Growth of Durham as a center of commerce during the 1920s and 1930s
Hill describes Durham, North Carolina, in 1925, when he first began to make a name for himself as a business leader in the community. According to Hill, Durham had yet to become a center of commerce at that point, but he describes how the community rapidly began to change with the growth of the American Tobacco Company and the textiles industry. In addition, he describes a thriving black community. Hill situates his own family, and its role in banking, along with that of C.C. Spaulding and the Dukes in the growth of Durham during the 1920s and 1930s.
Citing this Excerpt
Oral History Interview with George Watts Hill, January 30, 1986. Interview C-0047. Southern Oral History Program Collection (#4007) in the Southern Oral History Program Collection, Southern Historical Collection, Wilson Library, University of North Carolina at Chapel Hill.
Full Text of the Excerpt
- JAMES LEUTZE:
-
What was Durham like in 1925?
- GEORGE WATTS HILL:
-
A little town. That's about all.
- JAMES LEUTZE:
-
Was it a center of commerce?
- GEORGE WATTS HILL:
-
Oh, no, no. It was, I don't quite know how to describe it.
American and Liggett & Myers tobacco companies, real
manufacturing, then Imperial Tobacco, had a receiving station
where . . . The tobacco market was a real thing in Durham in those
days, four or five big warehouses and the farmers brought their tobacco
in and the tobacco companies bought it. Imperial bought a lot of tobacco
and shipped it to England, it being one of the companies that Mr. Buck
Duke had organized back in the early days of the first few years of the
century. And when he had gone to England and took over several British
concerns and organized the Imperial Tobacco Company to handle England,
and American Tobacco to handle North America, and the
British - American Tobacco Company to handle the rest of the
world. He thought big.
[laughter]
And there were quite a number of smaller handlers of tobacco at
that time. The Erwin Mill was in full force, and one of the great
sheeting mills, the largest sheeting mill in the
world, is still in Durham and is operating. It has just been sold, I
believe, by Burlington to Stevens recently. Durham Manufacturing Company
was another one in east Durham; that was handled by Mr. Harper Erwin.
Bill Erwin was the president of Erwin Mills. My grandfather was
vice-president 'til his death and then my father became
vice-president. I went on the board to serve for thirty years, or
something, on the board of directors. But tobacco companies, tobacco
manufacturing and textiles were the business of Durham.
- JAMES LEUTZE:
-
Was it a company town, in a sense?
- GEORGE WATTS HILL:
-
Yes, the Erwin Mill owned a great many houses, small houses, three or
four rooms, all in a row, all out in west Durham. And the same thing
applied to the Durham Cotton Manufacturing Company, that's
the proper name, had similar houses in east Durham. And East Durham was
filled with textile workers; West Durham was textile and the tobacco
workers were scattered all over in Durham. Durham was 50,000 people or
something like that at the time, whereas now it's
125,000.
- JAMES LEUTZE:
-
Now what about the black community in Durham?
- GEORGE WATTS HILL:
-
The black community was strong. It's always been strong as far
as I can remember in that now they're 45 percent or something
like that of the population of Durham. But then it was far less. They
have a much higher birth rate than the whites and all kinds of
problems.
- JAMES LEUTZE:
-
Was there a black elite? A black business and intellectual elite?
- GEORGE WATTS HILL:
-
There was a black bank that was started by the doctors, Dr. Spalding came
into the picture. Spalding started the insurance company, the North
Carolina Mutual, which became the largest Negro life insurance company
in the world and still here. Some of his descendants and relatives and
so on are still running it, Kennedy and so on. But it was a shirt-tail
of a business to start with. And I remember my grandfather and father
assisted Dr. Merrick and one other man to start the company; they put up
some money and showed them how to do it and so forth, and then they went
on their own. Grandfather and Dad have never had any part in the
operation at all and eventually the North Carolina Mutual became one of
the outstanding businesses in Durham as represented by a building
that's fifteen or twenty stories high on the old Ben Duke
home place. They bought that block and built it. There's a
long story about that building but that's that.
- JAMES LEUTZE:
-
Were there any of the Duke family members still in Durham at that
time?
- GEORGE WATTS HILL:
-
Buck Duke was, and Ben Duke was, in the old Fidelity Bank. And when my
father first came here, and I may have said so before, that they did not
pay interest on savings accounts and my father had a real fight with
them because he started what's now the Central Carolina Bank,
it was then Durham Loan and Trust Company and Durham Realty and
Insurance Company in the old Trust Building. And he paid 4 percent
interest on savings accounts regardless of whether people came in and
demanded it or asked for it and so forth. And Mr. Buck Duke, Buck and
Ben were in the Fidelity Bank, controlled it at
least, and they were vice-president and president. And, as my father
said, they almost ran him out on a rail out of town because he paid
interest. He thought that was fair and that was proper and that was his
way of doing business and eventually Fidelity Bank, which was
the Duke bank and the bank in Durham
at the time, eventually they started paying interest. You had to go in
and demand it before they'd pay it. And it's
interesting that in 1937, I think it was, when we built the office
building, I built, which is now the CCB Building, that we had reached
roughly ten million dollars of total assets. That was a lot of money in
those days. And the Fidelity Bank was the same and we were passing, we
were slowly creeping up on the Fidelity Bank and so they joined, or
merged, into the Wachovia. Mr. John Wiley was the president and Mr.
Kirkland later took his place when Wiley died. They all lived over on
the Morehead Hill section, the Wileys, the Whites, the Moreheads, the
Watts, the Hills, and so forth; that was the section
of town. My father, when he came to town or shortly thereafter,
organized the first real estate residential development in Durham, which
is now known as Club Boulevard, from the water works east to Watts
Hospital, and now the Science and Math complex.