(Source: MinnPost, October 3, 2013)
James J. Hill and a competitor, Edward Harriman, head of the Union Pacific line, both sought to buy the Chicago, Burlington and Quincy line, a smaller railroad that would link them to important markets in Chicago. Hill came up with the high purchase price that Harriman wouldn’t meet, but Harriman, in a dramatic ploy, attempted to gain control from within by purchasing a majority share of the Northern Pacific line’s stock. During the raid, shares of Northern Pacific shot from $110 to $1,000 a share, and cornered the stock. The flamboyant financier J.P. Morgan, who owned a significant portion of the remaining stock, joined forces with Hill to fend off Harriman, and eventually a truce was called through the formation of a massive railroad holding company. But the damage to the market was significant, and impacted the way Americans viewed the stock market.
Full story: MinnPost