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CHAPTER XVII MATERIAL DEVELOPMENT AMONG the first of the enterprises which placed Key West on a commercial footing with other cities, was the establishment of a telegraph line by the International Ocean Telegraph Company in 1866. General W. F. Smith (known as "Baldy Smith"), a retired volunteer officer of the United States army, who was president of the company, had previously obtained from the Spanish government the exclusive privilege for forty years of landing a cable on the coast of Cuba. He had under consideration two plans for reaching Key West-one contemplated a land line to Punta Rassa, and thence by cable to the island, the other, a continuous land line down the East Coast and over the keys. It was proposed to use iron piles in the water between the keys, and socket them about ten feet above high water mark with wooden poles. It was finally decided, however, to abandon this plan, and adopt the route from Punta Rassa. The cable came into Key West in front of the United States army barracks on the north side of the island, and was carried underground to a point near the bridge at Fort Taylor, whence it went to Cuba. GAS COMPANY In March, 1884, a gas company was incorporated, and a plant erected back of Emma street near what is known as the Fort Pond. The gas furnished was smoky and of inferior lighting power, and the company did not prosper. After a time Mr. John Jay Philbrick acquired a controlling interest in the stock, and on the establishment of his electric lighting plant in 1890, the manufacture of gas was discontinued. In 1911 the circuit court, upon the application of the city, declared the gas franchise forfeited for non-user. STREET RAILWAY In 1885 a franchise was granted by the legislature of Florida to Messrs. Walter C. Maloney, Jr., Eduardo H. Gato, Louis W. Pierce, George G. Watson, John White and Charles B. Pendleton, to operate a street car line on any of the roads or streets in that part of the island of Key West lying outside the corporate limits. A charter had previously been obtained from the city council to operate a line within the city of Key West. The company was financed by Mr. E. H. Gato, who built and operated the road largely as his own private enterprise. The cars were drawn by mules. In 1894 the company was incorporated under the general laws of Florida, but with the exception of Mr. Gato, the incor- porators were nominal stockholders. One branch extended up Whitehead to Division street, thence along Division to White street, where the car barn was located near the foot of Rawson street; another extended along Front street and proceeded thence on Simonton, Eaton, Margaret, Southard and White streets, to the car barn. When the road was finished Mrs. Alicia Carey opened an ice cream parlor near the terminus, which became a popular resort for merry-making parties of young people. In 1896 the street car line was bought
by Mr. John Jay Philbrick, who had just perfected arrangements
to convert it into an electric line, when his sudden death in
1897 put a stop to the work for a time. His heirs sold it to
a corporation composed of New York and Chicago capitalists, who
carried out Mr. Philbrick's plans, and in 1900 the electric line
was opened for traffic. La Brisa When Mr. Philbrick bought the street car
line, he erected on the ocean front, at the end of Simonton street,
a handsome and commodious pleasure pavilion. It was one hundred
and twenty-five feet long, one hundred feet wide, with piazzas
twenty- five feet wide on all sides. One room, twenty-five by
fifty feet, was used for refreshments, and the other fifty feet
square for dancing and concerts. Later, an addition was built
on the northeast end, and a commodious stage and dressing rooms
added. In the hurricane of 1910 it was washed from its pillars and completely destroyed. In 1909 Mr. A. Louis erected a large two story building on the county road, about a mile out of town, which is now used for social functions. ELECTRIC LIGHTING In 1889 Mr. John Jay Philbrick established an electric lighting plant, and discontinued the manufacture of gas. A power house was erected on the site of the old gas plant. In 1897 William Curry's Sons Company put in a small electric lighting plant for their own use, and furnished a few persons along their line with lights. Gradually the plant was enlarged and it became a formidable rival of the Philbrick plant. After the death of Mr. Philbrick, his nephews, Mr. John P. and Mr. A. F. Laflin, having acquired his interest in the company, incorporated The Key West Electric Company, purchased the Curry plant, and effected a consolidation. This plant was acquired by the Stone & Webster Corporation, when they bought the street car company, in 1906. Ice Plants Prior to 1890 Key West used natural ice,
brought here in sailing vessels from Maine. The first ice house
was owned by Mr. F. A. Browne and in later years the business
was conducted by Messrs. Charles and Asa F. Tift and Mr. John
Jay Philbrick. In 1895 William Curry's Sons Company established an ice plant with a daily capacity of fifteen tons, which was enlarged to thirty tons in 1901, and in 1904 was further enlarged to a total capacity of sixty tons. In 1905 the Consumers' Ice & Cold Storage Company was organized, and began making ice in 1906. The par value of its shares was ten dollars, and its stockholders numbered severa hundred. Its first manager was Mr. E. E. Larkin, and it entered at once upon a successful career. In 1910, on the death of Mr. Louis Mouton, the then manager, who had acquired a large block of the stock, a controlling interest was bought by Wm. Curry's Sons Company, who sold their plant to the Consumers' Ice Company and closed down the Curry plant. The Consumers' Ice plant has a capacity of seventy-five tons per day. MARINE RAILWAY Prior to 1835 all large vessels needing repairs or cleaning were hove-down alongside of a wharf. This was done by ropes attached to the top of the masts, and run through heavy blocks on the dock. A strain was then hove on the tackles, and the vessel careened, until one side of the bottom would be out of water. After one side was cleaned or repaired, the vessel was turned around and again hove down, and the other side cleaned. This method was regarded as very hazardous, and was a source of no little uneasiness to the master, inasmuch as tardiness or mischance in righting, or a sudden squall of wind, might endanger the lives of those engaged in the work, or cause injury to the vessel. Smaller craft were banked on a sand bar
at high tide, and when the tide receded the work of cleaning
or repairing was done. This railway was the first important public venture by private citizens in Key West. For a number of years it was operated by horse power, but with the spirit of progress which distinguished Mr. Curry and his successors in business, it has been enlarged and kept pace with the march of progress. At first the railway could only take up craft of less than one hundred tons; in 1859 it was enlarged to five hundred tons, and in 1899, another and larger ways was constructed, with a capacity of one thousand tons displacement. Steam power was then installed on both railways. EXPRESS COMPANIES In 1876 Mr. J. T. Ball inaugurated what he called "Ball's Express" between New York and Key West. His method was to have packages sent to his agent in New York, who would put as many packages as possible in one case and ship it by freight on Mallory steamship to Mr. Ball. The minimum rate of the steamship company on any package, however small, was two dollars and fifteen cents. Twenty or more small packages could be put in one case, the freight on which would be the same as for a small package. Mr. Ball could thus deliver goods for less than one-half the freight charges per package, and make money from the business. Later he tried to conduct in the same manner an express business from Cedar Keys, in connection with the Southern Express Company, but it did not work satisfactorily, and in 1890 the Southern Express Company established an office here with Mr. Mason S. Moreno, their first agent. Banks In 1880 Mr. Charles T. Merrill, a son-in-law of W. A. Russell, proprietor of the old Russell House, engaged in the banking business in a small way. He received deposits and advanced cash to cigar manufacturers. He was building up quite a good business, when the failure of Seidenberg & Company, large cigar manufacturers, whose paper Mr. Merrill was carrying, caused him to go under, and Mr. Merrill's brief essay into the banking world came to an end. In April, 1884, Mr. George Lewis, president of B. C. Lewis & Sons, bankers of Tallahassee, and Mr. George W. Allen, organized the Bank of Key West, with a capital of $50,000.00. Among the stockholders were Judge James W. Locke, R. Alfred Monsalvatge and several cigar manufacturers. The bank entered at once upon a remarkably
successful career. It was located on the corner of Front and
Fitzpatrick streets, in a building belonging to Mr. John W. Sawyer.
In 1885 they erected a bank on the corner of Front street and
Exchange alley, where Monsalvage & Reed's store now stands.
This building was destroyed by fire in 1886. The day after the
fire, when the whole town was panic-stricken, a run on the bank
was prevented by the prompt foresight of Mr. Lewis and Mr. Allen.
Their books, cash, notes and all valuables were in a fireproof
safe, and the second day after the fire, they were taken from
the vault and moved to the United States naval station, where
permission had been granted to conduct their operations until
other quarters could be found. A large table was put out in front
of the station, and heaps of silver dollars and packages of currency
piled up on it, and bags of silver stacked all around in plain
view of the passersby. Behind the table sat Mr. Allen, Mr. Lewis
and their clerks. Announcement was made that the bank was ready
to transact business. The sight of so much money restored confidence,
and the bank was established on a firm basis in the estimation
of the people. In a few months they moved into a building erected
by Duffy & Williams on the northwest side of Front street,
midway between Duval and Simon- ton streets, where they remained
until their new building on the corner of Front street and Exchange
alley was finished. Mr. Allen, Mr. Gato and Mr. Monsalvatge, directors of the bank, repeatedly urged Mr. Lewis to increase the capital stock so that the bank might do business on its own resources. This, however, he refused to do, stating that they could make larger dividends if the stock were not increased. Mr. Lewis embarked in the banking business
in Key West largely because of ill health, having suffered for
some time from bronchial troubles, which necessitated him spending
his winters in a warm climate. In 1889 his health was so far
restored that he was able to continue his residence in Tallahassee
during the winter, and he induced Mr. Allen to buy $20,000.00
worth of his stock which he sold to him for $36,000.00. He promised
to remain president of the bank and to continue to guarantee
its drafts. Shortly after Mr. Allen bought the stock, Mr. Lewis
asked to have his remaining hundred shares transferred to his
minor children, which request the directors refused. He then
resigned from the presidency, but his resignation was not accepted.
He was urged to retain the position until such time as the bank
could call in some of its loans, and be in a position to take
care of itself without his guarantee. When the news of his resignation
was made public, a run on the bank started, and nearly $100,000.00
was drawn out in a few days. Matters remained in this condition
until Mr. Lewis, over the repeated requests of Mr. Allen, peremptorily
resigned as president, and withdrew his support from the institution. After a most extravagant administration by the receiver, in which large attorney's fees were paid and other heavy expenses incurred (the bank being in the hands of a receiver for thirteen years), it paid depositors sixty-two and half cents on the dollar. The amount paid to the depositors, and for administration of the several receiverships, amounted to considerably over one hundred per cent, of the bank's liabilities at the time the receiver was appointed. FIRST NATIONAL BANK In 1891 when the Bank of Key West closed its doors Mr. George W. Allen was in New York trying to prevent its failure. After the receiver was appointed, his friends in the cigar manufacturing business in New York started a movement to establish another bank in Key West to be managed by Mr. Allen, and subscribed for about $80,000.00 of the stock. With this support he returned to Key West, and in a short time organized the First National Bank of Key West, with a capital stock of $100,000.00. Its officers were George W. Allen, president; August Boesler, of the firm of Wm.Wicke & Co., vice-president; W. W. Flanagan, president of the Southern National Bank of New York, Ferdinand Hirsch, Charles Baker, Remigio Lopez y Trujillo and Oscar Rierson, directors. This institution, starting immediately after the failure of the Bank of Key West, had many obstacles to overcome, but by careful management and excellent business methods, it won the confidence and patronage of the people of Key West, and it is today one of the strongest banking institutions in the State. Its deposits are upwards of seven hundred thousand dollars. The success of the First National Bank is a tribute to Mr. Allen's banking ability, and shows conclusively that had his policies, instead of Mr. Lewis', been adopted in the management of the Bank of Key West, the failure of that institution would not have occurred. THE UNION BANK In 1892 the Union Bank opened its doors for business in the brick building on Front street, which had been erected for the Bank of Key West. Mr. R. Alfred Monsalvatge was president, and Mr. Jeremiah Fogarty cashier. It was an extremely conservative institution, and did not enlarge its business to any extent. After a few years existence, it returned all its deposits and went out of business. It neither made nor lost any money. THE ISLAND CITY NATIONAL BANK The Island City National Bank was organized
and commenced business on October 16, 1905. Its officers were
Mr. George S. Waite, president; Mr. Charles R. Pierce, vice-
president; Mr. E. M. Martin, cashier, and Judge Jordan M. Phipps,
attorney. It has a capital stock of $100,000.00, and its deposits
are over three hundred and fifty thousand dollars. SPONGE INDUSTRY For many years the entire sponge industry of the United States was derived from the Mediterranean, although in the early forties a few sponges were shipped to the United States from the Bahamas, but the supply was small, the total imports in 1849 being valued at about $10,000.00. In that year a cargo of sponges was sent to New York from Key West on a venture, which narrowly escaped being thrown away as worthless. Its ultimate sale, however, established a market for this newly discovered product of the keys, and several merchants of Key West began to buy the better grades and take them in trade. The business proved profitable, and a number of sailing craft were fitted out as spongers. The industry increased until the catch was worth over $750,000.00 a year. About one hundred and forty vessels, aggregating two thousand tons, and giving employment to over twelve hundred men, were engaged in the business. The bulk of the sponges are taken from water averaging twenty feet deep, off the western coast of Florida. The sponge caught near the Florida Keys, taken from shoal water, are of much finer quality. The Key West spongers retain the primitive method of hooking the sponge with a three pronged hook on the end of a long pole. Each sponging vessel carries a small boat for every two men in the crew; one sculls the boat, while the other, called the "hooker," gathers the sponge. In 1904 several Greek companies introduced the system of gathering sponge by the use of diving apparatus, and established headquarters at Tarpon Springs in Hillsboro county. This transferred the bulk of the sponge business from Key West, and the value of the catch is now worth only about two hundred thousand dollars a year. BUILDING AND LOAN ASSOCIATIONS In 1886 a building and loan association was formed with Mr. John Jay Philbrick, president; Mr. D. T. Sweeney, vice- president; Mr. Ramon Alvarez, secretary; Mr. George W. Allen, treasurer, and Mr. Jefferson B. Browne, attorney. It was very prosperous at first, but after a few years gradually ran down, was placed in the hands of a receiver, and went out of business in 1892. CANNING FACTORY About 1890 Mr. A. Granday, a celebrated
French chef, established a factory for canning turtle soup made
from the green turtle which abound in these waters. He accumulated
what, to a thrifty Frenchman, is a comfortable fortune, and sold
the business in 1904 to Mr. Louis Mouton, who died in 1908, and
in 1910 the plant was purchased by Mr. Norberg Thompson. CIGAR BOX FACTORY In 1877 a cigar box manufactory was established
in Key West, situated on Emma street, southeast of Eaton. It
was managed by Mr. A. de Lono, but not being able to cope with
the disadvantages of freight rates and lack of transportation
facilities, he closed down and the plant was disposed of at the
end of about two years. KEY WEST GAS COMPANY In the spring of 1911 the city council granted to Messrs. Charles E. Starr and John C. Reed, gas operators of Philadelphia, Pa., a franchise to establish a gas plant in the city of Key West. Work on laying the gas mains was begun in November, 1911, and a plant large enough to serve a population of fifty thousand people will be installed. The Key West Gas Company is incorporated in Delaware and authorized to issue one million dollars worth of bonds. The contract for the construction of the plant was awarded to Whetstone & Company of Philadelphia. Mr. John Mayer is president and general manager of the company. THE TROPICAL BUILDING AND INVESTMENT CO. This company was organized and incorporated in 1892 under the laws of the State of Florida. It commenced business on May 1st of the same year. The first officers were Messrs. George S. Waite, president; C. B. Adams, vice-president; John T. Sawyer, treasurer; Jefferson B. Browne, attorney; E. M. Martin, secretary and general manager. The company has prospered and is one of the strong financial institutions of the city. Mr. George S. Waite has been president of the company, and Mr. E. M. Martin, secretary and general manager since it was first organized. |