The Railroad Builders: A Chronicle of the Welding of the StatesMoody, John
History
The Railroad Builders: A Chronicle of the Welding of the States
Moody, John
Railroads -- United States -- History
The story of the battle royal between the Hill and Harriman interests
will be told in a subsequent chapter. It is not necessary to repeat the
history of the famous corner of 1901 nor of the compromise effected by
the formation of the Northern Securities Company. The final result
of this contest was the complete harmonizing of the Western railroad
situation, so far as the Hill and the Harriman interests were concerned.
In the succeeding years the Great Northern system penetrated to the
heart of Manitoba and constructed lines through British Columbia to
Nelson and Vancouver. It built other branches to Spokane, Washington,
and Helena and Butte, Montana. Moreover by the discovery of extensive
ore deposits on the lines of the company in northern Minnesota and by
subsequent purchases of other mines, the Great Northern acquired control
of about sixty-five thousand acres and hundreds of millions of tons
of iron ore. All the properties so controlled were leased on a very
profitable basis to the United States Steel Corporation. The Great
Northern Railroad itself did not retain control of the ore lands
but, through a trusteeship, gave a beneficial interest in them to its
stockholders in the shape of a special dividend.
The profits under this lease promised to be very large in the course
of time, but the Steel Corporation had the option to cancel after
a five-year period, and in 1912, as the result of a United States
Government suit for the dissolution of the Steel Corporation, the
lease was canceled. Since that time the trustees of the ore lands have
executed other leases, and the Great Northern ore certificates are
bringing in a substantial return to their owners.
The three Hill lines--the Great Northern, the Northern Pacific, and
the Chicago, Burlington and Quincy--have been unusually profitable.
The Great Northern and the Northern Pacific have steadily paid liberal
dividends to their stockholders on increasing amounts of capital stock;
and the Burlington, whose whole stock is owned by these two roads,
has also handed over liberal profits year by year, at the same time
accumulating an earned surplus of more than one hundred million dollars
and spending an almost equal amount of profits on the improvement and
maintenance of the property. The Burlington today controls the Colorado
Southern, which extends southward from the Burlington lines in Wyoming,
passing through Denver, Pueblo, Fort Worth, and other points southward
to the Gulf.
CHAPTER X. THE RAILROAD SYSTEM OF THE SOUTH
Public-domain text, read in full here on John Shaqi.
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