Facts
In 1901, James Jerome Hill, president of and the largest stockholder in the Great Northern Railway, won the financial support of J. P. Morgan and attempted to take over the Chicago, Burlington and Quincy Railroad (CB&Q). [1] The CB&Q served a traffic-rich region of the Midwest and Great Plains, was well-managed, and quite profitable. It possessed a finely-engineered line connecting the Twin Cities to the nation's rail center of Chicago, which made it particularly attractive as an addition to Hill's Great Northern.
Hill's strategy was for his railroad and Morgan's Northern Pacific Railway to jointly buy the CB&Q. [1] However, Edward Henry Harriman, president of the Union Pacific Railroad and the Southern Pacific Railroad, also wanted to buy the CB&Q. [1] Harriman demanded a one-third interest in the CB&Q, but Hill refused him. [1] Harriman then began to buy up Northern Pacific's stock, forcing Hill and Morgan to counter by purchasing more stock as well. [1] Northern Pacific's stock price skyrocketed, and the artificially high stock threatened to cause a crash on the New York Stock Exchange. [1]
Hill and Morgan were ultimately successful in obtaining more Northern Pacific stock than Harriman and won control of not only the Northern Pacific but also the CB&Q. [1]
Pressured by Harriman's actions, Hill created a holding company—the Northern Securities Company—to control all three of the railroads. The public was greatly alarmed by the formation of Northern Securities, which threatened to become the largest company in the world and monopolize railroad traffic in the western United States. [1] President William McKinley, however, was not willing to pursue antitrust litigation against Hill. [1] McKinley was assassinated, however, and his progressive Vice-President, Theodore Roosevelt, ordered the United States Department of Justice to pursue a case against Northern Securities. [1] The case was led by Assistant Attorney General Milton D. Purdy. [2]
James Jerome Hill was a Canadian-American railway director. He was the chief executive officer of a family of lines headed by the Great Northern Railway, which served a substantial area of the Upper Midwest, the northern Great Plains, and the Pacific Northwest in the United States. Because of the size of this region and the economic dominance exerted by the Hill lines, Hill became known during his lifetime as "The Empire Builder", and died in 1916 with a fortune of about 63 million dollars. His former home, James J. Hill House, is now a museum in Saint Paul, Minnesota.
The Burlington Northern Railroad was a United States–based railroad company formed from a merger of four major U.S. railroads. Burlington Northern operated between 1970 and 1995.
The Northern Pacific Railway was an important transcontinental railroad that operated across the northern tier of the western United States, from Minnesota to the Pacific Northwest. It was approved and chartered in 1864 by the 38th Congress of the United States in the national / federal capital of Washington, D.C., during the last years of the American Civil War (1861-1865), and given nearly 40 million acres of adjacent land grants, which it used to raise additional money in Europe, for construction funding.
The Chicago, Burlington and Quincy Railroad was a railroad that operated in the Midwestern United States. Commonly referred to as the Burlington Route, the Burlington, CB&Q, or as the Q, it operated extensive trackage in the states of Colorado, Illinois, Iowa, Missouri, Nebraska, Wisconsin, Wyoming, and also in Texas through subsidiaries Colorado and Southern Railway, Fort Worth and Denver Railway, and Burlington-Rock Island Railroad. Its primary connections included Chicago, Minneapolis–Saint Paul, St. Louis, Kansas City, and Denver. Because of this extensive trackage in the midwest and mountain states, the railroad used the advertising slogans "Everywhere West", "Way of the Zephyrs", and "The Way West".
Robert Bacon was an American athlete, banker, businessman, statesman, diplomat and Republican Party politician who served as the 39th United States Secretary of State in the Theodore Roosevelt administration from January to March 1909. He also served as Assistant Secretary of State from 1905 to 1909 and Ambassador to France from 1909 to 1912.
The Spokane, Portland & Seattle Railway was a railroad in the northwest United States. Incorporated in 1905, it was a joint venture by the Great Northern Railway and the Northern Pacific Railway to build a railroad along the north bank of the Columbia River. The railroad later built or acquired other routes in Oregon. The SP&S was merged into the Burlington Northern in March, 1970. Remnants of the line are currently operated by BNSF Railway and the Portland and Western Railroad.
The Northern Securities Company was a short-lived American railroad trust formed in 1901 by E. H. Harriman, James J. Hill, J. P. Morgan and their associates. The company controlled the Northern Pacific Railway; Great Northern Railway; Chicago, Burlington and Quincy Railroad; and other associated lines. It was capitalized at $400 million, and Hill served as president.
Ralph Budd was an American railroad executive who was the president of the Great Northern Railway from 1919 up until 1932, when he served as president of the Chicago, Burlington and Quincy Railroad until his retirement in 1949.
A joint railway is a railway operating under the control of more than one railway company.
The Black Hills Central Railroad is a heritage railroad that operates in Keystone, South Dakota, United States. The railroad was added to the National Register of Historic Places on February 5, 2003.
The South Omaha Terminal Railway in Omaha, Nebraska was a subsidiary of the Union Stock Yards Company of Omaha. Until the separate railroad company was created in July 1927, the trackage, about 17 miles (27 km), was owned and operated directly by the Union Stock Yards Company of Omaha. On April 4, 1978, an Interstate Commerce Commission emergency service order was issued at which time the Brandon Corporation took over service.
The Burlington and Missouri River Railroad (B&MR) or sometimes (B&M) was an American railroad company incorporated in Iowa in 1852, with headquarters in Omaha, Nebraska. It was developed to build a railroad across the state of Iowa and began operations in 1856. It was acquired by the Chicago, Burlington and Quincy Railroad in 1872, and kept serving as its subsidiary.
The Chicago Railroad Fair was an event organized to celebrate and commemorate 100 years of railroad history west of Chicago, Illinois. It was held in Chicago in 1948 and 1949 along the shore of Lake Michigan and is often referred to as "the last great railroad fair" with 39 railroad companies participating. The board of directors for the show was a veritable "Who's Who" of railroad company executives.
The Panic of 1901 was the first stock market crash on the New York Stock Exchange, caused in part by struggles between E. H. Harriman, Jacob Schiff, and J. P. Morgan/James J. Hill for the financial control of the Northern Pacific Railway. The stock cornering was orchestrated by James Stillman and William Rockefeller's First National City Bank financed with Standard Oil money. After reaching a compromise, the moguls formed the Northern Securities Company. As a result of the panic, thousands of small investors were ruined.
Charles Sanger Mellen was an American railroad man whose career culminated in the presidencies of the Northern Pacific Railway (1897-1903) and the New York, New Haven and Hartford Railroad (1903-1913). His goal, along with the New Haven's financier J. P. Morgan, was to consolidate, electrify and modernize all the main railroads of New England, so as to lower competition and produce higher profits. The result of his abrasive tactics alienated public opinion, led to high prices for acquisitions and costly construction; the accident rate soared when efforts were made to save on maintenance costs. Debt soared from $14 million in 1903 to $242 million in 1913, when it was hit by an antitrust lawsuit by the federal government on the charge of monopolizing New England's rail traffic. He was called, "The last of the railway czars."
The Chicago and Aurora Railroad was a direct predecessor of the Chicago, Burlington and Quincy Railroad. Its original incorporation as the Aurora Branch Railroad, chartered in February 1849, started as a twelve-mile branch line which Class I giant BNSF cites as the beginning of their empire: this "short stretch of track set BNSF’s destiny into ‘loco-motion’ and grew over many decades into a network spanning 32,500 miles." Beginning in 1853, as the Chicago and Aurora Railroad, the company's tracks eventually extended from Chicago to Mendota via Aurora, Illinois, also creating what would become the oldest commuter line in the Chicago area.
Wyoming was a Chicago, Burlington and Quincy Railroad station in Wyoming, Illinois. Now the headquarters of the Rock Island Trail State Park, the building is listed on the National Register of Historic Places as the Chicago, Burlington & Quincy Railroad Depot. The station has also been restored to the original red color.
Charles Elliott Perkins was an American businessman and president of the Chicago, Burlington and Quincy Railroad. He was so well respected that historian Richard Overton wrote, "From the time that Charles Elliott Perkins became vice president of the Chicago, Burlington and Quincy [1876] ... until he resigned as president in 1901, he was the Burlington."
Hale Holden was president of the Chicago, Burlington and Quincy Railroad (CB&Q) from 1914 to 1918 and 1920 to 1929, and chairman of the board of directors for Southern Pacific Railroad from 1932 to 1939. He was one of the lawyers working for James J. Hill's defense team in the Minnesota Rate Cases. In later years he served as a director for a number of large companies including American Telephone & Telegraph, New York Life Insurance Company and the Chemical Bank & Trust.
