Depot Key-- Part 4: Development and "Pencil" Mills

Several people received permits to settle Depot Key, Way Key and Scale Key.  Augustus Steele received a permit for Depot Key and renamed it Atsena Otie Key.  The City of Atsena Otie was chartered in 1859.  It became an important port for lumber and naval stores.

By 1850, there were two mills producing cedar "slats" for Northern pencil factories and Congress appropriated funds to build a lighthouse on Seahorse Key which was completed in 1854.

In 1860, Cedar Key became the western terminal of the Florida Rail Road connecting Fernandina on the east coast of the state.  David Levy Yulee, U.S. Senator and president of the Florida Rail Road acquired most of Way Key to house the railroad terminal facilities.

A town was platted for Way Key and the Parsons and Hale's General Store, still standing and now the Island Hotel, was built in the same year.

--Old B-R'er