Railway Giants: From One-Eyed Survivor to Master of the Rails

This is the remarkable story of James J. Hill, a boy who overcame life's harshest challenges to become a railroad tycoon. His unyielding determination and hard work transformed the American Northwest and left an indelible mark on the entire continent's history.

It's 1838, and we find ourselves in southern Ontario, Canada. Here, a boy named James Hill is born into a family of Irish immigrants, as TR Center notes. Canada in the 19th century is going through an interesting period. Unlike its southern neighbor, the United States, Canada remains under colonial rule, having chosen not to join the rebellion of the 13 American colonies against the British Empire in the previous century.

Canada also refrains from supporting its southern neighbor in the war against Britain from 1812 to 1815, siding with the British instead. Indigenous tribes from the Great Lakes region play a significant role in this stalemated conflict. With its southern border secured by a treaty with the U.S. in 1846 and the influx of more European immigrants, Canada begins to settle its inland areas in the north and west. The growing population, wise governance, and many other factors set Canada on the path to overcoming often harsh natural conditions and becoming one of the world's leading economies. Canada's adaptation during the Industrial Revolution, which sweeps through the country in the 19th century, undeniably helps.

Let's return to James. He's 9 years old, and his happy childhood is about to be disrupted by unfortunate events. As a child of less than ten, James suffers an eye injury from an arrow, leaving him completely blind in his right eye, according to the James J. Hill House website. As if fate hadn't dealt him enough blows, tragedy strikes again when James is just 14 years old—his father passes away. The one-eyed boy has no choice but to start working. He initially makes a living as a humble shop clerk.

It doesn't take long before Lady Luck finally smiles upon James. In 1856, he lands a job as a bookkeeper at the docks. This seemingly unremarkable event marks the beginning of the young man's meteoric rise. In 1864, James marries a waitress from the Merchants Hotel in Saint Paul, where he frequently dines. He and Mary Theresa Mehegan will go on to have 10 children. Armed with the experience he gains from his work in shipping, James decides to establish a small cargo shipping company in 1866. The business thrives right from the start, eventually expanding to include steamboats.

After more than 20 years in the shipping industry, James decides it's time for a change. He invests his money from his previous ventures into the railroad business. In 1878, along with several other investors, he purchases the nearly bankrupt St. Paul and Pacific Railroad. Over the next two decades, he tirelessly works to extend the line into his native Canada and across the Rocky Mountains to the Pacific Ocean. In 1890, he decides to rename his new venture and trusted ally the Great Northern Railway. James's faith in the railroad knows no bounds, as evidenced by his words: "When we are all dead and gone, the sun will still shine, the rain will fall, and this railroad will run as usual."

But James's path is far from smooth. In 1893, a major economic crisis hits, causing many businesses, including railroads, to fail across the United States. James takes drastic measures to keep the Great Northern Railway afloat, including cutting workers' wages. However, the wage cuts prove too severe, and by the end of the year, James's employees go on strike.

In a surprising move, James decides to meet many of his workers' demands after arbitration. This unexpected victory for the young labor organizer Eugene Debs foreshadows significant changes in workers' rights. As prosperity returns in the late 1890s, James's main challenge becomes maintaining control over his vast railroad empire.

With his wealth and power greatly expanded by the acquisition of smaller railroads in previous years, James joins forces with J. P. Morgan in early 1901 to purchase the highly significant Northern Pacific Railroad. This move gives James near-total control over the railways in the American Northwest. He and his associates then decide to merge the railroads in the region into a single entity, the Northern Securities Company.

But James soon regrets this decision. He faces a lawsuit under the antitrust laws for restraining trade. The highly publicized case goes all the way to the U.S. Supreme Court, which, in a 5-4 decision in 1904, rules that the Northern Securities Company restricts trade and competition, a violation of the antitrust laws. It's a bitter pill for the seasoned James Hill to swallow, and he never fully recovers from this setback.

Even in his later years, however, James doesn't live poorly. He dies on May 29, 1916, at his home on Summit Avenue, as one of the wealthiest and most powerful figures of America's Gilded Age, with a personal fortune estimated at $63 million and over $200 million in related assets.

In one of his last interviews, James is asked by a newspaper reporter to reveal the secret to his success. His reply is simple: "Work, hard work, intelligent work, and then more work."

Source: TR Center, James J. Hill House