#113 A.G. Gaston Black Titan and the Making of a Black American Millionaire

In the biography "Black Titan: A.G. Gaston and the Making of a Black American Millionaire" by Carol Jenkins and Elizabeth Gardner Hines, the remarkable life of Arthur George Gaston is chronicled, illustrating his rise from the humble beginnings as a grandson of slaves in 1892 Alabama to a millionaire businessman. Gaston's journey began in the mines, where he recognized his worth beyond the grueling labor, sparking his relentless pursuit of financial success. Influenced by his grandparents' work ethic and inspired by the teachings of Booker T. Washington, Gaston's entrepreneurial spirit led him to establish a burial insurance business. This venture expanded into a vertically integrated model encompassing funeral homes and cemeteries, later branching into banking and real estate. Despite the societal constraints of segregation and discrimination, Gaston's focus on economic independence and self-improvement became the cornerstone of his legacy, setting high expectations for future generations and emphasizing the power of economic success as a pathway to equality.

• A.G. Gaston grew up in a mining village near Birmingham, Alabama.
• His mother, Rosie, worked as a cook, and he was raised in a context of poverty and limited education.
• A.G. Gaston's grandparents, Joe and Idella Gaston, were former slaves who became farmers and landowners, instilling the value of hard work in him.
• The early loss of his father and the economic necessity for his mother to seek work elsewhere were pivotal in shaping his ambition.
• Gaston was inspired by the examples set by his family and was determined to surpass the opportunities offered by the mines.

"One of these men is on the verge of taking his first step in the direction of becoming a bona fide millionaire 100 times over."

This quote outlines the pivotal moment in A.G. Gaston's life where he begins his journey from a miner to a millionaire, setting the stage for his success story.

• A.G. Gaston had a focus on financial success and was influenced by the hard-working examples of his family.
• His business philosophy was to find a need and fill it, avoiding ventures with heavy production costs.
• Gaston's early business idea involved trading rides on his swing for buttons, demonstrating his entrepreneurial spirit from a young age.
• He learned from his failures, such as the loss incurred from trying to manufacture his own soda, which shaped his future business strategies.

"He would turn his swing into a business venture, charging a button for a ride."

This quote illustrates Gaston's early understanding of supply and demand, as he capitalized on the unique attraction of his swing to gain social standing and foster a business mindset.

• Rosie Gaston moved to a larger city for work, leaving young A.G. behind, which was a common occurrence due to the economic imbalance of the time.
• The move to the city exposed A.G. Gaston to new opportunities and a different way of life, away from the agricultural roots of his grandparents.
• A.G.'s father's death, presumably related to his work on the railroads, and his mother's success in the city, influenced his views on industrial society and the potential for upward mobility.

"Ag would watch closely and learn as first, one of his parents and then the other stepped away from a life that was dedicated to the soil."

This quote emphasizes the transition from a life rooted in agriculture to one that embraced the opportunities of the industrial age, which had a profound effect on A.G. Gaston's outlook on life and success.

• A.G. Gaston was sent to the Tuggle Institute, which was founded by Carrie "Granny" Tuggle, a former slave, as an orphanage and educational institution for black children.
• The institute emphasized practical skills and work ethic, following the model of Booker T. Washington, who regularly visited the school.
• The exposure to a successful black middle class in Birmingham, including black-owned banks and businesses, expanded Gaston's perception of what was possible for African Americans.

"The students at the Tuggle Institute did not have to imagine what Booker T. Washington was like. He showed up regularly at the school."

This quote highlights the direct influence of Booker T. Washington on A.G. Gaston and other students at the Tuggle Institute, providing them with a tangible role model for success and hard work.

• A.G. Gaston was surrounded by positive examples of success, including the Jewish merchant family his mother worked for and the black middle class in Birmingham.
• These examples instilled in him a belief that he could achieve success beyond the limitations of his upbringing.
• Gaston's drive to succeed became internalized, and he put pressure on himself to measure up to the potential he witnessed around him.

"A new world of black potential was to be witnessed, and AG wanted to measure up."

This quote captures the essence of A.G. Gaston's ambition as he observed the flourishing black middle class and aspired to achieve similar success, ultimately shaping his determination to own a business.

• The subject, referred to as "he," aspired to rise above the limited opportunities available to African Americans in his time.
• Education was seen as a pathway to improve his and his family's circumstances.
• The influence of Tuggle Institute instilled in him the desire to own a store, rather than just work in one.
• The subject's mother's hard work to support the family deeply affected him, fueling his determination to succeed and provide for her.

"Maybe one day I can get an education to work in a store. Now he's like, whoa, no, why stop there? I want to own the store."

This quote reflects the subject's evolving ambition from merely working in a store to owning one, indicating a growing sense of aspiration and agency.

• The subject joined the army as a young adult, seeking better pay and opportunity.
• Military service during World War I was seen as a chance to gain discipline and respect authority.
• A harsh lesson in the military involved a physical altercation with a superior officer, teaching the subject to offer no excuses and to respect authority.

"Gaston learned, in his own words, to respect authority and discipline."

This quote underscores the subject's realization of the importance of discipline and authority, which were critical lessons from his military service.

• The subject's experience in World War I taught him to live with fear and accept the harsh realities of the frontlines.
• His background as the grandson of slaves and life in Birmingham, Alabama, paralleled the resilience required in war.
• The subject's ability to focus on the task at hand, despite the horrors of war, built his confidence and resilience.

"They learn to take it in stride and move on, move forward."

This quote encapsulates the subject's ability to persevere through adversity, a trait that would later contribute to his success in life and business.

• The subject's experience as a black man in France contrasted sharply with that in Alabama.
• In France, he was treated with respect and saw potential for a better life as a black man.
• Despite the favorable conditions in France, the subject was inspired by Booker T. Washington to return home and improve conditions in Alabama.

"In France, it seemed anything was possible for a man like ag. France was a place a black man could live."

This quote highlights the stark difference in racial treatment the subject experienced in France compared to Alabama, which played a role in his decision-making.

• The subject was profoundly influenced by Booker T. Washington's philosophy of "casting down your bucket" and starting at home.
• Washington's belief that merit, not color, should be the basis for success resonated with the subject and guided his actions.

"Cast down your bucket. He could hear Dr. Washington proclaim, start at home."

This quote signifies the subject's decision to apply the lessons learned abroad to improve conditions in his own community, rather than seeking a better life elsewhere.

• The subject believed in maintaining situational awareness and learning from those around him.
• He saw the importance of understanding others' needs as a way to spot business opportunities.
• This approach to business, focusing on fulfilling a need, would later contribute to his financial success.

"A young person should keep his eyes open. They should study the people around them. How do they live? What makes them tick, what do they need?"

This quote emphasizes the subject's strategy for identifying business opportunities by observing and understanding the needs of others.

• Abraham Lincoln Smith, a successful blacksmith and business owner, became a role model and father figure to the subject.
• The subject admired Smith's respect within the community and his influence, which aligned with the subject's aspirations.
• The subject's relentless nature is highlighted as a key trait for success, drawing parallels with figures like Jeff Bezos.

"AG was relentless."

This quote captures the subject's unwavering determination and persistence, qualities that propelled him through numerous obstacles.

• The subject experienced periods of doubt, depression, and exhaustion, particularly after returning from the war.
• Despite these challenges, he remained persistent and refused to give up on his dreams.
• His relentless spirit and refusal to accept his circumstances would soon lead to his first business opportunity.

"The question was, how can I escape this?"

This quote reflects the subject's inner resolve to change his life situation, demonstrating his refusal to succumb to despair and his search for a way out.

• The subject's path to wealth in the steel industry mirrored that of Andrew Carnegie.
• Both men started from humble beginnings and leveraged opportunities in the industrial sector to build their fortunes.
• The connection between the subject's experiences and Carnegie's success story illustrates a common blueprint for achieving wealth through industry.

"What Gaston could not know at the time was like much like industrial giant Andrew Carnegie before him."

This quote draws a parallel between the subject's trajectory and that of Andrew Carnegie, suggesting a similar path to success through industry and investment.

• The mind is a powerful force that can either hinder or propel success.
• Taking initiative is crucial for change and success; passive thinking does not lead to achievement.
• Arthur, known as Ag, exemplifies taking action to change his situation rather than just contemplating success.

"The mind is undefeated. It will play tricks on you. What are you going to do? You're going to give in? Arthur's like, ag's like, nope, not happening. What he realized was that nothing would change unless he took the initiative to change it."

This quote highlights the theme of the mind's power and the necessity of taking control to initiate change. Ag's refusal to give in to mental obstacles underscores the importance of action over passive thinking in achieving success.

• Arthur (Ag) discovered a business opportunity during a moment of personal struggle.
• Observing his coworker's enjoyment of his mother's cooking led to the realization that there was a market for homemade meals.
• Situational awareness and understanding market needs are key entrepreneurial skills.

"Art smiled back, realizing he had found his business. Men would pay for these meals, he thought, and he was right."

The quote captures the moment Ag identifies a business opportunity and decides to pursue it, demonstrating the importance of situational awareness and the ability to identify what people are willing to pay for.

• Ag was disciplined in saving and frugal living, saving a significant portion of his income.
• He diversified his income streams, starting with box lunches and expanding to selling peanuts and popcorn.
• Building a financial foundation allowed him to lend money to coworkers, capitalizing on a lack of competition.

"Ag was saving between 66 and 75% of his earnings on a monthly basis. Now, it would be impossible to save at that rate on his salary from the mines. But when you take all the streams of income that he's building up, it was possible."

This quote emphasizes the importance of saving and frugality in wealth accumulation. Ag's ability to save a high percentage of his earnings was facilitated by his diversified income streams, beyond just his salary from the mines.

• Ag observed human nature and financial behaviors similar to those noted by Ben Franklin.
• Many coworkers spent money on luxuries, such as impressing others, rather than saving.
• Ag's realization led to his financial success by lending money at interest and benefiting from others' lack of financial discipline.

"With little competition for his services, AG's wealth took on a snowball effect."

The quote illustrates how Ag's understanding of human nature and financial behavior allowed him to capitalize on his coworker's spending habits, leading to a compounding effect on his wealth.

• Ben Franklin exemplified reasoning from first principles.
• Reasoning from first principles is rare but advantageous; most people reason by analogy or copy others.
• Being selective about what to copy is important, as copying is inevitable.

"If you're able to maintain a habit of reasoning from first principles, that puts you ahead of probably 99% of all humans that have ever lived."

This quote discusses the advantage of reasoning from first principles, as demonstrated by Ben Franklin, and suggests that this way of thinking is superior to the common practice of copying others.

• Ag shifted his focus from what he could sell to what the community needed.
• This mindset change from self-interest to public service informed his business endeavors throughout his life.
• He identified a need for affordable funeral services, leading to the creation of the Booker T. Washington Burial Society.

"Rather than figuring out what he could sell, he decided to take a step back and take a look at what the community he was living in actually needed."

The quote captures Ag's strategic shift in thinking, moving from a self-centered approach to one that considers the needs of the community, which ultimately led to a successful business venture in the funeral industry.

• Ag was inspired by Booker T. Washington's teachings on economic independence and industry.
• He named his burial society after Washington to reflect the values of self-reliance and economic empowerment.
• Ag's discipline and extreme self-reliance were reinforced by his experiences and the influence of Washington's autobiography.

"The strength and inspiration ag got from the life of Booker T. Washington."

This quote underscores the profound impact that Booker T. Washington's life and teachings had on Ag's entrepreneurial spirit and his emphasis on self-reliance and economic independence as a path to success.

• The subject of the podcast built a funeral insurance business while maintaining his job at the mines.
• He hired insurance agents to extend membership and increase the financial base, which is a method of capping downside risk.
• This strategy allowed him to keep his other businesses running and avoid financial failure.

Initially uncertain of the burial society's soundness, he held on to his job at the mines while trying to extend membership in the society and increase his financial base.

The quote illustrates the individual's cautious approach to entrepreneurship by balancing his new venture with a stable job to mitigate risk.

• Ag purchased the funeral home to become vertically integrated in the death care industry.
• Owning the mortuary that serviced his insured customers allowed him to eliminate the middleman and increase profits.

Eventually he becomes entirely vertically integrated into the death. So he winds up buying the company.

The quote emphasizes the strategic move to control more aspects of the industry, leading to increased control over profit and loss margins.

• Ag faced the Great Depression and personal losses, including the death of his partner and wife.
• He focused on what he could control, such as his work, instead of external events beyond his influence.

Rather than dwelling on what was beyond his power, Ag once again buried himself in what he could control, his work.

This quote highlights Ag's coping strategy of concentrating on his work during times of personal and economic hardship, demonstrating his resilience.

• Ag established the Booker T. Washington Business College to train employees for his companies.
• The college not only served his businesses but also contributed to the community by providing essential skills for employment.

The Booker T. Washington Business College was conceived of and founded by Gaston in 1939 to provide training to potential employees of the insurance company and funeral home.

The quote shows Ag's foresight in addressing the talent bottleneck by creating an educational institution that benefited both his businesses and the wider community.

• Ag was known for his industry, frugality, and focus on mastering his business craft.
• He valued the importance of saving, investing, detailed record-keeping, and demanding excellence from his employees.

I studied, read, listened attentively to the advice and counsel of auditors, lawyers, brokers, bankers and other financial advisors.

This quote reflects Ag's dedication to continuous learning and improvement in his business practices.

• Ag expanded his vertical integration by acquiring cemeteries, thus controlling every aspect of the death care business.
• His burial insurance business evolved into a full-fledged insurance company.

In acquiring the new Grace Hill cemetery in 1951, along with the Mason city cemetery, Gaston hammered the final nail into place.

The quote signifies the completion of Ag's vision for a fully vertically integrated business model in the death care industry.

• Ag had a relationship with Martin Luther King Jr. but held different views on civil rights, emphasizing economic freedom.
• He believed in economic power as the foundation for equality and taught investment and financial wisdom to the black community.

We cannot fight and beg from those we fight at the same time.

This quote captures Ag's philosophy on the importance of economic independence in the struggle for civil rights.

• Ag Gaston passed away at 103, leaving a legacy of entrepreneurship and high expectations for future generations.
• His life story serves as inspiration and a testament to overcoming adversity and achieving greatness.

The boy who had ridden into town 90 years earlier on a segregated train, coughing from the cinders in the air, was now being saluted by the city he had dedicated much of his life to improving.

The quote reflects on Ag's journey from humble beginnings to becoming a respected and influential figure in his community and beyond.