Led by Warren Buffett, Omaha, Nebraska, boasts that it has more
millionaires per capita than any other city in America. Peter E. Iler,
an Omaha whiskey man, was an exemplar for the local money men to
follow, a multimillionaire who built the Nation’s third largest
pre-Prohibition distillery as well as financing other major business
enterprises. Shown above in maturity, Iler had, people said,
“the
restless mind of a capitalist.”
Iler was born in
Wooster, Ohio, in 1840. As a youth he and his brother, Joseph, moved to
Tiffin, Ohio. At the age of sixteen he left school to go to work. Then accounts differ. One version has him leaving Tiffin in the
employ of an Indianapolis banker and soon being given management of
several farms and a princely salary of $75 a month. After becoming ill,
he quit and returned to Tiffin to
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recuperate. The another account has
him never leaving Tiffin, employed in a bank, working with a cigar
manufacturer and as a warehouse operator.
The stories
converge about 1860 in Tiffin when Iler became a wagon peddler selling a
bitters nostrum that he advertised "as a cure for dyspepsia and all
diseases of the stomach and bowels." It cost a pricey one dollar a
bottle. With the success of his bitters, Iler was on his way to being a
capitalist and entrepreneur. As one account says:
“Peter met with
success and soon drove a splendid four-in-hand team and a beautiful
wagon. He also took orders for all the wholesale merchants in Tiffin,
doing in this way a large commission business. Mr. Iler branched out and
established a general supply store, engaged in the manufacture of
cigars, and ran a distillery and a general liquor store, all of these
enterprises proving successful.”
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In 1863 Peter married Mary A. Denzer, a local girl. The nuptials were held in Tiffin,
where they lived and began their family. The couple had four
children, William, May, Edith and Bessie. In the matters of home and
hearth, a contemporary biography said of him: “Mr. Iler is a home man,
taking great delight in his interesting family, and doing everything in
his power to make home happy for them.”
Every
capitalist needs capital and Iler achieved a bundle, apparently some of
it through a fluke. In the spring of 1865, he and his brother bought
and prepaid for a shipment of bourbon from Kentucky. Through an
unexplained stroke of luck, the federal tax on alcohol changed while the
bourbon was in transit, which increased the value of the shipment by a
whopping $36,000, instantly making Iler a wealthy man.
Evincing
his restless mind, Iler had decided that his fortune lay by going
West. About 1866 He moved to Omaha, Nebraska, which would be his home
for at least the next 40 years. About the same time, the small Willow
Springs Distillery on the Council Bluffs side of the Missouri River was
closed by the Federal Government for nonpayment of taxes. Sensing an
opportunity, Iler with local partners bought the distillery and moved
it across the river to Omaha, relocating the facility at 209 Hickory
Street. It was the first (legal) distillery in Nebraska.
With
brother Joseph as his principal partner, Iler subsequently set up
sales offices, shown above, at 233 Farnam Street in Omaha, an address
that first shows up in city directories in 1870. He also began a steady
expansion of the relocated Willow Springs Distillery. By 1874 the
firm, that advertised itself as
"importers, compounders and wholesale
dealers in wines, liquors and cigars,” was making shipments to both
coasts. The same year the Ilers also became the Omaha representatives
for Anheuser-Busch, which they continued for five years until the brewer
moved into its own facility.
In the early 1880s a fire
forced Iler to build new office quarters at 1112 Harney Street. About
the same time, the firm moved the distillery operation from Hickory
Street to a new location at Fourth and Pierce Streets. By 1882, when
the steel engraving shown above was done, the facility had expanded to roughly
10 acres with multiple buildings. Iler was turning out 6,000 to 7,000
gallons of alcohol a day or 1,250,000 gallons a year. It also was
consuming 300,000 bushels of local grain amounting to $120,000 annually.
About 225,000 bushels was corn, and the balance of 75,000 bushels was
made up of other grains. The distillery was estimated to produce 90
percent of Nebraska’s tax revenues. When the labor riots of 1882 broke
out in Omaha, the Governor dispatched the National Guard to protect
Iler’s “cash cow” distillery.
The 1880s were a period
of continuing expansion for Iler’s enterprise. Sales of the Willow
Springs Distillery and Iler & Co., continued to increase, reaching
nearly $3,000,000. The cost of material used in the distillery during
1886 was $250,000, representing 510,000 bushels of grain. Over 10,000
tons of coal were consumed. Employment was given to 125 men, with an
annual payroll of over $80,000. Willow Springs had become the third
largest distillery in the United States and paid Government taxes of
more than $2,000,000 annually.
Iler used several brand
names for his liquor, among them “Willow Springs,” shown here in an
embossed quart, as well as “Golden Sheaf,” “Winchester,” “Buck Bourbon
Blend,” and “Iler’s Golden Gin.” He
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issued giveaway shot glasses for
these brands, as well as watch fobs. At the Trans-Mississippi
Exposition of 1898, a successful World’s Fair held in Omaha, Iler’s
whiskeys and other spirits took two gold medals and four silver medals.
He himself was awarded a gold medal, similar to the one shown here, for
his invention of an “apparatus for aging and purifying liquors.”
Ever
restless for new investments, Iler began fattening one thousand and
six hundred head of cattle with the used mash from the distillery. With
partners he also was buying up farm land in the vicinity of Omaha,
totaling 1,875 acres. This area became the nucleus for the creation of
stockyards, packing houses and the town of South Omaha. Many of the same
investors in 1886 formed and became directors of the Union Stockyards
Bank.
Iler constantly was looking for cheaper sources
of energy and invested in coal mining and exploration for natural gas in
the vicinity of Omaha. He also one of the organizers of the Omaha Brick
& Tile Company, of which he became the first and long-term
president, He built and owned the Iler Grand Hotel, shown here, at one
time a leading hostelry of Omaha. He was a prominent member of the
Omaha Board of Trade.
After a time Iler apparently
began to feel he was outgrowing Nebraska and once again looked
Westward. In 1889-1990 he obtained options on 3,500 acres fronting on
San Francisco Bay at San Bruno Point and incorporated the South San
Francisco Land and Improvement Company. He took on the job of being
general manager for the
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project. This move may have indicated a
declining interest in distilling or perhaps a premonition of
Prohibition. Whatever the cause, in 1898 Iler sold the Willow Springs
Distillery to a combine called the Standard Distilling and Distributing
Company. He may have had an initial financial interest in that outfit,
continuing to be listed as president of Willow Springs until 1902.
In
1904, Mary, his wife of 41 years, died. Peter lived on, active in
business until about 1912 when he retired. He was still living in Omaha
in 1917, age 77. The date and place of his death is something of a
mystery. His grave marker,
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shown here, is located in Omaha’s Prospect
Hill Cemetery and holds two zinc plaques. His wife’s is inscribed, his
is blank. Was Peter not buried with her? Or was it simply an oversight
that his plaque was not engraved? With Prohibition, the distillery he
built stopped producing whiskey. The company changed its manufacturing
to near beer, soda pop and malt for use in home brewing, but
subsequently went out of business.
Peter Iler was a
capitalist fully worthy of the name. His restless mind constantly was
taking him into new enterprises and endeavors. From Ohio to Nebraska to
California he invested his money, much of it gained from the whiskey
trade, to make more money. Truly, he was a worthy predecessor of
Warren Buffet and other Omaha millionaires.