I always wondered how we came to live in Lenoir City. How did my family choose to live here? Out of all the places in the world, why Lenoir City? Why Tennessee? Why the South?
When I started poking around the family tree about 20 years ago, I found that both my mother’s and father’s families were here before the United States became the United States. We’ve always been in the South, most particularly in Tennessee and from the feeder states of Virginia and North Carolina, and before that from when those states were Colonies. We’ve been here so long that I don’t have a paper trail that leads back to Europe. I have no clue under what circumstances we got to North America.
And why Lenoir City? I know that my father came to this area looking for work with TVA, and met my mother on a blind date. But how did Mom’s family get to Lenoir City? My best guess is that her parents were textile workers and could find work in the textile mill in Lenoir City. But why did they leave Knoxville? Was it unsafe? Was there no opportunity? Was there not adequate housing?
I suppose I’ll never have answers. I found, however, that I could set the stage in my mind if I knew more about how Lenoir City came to be.
It was a planned city. The old Lenoir Plantation was purchased by a group of investors, and they planned a town complete with town lots, stores, and factories. Fortunately for me, these events were recorded in the Knoxville newspapers. For most towns, their earliest existence was recorded in court records. But Lenoir City was different. It was not the county seat, plus it is one of the youngest counties, so earlier history of the land and people might be found in the parent counties.
In 1890, things started to happen that created Lenoir City.
From GenealogyBank, the Daily Journal and Journal and Tribune, 8/3/1890, Knoxville, Tennessee, Volume VI, Issue 159, Page 9.
LENOIR CITY.
*****
Comprehensive Scheme for Building a
New Town.
Elsewhere will be found the prospectus of Lenoir City, the new city that is to be build on the line of the East Tennessee road, twenty-three miles west of Knoxville. The place is well situated, being on the great railroad mentioned, and also on the Tennessee river. A railroad is being surveyed from that point to a junction with the Walden’s Ridge road, and it will be built just as soon as the survey is complete, thus adding to the advantages already possessed at Lenoir City.
With this road in operation, it will be in effect, a double track road from Knoxville to Clinton. It is just the same distance from Lenoir’s to Clinton by the new road and by way of Knoxville, so that in hauling coal from the coal fields north of us to southern markets, forty-five miles is saved. The empty cars can be hauled by way of Knoxville and the loaded ones to Lenoir, making the Knoxville and Ohio, as above stated, a double-track road to Clinton.
The scheme for organizing and building up the new town is peculiar in that every stockholder becomes also a holder of real estate and a particpiant (sic) in the profits. Every man who purchases stock becomes a partner in the company building the town, and a portion of the money paid in goes to the improvement of his real estate holdings. It is something new in the organization of southern town companies, and is so perfectly clear on the face that everyone understands perfectly when he takes stock just what he is doing. It can not possibly fail of success.
From GenealogyBank, the Daily Journal and Journal and Tribune, 8/3/1890, Knoxville, Tennessee, Volume VI, Issue 159, Page 11.
PLANS AND POLICY
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Of the Lenoir City Company and
Their Method
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Of Selling Stock With Lots, as De-
scribed in their Forthcoming
Prospectus.
*****
Lenoir City is not a “boom town”; it is not the effort of speculators to build upon some old, worn out fields, a mushroom city that cannot withstand future financial storms, and by taking advantage of popular excitement to sell out the lots to outsiders at unreal and fancy prices, and then silently retire from the field, leaving the investors, so to speak, to “hold the bag,” the poorer from their investment in everything except experience.
Not only is Lenoir City situated upon a princely estate, famed throughout the south for its richness and vast expanse, but the founders careful for the success of the enterprise into which they have embarked, have determined to build up a permanent city, established upon sure and staple foundations. They have invested here for time, not for a day, merely.
Having stated out with this determination, they realize the fact, pointed out by reason, that the way to permanently utalize the unexcelled natural advantages of Lenoir City, is to offer this property to the public in such a manner that investments shall be profitable to the investors, and that every investor shall become directly itereated with them in the enterprise, and a zelous and co-operating agent in the up-building of the city.
With this and in view, and with a firm faith in the future of Lenoir City, that makes them willing to depend for their profits upon the future prosperity, they have determined to offer the property to the public upon a mutual plan, and share the profits with all stockholders who now join with them in the enterprise.
The Mutual plan has best solved the problems of insurance companies; it has been the principle that has brought the wonderful success of the building and loan associations, and enable so many of our people now to own houses instead of renting them. It is believed by the founders of Lenoir city that a Mutual plan can work yet greater wonders in the building of a city, and they therefore offer the following plan to the public in the confident belief that it is the most advantageous plan yet offered to those investing in city property, and, therefore, most conducive to the permanent growth of Lenoir City, from which alone they are to receive the reward for their labor and expenditures. They do not claim to have adopted this plan as a matter of philanthropy; it is with them a matter of business. They wish the purchasers of the property to make money because they know that they will thereby ultimately make more money themselves.
The capital stock of the Lenoir City company has been fixed at eight hundred thousand dollars, ($800,000) in 8,000 shares of $100 each, which is almost precisely three hundred dollars ($300) per acre for the company’s estate, which lies north of the Tennessee river, and on which are the extensive improvements that formerly belonged to the Lenoir Manufacturing company.
One-half of this capital stock (that is $400,000), is to be issued and offered to the public upon the following terms:
A large tract of the land belonging to the company, lying in the center of the locality where the city is to be built has been already laid off in streets and lots, and an accurate map has been made of the entire property showing in detail these streets and lots. These lots have been estimated in value, the valuations being as nearly uniform as possible, after making allowances for the different locations and sizes of the various lots and the uses to which they can be put; the valuations put upon the lots having been in all cases made as low as possible, and not, it is believed, over one-half of what these same lots would bring at public auction, as the average price per lot will be less that $250 each. The estimated value of each lot offered for sale under this plan has been plainly indicated upon the map itself, copies of which are distributed with this prospectus.
These lots, whose value has been thus estimated, are to be disposed of by the company in connection with the $400,000 of stock. In the following manner: This $400,000 of stock will be sold to the public at par. Every purchaser of this stock will, however, receive not only paid-up stock to the account of his subscription but also a lot (or lots) whose estimated value is equal to the amount of his subscription.
One-half of the amount received for this $400,000 of stock will be placed in the treasury of the company, the other half being used to pay for the original purchase of the property and the debt contracted in the formation of the company. (The founders of the company, it is thus seen, rely for their profits solely upon the value of the remaining stock after this $400,000 has been sold, and after the original purchasers have receive their bonus in lots.) This sum of $200,000 is to be used by the directors of the company for the common benefit of all stockholders as they shall deem for the best interest of the company, either in developing the property by encouraging and aiding manufactures and street improvements, or in dividends to the stockholders.
After the sale of the $400,000 of stock, the stock-books of the company will be closed, and the state of things will then be as follows: The company will have a fully paid up stock of $800,000, will have over 2000 acres of its tract still unsold, consisting of lots and manufacturing sites; and will have $200,000 in its treasury, or in improvements on the property.
It is a simple matter of calculation to ascertain the profit to the purchasers of the above mentioned $400,000 of stock. He then owns a lot (or lots) whose estimated value was $1,000 and which has probably risen in value by that time to $2,000; he furthermore owns $1,000 of paid-up, non-assessable stock in this company, which owns over 2000 acres of the princliest estate in the south, and upon which are extensive improvements, and which, furthermore, has either the sum of $200,000 in its treasury, or the result of its expenditure in the development of the property. If the directors do not use this sum in further developing the remaining property of the company in order to obtain an increased return therefrom, they can, at once, declare a cash-dividend of 25 per cent, on the capital stock. The owner of this $1,000 of stock would then own his $1,000 lot; would have received back $250 of the $1,000 which he spent, leaving his net outlay only $750;and would also own $1,000 of stock in a company owning over 2000 acres lying in and immediately surrounding the most prosperous manufacturing city of the South.
The disposal of this remaining 2,000 acres will be a matter entirely controlled by the wishes of the majority of all the stock-holders. It may be sold at public or private sale, at auction or otherwise, as their judgment may deem best and most profitable. (It will be remembered that the whole estate has been stocked at only about $300 per acre.)
The distinguished feature of this plan is thus seen to be its mutuality and co-operative basis. The founders intend to build up this city upon the principle of the old refrain: “A long, long pull, and a strong, strong pull, and a pull together.” All who aid them in building up this magnificent industrial city will share both in the glory and in the profits of the achievement.
The public which buys the $40,000 of stock to be put on the market will then own one-half of this magnificent estate which is to-day, not to speak of its future as a manufacturing city, worth, for its present intrinsic value alone, at least the entire capital stock of the company.
Details of the Method of Sale.
The books of the company will be opened for the sale and issuance of the $400,00 of stock at 11 o’clock a. m., on Wednesday, September 3, 1890, at Lenoir City. (The company reserve the right to reject all bids in excess of $400,000, as only that amount of stock is to be sold.)
Subscriptions are invited before the above mentioned day, but if made in advance must be accompanied by 10 per cent of the amount of stock subscribed, either in cash or a certified check payable to the order of C. M. McClung, secretary and treasurer of the company. All the subscriptions will be registered in the precise chronological order in which they are received, and in that order will the subscribers be allowed to select their lots.
Stock will be sold at par, and upon the following terms; One-half cash; one-fourth payable in six months; and the remainder in twelve months, with interest from date. Upon making the first cash payment of one-half (of which in case of subscriptions made in advance, the 10 per cent payment already made will be credited as a part), the subscriber of stock will receive a receipt for the amount paid, and after selecting the lot or lots whose estimated value is equal to the amount of his stock subscribed, will receive a written agreement binding the company on the payment of the balance of his subscription, to execute to him a certificate of stock to the full amount thereof and a warranty deed in fee simple, free from all incumbrances, to the lot or lots selected, subject, however, to the liquor forteiture clause herein before stated. The payment of the balance may, of course, if the purchaser desires, be made at anytime before the end of the twelve months, thus enabling him, at once, to receive his certificate of stock and deed to his lot. On the other hand, however, if a subscriber to stock, after paying one half of his subscription, does not wish to continue his payments in order to obtain the lot or lots he has selected, or for any reason ceases making payments when due, the company will issue to him, in full satisfaction of his contract, paid up shares of capital stock of the company to the full amount of the money has has already paid in, fractions of shares not being included.
To Summarize:
This is, in fact, not a sale of lots, but of stock in the company. The founders of the Lenoir City company are not seeking victims; they are inviting associates. The company is not now trying to sell out its property, but rather to increase the numbers of parties interested with the founders in the building up of the city. The efforts of many men are required to build up a city; the founders are, therefore, inviting good citizens to stand with them in the enterprise, to partake of their labors, and share in their profits.
For this purpose they have, put half of the capital stock of the company on the market. In so doing they offer to the purchasing stockholders not only their stock but also lots in the city at opening valuations, which are merely nominal compared with the prices at which such lots are usually sold in new towns. The lots will be offered at these valuations to stockholders only; being, it fact, given to stockholders. Until all this $400,000 of stock is sold and issued no lots can be obtained from the company on any terms except as a bonus with this stock.
The subscribers to this stock will not only obtain this bonus, (thus receiving the full value of their investments), but together with the founders will become owners of the vast tract of land lying in and around these lots, which comprises the great bulk of the property of the company. On the other hand the founders expect them, by the aid of their voices and influence and improvements on the lots, in buildings and manufactures, to give valuable assistance in developing and increasing the value of this remaining property. It is from the sale of this remaining tract of over 2,000 acres, or such part of it as the stockholders may wish to put upon the market, comprising the far greater portion of this “princely estate,” which will probably be sold at public auction late in the fall or early next spring, at greatly advanced prices, that the founders of Lenoir City, by the help o the new stockholders and sharing with them, expect to realize their profits.
Remember than an interest in this Company upon these liberal terms can only be obtained by becoming a purchaser of a porrtion of this $400,000 of stock now offered to the public.
Notice.–Persons desiring further information as to the properties, plans of sale, or other matters concerning the Company, are requested to address the
LENOIR CITY COMPANY,
Lenoir, E. Tenn.
*****
From GenealogyBank, Daily Journal and Journal and Tribune, 8/28/1890, Knoxville, Tennessee, Volume VI, Issue 184, Page 8.
LENOIR CITY.
*****
A Building Boom in the New Industrial Town.
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New Your Stockholder Will Build Cottages — Brick Factory to be Started.
*****
Lenoir, Tenn., August 27, — Quite a stir in financial circles was created here yesterday afternoon, when Mr. Smalley, of the Lenoir City company, received the following instructions from the New York magnates of the concern: “Prospectus and maps received; well pleased with the outlook. We authorize you to sue your own judgment in selecting us each a lot; also assume authority to erect upon each a house, the cost of which will e about $2,000, something attractive and substantial, a good renting property. This instruction from the New York gentlemen namely, Hon. Calvin S. Brice, Col. C. M. McGhee, E. R. Chapman, Esq., John G. Moore, Esq., and Hon. O. H. Payne, adds great weight to the enterprise.True they are all stockholders in the company and have controlling interest, yet it also indicates positively that this is no paper scheme, an enterprise to work upon outside capital. This knowledge has had its effect; people here who have held aloof, desirous of investing, yet waiting for their neighbor to make the advance, have come to the conclusion that now is the appointed time. It is man’s nature to want the best in everything, that proclivity is demonstrated here, when, after subscribing stock, they hurry to the town site to make the choice of their lots. But here they are puzzled; there is no choice; they sare all desirable. The man blindfolded who shoots an arrow into that beautiful park and then takes up his abode where it falls is as well off and as well-situated as the man who devotes a day in making his selection.
There is one feature that is embarrassing at present; there is no building brick to be had nearer than Knoxville. A company will immediately go to work here and manufacture three or four hundred yet this fall, but that does not supply the present demand. Mr. Cass Hall of the Lenoir City bank, was compelled to set his house on blocks, leaving the foundation until brick could be procured. It will not take advertising or whole page displays to make this enterprise a success, aside from the advantageous plans upon which the company work, the mutual plan, making the investment profitable to the investors, by every investor becoming directly interested with them in the enterprise, there are mutual advantages that will enhance the value of the property, simply for the reason of its location.
People want comforts in this life, the rich, the poor like. The laboring man wants to live where he can enjoy with his family health and prosperity. What is lacking here to make this one of the greatest manufacturing places in the south: Besides all the mineral wealth beneath the surface and the timber above, nature has been liberal with her gifts in making this one of the richest agricultural regions in Tennessee. The capitalist wants to place his means where the greatest gain can be obtained. Here with the iron, the coal, the timber and marble at our very door, with both river and railroad facilities that cannot be excelled, name the industry that cannot succeed.
Strong men have seen thy face,
And looked thy beauty o’er.
Were dazzled with thine every grace,
They loved thee much LENOIR.
They purchased with a price,
A sum unheard before,
Thy vales and hills and alls that’s nice,
And now they own LENOIR.
And they will see thee grow,
Yes, they will see thee soar,
Beyond the limits now marked out,
Will grow our proud LENOIR.
Then some will come and stand,
And loud their lost deplore;
For not investing in thy land,
When thou wert cheap, LENOIR.
From GenealogyBank, Daily Journal and Journal and Tribune, 9/5/1890, Knoxville, Tennessee, Volume VI, Issue 192, Page 5.
Big Day at Lenoir City.
The managers of the Lenoir City Company are rejoicing over their well earned success. By the close of the first day of the public sale $60,000 of stock had been subscribed and cash payment made on more than $50,000. Several large blocks will be taken this week.
The work of selling lots with stock will continue, without glaring advertisements, until the remaining $300,000 of stock is sold, after which the company proposes to advertise extensively for the big auction sale next spring.
Plans are now being drawn and contracts made for various handsome buildings, both store and residence, to be erected at once by different stockholders.
Remember that purchasers of this “ground floor” not only get their lots but also share in the future profits of the company. The sooner you buy the better selection of lots you can make.
*****
From GenealogyBank, Daily Journal and Journal and Tribune, 9/7/1890, Knoxville, Tennessee, Volume VI, Issue 194, Page 5.
LENOIR CITY.
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Things Moving Lively at the New Town.
SPECIAL TO THE JOURNAL
LENOIR TENN., September 6.–Mr. James Thompson, from Ohio, arrived in this city last evening. Mr. Thompson is a contractor and architect of state reputation. He will locate at Lenoir. He will submit plans and specifications for the construction of the five houses that will be immediately built by the New York gentlemen. Every train brings in mechanics of the different trades. The eastern and western building season will soon be over. They are coming to a country where they build the year round.
Mr. Grant B. Chley, of New York, has telegraphed the managers to select him a lot and build thereon a house, something similar to those that will be erected by the New York stockholders.
B. B. Hall of Iona, Mich., arrived this afternoon. Mr. Hall is one of the stock-holders in the large saw milling plant that will locate here at once. They have selected the site, five acres along the banks of the Tennessee river. They have purchased all the timber on the Lenoir City Companies possessions. But their main dependence will be upon the exhaustless supply of timber in the mountains which is tributary to this point.
The E. T. Va., & Ga., railroad have completed the excavation for the new depot also for two miles of side track. The new depot, it is said, will be the finest along the line of road. The estimated cost is $3,000, it will be of the latest designs and a model for convenience.
The collection of minerals, marble and wood being gathered from the Lenoir plantation is assuming respectable proportions under the guidance of Dr. Benson. An interesting cabinet will soon be on exhibition at the office of the company.
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Now, I ask you: Who wouldn’t want to live in Lenoir City?
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