rd and Chestnut Streets	Mariner and Merchant Building
116-126 S.3rd Street	1 three-story marble bank building
132, 134 & 136 S. 3rd Street	3 four-story office buildings
	with a two story printing office in the rear
25 & 27 S. Orianna Street	1 three-story brick factory building.
29 & 31 S. Orianna Street	1 vacant- lot in rear.
125 S. Orianna Street	1 three-story office building
433-437 Chestnut Street	1 four story office building
439-441 Chestnut Street	1 five story office building
23-27 S. Fourth Street	1 four story warehouse
1101-1131 Chestnut Street	16 four story brick stores
1100-1142 Market Street	1 six story department store
1100-1124 Girard Street	13 four story dwellings
23-27 S. 11^th Street	3 four story brick stores
Stephen Girard Building	14 story office building
119 N. 8^th Street	1 three story and half brick store
727 Appletree Street	1 four story brick factory building
10 and 12 N. Delaware Avenue	2 four-story warehouses
14 N. Delaware Avenue	1 four-and-a-half-story warehouse
16 N. Delaware Avenue	1 five-story warehouses
18 N. Delaware Avenue	1 four-and-a-half-story warehouses
9 and 11 N. Water Street	2 three story warehouses
13 to 19 N. Water Street	2 three and a half story warehouses
21 to 27 N. Water Street	4 five story warehouses
2 1 to 25 N. Front Street	3 six story warehouses
27 and 29 N. Front Street	2 five story warehouses
18 to 20 N. Front Street	2 four story warehouses
22 to 30 N. Front Street	5 four and a half story warehouses
103 to 111 Church Street	5 four story warehouses
219-223 Church Street	3 four story warehouses
Piers1 and 2 N. Delaware Avenue	(303 ft. 8 1/2 in. river frontage)
Water lot at foot of Market Street
501 Fairmount Avenue