In 1845, William Gregg wrote a series of essays in a Charlston newspaper, under the pen name, “South Carolina”. He wrote under this name to hide his identity, because what he said challenged the old Antebellum slave system. Gregg saw that slavery was coming to an end for the economically agrarian dependent south and a change was needed. Gregg argued the south needed to break away from its agrarian economy and develop its own industrial economy based on textile mills. He believed the south should no longer stand as a colonial economy to serve northern industries. Although Gregg presented strong arguments for an industrialized south, it mostly fell on deaf ears; slavery provided too much profit.
There were textile mills in the south a generation before Gregg’s essays, but these mills were not state-of-the-art compared to northern factories. Most lacked the required investment, operating with out-of-date dilapidated equipment that produced mostly yarn, which was sold to local markets. What Gregg called for was a true modern mill, built from the ground up, filled with the newest equipment, with operations overseen by skilled technical experts. While the south did not transform overnight as Gregg had hoped, a few that took notice of his speeches did.
Photo of Henry P. Hammett, Piedmont Historical Preservation Society Archives
One young textile producer in the late 1850’s, knew Gregg and heard his discussions on the economic capability of a modern southern textile mill. His name was H.P. Hammett, and he believed in Gregg’s theory, and began putting Gregg’s ideas in motion. Hammett, a partner in the Batesville Textile Mill, near Greenville, South Carolina worked with his partner, William Bates, on Gregg’s concept but life will derail their plan for a while.
Soon after the Civil War began, Hammett and Bates plans were derailed. Hammett was drafted into the Confederate Army, while William Bates operated his now confiscated mill that required him to produce material for the southern army. As the war went on and cotton became scarce Bates and Hammett sold their mill in 1863 and bought land on the Saluda River, about 15 miles east of their old location. They hoped to build a new modern mill on this site.
When the war ended, the southern infrastructure was a mess to say the least. In order to operate a successful mill, Hammett and Bates most importantly needed an efficient railroad, which they did not have. The Union destroyed the only rail line that connected Greenville to the market economy. This is the part in the story where Hammett will rise as a southern industrialist.
In 1866, Hammett was not only elected as a state representative, but also appointed as President of the Greenville-Columbia Railroad. His first responsibility is to fix the dilapidated/destroyed rail line connecting Greenville to Columbia, Southern Carolina. Without this functioning rail line connecting him to eastern markets, his textile business cannot exist. This rail line “coincidently” ran through the land Hammett and Bates purchased in 1863.
By 1870, Hammett not only has a well operating rail line, but built a depot in the rural countryside where his new mill was intended to be built. Hammett also used his political position to encourage the state to postpone taxes on new industries. Hammett is almost ready for his new mill, but fate would derail him again.
In the first few years of the 1870’s, Hammett served as the mayor of Greenville. In this position, he established business contacts and not only connected an east to west rail line to Greenville, but also a north south line connecting Greenville to New Orleans to the south and New York City to the north. But while Hammett used his networking skills to raise investment for his mill, William Bates dies and the Panic of 1873 hits. With this, many of his investors back out of his project. Not deterred though, Hammett goes on the road soliciting investment into his enterprise.
Photo of Piedmont Manufacturing Company, Piedmont Historical
Preservation Society Archives
By 1874, Hammett has sufficient capital to begin construction. The board of directors appointed Hammett as president and name the new business, Piedmont Manufacturing Company. By March of 1876, textile machines were turning in Hammett’s new mill. After the first six months, Hammett reports to his board of directors that the region’s first modern textile mill produced a 20% profit. His board of directors immediately offer more investment.
Unlike other industrialist of the time, Hammett did not keep his successes a secret or try to take over his competition. He publicly promoted the success of his mill, instructing others on the financial windfall that could benefit any southern men who ventured to build their own textile mill. Hammett, like Gregg, saw the successes of his mill as the future for the south’s recovery after the war, as a way that his section could stand tall on a national level with the rest of the country.
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