I found this article in The Louisiana Planter and Sugar Manufacturer Gazette, an industry publication that covered Texas and other important locations, as well as Louisiana. I've found a surprising number of articles and references to Sugar Land in the limited number of editions I've read so far. This long article covers the sale in 1908 of Kempner and Eldridge land to the State for use as a prison farm.
The first thing to note is that the article is incorrect. It states that Kempner and Eldridge retained the refinery and mills only; i.e., they sold all their acreage on the Ellis and Cunningham plantations to the State. This didn't happen. What actually happened was Kempner and Eldridge sold the Ellis Plantation to the State and kept the Cunningham land.
A short article appeared two weeks later saying the parties were renegotiating the deal. It says the State found a significant problem with the 1908 sugar cane crop, which materially lowered the land value. We know from other sources that the parties agreed on a final deal in September 1908. Had they agreed to this earlier deal, Sugar Land would have been a small town and refinery surrounded by state prison farms.
Another thing to notice is the paragraph suggesting E. H. Cunningham and Lincoln Trust were selling the Cunningham Plantation. Other sources suggest Cunningham was just a figurehead on the company board. Lincoln Trust was the company's principal creditor, and A. A. B. Woerheide (Lincoln President), working in concert with Kempner and Eldridge actually ran the company. Essentially, the Cunningham Sugar Company was bankrupt and in receivership. As the principal creditor, Lincoln ran the show and wanted to transfer the company to Kempner and Eldridge -- which is what actually happened. Not long after this deal they eased Cunningham out of the company, allowing Kempner and Eldridge to take full control. By September 1908, W. T. Eldridge was the chief operating officer and on-site manager.
As this article suggests, the State of Texas wanted to clean up its penal system, which had become a glaring stigma. This deal would allow them to end the lease system (renting prisoners to private companies) and establish permanent prison farms housing self-sustaining and money-making enterprises. Although the deal changed later in the year, the State eventually achieved its goal of ending the lease-convict system in 1912.
Another thing to notice is the paragraph suggesting E. H. Cunningham and Lincoln Trust were selling the Cunningham Plantation. Other sources suggest Cunningham was just a figurehead on the company board. Lincoln Trust was the company's principal creditor, and A. A. B. Woerheide (Lincoln President), working in concert with Kempner and Eldridge actually ran the company. Essentially, the Cunningham Sugar Company was bankrupt and in receivership. As the principal creditor, Lincoln ran the show and wanted to transfer the company to Kempner and Eldridge -- which is what actually happened. Not long after this deal they eased Cunningham out of the company, allowing Kempner and Eldridge to take full control. By September 1908, W. T. Eldridge was the chief operating officer and on-site manager.
As this article suggests, the State of Texas wanted to clean up its penal system, which had become a glaring stigma. This deal would allow them to end the lease system (renting prisoners to private companies) and establish permanent prison farms housing self-sustaining and money-making enterprises. Although the deal changed later in the year, the State eventually achieved its goal of ending the lease-convict system in 1912.
The article is worth reading if you have the time. Although it errs by announcing a 'premature deal,' it paints a detailed picture of early 20th century 'horse trading.'
