Railroad Magnate Edward Harriman, Savior Of The Union Pacific

Because of his immense success in managing, reviving, and controlling railroads Edward Harriman has often been regarded as another of the ruthless tycoons. However, much like James Hill, Harriman actually took great interest in the railroads he oversaw and found great reward and turning a rundown line into a profitable operation. Perhaps the best example of this is the Union Pacific which was bankrupt at the end of the 19th century. However, under Harriman's leadership the UP became a profitable operation and prospered. Much of the railroad's foundation was laid during Harriman's tenure and the company may be another historical footnote today him.

In 1879 he married Mary Williamson Averell at the age of 31 and thus became quite interested in railroads due to his father-in-law, William Averell being president of the Ogdensburg & Lake Champlain Railroad. Three years later in 1882 Edward Harriman entered the railroad business officially when he purchased the bankrupt Lake Ontario Southern Railway and reorganized it as the Sodus Bay & Southern Railroad.

This railroad began as the Sodus Bay & Southern Railroad of 1873 connecting Sodus Point on Lake Ontario with Stanley, New York to the south (a distance of about 40 miles). The line was never profitable until Harriman gained control of the property quickly turning it around. By 1884 he had sold the line to the Northern Central Railway, which eventually came to be owned by the Pennsylvania Railroad.

Soon after this and realizing his potential to manage railroads Harriman set after a bigger goal, the Illinois Central Railroad. Under Harriman's direction the railroad expanded west and north reaching (via branch lines) Madison and Dodgeville, Wisconsin along with Cedar Rapids, Iowa; Omaha, Nebraska; and Sioux Falls, South Dakota. Later it reached cities like Indianapolis, Birmingham and Fulton, Kentucky. He was also able to guide the IC through the Panic of 1893 without it falling into bankruptcy.

Under Harriman Union Pacific saw its main line between Omaha, Nebraska and Granger, Wyoming entirely double-tracked, a more efficient route scaling Sherman Hill (located in Wyoming), significant line relocations to improve grades and curves, and an updated, automatic signaling system. It was during Harriman's tenure that the Union Pacific became its own transcontinental railroad, connecting to Los Angeles via Ogden, Utah in 1907.

One reason for Harriman's success as a railroad manager was his call for streamlining operations and standardization, notably with a company's fleet of freight and passenger cars. During Harriman's years the Union Pacific never looked back as he truly had changed the culture at the railroad. It has remained well managed and maintained virtually since his tenure.

In 1901 Edward Harriman had quite an empire of railroads in the west including, along with the Union Pacific, the Southern Pacific and Central Pacific. However, in 1904 he was sued by President Theodore Roosevelt and the Supreme Court forced Harriman to break up his empire. However, still under the management of the Union Pacific after this incident, he moved eastward and took over management of the Chicago & Alton, Central of Georgia, and even the Erie Railroad in 1908.

The Erie would be Harriman's final management as a railroad magnate as he passed away in September of 1909. His reputation as a ruthless railroad baron was mostly based on conjecture by the general public as they only saw the end result and millions of dollars he earned for managing so many companies. In truth, he was anything but as he worked tirelessly to maximize a railroad's efficiency and make it as profitable as possible, taking great pride in doing so.

Edward Harriman remains a legendary figure at Union Pacific today as the railroad's primary dispatching center in Omaha is named directly after him, the Union Pacific Harriman Dispatch Center. For more information about Edward Harriman please click here.

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