The story
Founded by Henry Morrison Flagler in 1899.1
History
Henry Flagler: developing Florida's east coast
The Florida East Coast Railway (FEC) was developed by Henry Morrison Flagler, an American tycoon, real estate promoter, railroad developer and John D. Rockefeller's partner in Standard Oil. Formed at Cleveland, Ohio, as Rockefeller, Andrews & Flagler in 1867, Standard Oil moved its headquarters in 1877 to New York City. Flagler and his family relocated there as well. He was joined by Henry H. Rogers, another leader of Standard Oil who also became involved in the development of America's railroads, including those on nearby Staten Island, the Union Pacific, and later in West Virginia, where he eventually built the remarkable Virginian Railway to transport coal to Hampton Roads, Virginia.
Flagler's non-Standard Oil interests went in a different direction, however, when in 1878, on the advice of his physician, he traveled to Jacksonville, Florida, for the winter with his first wife, Mary, who was quite ill. Two years after she died in 1881, he married Mary's former caregiver, Ida Alice Shourds. After their wedding, the couple traveled to St. Augustine, Florida, in 1883. Flagler found the city charming, but the hotel facilities and transportation systems inadequate. He recognized Florida's potential to attract out-of-state visitors. Though Flagler remained on the Board of Directors of Standard Oil, he gave up his day-to-day involvement in the firm in order to pursue his Florida interests.
When Flagler returned to Florida, in 1885 he began building a grand St. Augustine hotel, the Ponce de Leon Hotel. Flagler realized that the key to developing Florida was a solid transportation system. At the time, St. Augustine was served by the Jacksonville, St. Augustine and Halifax River Railway (JStA&HR), a 3 ft (914 mm) narrow gauge railway that began service in 1883 between South Jacksonville and St. Augustine. While the JStA&HR was used to transport building materials for the hotel's construction, Flagler found it was poorly constructed and its passenger services would be inadequate for patrons to reach his hotel. Flagler joined the board of the JStA&HR on December 10, 1885, before fully purchasing the line three weeks later. Flagler then rehabilitated the line to his standards, purchased new rolling stock, and converting the track to standard gauge. He built a modern depot facility as well as schools, hospitals and churches, systematically revitalizing the largely abandoned historic city.
The Ponce de Leon Hotel opened on January 10, 1888. By April of that year, Flagler acquired a second hotel in St. Augustine, the Casa Monica Hotel, which he renamed Cordova. He then built a third hotel, the Hotel Alcazar, which opened in 1898. With the success of his three St. Augustine hotels, Flagler incorporated the Jacksonville Bridge Company to build a bridge across the St. Johns River and connect the JStA&HR to the rest of Jacksonville's railroads. Passengers needed to be ferried across the St. Johns River in Jacksonville to access the line at the time, which was a time-consuming process. Construction began in 1889 and the bridge opened on January 5, 1890, allowing a direct connection for private railcars and Pullman coaches to reach St. Augustine.
By 1888, Flagler was interested in expanding his network beyond St. Augustine. He acquired three additional railroads that year to expand further south. He acquired the St. Johns Railway, which ran from St. Augustine west to the St. Johns River at Tocoi Landing. The St. Johns Railway first opened in 1858 and Flagler purchased the line from New York millionaire William Astor. Flagler also acquired another railroad from Astor, the St. Augustine and Palatka Railway which ran from Tocoi Junction (about halfway between St. Augustine and Tocoi Landing) on the St. Johns Railway and ran southwest to East Palatka. Finally, Flagler acquired the St. Johns and Halifax River Railroad which opened in the early 1880s from East Palatka southeast to Ormond Beach and Daytona. It was extended west into Palatka after the completion of a bridge over the St. Johns River in 1888. In addition to expanding the network, the acquired railroads gave Flagler two additional accesses to the St. Johns River at Tocoi Landing and East Palatka, as well as additional connections to other railroads in Palatka. Continuing to develop hotel facilities to entice northern tourists to visit Florida, Flagler bought and expanded the Ormond Hotel in Ormond Beach.
Flagler created the Jacksonville, St. Augustine and Indian River Railway Company in 1892 as a holding company for his railroad network.
Expanding further south
Beginning in 1892, when landowners south of Daytona petitioned him to extend the railroad 80 miles (130 km) south, Flagler began laying new railroad tracks; no longer did he follow his traditional practice of purchasing existing railroads and merging them into his growing rail system. Under Florida's generous land-grant laws passed in 1893, 8,000 acres (3,237 ha) could be claimed from the state for every mile (1.6 km) built. Flagler would eventually claim in excess of two million acres (809,371 ha; 8,094 km2) for building his railroad, and land development and trading would become one of his most profitable endeavors. Flagler obtained a charter from the state of Florida authorizing him to build a railroad along the Indian River to Miami, and as the railroad progressed southward, cities such as New Smyrna and Titusville began to develop along the tracks.
The railroad reached Fort Pierce January 29, 1894. By March 22 of the same year, the railroad system reached what is today known as West Palm Beach. Flagler constructed the Royal Poinciana Hotel in Palm Beach overlooking the Lake Worth Lagoon. He also built the Breakers Hotel on the ocean side of Palm Beach, and Whitehall, his private 55-room, 60,000 square foot (5,600 m2) winter home. The development of these three structures, coupled with railroad access to them, established Palm Beach as a winter resort for the wealthy members of America's Gilded Age.
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Palm Beach was to be the terminus of the Flagler railroad, but during 1894 and 1895, severe freezes hit all of Central Florida, whereas the Miami area remained unaffected, causing Flagler to rethink his original decision not to move the railroad south of Palm Beach. The fable that Julia Tuttle, one of two main landowners in the Miami area along with the Brickell family, sent orange blossoms to Flagler to prove to him that Miami, unlike the rest of the state, was unaffected by the frost, is untrue. The truth is that she wired him to advise him that "the region around the shores of Biscayne Bay is untouched by the freezes." He sent his two lieutenants, James E. Ingraham and Joseph R. Parrott—now famous in Florida history—to investigate; they brought boxes of truck (produce) and citrus back to Flagler, who then wired Tuttle, asking, "Madam, what is it that you propose?" To convince Flagler to continue the railroad to Miami, both Tuttle and William Brickell offered half of their holdings north and south of the Miami River to him. Tuttle added 50 acres (200,000 m2) for shops and yards if Flagler would extend his railroad to the shores of Biscayne Bay and build one of his great hotels. An agreement was made and contracts were signed. On September 7, 1895, the name of Flagler's system was officially changed from the Jacksonville, St. Augustine and Indian River Railway Company to the Florida East Coast Railway Company and incorporated. The Florida East Coast Railway reached Fort Lauderdale on March 3, 1896. On April 15, 1896, track reached Biscayne Bay, the site of present-day downtown Miami. At the time, it was a small settlement of less than 50 inhabitants. When the town incorporated, on July 28, 1896, its citizens wanted to honor the man responsible for the city's development by naming it Flagler. He declined the honor, persuading them to retain its old Indian name, "Miami." The area was actually previously known as Fort Dallas after the fort built there in 1836 during the Second Seminole War. To further develop the area surrounding the Miami railroad station, Flagler dredged a channel, built streets and The Royal Palm Hotel, instituted the first water and power systems, and financed the town's first newspaper, the Metropolis.
In 1903, Flagler extended the main line an additional 12 miles from Downtown Miami southwest to access much of the unsettled lowlands near Cutler Ridge which he felt could generate agricultural traffic. This proved successful and the following year, the line was extended to Homestead.
Labor issues
Throughout the 1880s and 1890s, the fledgling rail empire extensively employed convict labor from largely African-American convicts. While most Southern states employed a form of convict lease at the time, renting prisoners' labor to various businesses, Florida's version of convict lease was considered "especially violent" compared to the others.
According to historian Joe Knetsch, reformers and muckrakers exaggerated charges of peonage regarding construction of the Florida East Coast Railway in 1893 to 1909. Flager and his lawyers defeated all legal challenges and neither the company or its employees were ever convicted in court. However, there were many reports of harsh working conditions and forced indebtedness to the company, and malfeasance by labor agents who hired men for the railway. Knetsch concludes that "Flagler in fact provided health care for his employees and was a far better employer than the press alleged."
Key West extension
Once the railroad reached Homestead in 1904, Flagler then sought perhaps his greatest challenge: the extension of the Florida East Coast Railway to Key West, a city of almost 20,000 inhabitants located 128 miles (206 km) beyond the end of the Florida peninsula. He became particularly interested in linking Key West to the mainland after the construction of the Panama Canal was announced by the United States in 1905. As the closest deep-water port in the United States to the canal, Key West was positioned to take advantage of significant new trade with the west that would be enabled by the opening of the canal – this, in addition to the city's existing involvement with Cuban and Latin American trade. Key West was a major coaling station for ship traffic between South America and New York. Flagler thought it would be profitable for coal to be brought by railroad to Key West for coaling those ships. Though, by the time the extension was finished, the range of ships had been extended to such a degree that they no longer stopped in Key West for coal.
The construction of the Overseas Railroad required many engineering innovations as well as vast amounts of labor and monetary resources. Many considered the Key West extension a folly as it was one of the most daring infrastructure ever built exclusively with private funds. At one time during construction, four thousand men were employed. During the seven years of construction, three hurricanes threatened to halt the project. This included the 1906 Florida Keys hurricane, which killed 135 of Flagler's workers.
The Key West extension cost $50 million and the lives of hundreds of workmen. Workers toiled under conditions sufficiently cruel and harsh that the US Justice Department prosecuted the FECR under a federal slave-kidnapping law. Journalists also chronicled conditions of debt peonage wherein immigrant labor was threatened with prohibitive transportation fees to leave Key West after seeing the unsafe and disease-ridden conditions, essentially forcing them to stay.
Despite the hardships, the final link of the Florida East Coast Railway to Trumbo Point in Key West was completed in 1912. The first train, a construction engineers' train, arrived in Key West on January 21, 1912. The next day, which is considered the first day of service on the new route, a proud Henry Flagler rode the first passenger train into Key West, marking the completion of the railroad's oversea connection to Key West and the linkage by railway of the entire east coast of Florida. The completed extension was widely known as the "Eighth Wonder of the World". Upon his arrival in Key West, Flagler stated "Now I can die in peace" with pride in his achievement. Flagler died 16 months later in May 1913.
Corporate history
The Jacksonville, St. Augustine and Indian River Railway Company was incorporated under the general incorporation laws of Florida to own and operate a railroad from Jacksonville in Duval county, through the counties of Duval, St. Johns, Putnam, Volusia, Brevard, Orange, Osceola, Dade, Polk and Hillsborough.
Florida state law chapter 4260, approved May 31, 1893, granted land to the railroad. At that time, it was already in operation from Jacksonville to Rockledge, the part south of Daytona having been constructed by them. The company had just filed a certificate changing and extending its lines on and across the Florida Keys to Key West in Monroe County.
The name was changed to the Florida East Coast Railway Company on September 7, 1895.
Florida East Coast Industries (FECI) incorporated in 1983 and was made the holding company for the Railway and the Commercial Realty/Flagler Development Company in 1984. The other subsidiaries are Orlando-based carrier, "EPIK Communication" and the logistics firm, "International Transit".
FECI began operating independently of the St. Joe Company on October 9, 2000 when St. Joe shareholders were given FECI stock.
On May 8, 2007, Florida East Coast Railway Company's parent, FECI, announced that FECI would be purchased with private equity funds managed by Fortress Investment Group in a transaction valued at $3.5 billion. Fortress Investment acquired Florida East Coast Railway from Florida East Coast Industries in March 2008.
On July 7, 2017, Grupo México Transportes, subsidiary of Grupo México, completed the acquisition of Florida East Coast Railway. FECI retained their passenger trackage rights, which are now used for Brightline.
From Wikipedia’s article on Florida East Coast Railway, shared under CC BY-SA 4.0.3