I am curious why the circuit breaker didn't trip if there was a short. When we bought our house in 2002, the first thing I did was hire an electrician to come check out the electrical and put in a separate circuit for my home studio. He took one look at our 1957 Federal Pacific breaker panel and said it had to go. In the 80s or 90s, he worked for the Underwriter's Laboratories (the ones that do the UL certification) and tested the Fed Pac boxes. Apparently in the 50s they had a sweetheart deal with the FHA and when the loans got made for developments like mine in Boulder, CO, Fed Pac boxes were spec'ed. Long story short, he took 25 feet of zipcord, shorted it out and attached the other end to a Fed Pac breaker, flipped on the power and watched it burn all the way back to the breaker. Apparently these breaker boxes have been responsible for burning down as many houses as they have left standing.
Moral: If you've got a Fed Pac box, replace it now. They are certainly not up to Alembic standards! :-)