Northern Pacific Railroad

J.P. Morgan Creates Northern Securities: $400 Million Railroad Monopoly

| Importance: 8/10

In 1901, J.P. Morgan orchestrated the creation of the Northern Securities Company, a $400 million holding company that gave him control over approximately one-third of the country’s railways. The consolidation emerged from a fierce competition between James J. Hill, head of the Great Northern …

J.P. Morgan James J. Hill Edward H. Harriman Northern Securities Company Great Northern Railroad +1 more monopoly-power financial-consolidation corporate-merger railroad-control market-manipulation
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J.P. Morgan Railroad Reorganizations Create Consolidated Monopoly Systems

| Importance: 9/10

By 1895, following the Panic of 1893 that left one-third of American railroad mileage in receivership, J.P. Morgan had systematically reorganized the nation’s major railroads through a process known as ‘Morganization,’ consolidating competing lines into regional monopolies under …

J.P. Morgan J.P. Morgan & Company Southern Railway Erie Railroad Northern Pacific Railroad banking-consolidation railroad-consolidation corporate-power gilded-age financial-control
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Panic of 1873: Railroad Speculation Triggers Economic Collapse

| Importance: 9/10

The banking firm Jay Cooke & Company collapses, triggering a devastating financial panic and economic depression lasting until 1879. Cooke’s firm, heavily invested in the Northern Pacific Railroad and backed by over 60 million acres of federal land grants used as collateral, becomes …

Jay Cooke & Company Northern Pacific Railroad New York Stock Exchange European Investors economic-crisis systematic-corruption corporate-welfare financial-manipulation
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