From this period a new stage of the Caucasian resort development begins. State management was abolished, and Waters were transferred to the first private managing director, privy councilor Nikolay Aleksandrovich Novoselsky. N.A. Novoselsky repeatedly proved his enterprising and impeccable decency at creating the Russian Society of Shipping and Trade - a private shipping company on the Black Sea, and later when he held the post of Odessa mayor. According to the Emperor Alexander II Decree N.A. Novoselsky started in 1861 administrating all the healing springs in Stavropol province with all located there lands, gardens, economic, medical and other institutions for a period of 8 years. From this moment, all income from the resort began to come into the ownership of N.A. Novoselsky, along with which he had a huge burden of care for the full and flawless provision of the Caucasian Mineral Waters with everything necessary for incoming patients. N.A. Novoselsky was exactly the one who invited a famous Moscow doctor Semen Alexeyevich Smirnov for the Caucasian Mineral Waters direct management. In addition to the direct mineral waters research, S.A. Smirnov did a great job of developing the Caucasian resorts. In 1863 S.A. Smirnov found in Pyatigorsk the first Russian balneal society and for almost 33 years have been its chairman. He was first who introduced practice of breaking up the patients into to the groups instead of existing tradition of treating patients alternately in all four resorts of Caucasian Mineral Waters region. At the initiative of S.A. Smirnov, the "Leaflet for the Caucasian Mineral Waters visitors", the first resort newspaper for holidaymakers, was established in 1863. However, the most important thing Smirnov did in the Caucasian Mineral Waters was the hot mineral spring opening in 1866, later named after him. Earlier there was a self-pouring spring of mineral water on this place, which was in the common called by people "Gryaznushka" because of its neglect and a plenty of ooze mineral mud around. Having cleared the source with the group of workers, S.A. Smirnov discovered fifteen holes on his bottom, through which clear warm mineral water, saturated with the carbon dioxide, flowed. The chemical researches, which were carried out, showed a large amount of iron in this water, so it was recommended as drinking for gastric diseases treatment. Then spring was completely cleared, revetted with stone and mineral water was directed by wooden pipes to bathtubs or separately for the vacationers drinking. Especially for this in the 1880s two bulwettes of this source were built. The technical source equipping was entrusted to French hydraulic engineer Jules François, a contract with whom was signed in 1874 by another renter of Caucasian Mineral Waters, the valid State Councillor Andrey Matveevich Baykov. At the request of the Russian Balneological Society in 1898, in connection with the 60th anniversary of the medical activities of Semen Alekseevich Smirnov, and to commemorate his merits before the Caucasian Mineral Waters, the source he discovered was named “Smirnovsky”. In 1926-1928 another eminent Russian scientist-hydrogeologist N. N. Slavyanov brought on a surface two more Smirnovsky sources of mineral water – “Smirnovsky №2” and “Smirnovsky №3”, the last one was renamed later into the Semashko name source. In 1930 upon all three springs according to the architect P.P. Eskov project a gallery in style of the constructivism, which was one of the best structures in the architecture of small forms in the Caucasian Mineral Waters, was built.