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During these early years of operation, 59% of all hospital births in Manhattan took place in this building. But following the death of J.P. Morgan in 1913, support for the hospital began to decline. A perception that the hospital was a Morgan family protectorate led potential benefactors to turn elsewhere. From that time on, the existence of the hospital, which was the expression of one of the great leaps forward in medical care of the 19th century, was precarious. The last patient was discharged from the Lying In Hospital on August 6, 1932.

Rutherford Place functioned as a ward of various New York hospitals until 1984, when Beth Israel Medical Center decided it had no further use for the building. Orb Development, a firm with extensive experience in renovating historic properties to a new and productive use, bought the building and began an ambitious project to create 127 residential floor-through duplex and triplex apartments, retaining the original 17 foot ceilings.

By working with the State Historic Preservation office, an agency devoted to preserving the architectural heritage of New York, Orb restored the exterior of Rutherford Place to its original condition. Orb also donated an easement of the building's facade to the Landmarks Conservancy, ensuring that the structure will remain unchanged forever.

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