Asa Candler: Coca-Cola - Episode 2

[00:00:09] Hello everyone, welcome to the Almost Immortal History Podcast. I'm your host, Ryan Powers. Thanks for joining the second and final part of the Asa Candler story. When we left off in part one, Candler had transformed a popular local Atlanta medicine called Coca Cola into one of the most recognizable beverages and brands in the country. Now, one of the wealthiest men in America, Candler faces a new century with unexpected challenges. With his business thriving, his beloved city stands

[00:00:38] on the brink of crisis and his country on the verge of war. Rather than retreat into the security of his success, Candler will rise to not only meet the challenges ahead, but help shape his company, his city, and even his country and the world for decades to come. So sit back and enjoy the story's

[00:00:57] conclusion in today's episode from Coca Cola founder Asa Candler. At the turn of the century, 48-year-old Asa Candler could look back with pride at all he had accomplished. He had a loving wife, Lucy, five healthy children, and a decade-old business that had made him a wealthy man.

[00:01:23] It would have been easy for Candler to simply enjoy his fortune and focus solely on Coca Cola, but that was never his guiding principle. While he was as ambitious as the next person, he had a different moral compass steering his actions. I pray God that you may be as great a Christian as you are a businessman, Warren Candler wrote his brother. Asa often sought guidance from his minister-turned-bishop brother. Quoting Deuteronomy, Warren reminded Asa,

[00:01:50] the ability to make money is a gift of God. Wealth should be applied to the needs of one's family first, then for the betterment of society at large. Warren's words were less of a revelation to Asa Candler than a reaffirmation of what he had always believed. Although the story of Asa Candler and Coca-Cola was far from finished, he had amassed enough wealth to secure his family's future, and then some. So Candler began to broaden his gaze to new ways he might make an impact.

[00:02:17] If I love any one thing above another, said Candler, it is Atlanta's good name. If there is anything which I can do to keep the city on a high plane, give it to me. Candler's first foray beyond Coca-Cola was in real estate. He formed the Candler Investment Company, initially purchasing small residential properties before moving into commercial developments. By 1903, Coca-Cola needed a new corporate headquarters to accommodate its continued growth. Not surprisingly, tying his two

[00:02:46] business interests together, Candler was deeply involved in every aspect of the project, from vision to design to execution. The plan called for a modern 17-story skyscraper, made possible by recent advancements in safety elevators and steel I-beam construction. Determined to make the building first rate, Candler spared no expense, sourcing the finest materials and hiring the best craftsmen, including

[00:03:09] some from Europe. The finished building catered to the needs of its future tenants, featuring doctors' and barbershop and even a swimming pool. When it opened in 1906, it was hailed as the tallest and grandest building in Atlanta. One of Candler's most ambitious real estate ventures was the acquisition and development of Druid Hills, an upscale neighborhood envisioned by famed landscaper Frederick Law Olmsted,

[00:03:36] the architect behind New York City's Central Park. Druid Hills was designed as a harmonious blend of urban living and nature. The community would feature nearly 1,000 homes, 200 acres of parkland, and a golf club. The home Candler built for him and Lucy would be one of the finest in the community. In addition to real estate, Candler expanded into finance forming the Central Bank and Trust Company, which helped support local businesses and funded key infrastructure projects including real estate

[00:04:04] developments, roads, and other public services. One of his bank's most important roles came during the financial panic of 1907. The Neal Bank, a prominent family-run firm in Atlanta with nearly 20,000 depositors, collapsed after overextending itself during the crisis. A bank run ensued before Christmas and Neal Bank was unable to cover withdrawals. Amid the growing panic, Candler and his Central Bank stepped

[00:04:29] in. Every depositor in the Neal Bank will receive every dollar of his money. The people will get a square deal, he declared in a front-page article of the Atlanta Journal on Christmas Day. True to his word, Candler and his team worked tirelessly throughout the holiday devising a plan to cover depositors' losses through the bank. To balance the books, he sold property and collected outstanding debts owed to Neal Bank. He also personally purchased more than 250 homes owned by the bank, worth more than a million

[00:04:59] dollars, at pre-panic prices, ensuring that struggling homeowners weren't forced to sell at a loss. While he did eventually turn a modest profit when reselling those homes, his primary goal wasn't financial gain. It was to stabilize Atlanta's economy because he had the means to do so, and it was the right thing to do. Candler would later apply the same sense of stewardship to aid Georgia's cotton farmers during another financial crisis. His bank not only provided critical loans,

[00:05:28] but he also oversaw the construction of a multi-million dollar warehouse capable of storing up to 250,000 bales of cotton. This allowed farmers to hold onto their product until prices improved, protecting them from ruin. A few years later, Candler helped finance an automobile racetrack that would eventually become the site for Atlanta's Hartsfield Airport. In recollecting all that his father was involved in during the early 20th century, Howard Candler remarked that,

[00:05:56] "...it would literally be impossible to list everything his indefatigable father was involved in, as it appeared to everyone, including his family, that he was involved in just about everything." Through all his success as a businessman and Atlantic civic leader, his election in 1905 to Atlanta's Chamber of Commerce Board of Directors, and then its presidency in 1908, seemed inevitable. As president of the chamber, Candler helped secure passage of a multi-million dollar bond to improve

[00:06:25] the lives of Atlanta's residents. The health of Atlanta is at stake, he declared, citing the chamber's own research, which linked the city's subpar water and sewage services to a higher mortality rate. Can we save money by destroying life? And if we could, should a civilized community consider for a moment such a policy? Under Candler's leadership, the bond passed, creating new sewage disposal plants,

[00:06:50] expanded water service, improved school buildings, and hospital facilities, all of which propelled Atlanta forward. Outside of Coca-Cola, one of Asa Candler's most lasting contributions to Atlanta was his one-million dollar gift toward the creation of Emory University in 1914. As president of the board of directors, Candler had deep ties to the institution, his cousin had founded it, and his brother Warren had previously served as its president.

[00:07:18] This generous donation helped propel Emory forward, solidifying its place among the country's leading universities. As he continued to step back from the day-to-day operations of Coca-Cola and his other business ventures, Candler gradually transferred control to his children. In January 1916, his son

[00:07:36] Howard was officially named president of Coca-Cola, while Asa remained chairman. 1916 was a mayoral election year in Atlanta. The incumbent mayor was embroiled in scandal, and the list of potential challengers failed to inspire confidence. In search of a candidate, the business leaders of Atlanta believed they had

[00:08:01] a solution, Asa Candler. It was just one problem. He didn't want the job. Politics didn't interest Candler, but improving Atlanta did. Everything he had done in his adult life had been in part, or in whole, to improve the city and the lives of its residents. To those who urged him to run, this was precisely why he was the perfect choice. A reluctant politician with a world-class track

[00:08:26] record of innovative executive success and no scandals. When a delegation of business leaders arrived at the Candler building in July, he must have known they were coming, and why? Because they were not met by Candler himself, but by his assistant, who handed them a letter declining to run for office. In it, Candler outlined several reasons for his reluctance, including his wife Lucy's health, which was a developing concern for them both. However, his supporters refused to take no for

[00:08:54] an answer. After a face-to-face meeting, they persuaded him to enter the race. Candler eventually agreed on a few conditions. First, that the people of Atlanta want me to do so. And two, that he would not personally campaign for the office. His stance echoed the tradition of America's founding fathers, who allowed their names to be put forward for public office, but refused to openly campaign,

[00:09:19] lest they be seen as too ambitious or seeking office for the wrong reasons. The local newspapers, and most Atlanta residents, enthusiastically welcomed Candler's candidacy. So much so, that the race felt more like a coronation than a genuine contest. Shortly after the announcement to run, Asa and Lucy left for a Michigan spa in hopes of improving her health. While Candler's decision not to campaign was reasonable, his absence in making a case for

[00:09:46] himself allowed the race to tighten. Seeing this, he agreed to campaign during the final week of the primary. Delivering a series of public speeches, he urged citizens to vote for him based on his proven ability and character. I have never faltered or hesitated to do my duty toward Atlanta as God has given me to see it, said Candler. I have tried to promote its interests materially, intellectually, and morally.

[00:10:13] Pledging a non-partisan, businesslike approach if elected, he concluded by saying, Atlanta is too big and too good to be the stake in the game for which petty politicians play. Candler trounced his opponent, winning every ward in the city but one. After an extraordinary career in business and civic leadership, Asa Candler was about to be sworn in

[00:10:36] as Atlanta's 41st mayor. Before assuming office in 1917, Candler had already transferred direct ownership of most of his business ventures to his children. Now on Christmas Day, 1916, in what has to be considered among the greatest Christmas gifts of all time, gifted his children all but a handful of his shares of Coca-Cola. Though he remained chairman, the company had

[00:11:05] effectively passed to the next generation, just as he had always envisioned. The situation Asa Candler inherited as mayor was dire. The city faced severe financial deficit, and incoming revenue was too low to balance the budget. He prepared Atlanta's citizens for hard decisions ahead, warning that while solutions were possible, they would be neither quick nor easy. Many who voted for Candler viewed him as a larger-than-life savior, an image he knew was unrealistic.

[00:11:34] They expect great things of my administration. Too much, I'm afraid. Though he made no promise of miracles or quick fixes in his inaugural address, he did pledge a, quote, harmonious, economical, and business-like administration focused on solutions. Candler immediately turned his attention to Atlanta's budget crisis. He scrutinized city contracts, expenses, and sources of income,

[00:12:00] identifying areas for improvement. He proposed several measures right away. First, that the city must cut costs. The city should live within its income, Candler told every audience he addressed. He stressed that Atlanta should develop a realistic budget based on expected future income that, quote, they know or have every probable reason to suppose will be received during the year. He urged the city council that they had a responsibility to protect public health and life

[00:12:29] and property, but otherwise, you will have to apply the knife pretty deep as it pertained to other budget cuts. Anticipating pushback, he concluded that the city hasn't got the money, and it cannot give the people things until it gets the money. I am merely stating a fact which must be perfectly obvious. The city council followed Candler's lead and drastically cut government jobs and expenses.

[00:12:54] Candler even proposed cutting his own salary, but when the council refused, he donated his salary to local charities instead. Despite the deep cuts, the budget still included modest increases for schools, infrastructure, water, and other public health facilities. To address the revenue shortfall, Candler proposed a property tax increase. He took his case directly to the people.

[00:13:18] With reasonable assessments and honest tax returns, he said, Atlanta can do all that ought to be done. Both the cuts and tax increases were unpopular, but because it was Candler proposing them, the elected officials and residents agreed to accept him. His reputation and past success in seemingly all he touched allowed him to remain above politics. He emphasized this point, with his off-stated goal

[00:13:44] for his administration being, quote, no politics and good service. Reinforcing the confidence placed in him, Candler staffed his administration with the most talented leaders and subject matter experts available over those with political connections or titles. Mayor Candler believes in placing full power in the head of the department and holding him accountable for good service, reported the Atlanta

[00:14:08] Journal. Despite his concerns about unrealistic expectations for his administration, by the end of his first year in office, the city was debt-free and able to grant modest salary increases to the remaining city employees. Managing the city's finances would have been challenging in normal times, but 1917 was anything but normal. With World War I raging since 1914, America joined the fight on

[00:14:36] April 6, 1917, just months into Candler's term. He immediately mobilized the city, organizing efforts to prepare Atlanta's citizens for the military draft and supporting the Red Cross in securing medical supplies and aid for soldiers. He also encouraged citizens to buy war bonds to further fund the war effort. Candler led by example, making a generous personal donation and urging local business leaders to do

[00:15:01] the same. His greatest wartime achievement was successfully lobbying for Atlanta to receive one of the country's key military bases. When the proposal faced bureaucratic and logistical roadblocks, Candler personally loaned the city the necessary funds to complete it. One month after America entered World War I, Atlanta faced its greatest man-made disaster since General Sherman burned the city to the

[00:15:25] ground 50 years earlier during the final stages of the Civil War. On May 21, a fire swept through East Atlanta, consuming more than 70 city blocks. The fire chief immediately appealed to Mayor Candler for help. Candler mobilized every neighborhood, asking for assistance in whatever form they could provide. After doing what he could from City Hall, Candler rushed to the fire's front lines. When fire officials

[00:15:51] concluded that only a fire break, created by controlled explosions, could halt the spread of the flames, it was 65-year-old Asa Candler who sprinted to the DuPont powder storehouse to fetch the dynamite. The Atlanta Journal recounted the story this way, Throughout the sweep of the flames, he directed efforts to check the river of fire. Always he showed utter disregard for his own safety. Up and down Ponce de Leon Avenue, where hot flames scorched

[00:16:19] the cheeks and blasts of dynamite through fragments of brick and shafts of wood for distances of 100 yards, he passed a dozen times to see what assistance firemen and soldiers needed, proving himself in every sense, city father. Though the fire destroyed more than a thousand buildings and caused millions in damages, only one life was lost, a testament to the city's remarkable collective effort.

[00:16:43] After the fire, Mayor Candler led the rebuilding efforts, appointing a committee of citizens and business leaders to prioritize recovery needs. He worked with the city council to create a relief fund for displaced families, donating personally to the effort. At the end of his two-year term, Asa Candler was as popular, if not more, than when he took office. He had steered the city through

[00:17:07] financial crisis, fire, and even war, leaving his city in far better shape than when he arrived. In one of his final speeches as mayor, he reflected on Atlanta's responsibility and enduring promise. Paraphrasing John Winthrop, the Massachusetts Puritan leader from 1630, who also envisioned a moral and exemplary society. Candler said,

[00:17:30] Atlanta is indeed a city set on a hill which we cannot hide. This fact imposes upon Atlanta people a responsibility as sacred as a trust. Its life must be pure, or it will be poisonous to communities outside. Wherefore, let us stand firmly, immovably, for the things that are good.

[00:17:51] When Asa Candler left office on January 6, 1919, few outside his immediate family knew that his wife was dying of breast cancer. After 1916's trip to Michigan, Asa and Lucy visited several more spas across the East Coast hoping to improve her health. She even underwent a mastectomy, but the procedure

[00:18:16] came too late to save her. On February 22, just one month into Asa leaving office, Lucy passed away at their home in Truett Hills. Why so soon, the devastated Asa Candler scribbled in a shaky hand in the family Bible, noting the date of her death. Later that year, Candler's children sold their steaks in Coca-Cola to another prominent Atlanta businessman named Ernest Woodruff, who, like Coca-Cola's

[00:18:42] inventor Doc Pemberton, was raised in nearby Columbus, Georgia. Asa Candler was not involved in the sale. To say he had mixed emotions would be an understatement. Despite objecting to the move, he did not dwell on the sale of his beloved company, as the $25 million sales price, worth nearly half a billion dollars today, ensured his family's financial future, one of his lifelong goals.

[00:19:07] In 1923, Ernest Woodruff's son Robert took over as head of Coca-Cola. And over the next six decades, until his death in 1985, Robert Woodruff built on the foundation laid by the Candler family, expanding Coca-Cola from a national brand into a global icon. By the time of Woodruff's passing, the company boasted $8 billion in revenue and distribution in 155 countries.

[00:19:36] After Lucy's passing, Asa Candler tried to move forward without his beloved wife of more than 40 years. He traveled, remained engaged in clubs, and participated in Atlanta's civic life. But it was clear he was heartbroken and increasingly lonely. In the years that followed, he sought companionship with two women, both decades younger than himself, each relationship ending in disappointment.

[00:20:02] The first woman accepted his marriage proposal, but when his family intervened out of concern for their father, she sued him for breach of promise. The second woman, whom he married in 1922, immediately began cheating on him, leading Candler to file for divorce. Whether due to a broken heart, loneliness, loss of purpose, age taking its toll, or some combination

[00:20:25] of all of those, Asa Candler's health declined rapidly. Aware that his time was short, he resolved to make one final contribution. Although he had stepped away from most of his professional responsibilities, he had never relinquished his role as president of the board of directors at Emory University. Asa pledged a final gift of another million dollars to take effect upon his passing.

[00:20:49] In total, Candler would donate $7 million to Emory, helping to transform not only its location, from Oxford to Druid Hills, but establishing its medical and theological schools. Months later, Candler suffered a paralytic stroke that left him in a coma, from which he did not recover. He remained unconscious in Wesley Memorial Hospital, one of the many Atlanta institutions he

[00:21:14] had helped to create, and that would one day become Emory University Hospital. He would die there on March 12, 1929, at the age of 77. For all of Asa Candler's many strengths, he, like anyone, was not without flaws. A product of his time and place, some of his views reflected the prevailing attitudes of the Jim Crow South. But he never displayed the attitude of someone who hated or looked

[00:21:43] down on others. In fact, quite the opposite. He strove to adhere to the Christian principle of service to others. If he was guilty of anything, it was perception, by others and perhaps by himself, that he viewed his moral compass as superior. However, rather than using this belief to the detriment of others, he saw it as a great call to action, living by the biblical principle that to whom

[00:22:08] much is given, much is required. At the reading of Asa Candler's will, there was little to bequeath to his children, as he had already transferred most of his wealth during his lifetime, keeping only a fraction for his final years. Instead, he listed something less tangible but far more meaningful to him, his good name. He also thanked his children in his will for being, quote, dutiful and faithful to

[00:22:33] him. And in one final passage, wrote, quote, my chief aim in life has been to help and not hurt my fellow man. By any measure, Asa Candler's life mission was a resounding success.