Funding for the digitization of this title was provided by R.J. Taylor, Jr. Foundation.
About The new Western railway guide (Atlanta, Ga.) 188?-1??? | View Entire Issue (Nov. 1, 1887)
18 DECATUfTS BOOM, Work of the Land Company. IH INTERVIEW with MM, GORDON. ITS PRESIDENT. How the Syndicate was organized and the Scheme established. What Progress has been made in Developing the Enterprise. Why the Stock has a High Value.--In ducements to Manufacturers and Settlers. [From the Memphis Appeal, 27th.] e Glancing over the register of the New Gayoso Hotel yesterday evening, the eye of an Appeal re- DQjter caught the name of E. C. Gordon, Decatur, ’Ala. This name was at once recognized as that of the president of the Decatur Land, Improvement and Furnacte Company, which corporation has, in so short a time, produced such marvellous changes, in the once sleepy old town of Decatur, whereupon Major Gordon was found and the following inter esting facts obtained: For many years Decatur has been recognized by observing men as unusually well located for a great manufacturing and commercial city, but yet it was a dead town. Its beautiful site on the east benk of the Tennessee river, all above overflow, and at the crossing place of the Louisville and Nashville and Memphis and Charleston railroads the latter being a part of the East Tenn. Virginia and Georgia system; its occupying the centre of one of the most extensive and richest portions of the coal and iron districts of Alabama, and in the midst of one of the most beautiful and fertile agricultural valleys in the world, and contiguous to vast primeval forests of the most valuable timber, seemed never to wake the contented inhabitants thereof from their long Rip Van Winkle sleep, until Major E. C. Gordon and associates, about the beginning of this year, purchased 5600 acres of land, and followed it up by organizing, on the 11th day of January last, the Decatur Land, Improvement and Furnace Company. This property, including some subse quent purchases, and Including also about 40,000 acres of iron, coal and timber lands, cost $710,000 in cash. The syndicate was organized on the basis of $1,000,000 cash capital, so that after paying for all their properties there remained in the treasury as a working capital $290,000 in cash. The subscribers to the syndicate then among themselves organized the present joint stock company. At first with a capital stock of $7,500,000, the subscribers acceping this stock as full payment for their respective in terest in the syndicate, and thus making the entire stock full paid and non-assessable, so that each sub scriber received $7400 of capital stock for each SIOOO he had paid into the company; but simultaneously with receiving this stock he transferred back into the treasury of the companyone-third of his hold ings, so that in reality there was only $5,000,000 of stock issued, in effect costing the original subscriber THE NEW WESTERN RAILWAY GUIDE. S2O per share, the other $2,500,000 being held in the treasury of the company for the benefit of all the stockholders. It was at first intended to use this treasury stock as a developing fund, but since the company has made such extraordinary sales of lots, thereby furnishing all the necessary funds for de veloping the property, the directors have deter mined upon advising the stockholders to cancer the treasury stock as soon as an enabling act can be had from the legislature. In the meantime the directors have virtually retired the same, by resolution, that it shall never be sold at less than its par value for cash, and as a dividend upon the $5,000,000 of stock issued. As a large number of the patrons and readers of the Appeal are interested in the stock of this com pany, the reporter penciled down as rapidly as pos sible the above statement, made by Major Gordon, and proceeded to apply the reportorial pump for still further information about that truly wonderful young city, for it is the youngest and decidedly the most lively of all the Southern infant towns, reck oning its birth from the date of its recent resurrec tion in January last. “ Major’ what are some of the manufacturing in dustries already established in Decatur?” “ Well, I will somewhat invert the order and com mence with the last one of gret importance secured namely, the construction shops of the Louisville & Nashville railroad system. We have deeded to that great corporation about fifty-five acres of land, all of which will be occupied with shops, round houses and tracks. The plans for these great shops involve the investment in buildings, machinery and tracks of $300,000. Two hundred thousand dollars of this amount they are bound by written contract to expend by the Ist of January, 1889. These shops are to be erected to manufacture cars and locomotives for several hundred miles of rail road, besides doing the immense repair work, which will require the employment of not less than 500 skilled mechanics. A large force has been employ ed for some time clearing off the land, and to-day the work of grading the same begins, involving the moving of about 50,000 cubic ya:ds of earth. It is estimated that the pay roll of these shops for labor alone when completed, will be $60,000 per month, or $720,000 per annum. “Second —Then we have the charcoal and wood alcohol works nearly completed. This concern will convert 40,000 cords of wood per year into charcoal and alcohol, with ar average capacity of 6,000 bushels of charcal per day, and 150,000 gallons of alcohol per year. The alcohol is used for mechan ical pnrposes only. The charcoal is used for smelting ores into pig iron. This plant has cost $150,000. A large number of laborers are employed. Third —Then on an adjacent lot, the Decatur Land, Improvement and Furnace Company are rapidly erecting a large charcoal blast furnace, with a daily capacity of about 70 tons of car wheel iron. The contract price for this furnace is about SIIO,OOO and it will also employ a large number of laborers. “Fourth —Then, on an adjacent lot to this, we have contracted for a coke iron blast furnace with a daily capacity of 125 tons. Messrs Gordon, Strobel & Lareau, of Philadelphia, have also the contract for the construction of this for about $198,000. This will employ a large number of laborers. Fisth —Then there is the Decntur Iron Bridge and Construction Co., with a cash capital of SIOO, 000. The immense building of this company is nearly completed, and the machinery is being rap idly placed. The main building (of iron) is 300 feet long and 90 wide, with two wings 60 by 70 feet. This company has already secured contracts for bridges amounting to over $250,000 to be completed within the next four months. Its officers are among the most experienced and successful bridge builders in the United States. This company it is expected will employ not less than 200 skilled mechanics. Sixth, there is the American Oak Extract Com pany, composed of wealthy men in Cincinnati and West Virginia, which has nearly completed its im mense building and placed its powerful machinery. The native woods are taken and crushed into atoms and the tanning extracted, and this is shipped over the world for tanning purposes. This concern has • $75,000 cash capital, almost unlimited credit, and will employ a large number of hands. “Seventh —Then there is the Ivens & Son Machine Company, whose great massive brick building is just now receiving its finishihg touches. Its iron foundry went into blast a few days ago, and the buzz of its flying machinery is keeping time to the music of the saw and the hammer and the mason’s flying trowel in our bustling, busy town. This con- cern manufacturers engines, cotton presses, steam pumps, architectural irons, etc., etc., and has a cash capital of $75,000. Eighth—Then there is going upon the adjacent lot a huge 90-inch Morse cotton compress, of which Mr. Steen, of New Orleans, the owner of the pat ent, and builder, says there will be no superior compress to this one in the United States. “But,” continued Major Gordan, “it would weary your patience to enumerate all of the new enter prises we have started in Decatur within the last six months. I think we have more than 20 pros perous industrial enterprises either already com pleted, or being rapidly constructed; and besides, we are negotiating with a company for the location of stove works, another for the manufacture of car wheels, another for making iron chains on a large scale, another for a furniture factory, etc., etc.” “Are you doing anything in the way of laying sut and grading streets, providing sewerage and water works, street cars, electric lights and tele phones ?” “Yes, sir; we are. If you will come to Decatur I will show you ten miles of beautifully graded new streets and broad avenues, some of which we are already paving with the beautiful and service able luka gravel. We are now receiving and plac ing five car loads of this material daily. We are also laying a large quantity of granite curbstones. Our principal streets and avenues are eighty feet wide. In the residence portion of the city the drive way will be confined to forty feet, leaving twenty on each side for street car lines and side-walks. We propose also to plant four rows of shade trees throughout each residence avenue. Also, by the terms of sale of residence lots, houses are set back forty feet, thus in effect proving a park in front of every residence. This arrangement will add greatly to the beauty, comfort and health of the place. “We have adopted the Waring system of sewer age, the same as you have in Memphis, and we are putfing it in rapidly, even in advance of buildings upon our streets. Col. Waring gives personal su pervision to this work, and is under contract with us for a term of years. So, also, is the distinguished landscape engineer, Mr. N. F. Barrett, New York, who personally overlooks the laying of our streets and parks.” “ Is Decatur a healthy place ?” “I am glad you asked that question. The official sanitary records of the town and county show that it is one of the most, if not the most, healthful town in Alabama. The death rate is only about eleven for 1,000 of its white citizens. The place is high above overflow, and possesses extraordinarily good natural drainage. Water works of the most modern and approved plan will be completed about January Ist next, and will cost about $200,000. Boston capi tal is building them without cost to our corporation. We transfer to the Water Company the franchise, with such limitations as to prices to be paid by citi zens and corporations for use of water as to give us, perhaps, cheaper water than any other Southern city. Our water is to be thoroughly filtered and perfectly clear. Our street car lines are being rap idly built. We have also the electric light and the Bell telephone service.” “ What about your hotel accommodatj tor -tid the provision made for new comers, both as"to Residen ces and business houses ? ” “ Well, sir, in the oldest portion of the town there are several comparatively small hotels, but these are generally full to overflowing. At one of them the names fill daily from two to four pages of the register. But we are adding largely to the hotel accommodations. The land company has nearly completed a beautiful hotel costing about $65,000. This will be ready for occupancy about the 20th of October, proximo. We have also dug the founda tion of a mammoth hotel, which when completed will be 685 feet long and contain on the ground floor twenty-four store-rooms about 25x120 feet. The upper stories will consist of about 400 rooms for hotel purposes. These stores have already been applied for at prices which will pay a good interest on the cost of the entire building. It will, however, require a year to complete this great hotel, which will cost about $300,000. A great many brick blocks of stores are either now being built or material is being gathered on the spot. Scores of residences are also going up, bnt there is need for ten business houses and residences to every one now in sight, and I know of no better investment than the pur chase, of lots and building houses of any kind there on in Decatur. In order measurably to provide for this great and growing demand, it is proposed to organize a building and investment company with $1,000,000 capital, divided into shares of $lO each, 20 per cent of which will be payable at the time of organization, the balance at the rate of 50 per share per month until all is paid in. However, it was only last night that a preliminary meeting of the citizens considered and agreed to suggest the plan and it may be materially amended before final adoption. Information in detail, however, can be had apon application to the president or cashier of the First Netiogal Bank of Decatur, or Judge H. G. Bond, vice-president of tne Decatur Land, Im provement and Furnace Company, or any real estate agent in that place, of whom there are many, and so far as I know them, they are active, intelligent and reliable business men. It is believed by safe busi ness men, who have investigated the plan proposed, that the stock of a building and improvement com pany will be not only an absolutely safe investment, but very soon pay very handsome dividends from rents and sales of improved property.” “What is yonr opinion of the intrinsic value of the stock of the Decatur Land, Improvement and Furnace Company ?” “Well, sir, that is decidedly a leading question, as the lawyers say; but I will not object to it on that account. I have, however, made it a rule of my bus iness life to exercise great care before expressing an opinion or giving advice as to the investment of money. I do not. however, hesitate to advise every stockholder of the Deeatur Land, Improvement and Furnace Company against selling his stock for any thing like the present market price, which is from $27,50 to S3O per share, when it is possible for them to hold on to it. I could not here undertake a full dis cussion of the affairs of the company, but suffice it to say that we have now disposed of less than acres of the 5600. These 150 acres include the sites donated to the manufacturing establishments and all the lots we have sold, and yet these sales of lots amount to date to a sum nearly equal to the entire cost of the whble property. This may seem incred ible, and yet it is true. I think our stock is to-day intrinsically worth SIOO per share, instead of the prices it is bringing. Although our sales have been made privately and in the office of the company, and as I now remember, includes less than 50 acres of our entire town site of 5600 acres, yet they have amounted to more than $600,000 to date.” “How do you account for the fact that your stock has enhanced only 40 or 50 per cent, since your company was organized, with such a showing as you can make as to these great values ? ” “There are several causes for this. In the first place, about the time this company was organized, or during a few weeks thereafter, a number of town schemes were offered to the public. So unprece dented was the success in the prompt subscription to the Decatur stock, it all being subscribed in less than three days, that ‘everybody and his brother’ started a new town. Many of these chimerical schemes soon faded away, and it required time and investigation to draw proper distinctions between the meritorious and the worthless enterprisestof this kind Another reason why the price of our stock has not enhanced to something like its intrinsic value.is that a number of stockholders could not convenient ly wait for larger profits, but needed all available means for business enterprises; but the stock is now being very gradually absorbed by those who are de termined to hold it as a permanent investment.” • “Still another reason is the temporary stringency in the financial centers of the country. This will doubtless subside as the crops are marketed. Still another, and perhaps the most potent of all the reasons in accounting for lack of rapid enhance ment in the price of the stock, if that the company is of such recent origin that the public generally have as yet known very little of its great properties and their values.” “One other question: Who are the director of your company?” “I am glad to answer that question, also, for in my opinion no corporation was ever managed by a more competent board of directors. They are level headed, sound, conservative and yet enter prising business men, well known throughout busi ness and financial circles. First, I will mention Judge H. G. Bond, formerly of New Yo-ik, now of Decatur, who is our vice-president and business manager. He has peculiar qualifications for his work, carefully looks after all details and has ex tensive business experience. Maj. J. R. Stevens, prssident Huntsville National Bank, Huntsville, Ala; W. J. Wooten, vice-president of Columbia Banking Company, Columbia. Tenn.; Col. John D; Roquemore, formerly of Montgomery, Ala., but now of Decatur; John F. Flournoy, vice-pres ident Georgia Midland R. R. Co., Columbus, Ga.; Maj. Thos. P. Branch, banker, Augusta, Ga.; Hugh A. Haralson, secretary and treasurer of the Matthews Cotton Mills, Selma, Alabama; E. B. Joseph, president of the Capital Insurance and Banking Company, Montgomery, Ala., and my self.” “And now I must beg you to excuse me, as my time has arrived to hurry off to the train. Come to Decatur and see us. Come and see the town for yourself, and invite your friends to come. The latch string to the gateway of Alabama, as we call Decatur, hangs on the outside. When you see it you will admit that I have not told you of half its marvelous growth and development. Good bye.”
