Railroad Titan E.H. Harriman; Be Bold: Stockbroker's full-steam-ahead attitude made tracks from coast to coast.(LEADERS & SUCCESS)

Byline: CRAIG SHAW

By 1897, the once-grand Union Pacific Railroad was in receivership and regarded as a failure. Railroad magnate J.P. Morgan dismissed it as "a streak of rust." It would take at least $100 million of new capital to revive the line.

That didn't faze Edward Henry Harriman. The stockbroker and railroad executive had made his mark with the Illinois Central line. He was confident he had the skills to reorganize the bankrupt Union Pacific. He began to seek ways to gain control of the property.

Banking firm Kuhn, Loeb & Co. also wanted to revive the railroad. The firm's partner, Jacob Schiff, warned Harriman to keep his hands off Union Pacific. But Harriman was steadfast. He told Schiff he'd use Illinois Central credit to raise the funds if necessary.

"How could a small man like Harriman, with no money, no powerful friends, no big financial backing, reorganize a great system like the Union Pacific Railroad?" wrote John Moody in "The Railroad Builders." "The idea seemed ridiculous."

Still, Schiff realized Harriman had drive. The two joined forces, with Harriman as chairman and Kuhn, Loeb & Co. as bankers. In November 1897 the syndicate bought the Union Pacific trunk line from Omaha, Neb., to Ogden, Utah, for $82 million.

"Thus with one bound, Harriman had leaped to the forefront in American railroad finance and by a bold act which was characteristic of the man," Moody wrote.