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Corporate Point Men and the Creation of the Montana Central Railroad, 1882-87

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Corporate Point Men and the Creation of the Montana Central Railroad, 1882-87 University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Great Plains Quarterly Great Plains Studies, Center for 1990 Corporate Point Men and the Creation of the Montana Central Railroad, 1882-87 William L. Lang Columbia River History Follow this and additional works at: https://digitalcommons.unl.edu/greatplainsquarterly Part of the Other International and Area Studies Commons Lang, William L., "Corporate Point Men and the Creation of the Montana Central Railroad, 1882-87" (1990). Great Plains Quarterly. 481. https://digitalcommons.unl.edu/greatplainsquarterly/481 This Article is brought to you for free and open access by the Great Plains Studies, Center for at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Great Plains Quarterly by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. CORPORATE POINT MEN AND THE CREATION OF THE MONTANA CENTRAL RAILROAD, 1882 .. 87 WILLIAM L. LANG On 21 November 1887, a crowd jammed Second, the Montana Central brought with it Ming's Opera House in Helena, Montana, to the promise of breaking an oppressive rail agree­ celebrate the completion of the Montana Cen­ ment that had weighed heavily on Montana. tral Railway, a branch line of the St. Paul, The Union Pacific, which had built to Butte Minneapolis & Manitoba Railway. Sharing the in 1881, and the Northern Pacific, which had Opera House stage that day were railroad ex­ completed its transcontinental road through ecutives and managers from the East, Montana Helena in 1883, had concocted a rate pool politicians, and local businessmen. Their rea­ agreement that set artificially high freight rates. son for celebration was three-fold. First, because Third, the completion of the Montana Central Montalaans had struggled for more than a de­ ended a bitter economic and political war that cade to get rail connections, sometimes nearly had divided businessmen and split up political making unwise and unnecessary deals with rail­ alliances within the city.! road corporations, getting a railroad to build The crowd at Ming's had these developments through Montana was cause for celebration. in their minds as they clapped and cheered at the speechmakers. But they turned their pri­ mary focus on James Jerome Hill, the forty­ nine-year-old president of the St. Paul, Min­ neapolis & Manitoba Railway, the man who William L. Lang, research director of the Center had brought the Montana Central to Helena. for Columbia River History in Vancouver, Wash­ Just emerging as a major player in railroad de­ ington, is working on a book about the Columbia velopment in the Northwest, Hill brought with River. For many years he edited Montana the him a reputation as a man of capital, power, Magazine of Western History, and the revised edition of his Montana: A History of Two Cen­ and corporate success. It was a reputation that turies (with Michael Malone and Richard Roeder) often elicited fear among westerners because he is forthcoming in 1991. was one of those distant financial and political power brokers who seemingly controlled Mon­ [OPQ 10 (Summer 1990): 152-166] tana's fate. But he also had a reputation as a 152 CORPORATE POINT MEN 153 FIG. 1. In 1886, the Montana Central had been completed from the main line of the Manitoba at Great Falls to Helena. The line to Rimini and the Red Mountain mines was built by the Northern Pacific. Map by George Cram, 1886, courtesy of Montana Historical Society. dynamic and manipulative entrepreneur who 643 miles across Dakota and Montana, setting had brought essential rail connections to the a record for track-laying in a single season and isolated northern territories. The Montana bringing relief to Montana shippers who had Central was Hill's first penetration of the Mon­ suffered under the UP- NP rate pool agreement. 3 tana market, but the railway would gain even The crowd cheered when Hill listed the more significance when Hill completed the rest achievements, but their loudest ovations came of the Manitoba's mainline across the state­ when he tipped his hat to his Montana asso­ the new transcontinental Great Northern Rail­ ciates on the opera house stage, his point men way that would be completed in 1893 and con­ in building the Montana Central. 4 They were nect St. Paul with Puget Sound. 2 men of influence in Montana, men who under­ The Great Northern Railway was both dream stood business and had political savvy. Principal and goal in his mind as Hill stood before the among them were Territorial Delegate Martin appreciative crowd, but still he had reason to Maginnis, Great Falls founder Paris Gibson, and boast in 1887. His Manitoba railway had built freighting entrepreneur Charles A. Broadwater. 154 GREAT PLAINS QUARTERLY, SUMMER 1990 Greenleaf Clark, and others-who invested in THE POINT MEN his schemes and served as a quasi board of di­ Not unlike a general with his cavalry officers, rectors. They questioned his plans in Montana, Hill used his point men for intelligence reports, advised him on how to organize complementary suggestions on tactics, and reactions to overall corporations, and devised critically important strategies. Hill provided the power of corporate strategies for selling bond issues. He especially investment and decision making, while the point relied on Kennedy, who carefully monitored de­ men prepared the ground in Montana between velopments in St. Paul and Helena from his 1884 and 1888, the critical years of the Man­ office in New York. The Hill-Kennedy combi­ itoba's extension into the Territory. Hill was a nation, as Albro Martin has put it, was "the veteran of successful corporate teamwork and strongest railroad team in the Northwest."6 he understood its importance; he had benefited It was the western end of Hill's transconti­ enormously from his early associations with the nental team, however, that had the most pro­ aggressive entrepreneurs, Norman Kittson, found effect on Manitoba's fortunes. In ways Donald Smith, George Stephen, and John S. that Montanans and Hill could not have an­ Kennedy, who together had created the Man­ ticipated, the point men took on the brunt of itoba road during the late 1870s. 5 Hill listened the tough work of railroad building on the fron­ to his financial partners-Stephen, Smith, tier. That work pushed these point men to their Kennedy, Edward Nichols, Samuel Thome, financial and political limits, forCing them to FIG. 2. By 1891, the Manitoba had become the Great Northern Railway and the Montana Central extended through Helena to Butte. Map from the Second Annual Report of the Great Northern Railway Company, 1891, courtesy of Montana Historical Society. Coli., Gibson bad l'IlCJ~ to. An­ tOOlilY FaIIJ; on Ihf: I it'!; M~ 1UlIrl, 'roK: qwilly ImlOOg tM ~ , li'I __ .. i.o.du5tfi.o .a!lillits. Afkr his InVIl!lSllU~ ~fIJ t1 "miJUing mill woo n mill tum ~rd dl,ilri " the ~ion or tho m -1S-1iJ1!l. O· - :t . 1\ew ti 1d in 1879 In 'OO'f.mem ~ ~,vffim: he <CfiIl:Crcd lihr ~'hcl!p buUfIUi ' f.o Denoon. ~ Wrthm, two, 'Ymmi. OLbsan oel.Qed h- cntrc~ ptm.~aJ. eYe! on the are;): Fa1b rri iilie Mi5- II!ri, '.... here he- saw v.m _tflo1!l PO~ i lll. p. _. ~ing Hilll In, 188'1 rb e pomi:bilitir:s :in Mon~.:: Gibson wrote el1lCOOIalllna: ~M e'i'Cn il?l~lflSl: Icttmi to the! M:antroba p. , _ . em: "Cf ~ 'iol1bwing iliu~ years 1;0, bu Id Ih ' f{ d WCR T.Q the: ORBIt FaJk. which. G:I , i!:~ht ~ lm.ed to bcoomc a · Vi MmneiipG.Jl~" U~ mi III pmma.tem" m,Monm'ti1l , (Jib· tot'!. rnl;cmmtJf II::iao.smd hl3. mwn ~ ftlltr: iHm'll ~ its,Wilt<CI ~ ', its proK InL 1tO ,· tiaI oo;}l ttdd.5, .and itl' iocaDon 0llI. ill ~!\t~llIy 1I:~lIxl~r::.rte'Jl:r.i de mJroad [(lL!lte mack ~ea[ , ~I __ o. 3- ~ M~. £boo:, OOuruf' « . ~HUtwi~ '=~ a1'l. d.esal ~t1"iiI! tU'IIImLte. HI [-Hd 1m: b~ ~ . , !l1y eanViinc;m ffill to, lnI.\'il:S[ n. 8i r.MJ.fI\. siH! eomp!JJlilf im 1882. The! HHI...oL~ - p~ip Krvm bod., men. w~ll arui en.dW'ed for more . han two decad~ ~fihClu. da.elt" in. oommit th.e pl!l'IlOfIlll fClrlOliMJ.;aruJI _ ~r ' - .J ~ dUf'etol.--Gi'bso:n WBS fur G~[ Falls: H!!t, polilliCirl capi[a~ [0 dID I! i!Merp! :. I~ vi(\:! : ""h.il~ Hill did littI~ mat did :rux ben I: d1 e ~ r,i&.k. 'lDUCh gruIem" mm, [he if. ern '- d ·b,llIJ._ W'hIrIt Gilmml dld, moLJ.gh ~ w . ro ~. HilIJl and his. rom,ve.mx\!, In. ~e M.mi~" ~r i·lIn md !SIJ~1l: Monil3ri.a;,5j btge ClL'!" fullil~ into Mnnt3D3i, If me . frulecl., rhey iknt:w, parrun:L!1.:e$ . him.$' tIrurt their ;NOnoml :800 pollrl:cal Iru&M 0(II11/i MiIffll'1~ (~g, Jo) r For the M",anlmba be incvcm.b'le. tJw tbi!~, mlgn[ ne.ver l'ec:o.vt!!'" nowe~1!!I1 dh.e . ~K. point m:m In. Kill' [n their vi&.Liom ,of rucQ(!!lil~ ~ oouM iSI!!e d,d~ _' Mliffin M~, Bam, in fI'4e' Y;a lilDIimitcd rurure' of e.:ooam~ de.vel'oprnet'l.: ;;I/t'Id. mdi, raised It'll D\:iIIilIih. MqinniB ibad:ml ll<ted even looal :pelitical M84!.mony. What .v did rn MQiI'I Mt ~ wtiantly i1\ rol! CivU not ~iiIlk m the h~[ of me~ , puw,i.:h: '1,Ir,U War arid tedi~ II ~r in Red Wing ~ for the MsnLtob3iCluld 'b ng M e!iQ~ .
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