History of the Louisville & Nashville Railroad

13 Tracks to the Door: Developmental Extension, 1885-1902

18 Tracks to the Door: Developmental Extension, 1885-1902 While the bankers pondered and fretted, Smith worked busily at implementing his own version of developmental extension . His view of the overall strategic situation was as simple as it was comprehensive. He assumed that the future success of the system depended first and foremost upon the development of local resources in the primary territory traversed by its lines. In this task the L & N should help locate valuable resources, assist new enterprises even to the point of direct investment, provide access to markets through a liberal branch extension policy and cheap rates, and supply any other services needed. If this approach was followed, the L & N could assure itself permanent sources of local income and identify itself with the growth and prosperity of the region. Equally important, it would probably secure these local territories from invasion by rival systems. On this basis Smith pushed extension branches in a number of regions, notably Alabama, Florida, Kentucky, and Tennessee. His main projects included two Alabama mineral roads, the Birmingham Mineral and the Nashville, Florence & Sheffield, and an ambitious Kentucky line, the Cumberland Valley. All were mineral roads reaching out for untapped fields. Usually Smith built only when industrialists were already committed to opening new mines or furnaces, but occasionally he extended his branch ahead of demand if he knew the region to be a rich one. To those 2 6 4 HISTORY OF THE LOUISVILLE & NASHVILLE RAILROAD businessmen organizing enterprises Smith furnished a variety of services not commonly provided by most railroads. He constructed spur lines on request if a mine looked promising and hired geologists to survey the fields for him. He bought stock in enterprises, granted credit, and arranged loans for struggling firms. When necessary he performed special services and drew up contracts to suit individual needs. Budding entrepreneurs, whose plea for transportation had been denied by other systems, received a warm reception from Smith. The result of this individualized policy, unique among large southern systems, was a pattern of developmental growth unmatched by any of its rivals. Birmingham Encircled By 1880 the fledgling Birmingham district had won its struggle for survival. The Elyton Land Company found a steady stream of buyers for its properties. Its stock reached par in 1880 and began to pay dividends three years later. Outstanding bonds were called in and cancelled. So prodigious had the demand become that in 1884 the stock reached 500 premium and was then withdrawn from the market because the holders found it too valuable to sell. The pioneer coal and iron men such as Truman H. Aidrich , Henry F. DeBardeleben, Enoch Ensley, James W. Sloss, and William T. Underwood had weathered their early hardship and looked expansively to the future. They were soon joined by a host of ambitious newcomers eager to stake their claim in Alabama's industrial future. Veterans and fresh blood alike believed firmly that the surface had only been scratched, that the opportunities were unlimited. Smith shared their optimism and pledged the L & N's resources to the task of development. At last the company was ready to reap the full benefits of its controversial plunge into Alabama. The Nashville, Florence & Sheffield traced its corporate origins to the Nashville & Florence Railroad Company, which was formed in 1879 to construct a 79-mile line from Columbia, Tennessee, to Florence, Alabama . Since the Nashville & Decatur passed through Columbia, the proposed road veered to the west, paralleling the Decatur through a largely unsettled region rich in timber and possibly iron ore. Envisioning the road as a potentially valuable feeder, the L & N soon acquired a majority of stock and advanced the cost of construction. By 1884 the Florence had built fifty-six miles of track from Columbia to St. Joseph, Tennessee. For three years the project lay dormant, awaiting the slow development of mineral fields in the area between St. Joseph and Florence. Meanwhile several iron and coal entrepreneurs were opening mines and furnaces in DEVELOPMENTAL EXTENSION, 1 8 8 5 - I 9 O 2 2 6 5 the region around Florence and Sheffield, a small town across the Tennessee River. To expedite their work, the Tennessee & Alabama Railroad was chartered in 1887 to build from Sheffield to the proposed Nashville & Florence terminus at the Alabama-Tennessee state line. Smith watched these developments closely, offering assistance to the new enterprises wherever possible. In this light he closed a contract in 1885 for building...