Jameswithersslossandbirmingham S Greatironboom, 1871-1890

JamesWithersSlossandBirmingham’s“GreatIronBoom,”1871-1890

byKarenUtzCurator

SlossFurnacesNationalHistoricLandmark

Thismagiclittlecityofourshasnopeerintherapidityofitsgrowth....itspermanentmountainsgroaningtobedeliveredoftheirwealth....theElDorado of iron-masters.

FollowingtheCivilWar,Alabama’seconomybegantoshiftawayfromthedominanceofagriculture.In1871,prominentAlabamiansjoinedforcestoformthecityofBirminghamwiththeexplicitfunctionofexploitingthemineralresourcesofnorth-centralAlabama,whereeveryingredientnecessaryformakingironcouldbefoundwithinathirty-mileradius.OneofthesemenwasJamesWithersSloss,anorthAlabamamerchantandrailroadman.

SlosswasbornofScots-IrishdescentinMooresville,Alabama,in1820.Hisfather,Joseph,emigratedfromCountyDeery,Ireland,toLexington,Virginia,withhisparentsin1803.HelatermovedtoTennesseewhereheeventuallybecameasoldierandwentontofightintheWarof1812.FollowingthewarhemetandmarriedClarissaWassonfromAlabamaandmovedtoMooresvilletofarmandraiseafamily.

Atfifteenhisoldestson,James,becameanapprenticebookkeeperforalocalbutcher.Attheendofhisseven-yearterm,hemarriedalocalgirl,MaryBigger,andusedhissavingstobuyasmallstoreinAthens,Alabama.Bythe1850s,JamesWithersSlosshadextendedhismercantileintereststhroughoutnorthernAlabamaandeventuallyevolvedintooneofthewealthiestmerchantandplantationownersinthestate.

Intheearly1860s,realizingtheneedfortheexpansionofsouthernraillines,Slossbecameactiveinrailroadconstruction.AsBirminghamjournalistEthelArmeslaternotedina1910newspaperarticle,“Slosshadavoiceincountyandstatepolitics,andwastakingupthefightforrailroadswithvigor,andthatgoodIrishtongueofhistoboot.”In1867, followingyearsofnegotiations,allraillinesbetweenNashvilleandtheTennesseeRiverwereconsolidatedintoonecompany,theNashvilleandDecatur,withJamesW.Slossasitsfirstpresident.

Duringthispostwarperiod,Slossnotonlypromotedthedevelopmentofsouthernraillines,butbecameoneofthechiefproponentsofAlabama’spostwarindustrial

development,mostnotablytheareaaroundpresentdayBirmingham.SlosswasdeterminedtodeveloptieswithanenterprisethathademergedasthestrongestrailroadintheSouth;theLouisvilleandNashville(L&N).HerealizedthattheL&Nhadreachedacriticalstagein theSouthandgreatlyneededtofindanoutletthroughAlabamatotheGulfofMexico,wheretheywantedaccesstonewmarketsandconnectionswithMontgomeryandMobile,Alabama.Awareofthisinterest,SlossseizedtheopportunitytoforgeanalliancebetweentheL&NandtheElytonLandCompany--thecompanyresponsiblefordevelopingthemineraldistrictofJonesValleyandthecityofBirmingham.

SlosstraveledtoLouisvilleandpresentedthepresidentoftheL&N,AlbertFink,withaglowingpictureofthemineraldistrictandthefuturerailtrafficitwascapableofgenerating.HeofferedtoleasetheNashvilleandDecaturtotheL&NifthatlinewouldassumetheElytonLandCompany’sdebts,payinterestonitsbonds,andcompleteworkonthegapbetweenDecaturandBirmingham.Ifagreedupon,theL&NcouldrunthecombinedsystemallthewayfromNashvilletoMontgomery.Finklikedtheidea,buthisboarddidnot.Followinganintensemeetingatalocalhotel(andaroundofwhiskey!),SlossandFinkwereabletoconvincethedirectorsoftheL&Ntoendorsetheplan.

UltimatelyreachingtheGulfofMexico,theL&Ninvestedmorethan$30millioninfurnaces,mines,wharves,steamshiplines,andotherAlabamaoperations.By1888itwashaulingannualtonnageofiron,coal,andothermineralproductsoutweighingthenation’sentirecottoncrop.Sloss’sdecisiontobringintheL&NtransformedBirminghamfromasqualidjumbleoftents,shanties,andboxcarsintoathrivingcommunity.

AnothersouthernentrepreneurcrucialtothedevelopmentofBirmingham’sindustrialdistrictwasHenryDeBardeleben,sonofanAutaugaCountyplanterandson-in-lawandheirtotheDanielPrattfortune.In1878,determinedtotaptherichmineralareassurroundingBirmingham,DeBardelebenjoinedforceswithSlossandTrumanAldrich,asuccessminingengineer,toformthePrattCoalandCokeCompany,thefirstlargecoalcompanyinAlabama.Prattsoonbecamethelargestminingenterpriseinthedistrict.In1882,thePrattCompanysoldouttoMemphisentrepreneurEnochEnsley,whoinvestedcloseto$1.5millionandincreasedminingoperationstoadailyoutputof2,500tons.By1885,Ensley’sPrattCompanyowned70,000acresofcoallands,710cokeovensand30milesofrailway.Withoverathousandfreeandconvictlaborers,thePrattminesproduced“firstclasscokingcoal”forpigironfurnacesthroughouttheBirminghamarea.TennesseeCoalandIron(TCI)acquiredthecompanyin1886andimmediatelyaddedadditionalminestothePrattholdings.Since1907themineshavebeenthepropertyofU.S.Steel.

In1879,inspiredbythesuccessofthePrattCompany,DeBardelebenjoinedforcestocreateAliceFurnace(namedafterhisoldestdaughter),thefirstblastfurnacedesignedtousecoke.Sixty-threefeethighandfifteenfeetwide,itachievedanaveragedailyproductionoffifty-threetonsofpigiron.Birmingham’ssecondfurnacewouldbebuiltbyJamesSloss.In1880,tiredoftheconstantbickeringoccurringatthePrattCompany,andwiththebackingofHenryDeBardeleben,JamesSlossfoundedtheSlossFurnaceCompany.

DeBardelebenagreedtosupplySlosswithcokingcoalandMarkW.Potter,whoownedredoredepositsonRedMountain,agreedtosupplytheore.Slosstookthecontractsto

LouisvilleandwonthefinancialbackingofE.D.Standiford,presidentoftheL&N.FollowinghisreturntoBirmingham,Slossandhissons,MaclinandFrederick,filedpapersattheJeffersonCountyCourtHouseinthespringof1881toincorporatetheSlossFurnaceCompany.

ConstructionofSloss’snewfurnacebeganinJune1881,whengroundwasbrokenonafifty-acresitethathadbeendonatedbytheElytonLandCompany.HarryHargreaves,aEuropean-bornengineer,wasinchargeofconstruction.HargreaveshadbeenapupilofThomasWhitwell,aBritishinventorwhohaddesignedthestovesthatwouldsupplythehot-airblastforthenewfurnace.Sixtyfeethighandeighteenfeetindiameter,Sloss’snew

WhitwellstoveswerethefirstoftheirtypeeverbuiltinBirminghamandwerecomparabletosimilarequipmentusedintheNorth.Birminghamindustrialistswereimpressedthat

muchofthemachineryusedbySloss’snewfurnacewouldbeofSouthernmanufacturedintheSouth.Thismachineryincludedtwoblowingenginesandtenboilers,thirtyfeetlongandforty-sixinchesindiameter.Drivenbysteam,theblowingenginesweremadeinBirminghamatLinnIronWorks,anironworkscompanystartedin1885byaFinnish-bornentrepreneur,CharlesLinn.Alocalreporterdescribedthemasthe“largestenginesever madesouthofPittsburgh.”AlthoughtheenormousboilersweretoocomplextobebuiltinBirmingham,theytooweremadeintheSouth.WaltonCompany,locatedinLouisville,completedthetaskintimefortheopeningin1882.Afteronlyitsfirstyearofoperations,SlossFurnaceCompanyhadsold24,000tonsofiron.Atthe1883LouisvilleExposition,thecompanywonabronzemedalfor“bestpigiron.”

JamesW.Slossnotonlyexportedhisiron,butmanagedtosupplylargeamountsforlocalagriculturalpurposes....itemssuchastraps,pipes,andstoves.ThemajorityofSlosspigiron,however,endedupinCincinnati,Louisville,St.Louis,Nashville,Chicago,Detroit,andCleveland.Pig-ironcostsinNorthernplantsaveraged$18.30pertonin1884whilepigironintheSouthcouldbeproducedfor$10-$11aton.

ThesuccessoftheAliceandSlossFurnacessetoffamaniaoffurnaceconstructionthatwaslaterdubbedbylocalnewspapermanas“TheGreatBirminghamIronBoom.”Bythe1880s,pigironproductioninAlabamagrewfrom68,995to706,629grosstonsinJeffersonCountyalone.Economically,thelongfinancialdepressionthathitinthe1870swasfinallyover,anddemandforindustrialproductswaspickingupthroughoutthenation.Birminghamwasbooming,andduetoitsrapidgrowth,hadearnedthenickname“TheMagicCity.”

Townplanners,railroadmagnates,andindustrialistssuchasJamesSlossreceived,asoneAlabamanewspaperstated,“Adegreeofadulationpreviouslyreservedformilitaryheroes.”InNovember1881,theBirminghampresstoutedSlossasapossiblecandidateforgovernor:

“Hisexcellentbusinessqualifications,brilliantintellect,splendidcharacter,andfineexecutiveability,allcombined,makehimthegrandestmaninAlabama

todayforourchiefexecutive.HeistheverypersonificationofChristianmanhoodandintegrity,possessingthequalificationsofheadandheartwhichweshouldemulate.”

Althoughappreciative,Slossneverranforgovernor.Nonetheless,inspiredbysuchrhetoric,Alabamaindustrialistseagerlyembracedwhatwasbeingcalledthe“gospelofindustrialism.”

TheSlossFurnaceCompanywasbornatatimewhenthedespairofthepostwarerawassubsiding,andtheSouthwasfeelingameasureofeconomicconfidenceforthefirsttimesincetheopeningyearsoftheCivilWar.Thetimewasripeforaresurgenceofmovestowardsouthernindustrialization.AlthoughagriculturewasstillthebasisofAlabama’seconomy,thedemandforcottonontheworldmarkethaddeclinedafterthewarandAlabamawasworseoffthanmostsouthernstates.Asaresult,ruralareasexperiencedamassdepartureofragged,malnourishedpeopletoBirmingham’sindustrialdistrictwhereemploymentwasavailableatmines,mills,andblastfurnaces.Andhoweverbadconditionsmightbe,workers,primarilyAfrican-American,sawthistypeofworkaspreferabletotheabjectpovertytheywereexperiencinginthecountryside.

ToJamesSlossandotherBirminghamindustrialists,theuseofanalmostexclusivelyAfrican-AmericanlaborforceatminesandfurnacesinthenineteenthcenturywassimplyacontinuationofpoliciesprevailinglongbeforetheCivilWar.PartlybecausemanySouthernwhitesavoidedmanuallabor,andalsobecausewhiteworkersimportedfromoutsidetheregiondidnotseemtolast,theindustrialemploymentofblackworkersintransportationandindustrywascommon.TheuseofAfrican-Americansinskilledoccupationswasjustasfrequentastheiremploymentattasksrequiringlittleornotraining.CensusfiguresindicatethattheSouthhadonly20,000whitetradesmenin1865.Bycontrast,approximately100,000slaveswereemployedasblacksmiths,gunsmiths,cabinetmakers,andshipbuilders.

DuetotheprevailingbeliefthatAfrican-Americanswereparticularlywellsuitedforhot andphysicaloccupations,theiruseasironworkerswascommonintheSouthduringtheantebellumperiod.Andnotsurprising,theworkrequiredbylaborersatblastfurnaceslikethosebuiltbySlosslaterinthecenturyalsotypifiedthelaborSouthernentrepreneursthoughtparticularlywellsuitedforAfrican-Americans.Inaninterviewin1883,Slossstatedthat,“atourplace,nearlyallourlaboriscolored...exceptourskilledmen;theyareallwhite...thebalanceoftheironmen,thecokemen,theyardmen,thefurnacemen,andsomeofthehelpersandstockmenareallcolored.”JamesSlossdefendedusingAfrican-Americanworkers,sayingtheywerebestsuitedforhisneeds.Hegavenoeconomicargumentsexcepttorepeatafamiliarantebellumthemebystatingthatblackswereless

likelythanwhitestostrike.StressinghisaffectionforAfrican-Americans,acommonstanceamongbothprewarandplantationownersandpostwarindustrialists,hesaidthat“thecoloredmanlikesthefurnacebusiness;hehasafondnessforit.”

Sloss,however,admittedthatusingfreeblacksworkerscreateddifficultiesthatantebellumshareholdershadnotfullyanticipated.Theproblemshewasencounteringwereproblemsandissuesbeingencounteredbymanagersthroughouttheindustrialnation.ThetheworkingclassthatwasformedduringtheGildedAgewasmadeupofpeoplewhobroughtintoindustrialsocietywaysofworkandotherhabitsandvaluesnotassociatedwithindustrialrequirementsandtheindustrialculture.Thisdrawbackwasparticularlytruefor

formerAlabamafieldhands,whohadtomakedifficultpsychologicaladjustmentsinmovingfromruralplantations.

Slossalsocomplainedaboutthetransienceoffreeblackworkers.HislaborerscamefromallovertheSouth,drawntoBirminghambythelureofeconomicadvances.“Theyareamoving,restless,migratoryclass,quitedifferentfromthefarmorplantationNegroes.”In1882,becauseofhighlaborturnoverandchronicabsenteeism,Slosshadtoemploy569mentoassurehiscompanyofthe269workersthatitactuallyneeded.

AnotherreasonwhySlossandotherBirminghamindustrialistsclungtothealmostexclusiveuseofblackworkerswasduetotheirbeliefthatsocialproblemswouldresultfromtryingtomixthemonanequalbasiswithwhiteswhomightbewillingtotakeonthedifficultlaborrequiredinminesandfurnaces.Localjournalistseventoutedthevirtuesofusinganallblacklaborforce.

“TheNegroofBirminghamfillstheindustrialpositionwhichelsewhereingreatmanufacturingtownsisfilledbyalowclassofwhites.TheNegrohereissatisfiedandcontented;thelowwhiteselsewherearedissatisfiedandturbulent.ThewhitelaboringclasseshereareseparatedfromtheNegroes...byaninnateconsciousnessofracesuperiority.”

ItisclearfromsuchstatementsthattherationaleforrelyingonapredominatelyblacklaborforceinBirmingham’sprimaryindustrieswasasmuchsocialaseconomic.

Sloss,aswellasotherindustrialiststhroughouttheSouth,didtheirbesttodevisewaysofmanagingblackworkersthatwouldpreservemanyofthetraitsoftheoldslavesystem.

Likesouthernantebellumbusinessmenbeforehim,Slosswascommittedtousingservile,low-paidlaborasakeypart ofhis strategyforcontrollingcosts and believed itgavehim adefiniteadvantageoverhisnortherncompetitors.

AnotheradvantageBirminghamindustrialistsbelievedtheyhadovertheircompetitorswastheircloseproximitytorawmaterials.Asmentionedearlier,allthenecessaryingredientsneededtomakepigiron-coal,limestoneandironore-werelocatedwithinathirty-mileradius.Anddespitesaggingpricesthathitintheearly1880s,pigironproductioninAlabamarosefrom 100,683grosstonsin1882,to253,445in1886.Thissuccesswasalsotheresultoftheimplementationofasmartbusinesspracticeknownas“verticalintegration.”

Inverticalintegration,acompanyknewitcouldbestexpandbybuyingupits

suppliersoritscustomersorboth,thuscontrollingalltheprocessesofproduction,fromrawmaterialthroughtothesaleofthefinalproduct.Sloss,unfortunately,wasnotassuccessfulasothersinutilizingthisbusinesspractice.

OneBirminghamcompanythatdidsucceedinverticalintegrationwasWoodwardIronCompany.Foundedinlate1881,notlongafterJamesSlossfoundedhisowncompany,

S.H.Woodward,aWestVirginianwhomigratedtoAlabamain1867,notonlycontrolledhisowncoalandoremines,butpurchasedtheraillineslinkingthesenaturalresourcestohisblastfurnaces,thusavoidingfreightcosts.

UnlikeWoodward,Slossnevercontrolledhiscoalsupply.Instead,heobtaineditundercontractfromanotherBirminghamcompanyatratesmuchhigherthanwhatWoodwardwaspaying.Inadditiontopayingmoreforhiscoal,Slosscouldnotdependonregulardeliveriessincemanyofthelocalcoalcompanieswereoftenplaguedbystrikes,fires,and

otherproblems.WhenSlosswaspreparingtoopenhissecondfurnacein1883,hehadtodelayitbymonthsbecausehecouldnotgetenoughcoaltomakecokeforhisfurnaces.

AnotherdrawbackinSloss’soperationwasthathelackedhisownrailroadtodeliveroretohisfurnacesfromoneofthefewminesheowned,hisredoremines.Instead,hehadtorelyontheAlabamaGreatSouthern.Andunfortunately,thepenaltythatSlosspaidforinsufficientcontroloverrawmaterialsandthemeansbywhichtheyweretransportedtohisfurnaceswascompoundedbycontinualproblemswithpoorequipment.Sloss’sfurnacesweredesignedbynorthernstandards,meaningtheywereill-suitedtothespecificcharacteristicsofsouthernrawmaterials.Asindicatedinan1884IronAgemagazine article,“ConstructingSouthernfurnaceswithoutregardtothedifferencesinfuelandoresfromthoseworkedbyNorthernfurnaces,whoselineshavebeencopied,hadbeen,itseems,thegreaterrorofSoutherniron-makers.

ItwasnotthatSlossandothersouthernindustrialistsweretechnologicallybackwards,itwasbecausetheywereonlybeginningtoadapttothedeficienciesandodditiesofBirmingham’srawmaterials.Sloss,aswellasotherfurnaceownersinthearea,hadnotanticipatedthehighsilicacontentofBirmingham’sredore,whichresultedintheaccumulationofdepositsontheinnerwallsofthefurnaceandfrequentrepairs.Fortunately,bytheendof1885,Slosswasstartingtoadapttotheproblemofthelocalmineralsandabletomakethenecessarychangesandadjustments.Inthespringof1886,Sloss’stwo

furnacesproduced5,365tonsofpigiron,onlyslightlylessthanwhatDeBardeleden’sAliceFurnaceproduced.

AlthoughJamesSlossappearedtoberecoveringfromhisearlyoperatingproblems,hestarteddependingmoreandmoreonhissonstomakethemajormanagerialdecisions.Bylate1886,duetonumerouslabor,economic,andpoliticalproblems,JamesSlossdecidedtosellhiscompany.In1899hesoldouttoagroupofVirginiafinanciersfor$2millionwhowouldsuccessfullyleadtheSlossFurnacesCompanyforthenextthreedecades.