DISPOSING OF THE LEASE OF THE MUSEUM SITE—THE BARGAIN WITH MR. BENNETT—BARNUM'S REFUSAL TO BACK OUT—A LONG AND BITTER WAR WITH "THE HERALD"—ACTION OF THE OTHER MANAGERS—THE RETURN OF PEACE.
After the destruction of his museum by fire, Barnum determined to open another and still finer establishment. It would not be on the old site, however, but further up town. The unexpired lease of the two lots at Ann Street and Broadway he proposed to sell; and he quickly had numerous offers for it. This lease still had about eleven years to run, and the annual rental was only $10,000; and there was a provision that, in case of the burning of the building, the owner was to spend $24,000 in aiding Barnum to rebuild, and then, at the expiration of the lease, was to pay Barnum the appraised value of the building, not exceeding $100,000. This lease had seemed extravagant when Barnum had made it, but the great growth of the city had so increased the value of property in that vicinity, that now the rental of $10,000 seemed ridiculously small. An experienced real estate broker, whom Barnum engaged for the purpose, estimated the value of the lease at $275,000. Barnum was so anxious, however, to get the matter settled at once that he decided to offer the lease for sale at $225,000.
The next day he met James Gordon Bennett, the elder, the owner of the New York Herald. Mr. Bennett told him that he thought of buying both the lease and the fee simple of the property itself, and erecting there a fine building for his great newspaper. Barnum therefore, offered him the lease for $200,000, and after a few day's consideration Mr. Bennett accepted the offer. His attorney thereupon handed to Mr. Barnum a check on the Chemical Bank for $200,000, which Barnum immediately used in the purchase of Government Bonds. Mr. Bennett had agreed to purchase the fee of the property for $500,000. He had been informed that the property was worth some $300,000 to $400,000, and he did not mind paying $100,000 extra for the purpose of carrying out his plans. But the parties who estimated for him the value of the land knew nothing of the fact that there was a lease upon the property, else of course they would in their estimate have deducted the $200,000, which the lease would cost. When, therefore, Mr. Bennett saw it stated in the newspapers that the sum which he had paid for a piece of land measuring only fifty-six by one hundred feet was more than was ever paid before in any city in the world for a tract of that size, he discovered the serious oversight which he had made; and the owner of the property was immediately informed that Bennett would not take it. But Bennett had already signed a bond to the owner, agreeing to pay $100,000 cash, and to mortgage the premises for the remaining $400,000.
Supposing that by this step he had shaken off the owner of the fee, Bennett was not long in seeing that, as he was not to own the land, he would have no possible use for the lease, for which he had paid the $200,000; and accordingly his next step was to shake Barnum off also, and get back the money he had paid him.
In speaking of what followed, Mr. Barnum afterwards said: "My business for many years, as manager of the Museum and other public entertainments, compelled me to court notoriety; and I always found Bennett's abuse far more remunerative than his praise, even if I could have had the praise at the same price, that is for nothing. Especially was it profitable to me when I could be the subject of scores of lines of his scolding editorials free of charge, instead of paying him forty cents a line for advertisements, which would not attract a tenth part so much attention. Bennett had tried abusing me, off and on, for twenty years, on one occasion refusing my advertisement altogether for the space of about a year; but I always managed to be the gainer by his course. Now, however, when new difficulties threatened, all the leading managers in New York were members of the 'Managers' Association,' and as we all submitted to the arbitrary and extortionate demands of the Herald, Bennett thought he had but to crack his whip, in order to keep all and any of us within the traces. Accordingly one day Bennett's attorney wrote me a letter, saying that he would like to have me call on him at his office the following morning. Not dreaming of the object, I called as desired, and after a few pleasant commonplace remarks about the weather, and other trifles, the attorney said:
" 'Mr. Barnum, I have sent for you to say that Mr. Bennett has concluded not to purchase the museum lots, and therefore that you had better take back the lease, and return the $200,000 paid for it.'
" 'Are you in earnest?' I asked with surprise.
" 'Certainly, quite so,' he answered.
" 'Really,' I said, smiling, 'I am sorry I can't accommodate Mr. Bennett; I have not got the little sum about me; in fact, I have spent the money.'
" 'It will be better for you to take back the lease,' said the attorney, seriously.