The rapid growth and prosperity of the Bull Durham Tobacco Company, and Washington Duke's W. Duke & Sons Tobacco Company, resulted in the rapid growth of the city of Durham. Washington Duke was a good businessman, but his sons were brilliant and established what amounted to a monopoly of the smoking and chewing tobacco business in the United States by 1900. In the early 1910s, the Federal Government forced a breakup of the Duke's business under the antitrust laws. The Dukes retained what became known as American Tobacco, a major corporation in its own right, with manufacturing based in Durham. American Tobacco's ubiquitous advertisements on radio shows beginning in the 1930s and television shows up to 1970 was the nation's image of Durham until Duke University supplanted it in the late 20th century.
Prevented from further investment in the tobacco industry, the Dukes turned to the then new industry of electric power generation, which they had been investing in since the early 1890s. Duke Power (now Duke Energy) brought in electricity from hydroelectric dams in the western mountains of North Carolina through the newly invented technology of high voltage power lines. At this time (1910–1920), the few towns and cities in North Carolina that had electricity depended on local "powerhouses". These were large, noisy, and smoky coal-fired plants located next to the railroad tracks. Duke Power quickly took over the electricity franchises in these towns and then electrified all the other towns of central and western North Carolina, making even more money than they ever made from tobacco. Duke Power also had a significant business in local franchises for public transit (buses and trolleys) before local government took over this responsibility in the mid- to late 20th century. Duke Power ran Durham's public bus system (now the Durham Area Transit Authority) until 1991.
The success of the tobacco industry in the late 19th and early 20th century encouraged the then-growing...