Distinctly Montana Magazine

DISTINCTLY MONTANA MAGAZINE • WINTER 2022-23 54 RAGS TO RICHES A contemporary of the infamous robber barons who ruled industry at the turn of the 20th century, Hill's childhood held no indication of a success. Born to a poor family in what is now Ontario, Hill's father died when he was 14, prompting him to assume adult responsibilities. At 18, he moved to America, eventually landing in St. Paul, the northernmost port along the Mississippi River, where he used his limited education, but keen mind, as a mud clerk for the steamboat industry. While there are individuals of this era who share a similar be- ginning, circumstances aligned to launch his path. When many of his business superiors left for the Civil War, a childhood ar- chery accident that left him blinded in his right eye prevented him from volunteering. The U.S. Army was not equipped for left-shooting soldiers. As a result, he quickly rose within the in- dustry, all the while developing an excellent reputation. "It required an attention to detail-oriented brain, and he had this kind of mind. He was very bright. There are things that set him apart," says Alex Weston, lead researcher and program as- sociate at the James J. Hill House in St. Paul, Minnesota. Through his business connections, Hill pulled together in- vestors to purchase the bankrupt St. Paul and Pacific Railroad in Minnesota along the Red River, a highly productive farming area depending upon an unreliable steamboat system. With this successful venture, he encouraged his partners to think bigger. There were already railroads, but Hill believed he could make them better. THE RISE AND FALL OF RAILROADS Before Hill stepped into the picture, the federal government created the Pacific Railway Act in 1862 encouraging the devel- opment of transcontinental railroads through land grants and direct subsidies paid by the mile of track constructed. "It was the perfect storm to attract true robber barons," says Weston. "'Let's built this as cheaply as possible and longer than we need it.' These railroads are treated by investors as get rich quick schemes." Using untreated ties, cheap steel rails, and impractical, winding routes, failure was almost guaranteed. Weston says, "Hill had a clear-eyed understanding of what the railroads did wrong." Instead of depending upon the government for free land and payments, he developed industries along the route to support his expanding empire. Yet, although he didn't benefit from the handouts, government policies directly influenced his business practices. In 1862 the Homestead Act offered 160 acres of free land to those who improved it within five years. It also allowed specu- lators, such as the railroad, to purchase land at $1.25 per acre and sell it to those wishing to stake their claim in this exciting new region. Settling the West in this manner was partly due to the prospect of quickly ending the Civil War. "If the Union can stake a claim in the West, the South will be demoralized," said Weston, particularly because so many Southerners were not plantation owners. "INSTEAD OF DEPENDING UPON THE GOVERNMENT FOR FREE LAND AND PAYMENTS, HILL DEVELOPED INDUSTRIES ALONG THE ROUTE TO SUPPORT HIS EXPANDING EMPIRE." Portait of James J. Hill as a young man

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