1825 The Erie Canal is built to create a navigable water route from New York City and the Atlantic Ocean to the Great Lakes.

Upon completion it is the 2nd longest canal in the world (Grand Canal, China).

The Erie Canal, originally running 363 miles from the Hudson River in Albany to Lake Erie in Buffalo, concentrated wealth in the transporatation hubs of Albany, Syracuse, Rochester, Buffalo and New York City.

Midnight Special

Oil Industry Asks Court to Block Rail Transport Safety Rules

August 20, 2019: Railcars sitting idle climbs to multi-month high

56,425 railcars put in storage between January 1 and August 20.
This brings the total railcars in storage close to 350,000.

"The once pastoral landscape of America, quiet and undisturbed, was now pierced by the sight and sound of a mechanical marvel, the locomotive and its trailing cars.

Wherever tracks were hammered down, business was sure to follow.

Sometimes whole towns were planned around a railroad track.

A new social caste system was spreading in the wake of the railroad.

Now there was a 'right side' and a 'wrong side' of the tracks.

The right and wrong sides of the tracks was determined by which way the wind blew the sooty, black engine smoke." - Leonard Everett Fisher

Monopolized trade created a cash shortage.

Railroads had to be built with debt.

When two cities wished to link themselves with a railroad they issued bonds to the extent of their credit inducing all counties along the line to issue bonds.

When these bonds were sold the Money Power bought them up.

When the road-bed, or a considerable part of it was completed, the money power would furnish the iron and rolling stock secured by first mortgage bonds.

"I recollect that in 1855 to 1857, one of our cities was making tremendous efforts to build a railroad reaching toward a great business center.

After two or three efforts made with intervals of deep despondency, over one hundred miles of the road-bed was at last completed; and one of the most distinguished citizens of the state was sent to London, to negotiate for the iron for the road.

He came back astounded.

He said he found men from all over the world in London on the same business as himself : all wishing to get iron for railroads, at $10,000 a mile, secured on first mortgage bonds: and they all got the iron.

He said, "These London capitalists are sure to get the railroads for the first mortgage bonds; and no man can foresee the consequences. It will certainly work a mighty change when these capitalists get possession of all the land transportation of the world." - L.B. Woolfolk

Ownership of railroads gave to the money power entire control of the internal traffic of any nation whose railroads they had mortgaged.

Railroad ownership enabled them to speculate on town lots at points on the railroads known beforehand only to the agents of the money power.

Jay Gould and Jim Fisk are full partners in ownership of the New York and Erie R.R. holding $23,000,000 of railroad stocks.

Jim Fisk is killed holding $11,000,000 in railroad stock.

At the settlement of Jim Fisk's estate his family receives a few thousand dollars.

Jay Gould could hardly have been worth more than his partner, Jim Fisk and yet he went West with forty million dollars according to the newspapers and bought ten thousand miles of railroad.

The Wabash System is one-half of the ten thousand miles of railroad in the Gould System.

Mr. Gould stated in an interview with a New York reporter that much the greater number of the stockholders of the Wabash System were in Great Britain and only a few in the US.

The rest of the ten thousand miles of the Gould System consists of the Missouri Pacific, the Missouri Kansas and Texas, the Texas Pacific, and the Iron Mountain Railroads.

The Texas Pacific did not belong to Jay Gould, for its stockholders have had it taken out of the Gould System by process of law.

The Missouri Kansas and Texas did not belong to him; for its stockholders also, have brought suit and withdrawn the railroad from the Gould System .

Jay Gould stated in an interview with a reporter in that he held more stock in the Missouri Pacific than all his other investments put together.

The Missouri Pacific is a railroad three hundred miles long, running from St. Louis to Kansas City.

"It was the decades following our Civil War that industry began to burgeon.

We had great railroads to build. The oil, mining, steel, textile industries were bursting out of their swaddling-clothes.

All of that called for vast financing; much of that financing came from abroad.

Jacob Schiff of the House of Rothschild came into his own.

Jacob Schiff became the patron-saint of John D. Rockefeller, EH Harriman, and Andrew Carnegie.

Jacob Schiff financed Standard Oil for John D. Rockefeller, the Railroad Empire for EH Harriman, and the Steel Empire for Andrew Carnegie.

Jacob Schiff opened the doors of the House of Rothschild to Morgan, Biddle, and Drexel through Kuhn & Loeb which provided the financing to build the industrial empires.

At the time of his death Edward Henry Harriman controlled the Union Pacific, Southern Pacific, Saint Joseph and Grand Island, Illinois Central, Central of Georgia, Pacific Mail Steamship, and Wells Fargo.

At the turn of the century Jacob Schiff had a tight control of the entire banking-fraternity on Wall Street which by then included Lehman Brothers, Goldman Sachs, and other international banks that where headed by men chosen by the Rothschilds.

That meant control of the nation's money and he was then ready for the giant step - the entrapment of our national money-system." - Myron Fagan

Jacob Schiff: The most powerful man in American history

"The operations of Vanderbilt, and Gould and others in Wall Street can only be accounted for by the fact that they were the agents of the money power and were supplied with sufficient capital to make their operations an assured success much like the success that Maxxam enjoyed with the help of an agent of the money power -" Michael Robert Milken

Pacific Railroad Act of 1862

"The Pacific Railroad Act chartered the Union Pacific Railroad, and provided for it to build westward from the Missouri River in Nebraska to a meeting with the Central Pacific reaching eastward from Sacramento.

It also granted the two railroads 10 square miles of public land (later increased to twenty) for every mile of track laid, and loans in US bonds of $16,000 to $48,000 per mile, depending on the topography.

The Union Pacific was being financed by "Credit Mobilier" headed up by Thomas C. Durant.

The engineer designing the railroad gave Thomas C. Durant a price tag of 3 million dollars for the first 100 miles.

Thomas C. Durant then gave a contract to Credit Mobilier for 5 million dollars while "holding the engineer only to the original 3 million dollar specifications."

When the engineer resigned in protest, Major General Grenville M. Dodge was recruited from the US Army to replace him.

Greed and corruption continued with a few key people becoming quite wealthy at the expense of the Union Pacific.

The financial wrangling of the Central Pacific was also quite questionable, but their books were never reviewed.

CP Huntingdon claimed they had been destroyed when the company disbanded.

The investigators concluded, nevertheless, that the Big Four had benefitted excessively." - Charlton Ogburn

Theodore Judah lobbys for passage, Congress passes the act and Lincoln signs it.

At the time the Central Pacific Railroad project began, C P Huntingdon is a grocer with limited means in San Francisco.

Theodore Judah, C P Huntingdon, Leland Stanford, Mark Hopkins build the Central Pacific Railroad.

The US government aid is only paid when a stipulated number of miles of railway have been completed: the men in the company had not the means to do so much work before receiving the government subsidy.

When CP Huntingdon appeared before a Congressional Committee and insisted that the Central Pacific railroad was in dire circumstances.

When a member of the Committee asked him if he shared the depressed financial condition of the road, he paused for a considerable time before answering with extreme caution, "No: I am said to be rich."

CP Huntingdon insisted that he had made no money out of the Central Pacific.

Commodore Vanderbilt is the manager of a line of steamers running the Isthmus route from New York to San Francisco.

Commodore Vanderbilt quit the shipping line, went to Wall Street to speculate in railroad stocks with one million dollars.

Frequently Commodore Vanderbilt had the whole of Wall Street against him, but he was always able to put down any combination that was formed against him.

Commodore Vanderbilt was constantly opposed by Daniel Drew, who was worth $15,000,000.

How could Commodore Vanderbilt carry his vast operations through, with the one million dollars he was worth when he went into Wall Street?

Commodore Vanderbilt purchased sole ownership of the Harlem railroad.

Commodore Vanderbilt soon afterwards bought the Hudson River railroad, and the New York Central; and he continued to purchase railroads, until he owned a grand system extending far into the Northwest.

On Commodore Vanderbilt's death his son, William Henry Vanderbilt, immediately transferred a controlling interest in the New York Central System to a syndicate of New York capitalists representing money power for $50,000,000; which William Henry Vanderbilt at once invested in four per cent US bonds.

"Damn the people! I do not run my roads for the benefit of the people."- William Henry Vanderbilt

Those 4% bonds were deposited in London, in the banking house of John Bidall Martin in Lombard street.

John Bidall Martin gained ownership through foreclosure of the Erie railroad and the Wabash railroad systems.

Most of these first mortgage bonds carried usurous rates - so high that all profits go directly to the bond holders as interest payments.

"A reoccurring pattern of this history involves the willingness of imperial states to prop up private railroad projects amidst volatile global markets.

In doing so, these polities subsidised the domestication and partition of space in a manner conducive to empire." - Manu Karuka, Empire’s Tracks: Indigenous Nations, Chinese Workers and the Transcontinental Railroad

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