81-477: CGW may refer to: Chicago Great Western Railway , a Class I railroad that linked Chicago, Minneapolis, Omaha, and Kansas City Comics' Greatest World , an imprint of Dark Horse Comics Computer Gaming World , an American computer game magazine published between 1981 and 2006 Counsel General for Wales Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
162-608: A correspondent bank for the Mercantile National Bank in New York City, of which F. Augustus Heinze was then president. F. Augustus Heinze's association with the corner and the insolvent State Savings Bank proved too much for the board of the Mercantile to accept. Although they forced him to resign before lunch time, by then it was too late. As news of the collapse spread, depositors rushed en masse to withdraw money from
243-487: A stock manipulation scheme to corner the market in F. Augustus Heinze 's United Copper Company . Heinze had made a fortune as a copper magnate in Butte, Montana . In 1906 he moved to New York City, where he formed a close relationship with notorious Wall Street banker Charles W. Morse . Morse had once successfully cornered New York City's ice market , and together with Heinze gained control of many banks—the pair served on
324-538: A "money trust", the de facto monopoly of Morgan and New York's other most powerful bankers. The committee issued a scathing report on the banking trade and found that the officers of J. P. Morgan & Co. also sat on the boards of directors of 112 corporations with a market capitalization of $ 22.5 billion (the total capitalization of the New York Stock Exchange was then estimated at $ 26.5 billion). Although suffering ill health, J. P. Morgan testified before
405-423: A central bank with adequate control of credit resources, this country is going to undergo the most severe and far reaching money panic in its history". In 1908: Frank A. Vanderlip led a U.S. business delegation to Japan to meet with Japanese financial leaders including Taka Kawada, Shibusawa Eiichi and his son Shibusawa Masao, also founding members of Mitsui & Co. , Takuma Dan & Takamine Mitsui with
486-550: A consolidating railroad market. Testifying in 1965, before the Interstate Commerce Commission in Chicago, President Reidy stated that although it was operating in the black it would not able to continue: The simple fact is that there is just too much transportation available between the principal cities we serve. The Great Western cannot long survive as an independent carrier under these conditions. The CGW, therefore,
567-581: A focus of his presidency. Frick and Gary traveled overnight by train to the White House to implore Roosevelt to set aside the application of the Sherman Antitrust Act and allow—before the market opened—a company that already held a 60% share of the steel market to make a large acquisition. Roosevelt's secretary refused to see them, but Frick and Gary convinced James Rudolph Garfield , the Secretary of
648-564: A meeting until midnight, when they agreed to provide loans of $ 8.25 million to allow the Trust Company of America to stay open the next day. On Thursday morning Cortelyou deposited around $ 25 million into a number of New York banks. John D. Rockefeller , the wealthiest man in the United States, deposited a further $ 10 million in Stillman's National City Bank. Rockefeller's massive deposit left
729-559: A sense of order returned to New York that Monday. Unbeknownst to Wall Street, a new crisis was being averted in the background. On Sunday, Morgan's associate, George Perkins , was informed that the City of New York required at least $ 20 million by November 1 or it would go bankrupt. The city tried to raise money through a standard bond issue, but failed to gather enough financing. On Monday and again on Tuesday, New York Mayor George McClellan approached Morgan for assistance. In an effort to avoid
810-692: A tremble all through the list, and the gain in values and hope is gone". Several bank runs occurred outside the US in 1907: in Egypt in April and May; in Japan in May and June; in Germany and Chile in early October. The fall season was always a vulnerable time for the banking system—combined with the roiled stock market, even a small shock could have grave repercussions. The 1907 panic began with
891-429: Is the place to stop the trouble, then." As a run began on the Trust Company of America, Morgan worked with Stillman and Baker to liquidate the company's assets to allow the bank to pay depositors. The bank survived to the close of business, but Morgan knew that additional money would be needed to keep it solvent through the following day. That night he assembled the presidents of the other trust companies and held them in
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#1732851678946972-742: The Bank of England raised its interest rates, partly in response to UK insurance companies paying out so much to US policyholders, and more funds remained in London than expected. From their peak in January, stock prices declined 18% by July 1906. By late September, stocks had recovered about half of their losses. The Hepburn Act , which gave the Interstate Commerce Commission (ICC) the power to set maximum railroad rates, became law in July 1906. This depreciated
1053-454: The U.S. Treasury during the Panic of 1893 . As news of the crisis gathered, Morgan returned to Wall Street from his convention late on the night of Saturday, October 19. The following morning, the library of Morgan's brownstone at Madison Avenue and 36th St. had become a revolving door of New York City bank and trust company presidents arriving to share information about (and seek help surviving)
1134-521: The copper market collapsed; in August the Standard Oil Company was fined $ 29 million for antitrust violations. In the first nine months of 1907, stocks were lower by 24.4%. On July 27, The Commercial & Financial Chronicle noted that "the market keeps unstable ... no sooner are these signs of new life in evidence than something like a suggestion of a new outflow of gold to Paris sends
1215-572: The panic of 1907 caused Stickney to lose control of the railroad, and ownership passed to financier J. P. Morgan . In 1910, the CGW introduced four McKeen Motor Car Company self-propelled railcars, its first rolling stock powered by internal combustion engines. In the same year, the railroad also purchased ten large 2-6-6-2s from the Baldwin Locomotive Works . Two years later, the railroad acquired an experimental battery powered motorcar from
1296-484: The CGW began trial operations of trailer on flatcar trains, which were expanded the following year into regular service, initially between Chicago and St. Paul, but rapidly expanding across the system by 1940. In 1941, it was reorganized in bankruptcy, and late in the decade a group of investors, organized as the Kansas City Group, purchased the CGW. In 1946, a demonstrator EMD F3 diesel locomotive set operated on
1377-483: The CGW's trackage. In 1835, the Chicago, St. Charles & Mississippi Airline railroad was chartered with the intent of building a railroad west out of Chicago. The railroad never began construction, and its rights to build were transferred in 1854 to a new company, the Minnesota & North Western (M&NW), which eventually began construction in 1884 of a line south from St. Paul, Minnesota to Dubuque, Iowa. In 1887,
1458-408: The CGW, immediately prompting the company to purchase a wide variety of diesels, and by 1950 the railroad had converted completely to diesel motive power. In 1949, William N. Deramus III assumed the presidency, and began a program of rebuilding infrastructure and increasing efficiency, both by consolidating operations such as dispatching and accounting and by lengthening trains. In 1957, Deramus left
1539-688: The CGW, the CNW abandoned most of the former CGW trackage. A 20 mile section of the railroad right of way from Des Moines, IA south to Martensdale, IA was used to create a mixed use trail with the name of Great Western Trail. In addition, a section of track was converted to trail usage, also known as the Great Western Trail , running intermittently between Villa Park, Illinois and West Chicago, Illinois in DuPage County, and then through Kane and DeKalb counties to Sycamore, Illinois. The Chicago Great Western
1620-626: The Chicago, St. Paul & Kansas City Railroad acquired the M&;NW, and by the end of the decade, under the leadership of St. Paul businessman A.B. Stickney , it had established routes west to Omaha, Nebraska, south to St. Joseph, Missouri, and east to Chicago, Illinois, via the Winston Tunnel near Dubuque. In 1892, the railroad was reorganized as the Chicago Great Western. The first repair shops for locomotives and freight cars were built at
1701-703: The Curb, so say the oldest veterans of the outside market". The failure of the corner left Otto unable to meet his obligations and sent his brokerage house, Gross & Kleeberg, into bankruptcy. On Thursday, October 17, the New York Stock Exchange suspended Otto's trading privileges. As a result of United Copper's collapse, the State Savings Bank of Butte Montana (owned by F. Augustus Heinze) announced its insolvency. The Montana bank had held United Copper stock as collateral against some of its lending and had been
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#17328516789461782-523: The European and U.S. banking systems was the absence of a central bank in the United States. European states were able to extend the supply of money during periods of low cash reserves. The belief that the U.S. economy was vulnerable without a central bank was not new. Early in 1907, banker Jacob Schiff of Kuhn, Loeb & Co. warned in a speech to the New York Chamber of Commerce that "unless we have
1863-621: The Federal Storage Battery Car Company. In 1916, the railroad began standardizing on 2-8-2 steam locomotives, which served through the 1920. In 1923 CGW purchased from the soon to be dominant company EMC, two of EMD's first gasoline-powered cars. During the 1920s, as ownership changed again to the Bremo Corporation, a group of investors led by Patrick Joyce, an executive at the Standard Steel Car Company ,
1944-517: The Interior , to bypass the secretary and arrange a meeting with the president. With less than an hour before the Stock Exchange opened, Roosevelt and Secretary of State Elihu Root began to review the proposed takeover and appreciate the crash likely to ensue if the merger was not approved. Roosevelt relented; he later recalled of the meeting, "It was necessary for me to decide on the instant before
2025-479: The Lincoln Trust Company was probably $ 1 million short of what it needed to cover depositor accounts. As discussion ensued, the bankers realized that Morgan had locked them in the library and pocketed the key to force a solution, the sort of strong-arm tactic he had been known to use in the past. Morgan then entered the talks and advised the trust companies that they must provide a loan of $ 25 million to save
2106-619: The Mercantile National Bank. The Mercantile had enough capital to withstand a few days of withdrawals, but depositors began to pull cash from the banks of the Heinzes' associate Charles W. Morse. Runs occurred at Morse's National Bank of North America and the New Amsterdam National. Afraid of the impact the tainted reputations of Augustus Heinze and Morse could have on the banking system, the New York Clearing House (a consortium of
2187-571: The Moore & Schley situation moved to the librarian's office. There Morgan told his counselors that he would agree to help shore up Moore & Schley only if the trust companies would work together to bail out their weakest brethren. The discussion among the bankers continued late into Saturday night but without much progress. Around midnight, J. P. Morgan informed a leader of the trust company presidents that keeping Moore & Schley afloat would require $ 25 million, and he would not commit those funds unless
2268-678: The National City Bank of New York), Henry P. Davison (senior partner of J. P. Morgan Company), Charles D. Norton (president of the Morgan-dominated First National Bank of New York), and Benjamin Strong (representing J. P. Morgan), produced a design for a "National Reserve Bank". The final report of the National Monetary Commission was published on January 11, 1911. For nearly two years legislators debated
2349-482: The National City Bank with the deepest reserves of any bank in the city. To instill public confidence, Rockefeller phoned Melville Stone , the manager of the Associated Press , and told him that he would pledge half of his wealth to maintain U.S. credit. Despite the infusion of cash, the banks of New York were reluctant to make the short-term loans they typically provided to facilitate daily stock trades. Prices on
2430-554: The Pujo Committee and faced several days of questioning from Samuel Untermyer . Untermyer and Morgan's famous exchange on the fundamentally psychological nature of banking—that it is an industry built on trust—is often quoted in business articles: Untermyer: Is not commercial credit based primarily upon money or property? Morgan: No, sir. The first thing is character. Untermyer: Before money or property? Morgan: Before money or anything else. Money cannot buy it …
2511-494: The Stock Exchange opened, for the situation in New York was such that any hour might be vital. I do not believe that anyone could justly criticize me for saying that I would not feel like objecting to the purchase under those circumstances". When news reached New York, confidence soared. The Commercial & Financial Chronicle reported that "the relief furnished by this transaction was instant and far-reaching". The final crisis of
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2592-587: The Treasury Secretary Cortelyou agreed that if he returned to Washington it would send a signal to Wall Street that the worst had passed. To ensure a free flow of funds on Monday, the New York Clearing House issued $ 100 million in loan certificates to be traded between banks to settle balances, allowing them to retain cash reserves for depositors. Reassured both by the clergy and the newspapers, and with bank balance sheets flush with cash,
2673-546: The Union Trust Company of Providence. When the chaos began to shake the confidence of New York's banks, the city's most famous banker was out of town. J. P. Morgan , the eponymous president of J.P. Morgan & Co. , was attending a church convention in Richmond, Virginia . Morgan was not only the city's wealthiest and most well-connected banker, but he had experience with other similar financial crises—he had helped rescue
2754-403: The bankers to go home. On Sunday afternoon and into the evening, Morgan, Perkins, Baker and Stillman, along with U.S. Steel's Gary and Henry Clay Frick , worked at the library to finalize the deal for U.S. Steel to buy TC&I and by Sunday night had a plan for acquisition. But one obstacle remained: the anti-trust crusading President Theodore Roosevelt , who had made breaking up monopolies
2835-417: The banks, everything will be all right". Friday, however, saw more panic on the exchange. Morgan again approached the bank presidents, but this time was only able to convince them to pledge $ 9.7 million. In order for this money to keep the exchange open, Morgan decided the money could not be used for margin sales . The volume of trading on Friday was 2/3 that of Thursday. The markets again narrowly made it to
2916-449: The boards of at least six national banks , ten state banks , five trust companies and four insurance firms. Augustus' brother, Otto, devised the scheme to corner United Copper, believing that the Heinze family already controlled a majority of the company. He also believed that a significant number of the Heinzes' shares had been borrowed , and sold short , by speculators betting that
2997-481: The charter of the Second Bank of the United States to expire in 1836, the U.S. was without any sort of central bank , and the money supply in New York City fluctuated with the country's annual agricultural cycle. Each autumn money flowed out of the city as harvests were purchased and—in an effort to attract money back— interest rates were raised. Foreign investors then sent their money to New York to take advantage of
3078-519: The city's banks) forced Morse and Heinze to resign all banking interests. By the weekend after the failed corner, there was not yet systemic panic. Funds were withdrawn from Heinze-associated banks, only to be deposited with other banks in the city. A week later many regional stock exchanges throughout the nation were closing or limiting trading. For example, the Pittsburgh city's stock exchange closed for three months starting on October 23, 1907. In
3159-432: The city's trusts as regional banks withdrew reserves from New York City banks. The panic then extended across the nation as vast numbers of people withdrew deposits from their regional banks, causing the 8th-largest decline in U.S. stock market history. The panic might have deepened if not for the intervention of financier J. P. Morgan , who pledged large sums of his own money and convinced other New York bankers to do
3240-544: The closing bell. Morgan, Stillman, Baker and the other city bankers were unable to pool money indefinitely. Even the U.S. Treasury was low on funds. Public confidence needed to be restored, and on Friday evening the bankers formed two committees—one to persuade the clergy to calm their congregations on Sunday, and a second to explain to the press the various aspects of the financial rescue package. Europe's most famous banker, Lord Rothschild , sent word of his "admiration and respect" for Morgan. In an attempt to gather confidence,
3321-670: The company, and Edward Reidy assumed the presidency. As early as 1946, the first proposal was advanced to merge the Great Western with other railroads, this time with the Chicago and Eastern Illinois Railroad and the Missouri–Kansas–Texas Railroad . Upon the failure of a later merger opportunity with the Soo Line Railroad in 1963, the board of the Great Western grew increasingly anxious about its continued viability in
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3402-414: The corner anyway. On Monday, October 14, he began aggressively purchasing shares of United Copper, which rose in one day from $ 39 to $ 52 per share. On Tuesday (Oct. 15), he issued the call for short sellers to return the borrowed stock. The share price rose to nearly $ 60, but the short sellers were able to find plenty of United Copper shares from sources other than the Heinzes. Otto had misread the market, and
3483-529: The disastrous signal that a New York City bankruptcy would send, Morgan contracted to purchase $ 30 million worth of city bonds. Although calm was largely restored in New York by Saturday, November 2, yet another crisis loomed. One of the exchange's largest brokerage firms, Moore & Schley , was heavily in debt and in danger of collapse. The firm had borrowed heavily, using shares of the Tennessee Coal, Iron and Railroad Company (TC&I) as collateral. With
3564-427: The early 1900s, trust companies were booming; in the decade before 1907, their assets had grown by 244%. During the same period, national bank assets grew by 97%, while state banks in New York increased by 82%. The leaders of the high-flying trusts were mainly prominent members of New York's financial and social circles. One of the most respected was Charles T. Barney , whose late father-in-law William Collins Whitney
3645-469: The end of the Civil War , the United States had experienced panics of varying severity. Economists Charles Calomiris and Gary Gorton rate the worst panics as those leading to widespread bank suspensions: the panics of 1873 , 1893 , and 1907, and a suspension in 1914. Widespread suspensions were forestalled through coordinated actions during the 1884 and 1890 panics. A bank crisis in 1896 , in which there
3726-551: The exchange began to crash , owing to the lack of funds to finance purchases. At 1:30 p.m. Thursday, October 24, Ransom Thomas , the president of the New York Stock Exchange , rushed to Morgan's offices to tell him that he would have to close the exchange early. Morgan was emphatic that an early close of the exchange would be catastrophic. Morgan summoned the presidents of the city's banks to his office. They started to arrive at 2 p.m.; Morgan informed them that as many as 50 stock exchange houses would fail unless $ 25 million
3807-721: The goal allying with Japan to resolve the Panic of 1907 and the unstable U.S. stock market. Aldrich convened a secret conference with a number of the nation's leading financiers at the Jekyll Island Club , off the coast of Georgia , to discuss monetary policy and the banking system in November 1910. Aldrich and A. P. Andrew (Assistant Secretary of the Treasury Department), Paul Warburg (representing Kuhn, Loeb & Co.), Frank A. Vanderlip (James Stillman's successor as president of
3888-421: The higher rates. From the January 1906 Dow Jones Industrial Average high of 103, the market began a modest correction that would continue throughout the year. The April 1906 earthquake that devastated San Francisco contributed to the market instability, prompting an even greater flood of money from New York to San Francisco to aid reconstruction. A further stress on the money supply occurred in late 1906, when
3969-520: The impending crisis. Morgan and his associates examined the books of the Knickerbocker Trust and decided it was insolvent, so they did not intervene to stop the run. Its failure, however, triggered runs on even healthy trusts, prompting Morgan to take charge of the rescue operation. On the afternoon of Tuesday, October 22, the president of the Trust Company of America asked Morgan for assistance. That evening Morgan conferred with George F. Baker ,
4050-590: The meeting adjourned. By then, Morgan was drawn into another situation. There was deep concern that the Trust Company of America and the Lincoln Trust might fail to open on Monday due to continuing runs by depositors. On Saturday evening 40–50 bankers gathered at the library to discuss the crisis, with the clearing-house bank presidents in the East room and the trust company executives in the West room. Morgan and those dealing with
4131-590: The most important regional bank, with a permanent seat on the Federal Open Market Committee . Although Morgan was briefly seen as a hero, widespread fears concerning plutocracy and concentrated wealth soon eroded this view. Morgan's bank had survived, but the trust companies that were a growing rival to traditional banks were badly damaged. Some analysts believed that the panic had been engineered to damage confidence in trust companies so that banks would benefit. Others believed Morgan took advantage of
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#17328516789464212-580: The original terminus in St. Paul, Minnesota , known as the South Park Shops. In 1892 the city of Oelwein, Iowa was chosen as the headquarters and primary shop site due to its central location on the mainline. Construction was completed in 1899, and soon Oelwein became known as "Shop City" for its mammoth shop site. The two-story combination machine, boiler, and coach shop alone measured 700 feet (213 meters) long and had 27 pits for overhauling locomotives. In 1907,
4293-690: The panic had been averted. The panic of 1907 occurred during a lengthy economic contraction , measured by the National Bureau of Economic Research as occurring between May 1907 and June 1908. The interrelated contraction, bank panic, and falling stock market resulted in significant economic disruption. Industrial production dropped further than after any previous bank run, and 1907 saw the second-highest volume of bankruptcies to that date. Production fell by 11% and imports by 26%, while unemployment rose to 8% from under 3%. Immigration dropped to 750,000 people in 1909, from 1.2 million two years earlier. Since
4374-515: The panic stricken depositors. Directors and other officials of the Trust forced their way through the crowd, assuring them that everyone would be paid. In less than three hours, $ 8 million was withdrawn from the Knickerbocker. Shortly after noon it was forced to suspend operations. As news spread, other banks and trust companies were reluctant to lend any money. The interest rates on loans to brokers at
4455-472: The panic to allow his U.S. Steel company to acquire TC&I. Although Morgan lost $ 21 million in the panic, and the significance of the role he played in staving off worse disaster is undisputed, he also became the focus of intense scrutiny and criticism. The chair of the House Committee on Banking and Currency , Representative Arsène Pujo ( D – La. 7th ), convened a special committee to investigate
4536-558: The president of First National Bank, James Stillman of the National City Bank of New York (the ancestor of Citibank ), and the United States Secretary of the Treasury , George B. Cortelyou . Cortelyou said that he was ready to deposit government money in the banks to help shore up their deposits. After an overnight audit of the Trust Company of America showed the institution to be sound, on Wednesday afternoon Morgan declared, "This
4617-497: The previous year. The panic occurred during a time of economic recession , and there were numerous runs affecting banks and trust companies . The 1907 panic eventually spread throughout the nation when many state and local banks and businesses entered bankruptcy . The primary causes of the run included a retraction of market liquidity by a number of New York City banks and a loss of confidence among depositors , exacerbated by unregulated side bets at bucket shops . The panic
4698-416: The problems with the trust companies could also be resolved. The trust company executives understood they would not receive further help from Morgan; they would have to finance any bailout of the two struggling trust companies. At 3 a.m. about 120 bank and trust company officials assembled to hear a full report on the status of the failing trust companies. While the Trust Company of America was barely solvent,
4779-650: The proposal, and it was not until December 23, 1913, that Congress passed the Federal Reserve Act . President Woodrow Wilson signed the legislation immediately, and the legislation was enacted on the same day, creating the Federal Reserve System . Charles Hamlin became the Fed's first chairman, and none other than Morgan's deputy Benjamin Strong became president of the Federal Reserve Bank of New York ,
4860-494: The railroad ended passenger operations when the overnight trains between the Twin Cities and Omaha arrived at their respective endpoints. Panic of 1907 The Panic of 1907 , also known as the 1907 Bankers' Panic or Knickerbocker Crisis , was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange suddenly fell almost 50% from its peak
4941-547: The railroad expanded its use of self-propelled vehicles. At the end of the decade, 36 2-10-4 steam locomotives were purchased from Baldwin and the Lima Locomotive Works . During the Great Depression , the railroad trimmed operations by closing facilities and abandoning trackage. It purchased its first diesel-electric locomotive, an 800 horsepower (600 kW) yard switcher from Westinghouse , in 1934. In 1935,
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#17328516789465022-575: The same territory, and developed a corporate culture of innovation and efficiency to survive. Nicknamed the Corn Belt Route because of its operating area in the midwestern United States , the railroad was sometimes called the Lucky Strike Road , due to the similarity in design between the herald of the CGW and the logo used for Lucky Strike cigarettes . In 1968 it merged with the Chicago and North Western Railway (CNW), which abandoned most of
5103-569: The same to shore up the banking system . That highlighted the limitations of the US Independent Treasury system, which managed the nation's money supply but was unable to inject sufficient liquidity back into the market. By November, the financial contagion had largely ended, only to be replaced by a further crisis due to the heavy borrowing of a large brokerage firm using the stock of Tennessee Coal, Iron and Railroad Company (TC&I) as collateral . Collapse of TC&I's stock price
5184-452: The share price of United Copper began to collapse. The stock closed at $ 30 on Tuesday and fell to $ 10 by Wednesday (Oct. 16). Otto Heinze was ruined. The stock of United Copper was traded outside the hall of the New York Stock Exchange , literally an outdoor market "on the curb" (this curb market would later become the American Stock Exchange ). After the crash, The Wall Street Journal reported, "Never has there been such wild scenes on
5265-505: The short sellers would have no option but to turn to the Heinzes, who could then name their price. To finance the scheme, Otto, Augustus and Charles Morse met with Charles T. Barney , president of the city's third-largest trust, the Knickerbocker Trust Company . Barney had provided financing for previous Morse schemes. Morse, however, cautioned Otto that in order to attempt the squeeze, Otto needed much more money than Barney had, and Barney declined to provide funding. Otto decided to attempt
5346-549: The stock exchange soared to 70% and, with brokers unable to get money, stock prices fell to a low not seen since December 1900. The panic quickly spread to two other large trusts, Trust Company of America and Lincoln Trust Company. By Thursday, October 24, a chain of failures littered the street: Twelfth Ward Bank, Empire City Savings Bank, Hamilton Bank of New York, First National Bank of Brooklyn, International Trust Company of New York, Williamsburg Trust Company of Brooklyn, Borough Bank of Brooklyn, Jenkins Trust Company of Brooklyn and
5427-407: The stock price would drop, and that they could thus repurchase the borrowed shares cheaply, pocketing the difference. Otto proposed a short squeeze , in which the Heinzes would aggressively purchase as many remaining shares as possible, and then force the short sellers to pay for their borrowed shares. The aggressive purchasing would drive up the share price, and, being unable to find shares elsewhere,
5508-515: The title CGW . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=CGW&oldid=1137623329 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Chicago Great Western Railway The Chicago Great Western Railway ( reporting mark CGW )
5589-503: The value of railroad securities. Between September 1906 and March 1907, the stock market slid, losing 7.7% of its capitalization . Between March 9 and 26, stocks fell a further 9.8%. (This March collapse is sometimes referred to as a "rich man's panic".) The economy remained volatile through the summer. A number of shocks hit the system: the stock of Union Pacific —among the most common stocks used as collateral —fell 50 points; that June an offering of New York City bonds failed; in July
5670-445: The value of the thinly traded stock under pressure, many banks would likely call the loans of Moore & Schley on Monday and force an en masse liquidation of the firm's stock. If that occurred it would send TC&I shares plummeting, devastating Moore and Schley and triggering further panic in the market. To avert the collapse of Moore & Schley, Morgan called an emergency conference at his library Saturday morning. A proposal
5751-415: The weaker institutions. The trust presidents were still reluctant to act, but Morgan informed them that if they did not it would lead to a complete collapse of the banking system. Through his considerable influence, at about 4:45 a.m. he persuaded the unofficial leader of the trust companies to sign the agreement, and the remainder of the bankers followed. Having received these commitments, Morgan allowed
5832-600: Was a Class I railroad that linked Chicago , Minneapolis , Omaha , and Kansas City . It was founded by Alpheus Beede Stickney in 1885 as a regional line between St. Paul and the Iowa state line called the Minnesota and Northwestern Railroad . Through mergers and new construction, the railroad, named Chicago Great Western after 1892, quickly became a multi-state carrier. One of the last Class I railroads to be built, it competed against several other more well-established railroads in
5913-461: Was a dominant factor, announced it would not serve as clearing house for the Knickerbocker. On October 22, the Knickerbocker faced a classic bank run. From the bank's opening, the crowd grew. As The New York Times reported, "as fast as a depositor went out of the place ten people and more came asking for their money [and the police] were asked to send some men to keep order". Two van loads of notes were quickly unloaded, yet even this failed to calm
5994-487: Was a famous financier. Barney's Knickerbocker Trust Company was the third-largest trust in New York. Because of past association with Charles W. Morse and F. Augustus Heinze, on Monday, October 21, the board of the Knickerbocker asked that Barney resign (depositors may have first begun to pull deposits from the Knickerbocker on October 18, prompting the concern). That day, the National Bank of Commerce where J.P. Morgan
6075-606: Was a perceived need for coordination, is also sometimes classified as a panic. The frequency of crises and the severity of the 1907 panic added to concern about the outsized role of J.P. Morgan and renewed impetus toward a national debate on reform. In May 1908, Congress passed the Aldrich–Vreeland Act , which established the National Monetary Commission to investigate the panic and to propose legislation to regulate banking. A significant difference between
6156-426: Was averted by an emergency takeover by Morgan's U.S. Steel Corporation , a move approved by the trust-busting President Theodore Roosevelt . The following year, Senator Nelson W. Aldrich , a leading Republican, established and chaired a commission to investigate the crisis and propose future solutions, which led to the creation of the Federal Reserve System . When United States President Andrew Jackson allowed
6237-451: Was made that the U.S. Steel Corporation , a company Morgan had helped form through the merger of the steel companies of Andrew Carnegie and Elbert Gary , would acquire TC&I. This would effectively save Moore & Schley and avert the crisis. The executives and board of U.S. Steel studied the situation and offered to either loan Moore & Schley $ 5 million, or buy TC&I for $ 90 a share. By 7 p.m. an agreement had not been reached and
6318-522: Was not known for its passenger trains, although it did operate several named trains, mostly running between Chicago and the Twin Cities. Despite the railroad's small size and meager passenger fleet, it looked for ways to more efficiently move passengers, such as employing all-electric (battery powered) and gas-electric motorcars on light branch lines, which were cheaper to operate than traditional steam or diesel-powered trains. Notable passenger trains from its major terminals included: On September 30, 1965,
6399-515: Was open to a merger with the Chicago and North Western Railway (CNW), first proposed in 1964. After a 4-year period of opposition by other competing railroads, on July 1, 1968, the Chicago Great Western merged with Chicago and North Western. At the time of the merger, the CGW operated a 1,411 miles (2,271 km) system, over which it transported 2,452 million ton-miles of freight in 1967, largely food and agricultural products, lumber, and chemicals, for $ 28.7 million of revenue. After taking control of
6480-447: Was raised in 10 minutes. By 2:16 p.m., 14 bank presidents had pledged $ 23.6 million to keep the stock exchange afloat. The money reached the market at 2:30 p.m., in time to finish the day's trading, and by the 3 o'clock market close, $ 19 million had been loaned out. Disaster was averted. Morgan usually eschewed the press, but as he left his offices that night he made a statement to reporters: "If people will keep their money in
6561-603: Was triggered by the failed attempt in October 1907 to corner the market on stock of the United Copper Company . When the bid failed, banks that had lent money to the cornering scheme suffered runs that later spread to affiliated banks and trusts, leading a week later to the downfall of the Knickerbocker Trust Company , New York City's third-largest trust. The collapse of the Knickerbocker spread fear throughout
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