Less than two years after opening, the entire rationale for the Village and its purpose would dramatically change. Though Tufts did discourage visitors “in advanced stages of consumption,” many who came to Pinehurst in the first season came for the relief of pulmonary issues and were in some early stage of consumption (tuberculosis). They provided business for the Village but the presence of so many unhealthy persons created a depressing atmosphere and those in good health tended to stay away.  In April of 1896 a writer for the Topsfield, Massachusetts newspaper “The Townsman,” who had visited Pinehurst and Southern Pines reported favorably but concluded: “This winter both places were filled, and I am told by traveling men it is distressing to hear the coughing of visitors who are there seeking relief.⁴”

What changed the Village forever was the advice that James Walker Tufts received in the spring of 1897 from two friends, Dr. Arthur T. Cabot and Dr. F. B. Harrington, who were both Boston physicians and recipients of his November 1895 “Letter to Physicians.”  They informed him that even in its early stages tuberculosis was communicable and advised him not to accept those with any stage of consumption at his health resort. 

Hearing this news and having the entire reason for creating the Village turned upside down, Tufts decided to change the basic reason for founding the Village and issued the following notice:

NOTE TO CONSUMPTIVES

Under the new rules of admission of guests whose lungs are diseased will be restricted.

Association with persons afflicted with Tuberculosis is now regarded hazardous especially to those who have hereditary tendency toward Consumption.

The interest of the many whose health requires that they spend the winter in Pinehurst must not be sacrificed for the few who carry in themselves the danger of contagion.

Boston   June 1^st, 1897   James W. Tufts

And so by mid-1897 the Village would take a turn to exclude all those who Tufts initially was targeting as his primary potential guests. Although still advertised as a “Heath Resort,” from that point forward James Walker Tufts and Pinehurst would embark on a journey to become a new, never before known type of resort. This is a different but interesting story in itself. 

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There is speculation that James Walker Tufts may have had another scheme in mind as he developed his village. From his initial visit to the area he had noted that the area had numerous peach orchards on land cleared from the turpentine and logging of the forest.  He contemplated that the cultivation of peaches could provide a profitable venture not only for himself but possibly for those who would prefer to spend the entire year in Pinehurst for reasons of health.  In 1895 the extensive Van Lindley peach orchards located between Pinehurst and Southern Pines were flourishing and the growing of peaches was quite profitable.  In fact one of Tufts first moves was to clear land for a peach orchard.  However within a few years a major breakout of the San Jose Scale (a sucking insect that injects a toxin into the plant as it feeds) wiped out all the peach harvests in the Sandhills ending that plan. 

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James Walker Tufts passed away on February 3, 1902.  He left the entire Village along with $50,000 to his son Leonard. This would be $1,500,000 in today’s dollars using CPI calculations, or $9.5 million dollars using Per Capita GDP calculations.  In his will, he also remembered all his former employees at the Soda Fountain Company, providing substantial contributions to them and the employee benefit organizations he had started when President of the company.

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Many ask why one the most prominent buildings in Pinehurst is named the Casino Building.  The word Casino is of Italian origin; the root casa means a house. The term casino may mean a small country villa, summerhouse, or social club. During the 19th century, casino came to include other public buildings where pleasurable activities took place and were used to host town civic functions. In Cottage City, Massachusetts, where James Tufts spent his summers, there was a large building called the Casino where public events were held.  So this is likely where he came upon the idea to name this center of Village activities the Casino.