The Washington herald., 1917-11-24
FLORIDA KEPT
>FLAGLER MONEY
Holland Tells Why New
York Lost on Million
aires Estate.

are able to report that the State can
collect taxes upon no more than
$4,000 for he was not citizen Of
New York. but Of Florida.
This represents the complete. value
Of the property which Mr.. Flagier
owned in New York State at the time
OF his death. Much the larger part
of 1t Is covered by a beautiful piece
of property which overlooks Long
Island Sound, about twenty miles
north Of New York City.
Again the tax appraisers have dis
covered that an estate accumulated
by a man Of great business capacity
! frequently amounts to about SO. 1900.
2 A little more or a little less than
900 represents the money value
OF the estate left by many men who
gained prominence in the world OF
industry or business affairs or in
transportation.
Jay Goulds estate was found to
amount to about S75.0OO,0OO. Russell
Sage's estate was a little in excess OF
this. E. H. Harriman's estate was
two or three millions over eighty
millions
Much Florida Property.
In his lifetime and after the sue
cess of his daring and, many thought.
absurd proposition to develop rail-
road and hotel properties in Florida
and build a vast viaduct around the
Florida Keys for his railroad whereby
instant communication could be es-
tablished by means of large freight
ferry boats plying between Havana
and Key West, the common estimate
was that Mr.. Flagler had accumulated
not less than a hundred millions.
The tax appraiser finds that out OF
his estate of seventy-five millions,
fifty millions can be reasonably
Florida property. But many times
fifty millions can bt reasonably
reckoned as the increased wealth OF
Florida by reason of the construction
Of the Flagler railroads and the ocean
ferry to Havana, for very great agri-
cultural development has followed the
building of the Flagler railroads.
The other twenty-five millions prob
ably includes his investments in
Standard Oil properties and perhaps
in other industrials.
Three Great Railroads.
Mr.. Flagler contemplated early in
the eighties when little past so years
of age great railroad development in
Florida and he purposed this develop
ment exclusively through Individual
financing. No doubt a considerable
part of the fifty millions which his
Florida properties are appraised at re-
fleets conversion Of Standard Oil Sc
curities into this great work. Mr..
Flagler. so far as is known. financed
exclusively with his own credit and
means the construction of this rail-
road system and the improvements.
So also did H. H Rogers who, pos
sibly inspired by the example of his
longtime associate in the Standard
on Company. Mr.. FIagler. personally
and exclusively financed the Construc-
ton of the Tidewater Railroad, whose
western terminal Is in the great coal
fields Of the Appalachian Range and
whose eastern terminal is at Norfolk
There was time in panic days when
Mr.. Rogers, being hard pressed for
ready cash. was compelled to secure
advances from a New York bank upon
rather rigorous terms. He was obliged
to endorse his own notes. to furnish
the highest grade of securities, in
cluding Standard on certificates and
to agree to pay per cent interest.
So far as was known Mr.. Flagler was
never under stress of that kind.
Modern Methods.
Henry NJ. Flagler. H. H. Rogers and
Norman B. Ream within the past
twenty-five years constructed railroad
systems in the South. each of which
compelled the mastering Of exceeding
ly difficult engineering problems. All
30
decided to adopt the best modern
methods Of railroad construction. Mr..
Flagler originated the plan whereby
his railroad extends around southern
Florida upon concrete structures.
whose foundation are the coral keys
south of Florida. Mr.. Ream and Mr.
Rogers found II necessary to conquer
very difficult engineering problems,
for the railroads they contemplated
were to penetrate mountain ranges.
Both instructed their engineers to
build as straight a line as possible
no matter what the cost, to reduce
grades to the lowest possible figure
and. 50 far as practicable, to elimi-
nate curves. Mr.. Ream was the orig
inator of the railroad which now ex-
tends from the Clinchfeld coal regions
almost in straight line to Spartans-
burg, s. c. It cost a great deal Of
money, but Mr.. Ream believed as did
Mr. Rogers that the economies ef-
feeted by modern construction would
speedily repay the extra cost. Both
were correct in that opinion.
The railroad terminates at Spar
tansburgh, s. c., where connection is
made with a line that runs directly
to Charleston. Today visible evil
dences Of the magnitude of this en-
terprise are furnished those who visit
Charleston by the mammoth terminals
there erected whereby the export of
coal can be facilitated.
Cost 100000 900.
Many men of good business iudg-
ment wondered whether Mr.. Rogers,
like his longtime associate, Mr..
Flasler. was not undertaking an i'm
practicable railroad proposition when
he decided to build without co-opera-
ton railroad extending from the coal
regions 40 miles to a terminal in
Norfolk, and so to build 1t that IL
would compare favorably with the
best constructed railroad systems in
the United States.
He lived only long enough to share
In. the celebration OF the completion
Of this road. Were he living now he
could contemplate with qualification
the evidences that his project was
well justified commercially. This rail-
road which constituted the bulk of
Mr.. Rogers fortune represents about
1000. or did at the time of his
death. Some day It VIII represent
much more than that.
Mr. Flagier lfved Iono a,o,,oh 70