JACOB RICH
Surnames: Rich, Rosenthal, Levy
obituary and biography
contriubted by jchavnar
San Jose Daily Mercury - Monday, January 7, 1901
DEATH OF JACOB RICH REMOVES A NOTABLE MAN
Acquired
Means as Pioneer Taylor and Bought and Developed Street Railroads -
Large Real Estate Transactions - Caught by Panic of 1893
In
the death of Jacob Rich San Jose has lost a notable figure. For almost
half of a century - to be exact for forty-seven years - he had been
active in the business of the community. He was a pioneer in the county
in point of residence and a pioneer in some of the largest enterprises
ever inaugurated here. He was one of the best known men in the valley
and none more sincerely regret his death than the “old timers.”
Came From Poland.
Jacob
Rich was born in Poland, October 15, 1826. When quite young he moved to
Germany, where he learned his trade of tailor and cap maker. After he
had mastered his trade and acquired some little means he moved to
Manchester, England. He did not remain there long, for lured by the
stories of the advantages and wonders of the New World, he sailed for
America, landing in New York in 1851 or 1852. He was there a short time
only, for the stories of the great fold discoveries in California, drew
him west. He came with Herman Levy. The two friends remained in San
Francisco a few months and in 1853 opened a partnership tailoring
business on Market street. The men married sisters, the Misses
Rosenthal.
Prosperous Business.
The tailors prospered
greatly. In those days there were no ready made suits and many of the
grayhaired old men of the valley well remember when they had their
suits made by Rich and Levy in their shop on Market Street. Early in
the sixties Rich had acquired much money and retired from the business
and devoted his time to making loans and other investments. In those
days he was a familiar figure about the Auzerais House, then the
“swell” hotel of San Jose. There he could be found daily playing chess
with some congenial spirit. About twenty-five years ago he was called
to Europe by the illness of his father, whose death occurred while
Jacob Rich was with him. According to Jewish custom he mourned for one
year and ceased playing his favorite game. His friends say that never
since the death of his father was he known to play a game of chess.
Railroad Investments.
But
the active, energetic man grew weary of simply leading the life of a
money lender. He wanted to be in the thick of the business battle and
entered upon the purchase of real estate. It was at this time that he
bought the property at St. John and Third streets, where he built
himself a residence. Soon after he bought the north side horse railroad
and later on the southeast car line. About this time he became engaged
in extensive litigation. Others were interested in the line to Santa
Clara and they were about to parallel the line through the southeast
part of town. After strong contest in the courts he won. Following this
victory the contending interests reached a compromise and all the lines
were consolidated. Bishop had been the owner of the Santa Clara line.
By
this period electricity was being used to run street cars. Bishop went
before the Supervisors and Common Council and asked for a franchise for
an overhead electric system. Great opposition developed and no
franchise for an overhead system could be secured. Instead the
authorities granted a franchise for an underground system. This the
company constructed. In the meantime Mr. Rich had purchased the First
street horse care line from Baker. The underground electric system on
the Santa Clara road failed to work satisfactorily and resulted in a
loss to the company of about $300,000. The road was sold to J.H. Henry
for $230,000.
First Street Road.
Being out of this
venture Rich turned his attention to the development of the First
street property, and converted the road to an overhead electric system.
He always had unbounded confidence in San Jose and its future. He
purchased a vast deal of property about town, generally unimproved, but
valuable land. He extended his railroad to the Willows and south on
First street far into the suburbs. He built the Julian street line, the
Hobsen street line and turned the Seventh street horse cars into
electric cars. The German Savings and Loan Society of San Francisco was
his banker and took up his first mortgage bonds. It was arranged that
when he had built certain feeders and extensions to his railroad this
financial concern would take up $150,000 of second mortgage bonds.
Financial Crash.
Unfortunately
for Rich, as for many others, the great panic of 1893 spread over the
country. Money was scarce and hard to get, no matter what the security.
To complicate matters the President of the German Savings and Loan
Society died and then that bank declined to take the second mortgage
bonds. Rich could not float them. In desperate efforts to keep matters
in good shape he mortgaged everything he had. This delayed the crash,
but it came, and one day about four years ago Jacob Rich went into
court with a petition in insolvency. The road went into the hands of
receivers and was eventually bid in by the German Savings and Loan
Society for $225,000, the amount of the first mortgage bonds.
Rich
creditors got all his real estate as far as it would go toward paying
his debt. It went for vastly less than it had cost him, as there had
been great depreciation in values as a result of the panic and
possibly, of the boom, when values had been inflated. For some months
he had been seeking his discharge from insolvency. One firm opposed
this and the matter remained in the courts. About four weeks ago the
case came up and he left a sick bed to go to court. He was represented
by S.F. Leib, and to his great joy his petition for discharge was
granted.
His financial reverses and business changes preyed on
his mind and worried him much. After he got his discharge he was much
relieved, but his friends say he left the court then and went home to
die. He took to his bed and while his mind was a clear as ever the
organs of his body ceased to perform their functions, and, as the
doctors said, his body had been dead for days even before his breath
left him.
Large Interests.
Aside from his railroad and
real estate investments Rich was interested in other business
enterprises. It is said that he lost $100,000 in the P.O. Burns Wine
Company. He was for years a director in the Commercial Bank and also a
director in the San Jose Woolen Mills Company. At one time he was
offered a large advance on his real estate holdings and $325,000 for
the First street railroad. He had so much confidence in San Jose that
he declined both offers.
Rich organized the Jewish Synagogue
here and was for years the President and one of the main supporters of
the organization. He was a member of the Pioneer Society, a Mason and a
member of the I.O.B.B., Ariel Lodge, No. 248, Jewish Fraternal Society.
He leaves to mourn his loss, a widow, a brother, Herman Rich of San
Francisco, founder of Rich and Blumenthal of this city; Issac Rich,
another brother, now in Texas; a sister, Miss Rosenberg of this place,
and a large number of nieces and nephews, both by blood and by
marriage. Justice Rosenthal is a nephew and he was raised and educated
by his uncle, his parents having died. The deceased never had any
children.
Funeral Tuesday.
The funeral will be held
tomorrow, Tuesday, afternoon at 2 o’clock from the family residence,
No. 112 North Third street. Interment will be at Home of Peace
Cemetery. The funeral services will be under the auspices of the Masons.
Jacob
Rich was a broad-minded, liberal man. There are many people in San Jose
who knew his generosity. His confidence in the future for this city was
never shaken. He built his lines of roads ahead of the time when
population and business were not present to support them, but for the
boom, followed by the panic, he would doubtless have carried all to a
triumphant conclusion. His death is a distinct loss to the city.
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