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        <title>Oral History Interview of Dr. Robert Durden, 
        <date when="1974-03-27">March 27, 1974</date></title>
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            <persName>Nannie Mae Tilley</persName>
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        <pb n="Page 1" />
        <table>
          <row>
            <cell role="data">SPECIAL COLLECTIONS ORAL HISTORY
            COLLECTION</cell>
          </row>
          <row>
            <cell role="data">ORAL HISTORY INTERVIEW #18</cell>
          </row>
          <row>
            <cell role="data">Dr. Robert Durden</cell>
          </row>
          <row>
            <cell role="data"></cell>
          </row>
          <row>
            <cell role="data">March 27, 1974</cell>
          </row>
        </table>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>Did I tell the story last year about the lady down in
          Wilmington who asked me about Washington Duke? I repeat
          myself from last year, I should be embarrassed, but
          anyhow I met this lady in Wilmington a year or so ago who
          had some pretensions about the Lowcountry background, and
          I told her I was from Duke and I was working on this
          book. She laughed and she said, &#8220;Does that statue
          of Washington Duke show him barefooted?&#8221; on the
          East Campus. She said, &#8220;It certainly should.&#8221;
          The more I thought</p>
          <pb n="Page 2" />
          <p>about that the madder I got. [Laughter] I didn&#8217;t
          say it, but I pointed out that it might well show him
          barefooted. He came into the world barefooted very much
          and sort of stayed that way for a long time--the
          Homestead was a barefooted sort of house, clean, modest
          and so forth--but he went out of the world very well shod
          indeed, [Laughter] and that&#8217;s the more important
          point to make.</p>
          <p>I want to make my point about the relationship between
          the Dukes and Durham and the larger matter of
          urbanization in the state a little bit indirectly. I
          don&#8217;t have the careful list and illustration that
          Miss Tilley gave you there but I do want to sort of try
          to focus on what I think is one of the real secrets of
          the rise of the Dukes to eminence in the tobacco
          industry. When I was here a year ago I know I did say
          that we had very few papers of James B. Duke, right? I
          think some Smart Alec asked later, was it because James
          B. Duke couldn&#8217;t write, [Laughter] and I pointed
          out that was not true. He could write. Now we don&#8217;t
          know about Washington Duke. He could sign his name, but
          Miss Tilley and I were talking about it coming down. We
          really think Washington Duke probably [couldn&#8217;t
          02:49] write. James B., better known as
          &#8220;Buck&#8221; Duke, off the Duke campus, [Laughter]
          could write, and since I was here last year something
          very interesting and pleasant for me happened. I was over
          there working away in the library in August and a young
          man from the offices of the Duke Endowment in New York
          called me. He and one of the young lawyers had come down
          to check out some papers which the Duke Endowment had
          stored on the Duke campus. They have a storeroom. A
          number of us had heard about this storeroom for many
          years but we had been told that there was nothing there
          except old check stubs and old records that would be of
          absolutely no interest to any of us. But this young man,
          this friend of mine, called and said, &#8220;Look, we</p>
          <pb n="Page 3" />
          <p>just opened a wooden box with the label &#8216;James
          B. Duke&#8217; on it. We think you&#8217;d better come
          over.&#8221; And I went over with Miss Russell in tow, of
          course. Miss Russell was much more excited than I. What
          they had in this wooden box really has furnished the
          material that I will use to talk about today, because the
          people in the Duke Endowment offices in New York, right
          after Pearl Harbor, decided that Durham might be a safer
          place to store some of their records and they had shipped
          down a number of things including this wooden box, Box A,
          property of James B. Duke, and lo and behold ten letter
          books of old Buck Duke himself, which is a veritable
          treasure house of tobacco history.</p>
          <p>I exaggerate a little bit because the last seven of
          those letter books are pretty dull affairs. The first
          three I think are really quite important. They
          don&#8217;t tell us anything that Miss Tilley
          hadn&#8217;t told us a long time ago, really, but they do
          illustrate and put flesh on some things that we
          hadn&#8217;t known about, and I&#8217;m referring
          particularly to the whole matter of the Bonsack cigarette
          machine. I&#8217;m sure most of you have heard of this
          machine, which played such an important part in the rise
          of the cigarette industry in the country. The first three
          letter books deal completely with that whole story of how
          the Dukes made their special deal with the Bonsack
          Machine Co., and it was that special deal which had an
          important part--it wasn&#8217;t the only thing by any
          means but it had an important part--in the rise to
          prominence of the Dukes in the cigarette industry.</p>
          <p>As Rick Knapp mentioned, Washington Duke led his
          family into Durham about 1874. The older son, Brodie, who
          had the drinking problem, had already moved to Durham, so
          Washington followed with Buck and with Buck&#8217;s older
          brother, Ben, and the daughter, Mary, in 1874. As some of
          you would remember from last year and would certainly
          know, when the Dukes got to Durham they were simply
          nothing in the tobacco</p>
          <pb n="Page 4" />
          <p>industry, which was already doing quite well in
          Durham, compared to the great Bull Durham Co., the W.T.
          Blackwell Co., that was much larger, much more important,
          as a manufacturing concern, so large, the Bull Durham
          smoking tobacco, that the Dukes, led possibly by
          twenty-one-year-old--. Well he was less--. Buck Duke was
          born in 1856 so he was around twenty-five in 1881, when
          the Dukes decided that they could never catch up with the
          Bull Durham people, therefore they would shift over to
          this newfangled thing called the cigarette, and they
          imported over a hundred immigrant hand rollers from New
          York to come down and roll the cigarettes. They did well
          with this, so well that in &#8217;84 they decided to try
          one of these new machines that had been invented. There
          were a number of inventions but the one by young James
          Bonsack in Virginia--was it Salem, Virginia?--over near
          Roanoke, was the one that they decided they would
          try.</p>
          <p>Now that machine had been tested in the factory in
          Richmond of Allen &amp; Ginter, the Allen &amp; Ginter
          Co., which was a much larger cigarette company than the
          Dukes were. It was the biggest, as I recall, of the
          cigarette manufacturing companies. The machine was
          theoretically capable of producing in a day around
          100,000 cigarettes. That was as many as forty-eight
          skilled hand rollers could make. The Bonsack Machine Co.
          leased these machines on a royalty basis, which I got out
          of Miss Tilley--do I have it straight here, Miss Tilley,
          two-thirds of the cost of producing cigarettes by hand?
          In other words the Bonsack Co. charged thirty cents per
          thousand cigarettes royalties for plain work and
          thirty-three cents per thousand royalties for what they
          called printed work. The Bonsack Co. installed the
          machine and furnished an operator for it. But there were
          two big problems about this Bonsack machine. One was that
          it was imperfect. It really didn&#8217;t work too well.
          The other one, the one that probably still needs some
          more research--</p>
          <pb n="Page 5" />
          <p>I certainly don&#8217;t deal with this problem in my
          book--the cigarette manufacturers at that time, Allen
          &amp; Ginter and two or three other big ones in New York,
          claimed that smokers simply preferred hand-rolled
          cigarettes. They claimed this very strongly, therefore
          there were a number of manufacturers who were quite
          hostile to the whole idea of machine-produced cigarettes
          and got this message across in their advertisements, that
          their cigarettes were hand-rolled therefore much superior
          to the machine-made cigarettes.</p>
          <p>Now, on the first obstacle, that is the imperfections,
          throughout their lives the Dukes had a certain streak of
          real luck but I think they also had a certain streak of
          real ability because when they ran into able people--and
          this mechanic named W[illiam]. T. O&#8217;Brien was just
          merely the first of a whole series of extremely able
          people that played key roles in the various successes of
          the Dukes. W. T. O&#8217;Brien was sent down by the
          Bonsack Co. to work on this machine in Durham. He turned
          out to be something of a mechanical genius. Young Buck
          Duke apparently was no slouch with machinery either, was
          quite shrewd and capable with machinery. Between the two
          of them, but certainly--. We don&#8217;t have much
          documentation here. We mainly have to go by hearsay and
          later newspaper stories and so forth. Between the two of
          them, but with O&#8217;Brien doing most of the work, they
          got that machine going. Is that enough about the machine,
          Miss Tilley? We don&#8217;t really know what they did to
          it, do we?</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Nannie Mae Tilley</speaker>
          <p>I think it involved their own [09:50]. [Laughter]</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>I&#8217;ll take your word. [Laughter] I don&#8217;t
          know. They hope to have a machine at the Homestead,
          don&#8217;t they?</p>
        </sp>
        <sp who="">
          <speaker>Unknown Speaker</speaker>
          <p>Yes, sir.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>If anybody could help them find one.</p>
        </sp>
        <pb n="Page 6" />
        <sp who="">
          <speaker>Unknown Speaker</speaker>
          <p>We&#8217;re desperately in need of a Bonsack machine.
          I asked Dr. Durden but if anyone has a lead please help
          us.</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Nannie Mae Tilley</speaker>
          <p>But the original [10:09] one was burned.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>No, I didn't--.</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Nannie Mae Tilley</speaker>
          <p>[10:12] was burned.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>I didn&#8217;t know that. Well I don&#8217;t mean to
          make that business of overcoming the machine&#8217;s
          imperfections too easy because that actually took some
          time. It wasn&#8217;t clear all at once that they were
          going to be able to make this machine work well. Now, the
          Duke family, again led by young Buck Duke, decided that
          they were going to gamble on that machine. They were
          willing to really try it. They knew it was risky. The
          Bonsack people were very eager to have the machine used.
          They were eager to have it used on the best quality of
          cigarettes--not on cheap cigarettes but on top quality
          cigarettes--and they would certainly hope that sooner or
          later some company would come along and would stop
          advertising hand-rolled cigarettes and so forth. So the
          Bonsack people were eager to have the machine used,
          they&#8217;d make more money, and young Buck Duke
          proceeds to get in touch with the president of the
          Bonsack company, a man named D. B. Strouse,
          S-t-r-o-u-s-e, from Virginia, in &#8217;84, saying,
          &#8220;We&#8217;d like to talk to you about a matter of
          keen interest to both of us.&#8221;</p>
          <p>Strouse didn&#8217;t catch on too quickly but in
          &#8217;85, in New York, a series of conferences between
          James B. Duke and D. B. Strouse resulted in the famous
          contract, which we now can document very fully out of
          these letter books, whereby Strouse agreed that if the
          Dukes would install the Bonsack machine and use them on
          all brands, including their best cigarettes, that the
          Bonsack people would give the Dukes a secret</p>
          <pb n="Page 7" />
          <p>rate. Instead of charging thirty-three cents per
          thousand for the printed and thirty for the unprinted,
          the Dukes would be charged only twenty-four cents per
          thousand on all cigarettes. Furthermore, when and if all
          cigarettes produced by the Duke firm were made by
          machines, the rate would be reduced to twenty cents per
          thousand. And then finally, the real kicker, if the
          Bonsack rate of royalty to any other manufacturer should
          ever be reduced below the standard rate of thirty-three
          and thirty cents, respectively, the Duke firm should have
          its rate proportionately reduced so that it would always
          be charged twenty-five percent less than any other
          manufacturer. [Laughter] That last one was pure Buck
          Duke, go get a special rate and if anybody else ever gets
          a special rate then we get even specialer. This is the
          contract that was negotiated in 1885. By that time the
          machine was working quite well, and it&#8217;s really
          very dramatic to see what happens in the cigarette
          industry, then, in the late &#8217;80s, because in the
          five years between &#8217;85 and &#8217;90 the American
          Tobacco Co. formed in 1890 and the Bonsack machine and
          Buck Duke had an awful lot to do with the formation of
          the American Tobacco Co., as I&#8217;ll explain in just a
          second. But in that five-year period Washington Duke Sons
          &amp; Co. emerges as the top cigarette producer in the
          country in a very spectacular fashion.</p>
          <p>Young Buck Duke moved to New York in &#8217;85 and
          opened a branch factory in New York City, so for the rest
          of his life New York was as much his home as any place.
          Later on in his life he acquired a home in Charlotte, as
          some of you know, and of course his family, he kept some
          family in Durham, whom he visited from time to time, but
          from 1885 on, that was from age twenty-nine, he was
          really always a New Yorker, too.</p>
          <p>The Dukes began to clamor for these machines just as
          fast as the Bonsack people could produce them, almost,
          and within a couple of years they had forced the
          other</p>
          <pb n="Page 8" />
          <p>cigarette manufacturers to go to machine production.
          They simply couldn&#8217;t--. As I was saying earlier, I
          think one area of interesting research is going to be
          when somebody helps us find out if people really had been
          so reluctant to smoke machine-made cigarettes as the
          manufacturers had earlier claimed. I don&#8217;t know.
          Americans are not traditionally reluctant to accept
          changes like that. At any rate the machine-made
          cigarettes caught on.</p>
          <p>Long before this, of course, the Dukes had learned,
          and if they didn&#8217;t learn it any place else they
          certainly could have learned it from the Bull Durham
          people, that big-time heavy expenditures on advertising
          was extremely important in the tobacco industry, so they
          had gone in for that even earlier. Now they go in for it
          even more spectacularly. There&#8217;s the old familiar
          story about the Duke salesman down in Atlanta who just
          happened to see the poster of the--and this is a true
          story; we&#8217;ve got letters to prove it--saw the
          poster of a beautiful French actress, Madame Rhea, who
          was appearing in Atlanta, and this sharp salesman
          approaches Madame Rhea and says, &#8220;Would you consent
          to have that lithograph, that huge lithograph of you,
          appear holding a pack of--?&#8221;--Duke of Durham?</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Nannie Mae Tilley</speaker>
          <p>Pin Head.</p>
        </sp>
        <speaker>Robert Durden</speaker>
        <p>I forgot. Pin Heads? I think it was Duke of Durham.
        Let&#8217;s say Duke of Durham. That was one of the famous
        brands. Madame Rhea said she&#8217;d be delighted to have
        her picture appear, so the sensation of Atlanta quickly
        became an advertising man&#8217;s dream because you got
        newspaper stories and all this about Madam Rhea holding a
        pack of Duke of Durham cigarettes, Atlanta&#8217;s
        favorite. That sort of image the Dukes exploited to the
        full. The same salesman goes out to Kansas City and he
        finds a very attractive widow who agrees to help sell
        cigarettes, and once again you get</p>
        <pb n="Page 9" />
        <p>newspaper stories about this [16:17] lady tobacco
        salesman, which is something you didn&#8217;t see much of
        in the 1880s, so attractive that Washington Duke sent word
        he was going to Kansas City. He was an old widower at that
        time. [Laughter]</p>
        <p>And then they hit on the--. Roller skating was a big
        thing back in the &#8217;80s and the salesman hits on the
        idea of outfitting a team of skaters up in Ohio and
        Michigan, the Pride of Durham, and you play this Duke
        tobacco roller skating team, and they play hockey, I think
        it was, and there were some very spectacular matches in a
        lot of the larger cities of the old northwest, and get a
        tremendous amount of publicity.</p>
        <p>Pictures in every packet of everything you can imagine,
        from kings and--. I won&#8217;t proceed to try to name
        everything, but of course one of the most famous items was
        the pictures of the beautiful woman, Lillian Russell, clad
        in tights, no less. Young men and other people too avidly
        collected the cards. One of the few letters that we do have
        of Washington Duke&#8217;s is a letter that he wrote to his
        son, Buck, about &#8217;96, and it&#8217;s a very
        interesting letter. I&#8217;m using it in the book, of
        course. Washington Duke said, &#8220;Dear Son: It&#8217;s
        been pointed out to me,&#8221;--by Rev.
        So-and-so--&#8220;that we are using lascivious advertising.
        [Laughter] This must stop. We really must not corrupt the
        morals of the younger generation with that sort of
        advertising so please see to it that it stops.&#8221; Well,
        of course it didn&#8217;t stop. I don&#8217;t know how Buck
        handled Pa, but he did some way.</p>
        <p>But I think the main point I want to make about that
        contract with the Bonsack Co. is that no sooner did James
        B. Duke get it than--. In 1885 Buck Duke wrote Strouse, the
        president of the company, and said, &#8220;Please let me
        know as soon as possible what proposition you will be able
        to make looking to a concentration of the business, and I
        will do what I can to bring about such a move.&#8221; Duke
        said he thought it would be wise for the</p>
        <pb n="Page 10" />
        <p>Bonsack Co. &#8220;to make just as close a figure as
        possible on rates so as to induce those who are using other
        machines, which you claim are infringements, to drop their
        machines and use the Bonsack machine rather than go into
        litigation about infringement on patents.&#8221; In other
        words, starting in 1885 James B. Duke uses this contract
        with the Bonsack Co., and he uses D. B. Strouse, to hold
        down the competition in a very effective fashion. He puts
        tremendous pressure on Strouse. He tries to sell the idea
        to Strouse that the Bonsack Co. really would make more
        money by limiting that machine to the largest
        manufacturers, which would finally be Washington Duke Sons
        &amp; Co. in Durham, Allen &amp; Ginter in Richmond, and
        then the Kinney Co. in New York, three sort of big
        companies, and this is really how the American Tobacco
        Company gets started. Strouse is the key intermediary
        between Duke and these other tobacco manufacturers to sell
        this idea of getting together to limit the use of his
        machine, which has proven to be the most successful of the
        various machines for making cigarettes.</p>
        <p>I won&#8217;t bore you with a detailed account of the
        negotiations, but its interesting as Duke gets the machine
        limited, sufficiently so that by 1889 Mr. Ginter, Kinney, a
        couple of other big people, are ready to talk, and the
        conversations begin in New York in 1890, between five of
        the largest manufacturers of cigarettes in the country, and
        by that time they have almost all the cigarette business
        pretty well cornered and they managed to keep the Bonsack
        machine out of the hands of potential competitors. [They]
        get together and form the American Tobacco Company and
        elect thirty-three-year-old James B. Duke as the president
        of this company. Of course the irony, which you are aware
        of, is that in that same year the federal government
        enacted the Sherman Anti-Trust Laws, saying that
        combinations in restraint of trade shall be prohibited and
        are hereby declared illegal.</p>
        <pb n="Page 11" />
        <p>This was a classical combination in restraint of trade
        but it just so happened--I don&#8217;t say it quite that
        boldly in the book but anybody who suffers through the
        chapter can certainly see that clearly that&#8217;s the
        case--it so happens that you get a series of rather
        conservative and indifferent attorneys general and
        presidents and the American Tobacco Co. doesn&#8217;t get
        called on the carpet until Theodore Roosevelt&#8217;s time.
        By the time it&#8217;s dissolved in 1911 it had become
        truly not just a national industry of major proportions but
        global, because, as you might remember, in 1902 the
        American Tobacco</p>
        <pb n="Page 12" />
        <p>Company decides that it really would do better in
        England and in other parts of the world if they stopped
        competing with those big manufacturers in England and got
        together to form the British-American Tobacco Company, and
        this is done with James B. Duke and his interest once again
        as the majority interest in the British-American Tobacco
        Company.</p>
        <p>So it&#8217;s a truly global affair and by that time--.
        The Dukes did not do this alone, I don&#8217;t mean for one
        second to suggest this, but by the &#8217;90s these North
        Carolina, and I guess to a certain extent Virginia tobacco
        people, too, had helped acquire a world market for this
        bright leaf tobacco and it had become quickly one of the
        major exports of the country. One of the Duke salesmen in
        the &#8217;80s, Richard H. Wright of Durham, made a global
        tour to sell the smoking tobacco and then the hand-rolled
        cigarettes that the Dukes had peddled in the early
        &#8217;80s, a very successful tour, so long before the
        American Tobacco Company was formed, those Duke products
        using the bright leaf tobacco were global and would become
        much more so when they got to work in Japan and in China
        and other countries around the world.</p>
        <p>I think the final point I want to make, and I&#8217;ll
        be glad to go back and be a little more specific about this
        contract and the negotiations to organize the American
        Tobacco Company, if you wish, but the final point I want to
        make, a theme that Miss Tilley touches on quite a bit in
        her book, is that tobacco money--and she gave an excellent
        illustration with the Reynoldses in Winston-Salem this
        afternoon--but she suggests in her classic book that
        tobacco money had an awful lot to do with the whole
        development of North Carolina. Well, actually, what I have
        in the history of the Duke family is just simply a little
        case study, if you like, of that, because by as early as
        1892 the Dukes were becoming really quite affluent,
        especially compared to Tar Heel families. They&#8217;re
        living still in quite modest houses, too. There was none of
        this conspicuous consumption that would come later on. But
        Ben Duke stayed in Durham--Buck had moved to New York--Ben,
        the older brother, stayed in Durham and in 1892 he takes
        the lead for the family and for their partner, George
        Watts, in organizing a large textile mill in Durham. For
        that day it was large; the capital was something around
        $200,000. [24:16] There was a little hassle about--. He
        finds--. Now here&#8217;s another example of the ability of
        the Dukes to pick able people. He finds a man named W. A.
        Erwin, who&#8217;d worked with the Hokeses in textiles, to
        come run the mills, and they go to the lawyer&#8217;s
        office in Durham and the lawyer says, &#8220;What are we
        going to name these mills?&#8221; and Ben Duke says,
        &#8220;I don&#8217;t know. I&#8217;ll write Buck.&#8221;
        And he writes Buck, and Buck says, &#8220;Well since Mr.
        Erwin&#8217;s going to manage them I think we ought to
        leave it up to him,&#8221; and Erwin says,
        &#8220;Let&#8217;s name them &#8216;Duke&#8217;,&#8221; and
        Duke says, &#8220;No, let&#8217;s name them
        &#8216;Erwin&#8217;,&#8221; so you name them Erwin Mills.
        The lawyer says, &#8220;Well let&#8217;s name them Erwin
        and if they succeed the glory will be this young
        man&#8217;s, and if they fail--.&#8221; [Laughter]</p>
        <p>So the Erwin mills succeeded magnificently. They were as
        profitable in their own way as the tobacco industry was.
        Rates on textiles in the &#8217;90s were incredible.
        You</p>
        <pb n="Page 13" />
        <p>double the size of those mills in &#8217;96. By 1903 you
        were looking all over the state for a good site for mill
        number two, Erwin Mill number two, then you go over there
        in South Carolina looking for good sites, looking for water
        power sites by that time, and you end up finding a good
        water power site on the Cape Fear River in Harnett County
        and you open Erwin Mill number two, and you do name it
        Duke, North Carolina. Then some twenty years later or so,
        when Trinity College became Duke University, President Few
        of Duke University wrote and said, &#8220;For God&#8217;s
        sake, we&#8217;re getting mail all mixed up and the
        newspapers recently had a story about a Duke girl running
        off with [25:52] man, or something. You&#8217;ve got to
        change the name of that unincorporated town,&#8221; and so
        Duke, North Carolina, became Erwin, North Carolina.
        That&#8217;s mill number two.</p>
        <p>Then mill number three, I&#8217;m scared to pronounce
        it--Cooleemee? Cooleemee. And then mill number four in
        Durham. By 1910 Erwin Mills [26:09] something like
        10,000,000 and was the second largest, for a period, in the
        state, and the Dukes had many other large investments in
        other mills. Those were just the ones that were most
        intimately associated with the family.</p>
        <p>So the spillover into textiles was very obvious and very
        dramatic, but I think the most important spillover was from
        textiles you got interested in power, water power, and the
        Dukes, led by this intrepid, bold businessman, James B.
        Duke, were willing to gamble. Starting in 1905 you used one
        of the water power sites that W.A. Erwin had found for you
        back in the late &#8217;90s, down at the Catawba River, and
        you launched the Southern Power Co. in 1905, and it was
        truly one of the pioneering power companies in the country.
        Once again genius helps out because you had a brilliant
        engineer by the</p>
        <pb n="Page 14" />
        <p>name of William S. Lee, who apparently led the
        profession of electrical engineering at one point in the
        country.</p>
        <p>And the whole business of long distance transmission of
        high voltage--I had to go look up volts when I was trying
        to write some of this--but long distance transmission of
        high voltage was in its infancy and Lee and his associates
        were one of the real pioneers. The whole idea of linking up
        one power system--. What you had had was scattered--. Up to
        the early 1900s you were just simply getting scattered
        development of electric power plants. Buck Duke and W. S.
        Lee had the idea of developing a regional system, not just
        a few scattered sites but a system on the Catawba River and
        then on some adjacent rivers, so long before TVA the
        Southern Power Company, which became Duke Power in 1924,
        was working on the whole principle of a system of power.
        And you started out there really with the idea of
        furnishing power for textile mills. You think when you
        started that you were going to be supplying cities and
        residences and this sort of thing, but very quickly you got
        into that. And then finally the Southern Power system was
        the first in the country, specialists in this area have
        suggested, to get the notion that one power system could
        link up with another one and obtain a much more reliable
        and dependable supply of electricity.</p>
        <p>So before the First World War the Southern Power system
        was linking up with the Georgia Power Company and with one
        or two others in a system of systems. In our energy
        conscious days today we take this sort of thing for
        granted, but back in the pre-World War I period the
        Southern Power Company--now the Duke Power Company--was
        really quite a pioneer. My point there is that I would
        suppose that the Duke Power Company has had more to do with
        the industrialization of North Carolina than any other</p>
        <pb n="Page 15" />
        <p>single business in the twentieth century. I don&#8217;t
        know, but I would suppose so. You&#8217;re certainly on the
        right track when you link tobacco with urbanization,
        because urbanization is the child of industrialization, and
        you talk about the Dukes there. Thank you very much.
        [Applause]</p>
        <sp who="#name-00000029">
          <speaker>Fred Ragan</speaker>
          <p>Bob, don&#8217;t worry about not getting invited back
          after you get your book out. We need to get you down
          here. With all the expertise we have in this room we can
          really make a critique. [Laughter] With Bob&#8217;s
          permission, and if Miss Tilley doesn&#8217;t object,
          I&#8217;d like to open the floor for questions about the
          Reynoldses and the Dukes for both Winston-Salem and
          Durham. The floor is now open.</p>
        </sp>
        <sp who="">
          <speaker>Questioner One</speaker>
          <p>On the Dukes, eventually Duke got these people like
          Lee and Erwin and such as that. Were they able to make a
          bone, too, or did the Dukes use them?</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>No, no. Miss Tilley says I&#8217;m going to make
          plastic saints out of the Dukes, and I hope not.
          [Laughter] I&#8217;m trying not to. Everybody knows
          enough. No, they made an awful lot of people rich.
          Obviously I think it says something about a businessman
          when his associates are almost fanatically loyal to him,
          and it&#8217;s more than just money, but money was part
          of it. But W. A. Erwin borrowed money and acquired a
          small interest in the Erwin Mills. Now his interest grew
          larger, but the mill started out with Duke and Watts
          money. [30:59 Of course the Dukes and the Wattses are
          still partners.] His interest grew larger and he grew
          wealthier. I don&#8217;t know how wealthy Lee--. I know
          less about Lee than I know about Erwin, but the general
          pattern was that the associates of the Dukes became
          quite--</p>
        </sp>
        <sp who="">
          <speaker>Questioner One</speaker>
          <p>They did all right.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>--comfortable. Miss Tilley, wouldn&#8217;t you say
          that&#8217;s true?</p>
        </sp>
        <pb n="Page 16" />
        <sp who="#name-00000029">
          <speaker>Nannie Mae Tilley</speaker>
          <p>Well I&#8217;m afraid I don&#8217;t know enough to
          express an opinion on it. What did the Erwins do with
          their money?</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>I don&#8217;t know.</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Nannie Mae Tilley</speaker>
          <p>I had a notion that there might not have been a
          tremendous amount.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>Well it was nothing like the Dukes. I don&#8217;t mean
          to suggest that. I&#8217;ve got the Erwin salary figures
          and every time Erwin writes and says, &#8220;Look,
          we&#8217;ve made fifty percent profits on the capital
          this year,&#8221; or a thirty-five percent profit, [31:54
          and they were doing that,] Ben Duke writes back and
          says--he&#8217;s in New York--tells George Watts,
          &#8220;Go to the director&#8217;s meeting and raise
          Erwin&#8217;s salary,&#8221; and W. A. Erwin was getting
          a salary of $25,000 a year back at a time when that was a
          princely sum of money, so in addition to his stock. Now
          that was certainly nothing like [the Dukes.] [Pause]</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Fred Ragan</speaker>
          <p>More questions?</p>
        </sp>
        <sp who="">
          <speaker>Questioner Two</speaker>
          <p>Dr. Durden, when do you expect your book to be off the
          press?</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>You never can tell about presses. [Laughter] If this
          book blows up on me I may have to go back to Georgia to
          raise tobacco, you understand. [Laughter] But I would
          hope that it would be out about a year from now.</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Nannie Mae Tilley</speaker>
          <p>I think you can raise better tobacco in North
          Carolina. [Laughter; Applause]</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>I&#8217;ve got a little land in Georgia.
          [Laughter]</p>
        </sp>
        <sp who="">
          <speaker>Unknown Speaker</speaker>
          <p>Did you get that on tape? [Laughter]</p>
        </sp>
        <pb n="Page 2" />
        <sp who="">
          <speaker>Questioner Three</speaker>
          <p>There&#8217;s a story around Durham about the attorney
          who wrote the Duke Trust [33:13] fantastic [new]
          document--.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>The Duke Endowment? You mean the adventure setting up
          the Duke Endowment? What&#8217;s the story?</p>
        </sp>
        <sp who="">
          <speaker>Questioner Three</speaker>
          <p>I was going to ask you that. [Laughter] The story that
          I heard is that in addition to Duke University and Doris
          being the chairs that several thousand small churches
          also got chunks of it.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>[33:36]</p>
        </sp>
        <sp who="">
          <speaker>Questioner Three</speaker>
          <p>[33:36] every minister in North Carolina--.</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>No, it was the Methodists. It was the Methodists.</p>
        </sp>
        <sp who="">
          <speaker>Questioner Three</speaker>
          <p>[33:43]</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>I was thinking when Miss Tilley was talking,
          Washington Duke--I said this last year--Washington Duke
          was a pious Methodist, and just like the Reynoldses, back
          in the days when they really didn&#8217;t have much
          money, starting in the &#8217;80s, for whatever reason, a
          fear of hellfire or what, or the Methodist Church taught
          him, Washington Duke apparently believed that he was
          supposed to contribute money to charitable causes, and
          when he gave eighty-five thousand dollars in 1890 to
          bring Trinity College to Durham the newspaper said that
          was the largest single sum of money that had ever been
          given in the state of North Carolina. I don&#8217;t know
          whether that&#8217;s true or not. Before he died, he
          alone, and his wealth was always quite small compared to
          what his sons&#8217; wealth later became, but before he
          died he had given about a half million to Trinity
          College. A great friend of Trinity College, of course,
          was Ben Duke, but then at the end of his life, towards
          the end of his life, Buck Duke did create the Duke
          Endowment.</p>
        </sp>
        <pb n="Page 18" />
        <sp who="">
          <speaker>Questioner Four</speaker>
          <p>Did it ever come out anywhere that Buck Duke was
          influenced to make that great gift because he was so
          disturbed over having pernicious anemia?</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>No. One of the points that I hope will emerge from
          this book is that he was sixty-eight years old but he was
          quite healthy and very vigorous. He was having the best
          time in the world building dams down around Charlotte,
          that whole area. That had turned out to be one of his
          real joys in life, the power company. He left tobacco,
          you see, except the British-American Tobacco Company. He
          left tobacco as far as the United States was concerned
          after 1911. He had nothing to do with domestic tobacco.
          But he was very healthy. He was building dams and then he
          was getting set to have the best time building stone
          buildings for Trinity College. He was just going to have
          a field day and he was involved in a big project up in
          Canada, the one that netted him one-ninth interest in
          Alcoa. [Laughter] And then all of a sudden, in July he
          goes to Durham to see about these new stone buildings.
          He&#8217;s got these buildings he&#8217;s going to give
          to Trinity College, and he&#8217;s been to Charlotte and
          having a terrible drive to Charlotte, worried to death
          about how are you going to cope with this drive, and his
          deathbed decision there--I&#8217;m getting my stories all
          tangled--but his deathbed decision there is that you will
          build a fantastically large, for that day, coal-burning
          steam plant which will be the first big central station
          type plant in the whole power company, and it sort of
          marks the transition. In our time power companies get
          most of their power from steam plants, from coal plants,
          but when Duke started out with the power business the
          assumption was you could get all the energy, all the
          power, you would ever need from water, but it
          didn&#8217;t work that way, and right at the end of his
          life he sort of saw that and authorized them to invest
          this money.</p>
          <pb n="Page 19" />
          <p>But my story was that he went to join his wife and his
          daughter, Doris, at Newport in July 1925, and he got sick
          and for a month or so, for more than a month, he thought
          he had a bug or something. His wife wrote Dr. Few that it
          would take him a few weeks to recover but he was getting
          better, and they finally had to take him to New York in a
          private railway car, and he died in October from this
          anemia that killed him quite quick. In other words
          it&#8217;s not true, unless he was operating on ESP, and
          I don&#8217;t think Buck Duke was the ESP type. I
          don&#8217;t think he--. He didn&#8217;t know he was going
          to die when he set up the Duke Endowment. He wasn&#8217;t
          sick. Because he was sixty-eight years old when his
          brother, Ben, [37:28].</p>
        </sp>
        <sp who="">
          <speaker>Questioner Four</speaker>
          <p>Do you have any of the medical records?</p>
        </sp>
        <sp who="#name-00000030">
          <speaker>Robert Durden</speaker>
          <p>Yes. [Pause] That stuff galloped. The doctors could
          help us more--. They didn&#8217;t know how to treat
          anemia. They had no treatment. I think it came shortly
          afterwards. [Pause]</p>
        </sp>
        <sp who="#name-00000029">
          <speaker>Fred Ragan</speaker>
          <p>Other questions? I want to express our appreciation to
          Dr. Tilley. It&#8217;s a long trip from Texas and
          certainly we have enjoyed [38:11]. Professor Durden. You
          can always tell when you have a successful program you
          may see it twice, [so we occasionally, of course, do
          have] both of these speakers on our program last year and
          now back this year and who knows what will come next
          year? So thank you very much. [Applause]</p>
        </sp>
        <p>END OF RECORDING</p>
        <p>Transcriber: Deborah Mitchum</p>
        <p>Date: October 14, 2010</p>
      </div>
    </body>
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