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March 2014 AD

Our Industrial

Founding Fathers

No sooner than America's railroad pioneers had completed the transcontinental railroads to link up all parts of our country, finished their duty to help settle our country, then they were demonized, vilified and spat-upon by the Judeo-MSM -- resulting in having their efficient and profitable so-called railroad monopolies replaced by an inefficient, corrupt and certainly even bigger government monopoly of control over them.

Both before and after the railroads, there existed plenty of competitive means to navigate this country -- prior -- by foot, by horse, by stage coach, by buggy, by wagon train, and by barge -- later -- by car, by truck, and by plane. Plenty of competition in transportation when they were created, which the railroads beat hands down.

After the railroads, you could still travel by foot, by stage coach, by buggy, by wagon train, and by barge, but people had gotten spoiled. They no one wanted to take months and at great expense to get places they could get to in a day or two, for the railroads were the airlines of their age.

The telegraphs which ran alongside their tracks in the plains, mountains, and valleys they cleared, were for more monopolistic, but the leader of Western Union would never be vilified the way these pioneering railroad men were.

Few things change. Google today is not vilified like Exxon, glorified in fact by the Judeo-MSM, and the Judeo-MSM bias shows in the way investors rank the two companies. Exxon's profits alone are almost as much as Google's total net earnings. Exxon's earnings are 10x that of Google, and yet the market capitalization reflected in the stock price is about the same for both.

The railroads competed against all these means of transportation and won hands down. For the first time in history, farmers in Nebraska could eat fresh seafood and New Yorkers could eat fresh beef.  Chicago could ship its products to China by weay of railroads to Seattle's Puget Sound and China could ship its china to Chicago.

Once Teddy Roosevelt got on his anti-Trust Progressive mania, their days of glory were numbered.

Teddy Roosevelt's administration brought suit.

"The railroads were a TRUST", the Supreme Court finally agreed.

"They were in RESTRAINT OF TRADE"; even though there never was any evidence of restraint of trade entered into evidence against the railroads, just the fact that they had to ability to restrain trade was enough.  Heck, they existed to trade -- why would they want to restrain trade?

Thanks to Progressive Teddy Roosevelt, the railroads became saddled with endless federal regulations. They had a maximum rate placed upon them of what they could charge customers, no matter how small the package, just as the federal government mandates a minimum wage the railroad has to pay its workers no matter how lame the worker.  The federal rate structures were byzantine and confusing.

Then, using taxpayer's money, Teddy Roosevelt built the Panama Canal transportation system and thus bypassed the Great Northerner Railroad's great claim to fame -- its ability to trade from New York and Chicago to Japan and China.  No longer would New York City have to ship by railroad.

And  hypocritically, Teddy Roosevelt had his own restraint of trade -- a real and obvious restraint of trade since -- no ships owned by a railroad company were allowed through "The People's" Panama Canal,  built on land Teddy Roosevelt had used his "big stick" to steal from the country of Columbia.

For the next several decades, the federal government built the federal highway system, again with taxpayer's dollars, which allowed cars and trucks to freely and unfairly proliferate against an enslaved railway system.

Finally, coming full circle, trains being naturally so tremendously more green than trucks in carbon emissions per ton of freight handled, Warren Buffet could see trucks tied up in endless traffic jams in the big cities, knowing that an bankrupt government system was not going to be able to invest in the paved roads to unclog them, bought the biggest remnant of the Great Railroads, the Burlington, Northern and Santa Fe railroad (BNSF), and Buffet is praised as a Great American.

But here is the real story of Great Americans in western railroads...

Great Men in America

In the great rush to settle the West, the federal government had given great incentives to have the railroad built to the Pacific.  And in great haste came great waste.

The rails were cheaply and poorly laid. And then there was the corruption. Indeed there was competition, but not of a healthy sort. Intense competition kept the western railroads in rate wars and near the brink of insolvency, which when the country eventually went into recession, caused many railroads to become bankrupt.

There were 4 transcontinental railroads at the time...

Union Pacific
For the famous Union Pacific which had laid that famous golden tie at Promontory Point Utah, this now twice bankrupt company was acquired by Edward Harriman, backed by the financial resources of Jewish American banker Jacob Schiff and the Jewish banking family of Kuhn, Loeb. and Company. Harriman reorganized the Union Pacific and brought it back to profitability.

Southern Pacific
Below the Union Pacific lines running through Denver were the Southern Pacific lines  running through  Albuquerque.  These lines would be acquired by Edward Harriman as well.

Northern Pacific
The Northern Pacific was organized in 1864, given 40 million acres by the federal government, which it used as collateral to obtain loans from Europe. Financier Jay Cooke took the initiative to get the rail built with President Grant driving the final "golden spike" in western Montana on Sept. 8, 1883, only to see it go bankrupt 2 years later on Sept 18, 1885. Bankrupt again in 1893, JP Morgan would reorganize the Northern Pacific, bringing it to profitability.

Great Northerner
Up against the Canadian border and running parallel to it lay the Great Northerner. A better man than either Harriman or Jay Cooke, was James Hill of St. Paul Minnesota. Using all private money, Hill built the Great Northerner all the way west to Puget Sound. His roads were far straighter, meaning far less slowing down for corners and far less derailments should the conductor forget to slow down. Naturally Hill would smooth peaks to fill in valleys. There were few hills for Hill's locomotives to climb. His rails were the best laid in the business, making the Hill Roads the most profitable in the industry. And Hill's greatest strength was in knowing early on that the closest route to Asia was not the ports of Las Angeles and San Francisco, but by way of Seattle.

To the south of Hill lay the Northern Pacific, a road he always tried to merge with his own but was always thwarted by the States who wanted competing rail lines. J.P. Morgan reorganized the Northern Pacific when it went bankrupt, but Morgan and Hill joined together in a "Community of interest".

Best I can tell is that a community of interest was like a small village where the butcher traded with the baker and vice verse. Where the restaurant bought from both the butcher and the baker to provide his business and they all deposited their profits in the same local bank.

In the railroad industry, the rails of Hill would pick up freight in towns his rail went through and were given passage to deliver into towns the Morgan road passed through and vice verse. Although the Sherman anti-trust act was law, President McKinley was not about to enforce any part of it. In McKinley's and many other's eyes, which was absolutely true, Hill and Morgan were drastically reducing prices to ship goods and people across the country.  Somewhat akin to our computer companies  building  faster and smarter  computers every quarter while at the same time reducing prices  in every one of those same quarters.

Best thing?  Hill and Morgan were highly Christian men.

This website has in the past rightfully guessed that JP Morgan's money was mostly Rothschild's money with an American Christian Goy appearance for the public eye, and indeed it largely was, but I cannot get around the fact that Morgan was a man of the utmost principle and honor, and that is why he was so revered and why so many people trusted him with their money.  The fact that Morgan's money was laundered through his Christian hands should not bespoil his own personal greatness.

The only problem for both the Great Northern and the Northern Pacific was that they were still just Western railroads with no direct ties to the largest shipping market in the United States, Chicago. For that market, they wanted to purchase the Chicago, Burlington, and Quincy Railroad and so in 1901, Hill and Morgan began plans to purchase majority interest in "the Burlington".

Early !901 was a great time to purchase the Burlington because President McKinley, the biggest proponent of Laissez-faire (the idea that the right to property is as sacred as the right to speech), had just been reelected in a landslide in November 1900.

Competing for the purchase of the Burlington was America's other two merged transcontinental railroads, the Union Pacific and Southern Pacific, under Edward harriman and Jacob Schiff, who also needed a direct route to Chicago.

The unorthodox strategy for Harriman and Schiff to take possession of the Burlington was crafty and dangerous to say the least. My guy instinct then was that the idea had to have been Schiff's.

They had the audacity to try to quietly buy controlling interest in the Northern Pacific out from under America's own private Central Banker -- JP Morgan.  Should Hill-Morgan's Northern Pacific buy the Burlington, at the same time that Harriman-Schiff bought the Northern Pacific, then  Harriman-Schiff would own it all.

So, throughout the month of April 1901, agents for Harriman-Schiff slowly bought small blocks of Northern Pacific stock. This buying was hidden in the weeds from the  overall market bull brought about by the certainty of a continued pro-business  McKinley administration and by Hill-Morgan buying Burlington stock.

The rising stock of the Burlington (from Hill-Morgan buying) along with the Northern Pacific stock rise (from Harriman-Schiff buying), had to effect of lifting all railroad stocks, as few knew what the real reason was for the rise.

Wild rumors of every description were floated, with even Hill-Morgan in the dark.

By May 6, most of the stocks had been bought in the run-up of the stock price from around $86 to $150.

By that time, Schiff thought that he had majority interest in both the common and preferred stock, so he informed Hill of he and Harriman were up to, and in doing so, tried to steal Hill away from Morgan by offering him command of all four railroads.  Hill had done plenty of business with Schiff before and greatly trusted him, and obviously Schiff trusted Hill enough to offer to run all 4 of the transcontinental railroads. But, Hill was never an admirer of Harriman or his morals. Hill was shocked therefore to see Schiff siding with Harriamn and refused Schiff's generous offer.

Quickly informing Morgan who was out of touch in Europe, they both began quietly buying as much of Northern Pacific common stock as they could at any price.  Hill had remembered in the bylaws that the preferred stock could be retired every January 1st and so if they could retain majority of the common stock, they would win the battle, even if Harriman had majority stake in the preferred stocks.

With both giants of finance bidding up the stocks, everyone else got trampled. This stock bidding war resulted in an accidental Northern Pacific corner where in the next few days NP stock was trading by some reports at $1,000 per share.

With both Hill-Morgan and Harriman-Shiff competing against each other trying to gain majority control, they obtained every liquid stock available into their possession and they could and were not about to let go of them at any cost; thereby accidentally causing the corner.

Investors not knowing what was going on did realize that the stocks were sorely overpriced. And what does an investor do when he sees a stock ridiculously overpriced?  Why he shorts the stock. But strangely, the stock price just kept going up, which only brought in yet more short sellers.

Since all the stocks of the Northern Pacific had been cornered, there were no more stocks for the shorts to buy in order to cover their bets. This was what really started the dramatic rise in NP stock price -- short sellers competing to buy a handful of remaining floating stocks. Traders and brokerage houses themselves were threatened with massive insolvency.

Being the great men they were, Morgan and Schiff got together to work a deal and most of the damage was mitigated.

The Panic of 1901 angered many small investors who felt whipped around by the big dealers, so when still Vice President Roosevelt gave his first "Speak softly but carry a big stick" speech on Sept. 2, 1902, he got a huge applause. Many thought the saying was directed at foreign leaders, but Hill and Morgan knew the stick was aimed at them  as well.

This trial balloon success was all that Roosevelt needed.

Two days later President McKinley left his hometown of Canton, Ohio for the Pan American Exposition in New York which Vice President Roosevelt was responsible for organizing, and where President McKinley was assassinated on September 8.

If you remember any of my previous articles about Teddy Roosevelt, this inheritor of wealth, born into money, who would fight against ordinary men who had earned their wealth, came to fame as the first New York City police commissioner who allowed Jews on the police force. A move which would earn him undying support from the Jewish community, of which Jacob Schiff was the most prominent. 

The Spanish-American War helped along to be started by then Naval under-Secretary Teddy Roosevelt who ordered the USS Maine into the Havana harbor where it mysteriously blew up, and then naval under-secretary Teddy Roosevelt resigned his naval position to join the army, where he vaingloriously lead the charge up San Juan hill, all vaingloriously praised by Jewish MSM. 

A side benefit robbing Spain of its colonies using American muscle was the Jewish revenge for Spain kicking the Jews out of Spain in 1492 AD.

Ironically, the same year Spain discovered the New World; wherein, Cuba would become Spain's Caribbean jewel.

Jewish Schiff lost huge to Christian J.P. Morgan and Christian James Hill for control of the western transcontinental railway of Northern Pacific and who now had the Burlington as well. This could not stand.

In order for Hill-Morgan to insure continuing control of NP and to keep Harriman from trying the same tactic again, Hill-Morgan formed the Northern Securities Corporation that would invest in both companies -- conceding Harriman-Schiff into an agreement wherein they delivered the stocks they had purchased for the Northern Pacific in exchange for stock in Northern Securities. Interestingly, this occurred on the same day McKinley was shot, September 8, with an as yet upcoming incorporation date for the Northern Securities of November 12, 1901.

Either McKinley's assassination was a huge coincidence or Jewish Schiff was one sore loser, because  by  February 19, 1902, the new President Teddy Roosevelt sued to break up Hill-Morgan's  Northern  Securities as a  violation of the Sherman Anti-Trust  Act.

This is one of those points you get to argue against the common myths in society.

Many say that President John F. Kennedy was assassinated by banking interests when he talked of reigning in the Fed.

Well if bankers are the assassins in society, they surely screwed up in the case of McKinley and Roosevelt. McKinley was the great laissez-faire president, respectful of private property, while President Roosevelt was the enemy of capitalism and property - a banker's natural enemy.

Tell me which President was the one assassinated again?

In fact, Jewish Schiff donated to the campaign of the  "friend of the Jews" and the  "tamer of JP Morgan", during Progressive Roosevelt's reelection campaign in 1904.

Repeating the 1940 election, where the Republican Party was high-jacked by a Progressive named Wendle Wilkie who was a Democrat before and a Democrat again after his nomination to the Republican ticket, the McKinley assassination, like the assassination of JFK to put "Israel's best friend" Johnson into office, was just another way to high-jack the Presidency, as Senator Mark Hanna of Ohio said so well at the Republican National convention of 1900 for the reelection of McKinley,

"Don't you realize,"  Senator Mark Hanna of Ohio had stormed after he lost control of the Republican convention a year earlier and watched stunned as the delegates nominated Roosevelt for vice president with McKinley, "that there's only one life between that madman and the Presidency?"...What harm can he do as Governor of New York compared to the damage he will do as President if McKinley should die?"
--excepted from Harriman vs. Hill

This assassination marked the exact turning point in time for this countries greatness when the greatness of our countrymen were no longer its James Hill's, JP Morgan's, Alexander Graham Bell's, Thomas Edison's, Henry Ford's, all builders of the economic muscle of this country, but instead this country's greatness (sic) would be marked by the Judeo-MSM by the anti-capitalist, one-world government men such as the Teddy and Franklin D. Roosevelt's, the John F. and Teddy Kennedy's, the George Sr. and George Jr. Bushes, the Bill and Hillary Clinton's, the Woodrow Wilsons and the Obamas.

The Roosevelt's and Kennedy's, both born into wealth with a silver spoon glued to their tongues, would fight against the great American men who rose from abject poverty to become wealthy from their own foresight and dedication to purpose in serving the American people.  It must have galled these sad socialist that their own personal and unwarranted riches were being dwarfed by the accumulated wealthy of the Great Industrial Founding Fathers of America. Virtuous men who enriched America  beyond any other.



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Christian Libertarian: Harmonious Union
Church and State

The Christian Solution             First Release: March 15, 2008