Dr. David Hostetter (Pittsburgh, PA)

Dr. David Hostetter. Courtesy of Find a Grave.com

Dr. David Hostetter (January 23, 1819 – November 6, 1888)

Biography

An amber Hostetter's Bitters bottle

• Name: Dr. David Hostetter
• Birth: January 23, 1819 Salunga, Lancaster County, PA
• Graduated from Jefferson Medical College, Philadelphia, 1859
• Death: November 6, 1888 New York (Buried Pittsburgh, PA)

Early life and family

Dr. David Hostetter's father, Dr. Jacob Hostetter, was also a native of Lancaster County, and was quite a distinguished physician. The grandfather was also named Jacob Hostetter, and he too was born in Lancaster County in 1752; and his great-great-grandfather, Jacob, settled in Lancaster County in 1735, when the population was very sparse and the country little more than a wilderness.

David Hostetter, the subject of this biography, was educated in Lancaster County, and, in 1835, while in his 15th year, became a salesman in the dry goods house of Christopher Hager. He continued there until 1842, when he began business on his own account, with William Beates as a partner. Their store was located on East King Street, near Lancaster's Centre Square, and the firm, known as Hostetter & Beates, met with moderate success. In 1850, Mr. Hostetter sold his interest to his partner and went to California, locating in San Francisco, opening a grocery business. In the following September, however, his entire stock was destroyed by fire, and he returned to his home much discouraged. But soon after, his indomitable will and perseverance reasserted themselves, and in 1853 he associated himself with George W. Smith and organized the firm of Hostetter & Smith, in the manufacture of stomach bitters in Pittsburgh. This compound was manufactured from a formula discovered by Dr. Jacob Hostetter, the father of the future millionaire. The business soon became an immense success, and Hostetter’s stomach bitters became world-famous. At first six men could manufacture all the bitters demanded, but that number increased to 200 in an incredibly short time, and the fortune of the firm was assured.

Dr. Hostetter was married to Miss Rosetta Rickey of Cincinnati, daughter of Randal and Susanna McAuley Rickey, on July 13, 1854. They had four sons and one daughter.

Banking career

In October 1868, the Fort Pitt Banking Company was formed at Pittsburgh, No. 169 Wood Street with capital of $200,000. Mr. Samuel McClurkan was president and Mr. D. Leet Wilson, formerly cashier of the Fourth National Bank, was cashier. The directors were D. Hostetter, James Gordon, D. Wallace, E. Fawcett, Jno. C. Risher, Robt. H. King, Andrew Miller, and James M. Bailey.

Other career highlights

• President, Pittsburgh Gas Company. In 1867 he became a director of the Pittsburgh Gas Company and in 1869 he was elected president.
• Owner, Columbia Conduit Company. In March 1874, he purchased the charter of the Columbia Conduit Company, but declined to accept the presidency.
• Vice President, Lake Erie Railroad 1881.

In 1880, Dr. Hostetter, the patent medicine man, reportedly worth about $20 million, was in a fight with James I. Bennett, the president of the road and one of the leading iron merchants of the country. Hostetter bought $2,000,000 of the bonds of the road and $700,000 of stock, but could not get enough stock to secure election as president, the majority of shares being held under a trust deed and with the Lake Shore and Michigan Southern, the New York, Pennsylvania and Ohio, Wm. H. Vanderbilt, Jacob Henrici and Mr. Bennett the trustees. The trust was meant to keep the Lake Erie Railroad independent. Hostetter was regarded as a Pennsylvania Railroad man and it was thought he would turn control over to that company. The result of the bitter fight was the election of President Henrici as a compromise candidate. The net earnings for the road were $442,244, or 15%. Later, he was the chief promoter of and a large holder of stock in the Pittsburgh and Lake Erie Railroad, which first gave Pittsburgh an outlet to the New York system of railroads.

• President, Monongahela Bridge Company. In October 1887, Dr. David Hostetter was re-elected president of the Monongahela Bridge Company and his son-in-law, Herbert Du Puy was elected secretary and treasurer. A son, D.H. Hostetter, was one of the directors.

Later life and death

On November 6, 1888, David Hostetter, of the millionaire firm of Hostetter & Smith, manufacturers of Hostetter’s stomach bitters, died in New York, aged 69 years. He had been in ill-health all summer and went to New York for treatment. He subjected himself to an operation, and, as it was the last hope, his death was not unexpected. Perhaps best known in connection with the manufacture of bitters, of late years he had been engaged in many other and even bigger enterprises. He was largely interested in coal lands, gas stocks and railroads.

Bank Officer Summary

During his banking career, David Hostetter was involved with the following banks:

• Fort Pitt Banking Company, Pittsburgh, PA: Director 1868...1878
• Fort Pitt National Bank, Pittsburgh, PA (Charter 2415): President 1879-1888
• Farmers Deposit National Bank, Pittsburgh, PA (Charter 685): Director 1875...1885

$5 Series of 1875 bank note with pen signatures of D. Leet Wilson, Cashier and David Hostetter, President. Courtesy of Heritage Auctions, www.ha.com

Sources

• David Hostetter on Findagrave.com
• David Hostetter on Wikipedia
• Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project
• Ferdinand, Meyer V. Dr. J. Hostetter's Celebrated Stomach Bitters, accessed Feb. 28, 2024.