Newspaper Page Text
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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.”