In the 1880s, an entrepreneur named Alexander Arthur (1846–1912) and several associates established a firm called American Association, Ltd., the primary purpose of which was to develop the iron ore and coal resources of the Cumberland Gap area. Arthur founded Middlesboro, Kentucky for the company's employees and furnaces, and constructed a railroad line connecting Middlesboro with Knoxville, Tennessee. Arthur believed Middlesboro would grow into a large industrial city, the so-called "Pittsburgh of the South." In 1888, he founded the city of Harrogate, which he envisioned would someday be a suburb for Middlesboro's elite.