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Northern Pacific Railway

From Alfawiki
Northern Pacific Railway
IndustryRailroad
FoundedJuly 2, 1864; 162 years ago (1864-07-02)
FounderJosiah Perham
Defunct1970 (1970)
FateMerged into Burlington Northern Railroad
Headquarters
Saint Paul
,
United States
Area served
Northern United States, from Minnesota to Pacific Northwest, and parts of Canada
Key people
Josiah Perham (first president), John Gregory Smith, Jay Cooke, George Washington Cass, Frederick Billings, Henry Villard
ProductsRail transport services

The Northern Pacific Railway was a significant transcontinental railroad in the United States, spanning the northern region from Minnesota to the Pacific Northwest between 1864 and 1970. Established by the 38th Congress during the closing phase of the American Civil War, it was granted nearly of land, which facilitated construction funding through European capital, particularly from President Henry Villard’s homeland, the German Empire.

Construction commenced in 1870, culminating in the completion of the main line on September 8, 1883, when Ulysses S. Grant drove the final "golden spike" in western Montana Territory. The railway operated approximately of track, connecting vital western states such as Idaho, Minnesota, Montana, North Dakota, Oregon, Washington, and Wisconsin. Additionally, it managed an international extension called the Northern Pacific and Manitoba Railway (founded in 1888), which reached Winnipeg, Canada. This operation concluded in 1899, with Canadian holdings acquired by the Canadian Northern Railway in 1901.

Initially based in Brainerd and later relocating to Saint Paul, Minnesota, Northern Pacific experienced a complex financial trajectory. In 1970, it merged with other railroads to form the Burlington Northern Railroad, which subsequently combined with the Atchison, Topeka and Santa Fe Railway to create today’s BNSF Railway, a leading freight carrier in the western United States.

Formation

On July 2, 1864, the 38th United States Congress incorporated the Northern Pacific Railway Company with the goal of linking the Great Lakes region to Puget Sound on the Pacific Ocean. This connection aimed to open new territories for agriculture, ranching, timber harvesting, and mining while integrating Washington and Oregon into the national network and connecting northern Canadian Great Plains to northern U.S. states and their industrial centers.

As an incentive for constructing rail lines through undeveloped western lands, Congress awarded up to of adjacent land to the Northern Pacific Railroad. On December 7, 1864, Josiah Perham was chosen as its inaugural president. Ultimately, just under 40 million acres of land grants were accepted by the company.

Jay Cooke's Leadership

Securing financing proved difficult for six years. After Perham’s tenure ended, John Gregory Smith became president in January 1865; however, actual construction only began on February 15, 1870, at Carlton near Duluth. The involvement of Wall Street financier Jay Cooke during summer 1870 provided critical financial support that propelled progress.

By 1871, construction advanced westward into Dakota Territory, despite challenging landscapes and funding obstacles. Concurrently, work started northward from Kalama, close to Portland, Oregon, toward Puget Sound. Four small locomotives—Minnetonka, Itaska, Ottertail, and St. Cloud—were acquired; notably, Minnetonka was transported around Cape Horn to Kalama. The Lake Superior and Mississippi Railroad’s route from Saint Paul to Duluth was completed in 1870 and leased to Northern Pacific in 1876 before being fully integrated.

The line reached Fargo by June 1872 and extended further to Edwinton (present-day Bismarck) by June 1873. Tracks also stretched northward from Kalama. Survey teams operating in Dakota Territory were protected by a contingent of 600 U.S. cavalry soldiers led by General Winfield Scott Hancock.

Manufacturing facilities and foundries were established at Brainerd, Minnesota—a town named by President John Gregory Smith after his father-in-law Lawrence Brainerd—where temporary headquarters were also set up. The Panic of 1873 caused by financial crises halted railroad development for over ten years.

Work recommenced in 1886 with over of main line completed across northern Dakotas plus additional miles in Washington Territory. On November 1 of that year, former U.S. Army General George Washington Cass assumed presidency; his background with Pennsylvania Railroad provided valuable guidance during challenging periods.

Due to frequent assaults by Sioux, Cheyenne, Arapaho, and Kiowa warriors targeting surveyors and crews near Yellowstone territory, U.S. cavalry protection was necessary throughout expansion efforts across northern Dakota and Minnesota Territories.

Settlement

In 1886, the Northern Pacific established colonization offices across Europe, focusing on the recently unified German Empire and the Scandinavian nations. Utilizing dependable steamship routes, it enticed Nordic farmers with comprehensive packages that included affordable land and transportation to the north-central North America region, known for its fertile, untouched soil and a climate resembling their native countries. The railroad’s prosperity was largely driven by abundant wheat and grain harvests, along with the attractiveness of the lower Red River Valley area along the Minnesota-Dakota border between 1881 and 1890.

The Northern Pacific reached Fargo in Dakota Territory by 1872, significantly contributing to the economic development of both North and South Dakota. Despite severe winter conditions, the area was well-suited for wheat farming, which met strong demand from industrial cities in the eastern and Midwestern United States and supported exports to European markets. The majority of settlers were immigrants from Germany and Scandinavia who acquired land at low prices, raised large families, and transported substantial quantities of wheat to Minneapolis, Milwaukee, Chicago, and St. Louis via rail. These settlers also purchased farm machinery and household goods, some of which they ordered through emerging mail-order catalogs delivered by rail.

To finance its railroad construction, the N.P. leveraged federal land grants as security. The government retained alternate land sections, distributing them freely to native-born and immigrant homesteaders under the Homestead Act of 1862. Initially, much of this land was sold cheaply to speculators to quickly raise funds and minimize tax obligations. However, by 1905, after realizing this approach was financially detrimental, Northern Pacific altered its strategy—enhanced transportation services and improved agricultural techniques increased land values, allowing direct sales to farmers at profitable rates. By 1910, the company’s land holdings in North Dakota had been considerably reduced.

Panic of 1873 and first bankruptcy

In 1873, Northern Pacific made notable advances with rails reaching the Missouri River on June 4 and selecting Tacoma as its western terminus on July 14, capitalizing on its advantageous position for maritime shipping.

Nevertheless, Jay Cooke and Company from New York City, which had heavily financed the railroad, underestimated construction expenses and faced difficulties marketing Northern Pacific bonds in Europe. Overextended and unable to effectively manage both banking operations and promotional efforts simultaneously, Cooke's firm declared bankruptcy on September 18, 1873. This failure sparked the financial Panic of 1873, triggering a deep economic depression that stalled many new railroad projects nationwide.

Northern Pacific survived narrowly due to stringent cost-cutting measures enacted by President Cass and emergency funding secured by Director John C. Ainsworth. Despite financial hardships, the company completed the coastal rail segment from Kalama to Tacoma (110 miles) by late 1873; the first steam locomotive arrived on December 16. Nonetheless, insolvency threatened by 1874.

The company entered its initial bankruptcy on June 30, 1875. President Cass stepped down to become court-appointed receiver and was succeeded by Charles Barstow Wright. Frederick Billings, later honored in the naming of Billings, Montana, crafted a reorganization plan that was subsequently adopted.

Between 1874 and 1876, the U.S. Army’s 7th Cavalry, under Lieutenant Colonel George Armstrong Custer, provided protection for railroad surveyors and construction teams operating in Dakota and Montana Territories, facilitating continued progress despite regional challenges.

Frederick Billings and the Initial Restructuring

In 1877, Northern Pacific recommenced limited construction activities, extending a branch line southeastward from Tacoma toward Puyallup, Washington and the coal mining areas near Wilkeson, Washington. A significant portion of this coal was shipped through Tacoma to San Francisco, California, where it fueled steam locomotives operated by the Central Pacific Railroad.

Between 1874 and 1880, this relatively small-scale expansion represented one of Northern Pacific’s most substantial projects. During this period, the company established a major shop complex in Edison, Washington (now incorporated into south Tacoma), which evolved into the foremost facility for freight car manufacturing and repairs, largely due to access to inexpensive lumber supplies. Meanwhile, the Brainerd Shops continued as the central site for locomotive maintenance throughout the steam locomotive era. Additional operational centers included a foundry in Livingston, Montana, which later transitioned into the primary diesel maintenance hub after 1955, as well as the Como Shops in St. Paul, Minnesota, dedicated to passenger car service. The Gladstone Shops ceased operations in 1915.

On May 24, 1879, Frederick H. Billings assumed the presidency as Northern Pacific’s fifth leader. Though his tenure was brief, it was marked by vigorous reorganization efforts, successful bond issuances, and financial stabilization that enabled the company to contract for constructing 100 miles of track west of the upper Missouri River. This expansion, however, was viewed as a competitive challenge by rival interests.

Henry Villard and the Final Spike

Born in Germany, journalist and publisher Henry Villard served as Northern Pacific’s sixth president from 1881 to 1884. Between 1871 and 1873, he secured European investment for western railroad ventures. Upon returning to New York in 1874, Villard invested in Oregon railroads that eventually became part of the European-financed Oregon and Transcontinental Company.

The cornerstone of this enterprise was the Oregon Railway and Navigation Company, which operated eastward from Portland, Oregon along the Columbia River to connect with Union Pacific’s Oregon Short Line near Wallula, Washington. This system directly rivaled Northern Pacific’s transcontinental line completed in 1883.

Villard’s transportation conglomerate held dominance over much of the Pacific Northwest market, with Northern Pacific standing as its principal competitor. The completion of Northern Pacific’s transcontinental route posed a threat to Villard’s interests by potentially reducing Portland’s prominence compared to Puget Sound ports such as Tacoma and Seattle.

Utilizing his European financial connections and his reputation for outmaneuvering financiers like Jay Gould, Villard raised $8 million through a "Blind Pool"—a fund where investors were unaware of its exact purpose—to gain control over Northern Pacific.

Despite opposition within the company, Billings stepped down on June 9, 1881. Ashbel H. Barney served as interim president until Villard was officially elected on September 15. Under Villard’s leadership during the following two years, Northern Pacific experienced rapid expansion.

By 1882, Northern Pacific's mainline extended to 1,347 miles with an additional 731 miles of branch lines. Significant achievements included inaugurating service between Wadena, Minnesota, and Fergus Falls, Minnesota, on October 10 and completing a costly bridge over the upper Missouri River on October 21 that replaced ferry crossings.

In 1881, former Union Army General Herman Haupt established the Northern Pacific Beneficial Association to offer advanced medical care for employees through hospitals situated along the railway at Saint Paul, Glendive, Missoula, and Tacoma.

On January 15, 1883, trains reached Livingston, Montana—the pivotal east–west junction on Northern Pacific’s network—where comprehensive heavy repair shops were developed.

Villard intensified construction efforts in 1883 with crews averaging 1.5 miles of track laid daily. Track completion was achieved on August 22; to commemorate this milestone and encourage regional investment, Villard hosted a "Golden Spike" ceremony on September 8 at Independence Creek near Gold Creek in Montana Territory. The event attracted distinguished attendees including former President Ulysses S. Grant and descendants of abolitionist William Lloyd Garrison. The ceremonial final spike marked the conclusion of Northern Pacific's transcontinental railroad after thirteen years of development.

Direct Access to Puget Sound

Following Villard's ascent, his fortunes quickly deteriorated. Similar to Jay Cooke, he was overwhelmed by the substantial expenses tied to railroad construction. Shortly after the Golden Spike ceremony, Wall Street pessimists targeted Northern Pacific shares, recognizing it as an extensive route with limited commercial activity. Villard experienced a mental collapse after the Golden Spike event and stepped down from the presidency in January 1884.

Railroad professional Robert Harris, formerly leading the Chicago, Burlington and Quincy Railroad, took over from Villard. For four years, until Villard’s faction returned, Harris concentrated on enhancing operations and settling disputes with the Oregon Railway and Navigation Company.

In the mid-1880s, Northern Pacific shifted its goal toward a direct route to Puget Sound rather than relying on the Columbia River pathway. Renewed explorations across the Cascade Mountains led seasoned engineer Virgil Bogue to identify Stampede Pass on March 19, 1881. By 1883, Pacific Division chief John W. Sprague drove the Golden Spike symbolizing construction progress near what would later be known as Kalama, Washington. Sprague resigned a few months afterward due to health concerns.

After Villard’s exit in 1884, construction pushed forward from Wallula eastward and Wilkeson westward toward Stampede Pass. Rails reached Yakima, Washington by the end of that year, leaving a remaining gap by 1886.

In January 1886, Nelson Bennett secured a contract to build a tunnel beneath Stampede Pass under strict deadlines and penalty clauses. While tunneling continued, a temporary switchback route was constructed over the pass featuring timber trestles and steep gradients approaching six percent. This route required two powerful M class 2-10-0 locomotives to pull five-car trains. On May 3, 1888, crews completed the tunnel breakthrough; by May 27, trains were operating directly to Puget Sound.

Villard’s Role and the Panic of 1893

Despite reaching this important milestone, Northern Pacific encountered financial difficulties. Villard returned to the board from 1887 until 1893 but declined to resume the presidency. His longtime associate Thomas Fletcher Oakes, connected since their Kansas Pacific days, assumed the presidency on September 20, 1888.

To increase income, Oakes aggressively expanded branch lines amid growing rivalry from James Jerome Hill’s Great Northern Railway, which was also extending westward to Puget Sound and completed its line in 1893.

Poor management combined with low traffic volumes and the impact of the Panic of 1893 led Northern Pacific into its second bankruptcy on October 20, 1893. Oakes became receiver while former New York Stock Exchange chairman Brayton Ives took over as president.

Railroad Labor Conflict

During a strike in 1894, troops from the U.S. Army’s 10th Cavalry Regiment were deployed to safeguard Northern Pacific Railroad assets.

Transition from Villard Era to Morgan Control

For three years following bankruptcy filings, factions aligned with Villard-Oakes and Ives contested control over Northern Pacific. Edward Dean Adams briefly served as president in 1896 before Edwin Winter took over. The complicated ownership struggle was ultimately settled by financier J. P. Morgan, who appointed Charles Henry Coster and later Charles Sanger Mellen as executives starting in 1897. Although James J. Hill acquired a stake in 1896, Coster and Mellen preserved Northern Pacific’s autonomy until Coster’s death and Mellen’s promotion in 1903 brought the railroad increasingly under Hill’s influence.

Hill, Harriman, and the Northern Pacific Stock Battle

During the late 1880s, Villard sought to connect Northern Pacific to Chicago by leasing the Wisconsin Central Railway rather than constructing a direct line. This strategy failed to establish a direct Chicago route following Northern Pacific’s second bankruptcy. Meanwhile, James J. Hill of Great Northern Railway also lacked a direct connection to Chicago and aimed to acquire a railroad with an existing network, focusing on the Chicago, Burlington and Quincy Railroad (CB&Q). E. H. Harriman of Union Pacific was similarly interested in obtaining CB&Q.

Charles Elliott Perkins, leading CB&Q, set the share price at $200 per stock, which Hill accepted. This resulted in Great Northern and Northern Pacific each holding nearly equal stakes at approximately 48.5%. In May 1901, Harriman initiated a stock raid on Northern Pacific intending to wrest control and influence CB&Q’s board. This event, known as the "Northern Pacific Corner," triggered significant market turmoil with shares privately trading near $1,000. Hill enlisted J. P. Morgan’s assistance to acquire additional shares, while Harriman was thwarted by his broker Jacob Schiff.

To guard against similar hostile takeovers in the future, Hill consolidated these holdings under the Northern Securities Company. However, this consolidation was later declared illegal by the Supreme Court in 1904 under the Sherman Anti-Trust Act. Harriman also encountered regulatory pressure that compelled him to divest parts of both Union Pacific and Southern Pacific railroads in subsequent years.

Transition from Hill to Howard Elliott

In 1903, James J. Hill gained control of Northern Pacific by appointing Howard Elliott as president on October 23. Elliott brought two decades of experience in Midwestern railroads and was connected to Charles Elliott Perkins of CB&Q through family ties. He embraced Hill’s "community of interest" philosophy—promoting cooperation among railroads to avoid redundant routes, destructive rate competition, and financial instability. Elliott negotiated agreements involving Hill’s Great Northern, Harriman’s Union Pacific, and between 1907 and 1909 included collaboration with the Milwaukee Road, then the last northern transcontinental railroad.

Advancements into the Twentieth Century

After 1900, Northern Pacific experienced consistent progress. Together with Great Northern, it gained control over the Chicago, Burlington and Quincy Railroad, securing vital access to Chicago, the central Midwest region, and Texas. It also obtained control over the Spokane, Portland and Seattle Railway across eastern and southern Washington. Infrastructure improvements included double tracking key segments and implementing automatic block signaling on its main line; these later evolved into centralized traffic control systems alongside modern communication technologies.

The railroad maintained ongoing modernization efforts in both equipment and services. It introduced pioneering locomotives such as the 4-8-4 Northern type steam engine and the massive 2-8-8-4 Yellowstone model. Early adoption of diesel power began in 1944 with General Motors’ FT units; however, full dieselization was delayed until 1960 due to continued use of inexpensive Wyoming coal.

Its premier passenger train service, the North Coast Limited, earned a reputation for safety and excellence, remarkably recording only one passenger fatality over nearly seven decades.

By 1900, most remaining land-grant properties were located west of Montana within what was termed the "western district." The railroad aimed to monetize these lands to support operations and stimulate market development. While prime agricultural parcels had already been sold off, extensive grazing lands were less attractive to buyers. Nevertheless, valuable timber holdings were successfully sold to Frederick Weyerhaeuser.

Consolidation of the Hill Lines

During the leadership of president Louis W. Menk, the Northern Pacific combined forces with the Chicago, Burlington and Quincy Railroad, Great Northern Railway, and Spokane, Portland and Seattle Railway on March 2, 1970, resulting in the creation of the Burlington Northern Railroad. This consolidation successfully overcame a challenge brought before the Supreme Court, effectively overturning the 1904 Northern Securities ruling. A portion of the original Northern Pacific mainline located in Montana was divested as the Montana Rail Link. Nevertheless, as of January 10, 2022, BNSF terminated its leasing arrangement with MRL and resumed direct management of this corridor.

Divisions

By 1949, Northern Pacific’s headquarters in Saint Paul oversaw an extensive system—comprising main routes and branch lines—structured into seven operational divisions.

Lake Superior Division

With its base in Duluth, Minnesota, this division encompassed 631 route miles (356 main line and 274 branch lines), including principal corridors from Duluth to Ashland, Wisconsin, Staples, and White Bear Lake, Minnesota.

St. Paul Division

Situated within the company's Railroad and Bank Building in St. Paul, Minnesota, this division managed 909 route miles (310 main line and 599 branch lines). Its network featured routes extending from Saint Paul to Staples and White Bear Lake, as well as from Staples to Dilworth, Minnesota.

Fargo Division

Operating out of Fargo, North Dakota, this division covered 1,167 route miles (216 main line and 951 branch lines), primarily connecting Dilworth to Mandan, North Dakota.

Yellowstone Division

Headquartered in Glendive, Montana, it spanned 875 route miles (546 main line and 328 branches), with key lines linking Mandan, North Dakota to Billings, Montana and Billings to Livingston, Montana.

Rocky Mountain Division

Based in Missoula, Montana, this division controlled 892 route miles (563 main line and 330 branches). Major routes included Livingston to Paradise, Montana via Helena, Montana and Mullan Pass; also from Logan, Montana to Garrison, Montana through Butte, Montana and Homestake Pass. The division housed the central district’s primary repair facility located in Livingston.

Idaho Division

With headquarters in Spokane, Washington, the Idaho Division’s main corridors extended from Paradise, Mont., to Yakima, Washington passing through Pasco, Washington. The division covered a total of 1,123 route miles: 466 main line and 657 branch miles.

Tacoma Division

Operating from Tacoma, Washington, this division’s key routes connected Yakima with Stuck Junction near what would become Auburn, Washington, linked Seattle, Washington to Sumas, Washington on the Canadian border, and connected Seattle with Portland, Oregon. The Tacoma Division encompassed 1,034 route miles—373 main line and 661 branch lines—and contained the major west end repair facility situated in South Tacoma.

Tacoma’s population experienced rapid expansion alongside railroad growth, rising from 1,098 residents in 1880 to approximately 36,000 by 1889.

Passenger Service

The North Coast Limited served as Northern Pacific Railway’s flagship passenger train operating between Chicago and Seattle via routes through Butte, Montana and Homestake Pass. Introduced on April 29, 1900, it briefly continued under Burlington Northern following the March 2, 1970 merger but was discontinued on April 30, 1971—just prior to Amtrak commencing operations. The segment between Chicago and Saint Paul was operated by the Chicago, Burlington and Quincy Railroad along its Mississippi River mainline.

The secondary transcontinental service was initially the Alaskan, which was replaced by the Mainstreeter on November 16, 1952. The Mainstreeter, running via Helena, Montana and Mullan Pass routes, persisted through the Burlington Northern merger until Amtrak Day on May 1, 1971. By that time it operated solely between Saint Paul and Seattle after the discontinuation of the former Burlington Route's Black Hawk in April 1970.

Northern Pacific also collaborated in operating the Coast Pool Train service between Portland, Oregon and Seattle, Washington alongside Great Northern Railway and Union Pacific Railroad. These joint NP-GN operations continued until Amtrak's establishment.

Additional passenger services discontinued prior to the Burlington Northern merger included:

The Journey of "the Great Big Baked Potato"

In 1908, Hazen Titus, who had been named superintendent of dining cars, identified a challenge faced by Yakima Valley farmers: their large potatoes were difficult to sell and often ended up as hog feed. These potatoes, weighing between two and five pounds, were dismissed by buyers because of their thick and coarse skins. Titus discovered that baking these oversized potatoes slowly enhanced their flavor, leading him to secure a contract to purchase all potatoes exceeding two pounds. By early 1909, the "Netted Gem Bakers" became a popular menu item on the North Coast Limited, swiftly turning into a hallmark dish and a central marketing theme for Northern Pacific’s passenger services. The company even enlisted Hollywood celebrities to endorse the product.

By 1914, Northern Pacific’s Seattle commissary showcased a 40-foot-long electric baked potato featuring blinking eyes and an illuminated butter pat as its emblem. The promotional campaign titled "The Route of the Great Big Baked Potato" was supported by various merchandise such as postcards, letter openers, and spoons, maintaining its status as a prominent branding initiative for almost five decades.

Presidents

The presidents who led Northern Pacific Railway were:

Chief engineers

Trademark

In the quest for a unique emblem, Northern Pacific explored various options before Chief Engineer Edwin Harrison McHenry found inspiration in the geometric Taegeuk motif featured on the Korean flag during the 1893 Chicago World's Fair. After slight alterations and applying red and black hues, this design became the railroad's iconic symbol.

Starting in 1876, photographer Frank Jay Haynes began creating promotional images for the railroad. His two-decade partnership with Charles Fee led to his recognition as the "Official Photographer of the N.P.R.R." Haynes’ collection titled "Northern Pacific Views" captured essential routes, infrastructure, and equipment, playing a vital role in both marketing efforts and preserving historical documentation.

See also

Further reading

  • Hedges, James B. "The Colonization Work of the Northern Pacific Railroad" Mississippi Valley Historical Review (1926) 13#3 pp. 311-342

Primary sources and official sources

  • Campbell, Marius Robinson. Guidebook of the Western United States, Part A: The Northern Pacific Route, with a side trip to Yellowstone Park. Washington (D.C.): Government Printing Office, 1915.
  • Cleland, Alexander M. Land of Geysers, Yellowstone National Park. St. Paul [Minn.]: General Passenger Department, Northern Pacific Railway, 1913.
  • Northern Pacific Railway Company. The Official Northern Pacific Railway guide. St. Paul, Minn.: W.C. Riley, 1899.
  • Northern Pacific Railway Company. Lewiston-Clarkston and the Clearwater Country, Idaho—Washington. General Passenger Department, Northern Pacific Railway, 1911.

External links