The Seas? The Skies? The Transformation of a Company Town, Part 2

One economic titan has fallen, another has taken its place, but a city wants to expand its options.
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The light blue shows ecologically valuable marshes and wetlands around St. Marys, Georgia, circled in red, and the Kings Bay naval base, east coast home of the U.S. ballistic-missile submarine fleet, in blue. ( Annotation of map from US Fish and Wildlife Service )

The small town of St. Marys, Georgia, differs from the other places we have visited in the basic structure of its economy. When we first went there in the 1970s, it was still what it had been for many decades: a company town, in the good and (mostly) bad senses of that term. Now it is a variant of the same thing, and that is the circumstance the city and county officials are trying to change.

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The good of the old company-town arrangement was that the giant mill of the Gilman Paper Company provided paychecks for the overwhelming majority of families in the area. Indeed, the air and water pollution was so heavy, and the location was so remote, that a job with Gilman was the most obvious reason anyone would choose to live there. And not to belabor the bad -- if you want belaboring, check out this previous post -- but in addition to the normal distortions of a town all-dependent on one company and the people who ran it, the company badly abused its power in environmental and political ways, including hiring a hit man in a failed attempt to eliminate a local critic -- that critic being a man who became our friend, Wyman Westberry. 

That was then. Largely through mismanagement and the side effects of family squabbles, Gilman went through a long decline. You can read some of the details in this Forbes account, but overall it was a depressing personal and business saga. (Some other, better run plants still operate in the vicinity -- you can just glimpse them in the distance in this shot below, from the former Gilman property across the wetlands toward the coast.) Gilman had been the largest privately owned paper mill in America, but 15 years ago the family sold it to a Mexican firm, and not long afterwards that firm closed the mill, eliminating some 900 jobs.  

In 2007, the remains of the mill were blown up, despite some local efforts to retain and reuse them as startup sites, light-industrial buildings, or even monuments. That left what is now a rubble-filled "brownfield" between the city's historic downtown and the coastal marsh. Here is a video of the demolition (in the last few minutes of the clip), with others here and here.

Part of today's post-demolition Gilman ruins:

The good news for St. Marys and surrounding Camden County was that another mammoth employer had arrived even before Gilman went down. That was the US Navy. During the administration of the former submarine officer and former Georgia governor Jimmy Carter, and with Georgia Senators Sam Nunn and Herman Talmadge then big powers on Capitol Hill, the U.S. Navy decided that Kings Bay, immediately north of St. Marys, would be the East Coast home of America's nuclear-submarine fleet. (The West Coast home is near Seattle.)

That big news of January, 1978, is memorialized in a front page shown in the local Submarine Museum (at right). Everything about the city was changed by the Navy's arrival. In Gilman's heyday, its manager had claimed that 75 percent of the people in the county owed their living directly to the mill. A few weeks ago in St. Marys, local officials told us that perhaps 70 percent of the regional economy was now related to the base -- a figure that includes rental housing, retail, construction, and the other spillover effects of growth itself.

I'll save for an upcoming installment some of the social, cultural, and political effects of a large military presence in a small Southern town like this. For the moment, the point is the part of the local economy that did not change, which was the outsized importance of a single big-gorilla economic engine. 

Gilman Paper Company, the previous gorilla, had been "local" but not in a good way. The local managers behaved as mini-tyrants (if you don't believe me, believe the state and federal prosecutors who went after them), and the owners lived in New York City and seemed to view the mill mostly as a hinterland source of wealth. Their ongoing source of local investment was a resort plantation where artists and ballet figures, notably including Baryshnikov, vacationed and trained.

The U.S. Navy, the current gorilla, is by all accounts faultlessly well-behaved and good-citizen-like in its local relations. The submarine officers and seamen are an elite within the military -- older, better educated, and more carefully selected than the norm, and not any source of trouble in town. But by definition a military presence is transient -- and while some Navy officials come back to the area after retirement, the Navy represents an economic power that is in but not of the town. Much of the growth it has induced as been "just" growth -- malls, restaurants, fast food, etc on the fringes of town. (This ingenious "swipe map," by our John Tierney and David Asbury of Esri, lets you compare the 1990 and 2010 land-use patterns, given a sense of the strip-mall development around the Navy base and an I-95 exist.)  

We were struck by how different this single-source dependance was from other places we have seen. Sioux Falls has a big financial-services industry -- but also is a major retail and medical center, and has universities, and has growing high-tech sector, to say nothing of its huge agricultural businesses. Greenville used to be textile-dependent but now has automotive and other manufacturers, plus finance and services,  plus a vibrant downtown, plus tourism and universities etc. Eastport is scrambling to create more of everything but is not reliant on any one thing. With variations, the resilience-through-diversification saga is also true of Redlands, Burlington, Holland, Rapid City, Winters (about which more soon), and other places we have seen.

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James Fallows is a national correspondent for The Atlantic and has written for the magazine since the late 1970s. He has reported extensively from outside the United States and once worked as President Carter's chief speechwriter. His latest book is China Airborne. More

James Fallows is based in Washington as a national correspondent for The Atlantic. He has worked for the magazine for nearly 30 years and in that time has also lived in Seattle, Berkeley, Austin, Tokyo, Kuala Lumpur, Shanghai, and Beijing. He was raised in Redlands, California, received his undergraduate degree in American history and literature from Harvard, and received a graduate degree in economics from Oxford as a Rhodes scholar. In addition to working for The Atlantic, he has spent two years as chief White House speechwriter for Jimmy Carter, two years as the editor of US News & World Report, and six months as a program designer at Microsoft. He is an instrument-rated private pilot. He is also now the chair in U.S. media at the U.S. Studies Centre at the University of Sydney, in Australia.

Fallows has been a finalist for the National Magazine Award five times and has won once; he has also won the American Book Award for nonfiction and a N.Y. Emmy award for the documentary series Doing Business in China. He was the founding chairman of the New America Foundation. His recent books Blind Into Baghdad (2006) and Postcards From Tomorrow Square (2009) are based on his writings for The Atlantic. His latest book is China Airborne. He is married to Deborah Fallows, author of the recent book Dreaming in Chinese. They have two married sons.

Fallows welcomes and frequently quotes from reader mail sent via the "Email" button below. Unless you specify otherwise, we consider any incoming mail available for possible quotation -- but not with the sender's real name unless you explicitly state that it may be used. If you are wondering why Fallows does not use a "Comments" field below his posts, please see previous explanations here and here.
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