The story
James Douglas was a former professor of chemistry working for William E. Dodge Jr. and Daniel Willis James, majority co-owners of the trading firm Phelps, Dodge and Co. Phelps Dodge was interested in entering the copper mining industry, and hired Douglas to make an inspection of mining claims in the Southwestern United States. Douglas suggested that the two men invest in the Detroit Copper Mining Company of Arizona, which owned a copper mining claim in Morenci, Arizona Territory, as well as purchase the Atlanta claim, adjoining the Copper Queen Mine, in Bisbee, Arizona Territory. In 1881, Phelps Dodge followed both recommendations, taking an interest in the Detroit Copper Mining Company, and purchasing a controlling interest in the Atlanta mine. After the Copper Queen and Atlanta mines both struck the Atlanta ore body in 1884, Phelps Dodge merged with the Copper Queen, to avoid litigation sparked by the "law of the apex". The company merged its various mining interests into the Copper Queen Consolidated Mining Company in 1885, and installed Douglas as president and part-owner.
With production in the Bisbee area expanding, Douglas formed the Arizona and South Eastern Railroad in 1888. The railroad ran on a short spur of track from Bisbee to Fairbank, Arizona, where it met the mainline of the Atchison, Topeka and Santa Fe Railway's New Mexico and Arizona Railroad. Shortly thereafter and unhappy with AT&SF rates, the line was extended to Benson, Arizona, to connect with the Southern Pacific Railroad. In 1900, Copper Queen Consolidated built a new smelter at the newly built town of Douglas, Arizona (named for James Douglas), to which the railroad was extended again. The line was renamed the El Paso and Southwestern Railroad on June 25, 1901, to reflect its larger scope (even though it did not yet extend to El Paso, Texas).
After the deaths of Dodge in 1903 and James in 1907, the various Phelps Dodge railroads, mining companies, real estate firms, as well as other subsidiaries and divisions were all merged into Phelps Dodge and Company. In 1915, Phelps Dodge and Company went public as Phelps-Dodge.
From Wikipedia’s article on El Paso and Southwestern Railroad, shared under CC BY-SA 4.0.3