The Great Northern transcontinental railroad is the story of capitalism.
Unlike the Union Pacific and Central Pacific transcontinentals, it was built with private funds, and without government subsidies.
Along came the Progressive movement, the hatred of success, and government screwed down the nations biggest business with red tape and regulation.
It is an interesting cautionary tale that should be taught to every school child....a prediction as to the fate of America.
1. The Great Northern was built by James J. Hill, the 'Empire Builder,' without the generous land grants given to other transcontinental railroads. Hill, a one-eyed Canadian, was a true railroad man "having 20 years of frontier freighting, merchandising, and transportation experience."
John Stover, "American Railroads," p. 76.
a. He began by taking over the bankrupt St. Paul & Pacific, March 13, 1878, building in fits and starts, recycling profits from completed sections to pay for the next stretch. As he progressed westward, he would throw out branches where he could see easy potential profits.
b. Unlike those of his rivals, the financing of his railroad was generated by it transportation activity rather than through land deals. The very symbol of capitalism, it was built with private money, not government subsidies...i.e., mercantilism.
c. The transcontinentals essentially stole Indian land.
Hill actually purchased the right of was for cash, and gave jobs to Indians.
2. The Great Northern Railway (reporting mark GN), running from Saint Paul, Minnesota, to Seattle, Washingtonmore than 1,700 miles (2,736 km)was the creation of the 19th century railroad tycoon James J. Hill and was developed from the Saint Paul and Pacific Railroad. The Great Northern's route was the northernmost transcontinental railroad route in the United States. It was completed on January 6, 1893, at Scenic, Washington. http://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.)
a. At completion it was so profitable, it allowed Hill to take over the rival Northern Pacific.
b. "He had the satisfaction of being able to watch all the other transcontinentals to collapse into bankruptcy during the financial panic of 1893, while his railroad continued to flourish." Wolmar, "The Great Railroad Revolution," p.178.
c. "Between 1891 and 1907, the year Hill retired from its presidency, the Great Northern built an average of one new mile of road for every working day."
Stover, Op. Cit, p. 79.
3. A study of Hill's success will show his butting up against the Progressive movement. Railroads were the biggest business in the country, and the big government wave instituted more and more regulations. It did not go unnoticed that he kept his railroad afloat by cutting salaries several time. But the fact that other rivals went bankrupt provided unions with very little leverage.
a. When Hill tried to raise funds to modernize, Progressives showed their hostility toward giant corporations by forbidding the increase in ticket prices and rate increases.
Wolmar, Op. Cit., p. 272.
Mark this when you are told that America is a capitalist economy.
b. They had to face the usual business-government problems of raising costs and fixed rates. Just when increased profits would have allowed railroads to face the new competition of automobiles, they were give the coup de grace by government.
4. " Hill is considered to have inspired (in broad outline, though not in specific details) the character Nathaniel Taggart in Ayn Rand's novel Atlas Shrugged." James J. Hill - The Full Wiki
5. [ame=http://www.youtube.com/watch?v=24Jhiys2N5I]History of the Great Northern Railroad - YouTube[/ame]
Unlike the Union Pacific and Central Pacific transcontinentals, it was built with private funds, and without government subsidies.
Along came the Progressive movement, the hatred of success, and government screwed down the nations biggest business with red tape and regulation.
It is an interesting cautionary tale that should be taught to every school child....a prediction as to the fate of America.
1. The Great Northern was built by James J. Hill, the 'Empire Builder,' without the generous land grants given to other transcontinental railroads. Hill, a one-eyed Canadian, was a true railroad man "having 20 years of frontier freighting, merchandising, and transportation experience."
John Stover, "American Railroads," p. 76.
a. He began by taking over the bankrupt St. Paul & Pacific, March 13, 1878, building in fits and starts, recycling profits from completed sections to pay for the next stretch. As he progressed westward, he would throw out branches where he could see easy potential profits.
b. Unlike those of his rivals, the financing of his railroad was generated by it transportation activity rather than through land deals. The very symbol of capitalism, it was built with private money, not government subsidies...i.e., mercantilism.
c. The transcontinentals essentially stole Indian land.
Hill actually purchased the right of was for cash, and gave jobs to Indians.
2. The Great Northern Railway (reporting mark GN), running from Saint Paul, Minnesota, to Seattle, Washingtonmore than 1,700 miles (2,736 km)was the creation of the 19th century railroad tycoon James J. Hill and was developed from the Saint Paul and Pacific Railroad. The Great Northern's route was the northernmost transcontinental railroad route in the United States. It was completed on January 6, 1893, at Scenic, Washington. http://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.)
a. At completion it was so profitable, it allowed Hill to take over the rival Northern Pacific.
b. "He had the satisfaction of being able to watch all the other transcontinentals to collapse into bankruptcy during the financial panic of 1893, while his railroad continued to flourish." Wolmar, "The Great Railroad Revolution," p.178.
c. "Between 1891 and 1907, the year Hill retired from its presidency, the Great Northern built an average of one new mile of road for every working day."
Stover, Op. Cit, p. 79.
3. A study of Hill's success will show his butting up against the Progressive movement. Railroads were the biggest business in the country, and the big government wave instituted more and more regulations. It did not go unnoticed that he kept his railroad afloat by cutting salaries several time. But the fact that other rivals went bankrupt provided unions with very little leverage.
a. When Hill tried to raise funds to modernize, Progressives showed their hostility toward giant corporations by forbidding the increase in ticket prices and rate increases.
Wolmar, Op. Cit., p. 272.
Mark this when you are told that America is a capitalist economy.
b. They had to face the usual business-government problems of raising costs and fixed rates. Just when increased profits would have allowed railroads to face the new competition of automobiles, they were give the coup de grace by government.
4. " Hill is considered to have inspired (in broad outline, though not in specific details) the character Nathaniel Taggart in Ayn Rand's novel Atlas Shrugged." James J. Hill - The Full Wiki
5. [ame=http://www.youtube.com/watch?v=24Jhiys2N5I]History of the Great Northern Railroad - YouTube[/ame]
