The rapid expansion of America’s railroad system in the 1800s and early 1900s was driven largely by a small group of powerful businessmen. Here we profile 12 of the most influential railroad magnates who helped shape modern America.
Love ‘em or hate ‘em, the men on this list built railroad empires connecting cities, opening the West, and fueling economic growth. This isn’t an exhaustive list; we’re sure there are some you think we overlooked, and we’d love to hear your thoughts in the comments below. As part of our research, we referenced a 1998 Trains Magazine article, “Railroad Titans,” by William B. Parker. There’s also this article, naming the good, the bad and questionable railroad magnates of the late 1800s. Input and insight was also received from Trains.com Producer David Popp and Classic Trains Magazine Editor Brian Schmidt.
Cornelius Vanderbilt (1794-1877)
Known as “The Commodore,” Cornelius Vanderbilt built his fortune in steamboat shipping before entering the railroad industry in his late 60s. He acquired the New York & Harlem Railroad in 1863 and went on to create a railroad empire stretching from the Northeast to Chicago by consolidating several major lines forming the powerful New York Central Railroad. Vanderbilt developed the first railroad bridge over the Hudson River and invested heavily in improving rail infrastructure. His New York Central became renowned for its high-speed, efficient operations. By the time of his death, Vanderbilt had amassed one of the largest fortunes in American history through his railroad holdings. His legacy lived on through the continued expansion of the New York Central under his son’s leadership.
Photo Gallery: Remembering the New York Central
Jay Gould (1836-1892)
Newspapers labeled Jay Gould undeservingly as the “Mephistopheles of Wall Street” and the “Robbingest of the Robber Barons” for his clever business tactics. He began his career as a surveyor and mapmaker before attempting to amass a coast-to-coast railroad empire. Gould took control of the Erie Railroad in 1868 and went on to secure a network of more than 15,000 miles of track by 1880, including the Union Pacific, Missouri Pacific, Denver & Rio Grande, Texas & Pacific, and Wabash railroads. He was known for his aggressive stock market tactics, including an attempt to corner the gold market in 1869. While reviled by many as corrupt (more on his robber baron ways in this video), Gould’s highly calculated business practices and consolidation efforts helped drive rapid railroad expansion across the country. The manner in which Gould and his contemporaries manipulated the railroad industry also led to increased government regulation.
James J. Hill (1838-1916)
Known as the “Empire Builder,” James J. Hill created a railroad empire extending from Minnesota to the Pacific Northwest through his Great Northern Railway. Unlike many of his peers, Hill built his railroad without land grants or other government subsidies. He focused on developing efficient operations and fostering economic growth in the regions his lines served. Hill’s Great Northern opened vast tracts of the northern states to settlement and development. He later gained control of the rival Northern Pacific Railroad, as well. Hill was known for his hands-on management style and emphasis on low-cost operations. His success in building a profitable transcontinental railroad earned him a reputation as one of the most capable railroad leaders in his time.
Read More: Remembering the Great Northern Railway
Edward H. Harriman (1848-1909)
E.H. Harriman, born in 1848, rose from a Wall Street message boy at age 14, to become one of the most influential railroad tycoons of the late 19th century. Harriman owned a seat on the New York Stock Exchange at 22, became a director of the Illinois Central at 35, and its vice president at 39. He took control of the struggling Union Pacific Railroad in 1897 and invested heavily in improving its infrastructure and operations. Harriman went on to acquire the Southern Pacific and several other major lines, creating a vast transportation network. He was known for his focus on efficiency, modernization and standardization, introducing new technologies and management techniques to his railroads. Harriman’s influence eventually encompassed more than 60,000 miles of track stretching from the Atlantic to the Pacific.
Collis P. Huntington (1821-1900)
One of the “Big Four” investors who built the Central Pacific Railroad, Collis Huntington played a key role in the construction of the First Transcontinental Railroad. He and his partners formed the Central Pacific in 1861 to build east from Sacramento, Calif., eventually meeting the Union Pacific on May 10, 1869, at Promontory, Utah. After completing the transcontinental link, Huntington went on to expand the Southern Pacific Railroad into a major system stretching from California to New Orleans. He was known as a shrewd negotiator and aggressive lobbyist — a robber barron, to some — who secured extensive government support for his railroad ventures, yielding a significant fortune for himself. Huntington’s efforts helped secure for California a strong position in the U.S. economy.
Leland Stanford (1824-1893)
Another member of the Central Pacific’s “Big Four,” Leland Stanford served as the company’s president during the construction of the transcontinental railroad. He was elected the eighth governor of California from 1862-1863, and used his political connections to aid the Central Pacific. After the transcontinental railroad’s completion, Stanford focused on expanding the Southern Pacific Railroad throughout California and the Southwest. He invested his railroad profits in a variety of business ventures and famously founded Stanford University. Stanford’s business acumen was often overshadowed by his more aggressive partners, which left him to play the role of political dandy for the Central Pacific. While his work to advance railroads in California did help the state, Stanford also enjoyed the personal publicity garnered from being a railroad owner.
Jay Cooke (1821-1905)
Though better known as a financier than a railroad tycoon, Jay Cooke gained fame as an aggressive bond marketer during the U.S. Civil War. He parlayed his funding strategies into railroad expansion after the war in developing the Northern Pacific Railway. Cooke’s vision was to connect the northern Great Lakes with the Mississippi River and expand across the northern states to the Pacific Northwest. Unfortunately, Cooke overestimated the Northern Pacific’s capital, angered the Sioux Indian Tribe, and entrusted the railroad to incompetent managers. In the Panic of 1873, the railroad was forced to suspend operations and Cooke, himself, went bankrupt. By 1880, Cooke was able to settle his financial obligations and built another fortune with investment in a Utah silver mine.
William H. Vanderbilt (1821-1885)
The eldest son of Cornelius Vanderbilt, William Vanderbilt inherited control of the New York Central system upon his father’s death in 1877. “Billy” expanded the empire even further, doubling its size to over 10,000 miles. He improved the railroad’s infrastructure and acquired competing lines to solidify the New York Central’s dominance in the Northeast. Upon his death, William’s holdings included 10 railroads, a sleeping car company, and the Hudson River Bridge. In only eight years, the younger Vanderbilt took his father’s $95 million business empire and doubled it to $200 million (more than $6.6 billion in 2025). Ironically, his father never thought William would amount to anything. “The Commodore” constantly berated the boy, leading to a nervous breakdown at age 19. He was left to manage a small family farm on Staten Island, N.Y., which over a decade Willam turned into a profitable business. William further proved his business salt by reviving the once struggling Staten Island Railroad.
George Pullman (1831-1897)
While not a traditional railroad tycoon, George Pullman revolutionized rail travel through his enhancement of the sleeping car. He founded the Pullman Palace Car Co. in 1867 to manufacture luxury railroad cars featuring amenities similar to fine hotels of the time. Pullman’s company came to dominate the high-end passenger car market, with cars being leased to railroads across the U.S. He also created the idyllic company town of Pullman, Ill., to house his workers, though it became the center of a bitter labor dispute in 1894. Pullman also inflamed racial tensions with the African-American community over his treatment of the porters staffing his sleeping cars. Discriminatory work rules, lack of merit advancement opportunities, and low wages led the porters to form the first U.S. minority labor union — The Brotherhood of Sleeping Car Porters — in 1925.
Henry Flagler (1830-1913)
Henry Flagler saw opportunity where others saw swampland. The Standard Oil tycoon built the Florida East Coast Railway, opening up the Sunshine State’s Atlantic coast for development. Flagler’s rail line transformed sleepy fishing villages into booming resort towns like Palm Beach and Miami. In 1905, he began building the Key West Extension, nicknamed the Overseas Railroad, linking Florida’s mainland with Key West. Flager invested $30 million of his own funds on the project, which was designed to enhance tourism and capitalize on trade with Cuba, Latin America and the West. A 1935 hurricane demolished the Extension. Today the route is the Overseas Highway to Key West.
Van Sweringen brothers (Oris Paxton, 1879-1936 and Mantis James, 1881-1935)
O.P. and M.J. Van Sweringen were an odd pair of railroad moguls. These reclusive, bachelor brothers from Cleveland built a rail empire in the 1920s while developing Shaker Heights, an eastern suburb of the city. In an effort to improve transportation to downtown Cleveland from the development, they built, what was for the time, a high-speed interurban line. As it began in 1905, Shaker Heights was ahead of its time incorporating many features taken for granted in contemporary community developments. The Vans also built Terminal Tower in downtown Cleveland as a transportation, office and retail hub for the city. They acquired the Nickel Plate Railroad, followed by the Chesapeake & Ohio, Erie Railroad, Missouri Pacific and Texas & Pacific, creating one of the most extensive rail systems of its time. Noted for their intricate financial deals and web-like corporate structures, the Vans were well on their way to creating a “super-railroad” system, but the Great Depression derailed their ambitions.
J.P. Morgan (1837-1913)
J.P. Morgan wasn’t just a banker — he was the puppet master of the railroad world. This financial wizard used his influence to consolidate rail lines and stabilize the industry’s finances. Morgan engineered massive deals, like the creation of Northern Securities Company, which briefly united major western railroads. His efforts to impose order on the chaotic rail sector helped shape how the entire industry operated. During his lifetime, he held a significant financial interest in 21 railroads, serving on the board of directors for the Northern Pacific, the New Haven, the Pennsylvania, the New York Central, and the Albany & Susquehanna railroads. Morgan and associates were also responsible for launching the likes of U.S. Steel, International Harvester, and General Electric.
These railroad tycoons left an indelible mark on American history. Their ambition and drive helped knit the nation together, fueling industrial growth and westward expansion. Their legacy, however, is complex. For all their achievements in building infrastructure and driving innovation, many of these magnates were also known for questionable business practices, labor exploitation, and political corruption. The era of the great railroad empires may be over, but the impact of these larger-than-life tycoons can still be felt in the transportation networks that crisscross the country today.
