Bethany Beach is located along a part of the peninsula of land known as Fenwick Island. Long before the U.S. Military leased the coastal areas from the state of Delaware, farmers and fishermen lived along the coast between the Indian River Inlet and what is now Ocean City. Local legend says that many of the country folk on the coast made extra money as salvagers, picking apart the ruins of ships that sailed too close to shore during the frequent Atlantic Storms. Knowing that their livelihood depended in part on the misfortune of others, some of the salvagers—sometimes called moon spinners for their evil work during the moon light, built bonfires on the beach at night. A bonfire was a universal signal that meant “TROUBLE—Come help us”. When the Samaritan ships ran aground and foundered in the surf, the moon spinners killed and kidnapped the passengers and plundered the cargo. In 1873, because of the numerous shipwrecks along the Delmarva Coast, the US Government formed the US Lifesaving Service which was later merged with the Coast Guard. These stations were established in Dewey Beach, Indian River, Fenwick Island and Ocean City. These sturdy men made up of carpenters, farmers, fishermen and mechanics were from local families—often serving three generations or more, were on call for 24 hours a day. Each night, the lone watchmen from Indian River, just north of Bethany, walked the several miles that made up half the distance to Dewey Beach and met the watchmen from that station, exchanged information, and returned to his respective station. If he were to spot a ship in trouble, the night watchman would alert the crew sleeping in the Life Saving Station quarters and all hands would push a dory into the surf to save the crew and passengers of the ship in trouble. Once the Lifesaving Stations were in place the moon-spinners slipped back into the shadows never to be heard from again on the Delaware Coast.
Know in modern times as the “Quiet Beach”, the town of Bethany Beach was founded in 1901 as a permanent tract of land for a seaside assembly for the Disciples of Christ of Washington D.C. The town’s first building was an octagonal tabernacle. The Bethany Improvement Company presented the tabernacle, along with 15 acres to Dr. Power of the Christian Missionary Society. But the town’s first year was less than impressive. The tabernacle lacked a roof, water poured in and the termites and weather soon decimated the structure. The town had to be bailed out by a new company comprised of prominent businessmen from Pittsburgh, including, W.R Errett, lawyer; John M. Addy, plumber; W.S. Kidd, steel manufacturer; R.S. Latimer, tea merchant and Dr. T.E. Cramblet, president of Bethany College, WV, and W. A. Dinker, the new president of the Bethany Improvement Company.