Jay Gould - Saint Joseph & Western Railroad CompanyInv# AG1289 Stock
Also availble PASS-CO grade EF.
Capital Stock, issued from Elwood, Kansas to Jay Gould (1836-1892) Financier. The St. Joseph and Western was originally chartered in 1857 as the Marysville, Palmetto and Roseport RR Company with its name being changed to the St. Joseph and Denver City RR in 1862. The line extended a distance of 252 miles from St. Joseph, Kansas to Grand Island, Nebraska connecting these two important mid-western America trade centers. The company went into receivership in 1874 and sold in foreclosure in November of 1875. ln 1879, (the year of this stock certificate now offered), the road came under the control of the Union Pacific Railway Company which owned a large portion of the company's stocks and bonds. It thus operated as the St. Joseph and Western Division of the Union Pacific with Jay Gould, Russell Sage, and Sidney Dillon all serving as directors of the company.
Acquisition of the Saint Joseph and Western RR was part of Gould's
strategy to compete with the Union Pacific. He acquired it for his Wabash system as a weapon against the Iowa pool, a system of price agreements among the would be direct competitors of Jay Gould.
Gould forced the Union Pacific to buy him out via a stock swap. He got UP stock of great value in exchange. He made something in the neighborhood of $7,000,000 on the deal. By 1890 he owned half of the railroad mileage in the Southwest. This stock is one of the most historic, colorful, and graphic of any signed by Jay Gould.
A stock certificate is issued by businesses, usually companies. A stock is part of the permanent finance of a business. Normally, they are never repaid, and the investor can recover his/her money only by selling to another investor. Most stocks, or also called shares, earn dividends, at the business's discretion, depending on how well it has traded. A stockholder or shareholder is a part-owner of the business that issued the stock certificates.