The Boy from the Bottoms
Arthur George Gaston was born on July 4, 1892, in a log cabin in Demopolis, Alabama, to Tom and Rosanna Gaston. The irony of his birth date—Independence Day—would not be lost on a man who would spend his life building economic independence in the face of systematic oppression. His father died when Arthur was just two years old, leaving his mother to raise him alone in the grinding poverty of post-Reconstruction Alabama.
Rosanna Gaston moved her son to Birmingham when he was seventeen, seeking better opportunities in the rapidly industrializing city. Birmingham in 1909 was a place of stark contradictions: a booming steel town that promised prosperity, yet one where Jim Crow laws relegated Black Americans to the most dangerous jobs and segregated neighborhoods. Young Gaston found work at Tennessee Coal, Iron & Railroad Company (TCI), the massive steel operation that would later become part of U.S. Steel.
At TCI, Gaston earned $3.10 per day working in the blast furnaces—dangerous, backbreaking labor that killed or maimed many of his coworkers. But even in this harsh environment, his entrepreneurial instincts emerged. He noticed that his fellow workers often ran short of money between paydays and began lending small amounts at interest. By 1913, he had saved enough to start his first business venture: a burial society that would provide funeral services for Birmingham's Black community.
By the Numbers
Early Ventures
$3.10Daily wage at TCI steel plant (1909)
25¢Weekly premium for burial insurance
$500Initial capital for burial society (1913)
The Insurance Empire
The burial society, formally incorporated as the Booker T. Washington Insurance Company in 1923, became the foundation of Gaston's empire. The timing was prescient. Black Americans in the South were systematically excluded from white-owned insurance companies, creating a massive underserved market. Gaston understood that insurance wasn't just about financial protection—it was about dignity. In a society that devalued Black lives, his company ensured that families could bury their loved ones with respect.
Gaston's approach to insurance was methodical and conservative. He hired agents who lived in the communities they served, building trust through personal relationships. Premiums were kept low—typically 25 cents per week—making coverage accessible to domestic workers, laborers, and sharecroppers. By 1932, despite the Great Depression, Booker T. Washington Insurance had $1 million in assets and was operating across Alabama, Tennessee, and Georgia.
I never wanted to get rich quick. I wanted to get rich sure.
— A.G. Gaston
The insurance company's success provided capital for Gaston's next ventures. In 1939, he founded the Booker T. Washington Business College, recognizing that Black Americans needed business education to participate in the economy. The college offered courses in typing, shorthand, bookkeeping, and business management—practical skills that could lead to employment or entrepreneurship.
Banking on Birmingham
Gaston's most audacious move came in 1957 when he founded Citizens Federal Savings and Loan Association. Banking was perhaps the most segregated sector of the American economy. Black Americans were routinely denied mortgages, business loans, and even basic checking accounts at white-owned banks. Gaston saw this exclusion as an opportunity.
Citizens Federal opened with $500,000 in initial capital, much of it from Gaston's insurance company. The bank's mission was explicit: to provide financial services to Birmingham's Black community and to finance Black homeownership and business development. Within five years, Citizens Federal had grown to $5 million in assets, making it one of the largest Black-owned banks in the South.
The bank's impact extended far beyond its balance sheet. By providing mortgages, Citizens Federal enabled thousands of Black families to buy homes, building wealth that could be passed to future generations. Business loans from the bank helped launch Black-owned restaurants, beauty salons, funeral homes, and construction companies. Gaston understood that economic development was fundamentally about access to capital.
By the Numbers
Financial Empire
$500,000Initial capital for Citizens Federal (1957)
$5 millionBank assets by 1962
$3 millionInsurance company assets by 1960
The Motel That Changed History
In 1954, Gaston opened the A.G. Gaston Motel, a 32-room facility that would become central to the Civil Rights Movement. The motel was born of necessity—Black travelers in the Jim Crow South had few options for quality accommodations. But Gaston's vision extended beyond filling a market gap. He wanted to create a space where Black Americans could experience dignity and respect.
The motel featured air conditioning, telephones in every room, and a restaurant that served both guests and the broader community. It quickly became a gathering place for Birmingham's Black elite and a symbol of what Black entrepreneurship could achieve. The motel's restaurant, the Gaston Grill, was one of the few places in Birmingham where Black professionals could dine in an upscale environment.
The motel's most significant role came during the Birmingham Campaign of 1963. Dr. Martin Luther King Jr. and other civil rights leaders used the motel as their headquarters, planning strategy in its rooms and holding press conferences in its courtyard. The iconic images of police dogs and fire hoses attacking protesters were taken just blocks from the motel. Gaston found himself in an uncomfortable position—supporting the movement's goals while trying to protect his business interests.
I believe in the American dream. I believe that if you work hard and smart, you can achieve anything in this country.
— A.G. Gaston
Media and Influence
Gaston's business empire expanded into media with the founding of WENN radio station in 1949 and the Birmingham World newspaper. WENN was one of the first Black-owned radio stations in Alabama, broadcasting music, news, and programming specifically for the Black community. The station played a crucial role in the Civil Rights Movement, providing information about protests, voter registration drives, and community events.
The Birmingham World, which Gaston purchased in 1950, became the voice of Birmingham's Black community. Under his ownership, the newspaper covered stories ignored by white-owned media, from achievements in Black education and business to injustices in the legal system. The paper's circulation grew to over 30,000, making it one of the most influential Black newspapers in the South.
Through his media properties, Gaston wielded significant influence in Birmingham's Black community. He used this platform to promote education, entrepreneurship, and civic engagement. However, his moderate approach to civil rights sometimes put him at odds with more militant activists who viewed his emphasis on economic progress as insufficient in the face of systematic oppression.
The Millionaire's Dilemma
By 1960, A.G. Gaston had achieved something remarkable: he had become Alabama's first Black millionaire. His business empire included insurance, banking, real estate, media, and hospitality. He owned more than 1,000 properties in Birmingham and employed hundreds of people. His success was a testament to the power of Black entrepreneurship and a rebuke to those who claimed Black Americans lacked business acumen.
Yet Gaston's wealth created complex dynamics within the Civil Rights Movement. Some activists viewed him as an accommodationist who was too willing to work within the system of segregation. They argued that his success was exceptional and did little to address the systematic barriers facing ordinary Black Americans. Gaston, for his part, believed that economic progress was the key to racial progress—that demonstrating Black competence in business would ultimately break down racial barriers.
The tension came to a head during the Birmingham Campaign of 1963. While Gaston supported the movement's goals, he worried that the protests would damage Birmingham's economy and hurt his businesses. He found himself caught between his role as a successful businessman and his identity as a Black American fighting for equality.
By the Numbers
Peak Empire (1965)
$3.5 millionTotal net worth
1,000+Properties owned
500+Employees across all businesses
$8 millionCombined assets of all companies
Legacy and Later Years
Gaston continued to expand his business empire through the 1960s and 1970s, even as the Civil Rights Movement transformed American society. The passage of the Civil Rights Act of 1964 and the Voting Rights Act of 1965 opened new opportunities for Black Americans, but also created new challenges for Black-owned businesses. Integration meant that Black consumers could now patronize white-owned businesses, reducing the captive market that had sustained many Black enterprises.
Gaston adapted by diversifying his holdings and focusing on quality and service rather than racial loyalty. His businesses survived the transition to integration, though some struggled as the Black community's economic patterns changed. The A.G. Gaston Motel, for example, faced increased competition from integrated hotel chains.
In his later years, Gaston became increasingly focused on philanthropy and education. He established scholarships for Black students and donated millions to historically Black colleges and universities. He also mentored young entrepreneurs, sharing the lessons he had learned over six decades in business.
A.G. Gaston died on January 19, 1996, at the age of 103. His funeral was attended by thousands, including business leaders, politicians, and civil rights veterans. He was remembered not just as a successful businessman, but as a pioneer who had demonstrated the potential of Black entrepreneurship in the face of seemingly insurmountable obstacles.
