New Jersey Junction Railroad Company Signed by J. Pierpont Morgan and Harris Charles Fahnestock - 100 Year Railroad Bond! - SOLDInv# AG1016B Bond
$1,000 4% Bond fully signed by J. Pierpont Morgan and H.C. Fahnstock. Also included is an Unissued bond making it appropriate for framing and thus showing both front and back of this great Bond! Partial page of coupons unattached. Printed by American Bank Note Co., New York. Click on "View Larger Image" to see unissued bond.
From 1860 to 1864, he was an agent and attorney in New York for George Peabody & Co. of London. Afterwards, for its successor, J. S. Morgan & Co. he became its head. From 1864 to 1871, the firm of Dabney, Morgan & Company accepted Morgan as a member. In 1871, he entered the firm of Drexel, Morgan & Company, in which he was associated with Anthony J. Drexel, of Philadelphia, upon whose death in 1893 he became senior partner.
In 1895 the firm became J. P. Morgan & Co. Closely associated with Drexel & Co. of Philadelphia, Morgan, Harjes & Co. (successors to Drexel, Harjes & Co.) of Paris, and, Morgan, Grenfell & Co. (before 1910 J. S. Morgan & Co.) of London. J. P. Morgan & Co. became one of the most powerful banking houses in the world. Its accomplishments were numerous. J. P. Morgan & Co. financed the formation of the United States Steel Corporation, which took over the business of Andrew Carnegie and others and was the world's first billion-dollar corporation. J.P. Morgan & Co. incorporated in 1940. In 1912, the Pujo Committee, a subcommittee of the House Banking and Currency committee, found that the partners of J.P. Morgan & Co. along with the directors of First National and National City Bank (the triple alliance of interlocking directorates dominated by Morgan) controlled aggregate resources of $22,245,000,000. Louis Brandeis, the former U.S. Supreme Court Justice, compared this sum to the value of all the property in the twenty-two states west of the Mississippi River (which excluded Alaska and Hawaii).
In 1891 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric. In 1895, J. P. Morgan & Co. supplied the United States government with $62 million in gold to float a bond issue and restore the treasury surplus of $100 million. In 1902, J. P. Morgan & Co. purchased the Leyland line of Atlantic steamships and other British lines, creating an Atlantic shipping combine, the International Mercantile Marine Company, which eventually became the owner of White Star Line, builder and operator of RMS Titanic. In addition, J P Morgan & Co (or the banking houses which it succeeded) reorganised a large number of railroads between 1869 and 1899.
Harris Charles Fahnestock (1835-1914) An American Banker and Philanthropist.
At the beginning of the Civil War his ability and energy in pushing the sale of the Pennsylvania $3,000,000 bond issue attracted the attention of Jay Cooke, the Philadelphia bank, and so favorably impressed him that he offered young Fahnestock an interest in the branch of his banking house which he was about to open in Washington. Without contributing capital Fahnestock was given a one-sixth share and his expenses were guaranteed, and he and Henry D. Cooke, Jay Cooke’s brother, took charge of the Washington office. As the war wore on and brought increasing financial perplexities to the Lincoln administration, the firm, because of its relations with the Treasury Department came to be regarded as one of the sheet anchors of the government. When Secretary Chase was unable to dispose of the 7.30 war bonds through the usual government agencies, he turned the business over to Jay Cooke & Company, paying a commission of 3/8 of one per cent, on sales, and thus the entire issue was disposed of. For Fahnestock, still in his twenties, such an experience – unparalleled up to that time in this country – was doubtless more valuable than a lifetime of ordinary banking routine. Ability to form independent judgements and to act on them was encouraged and developed in those years.
After the war it was decided to open a New York branch of Jay Cooke & Company, and the burden of this undertaking fell largely on Fahnestock. His interest was 14 per cent, and he retained a like share in the Philadelphia and Washington offices. His chief responsibility had to do with the handling of bonds. The New York business was successful from the start. The branch was opened on Mar. 1, 1866, and in the remaining ten months of that calendar year Fahnestock’s share of the profits was $63,000. During the ensuing seven years – an era of post-war speculation and inflation – the Cooke banks generally prospered. The head of the firm became intensely interested in the building of the Northern Pacific Railroad and took over the bonds of that enterprise. The road was projected through a region for the most part then unpeopled and could not hope, even when completed, to receive adequate local support. It became impossible to find a market for the bonds. For a long period the Philadelphia house of Cooke & Company drew on the New York branch for railroad funds until finally resources were exhausted and on Sept. 18, 1873, Fahnestock was compelled to close the doors of the New York office. He had personally opposed the part taken by the firm in the Northern Pacific bond deals. The assets of Cooke & Company, however, amounted to more than twice the liabilities, and within seven years the entire indebtedness was paid off, but the New York office never resumed business.
Fahnestock had not yet reached middle age and he began to build up a second fortune. In the organization of the First National Bank of New York, of which he became a vice-president, he quickly found a post where his abilities could be utilized and rewarded. In the forty years of life that remained to him he accumulated wealth, held directorates in various financial institutions, made large gifts for religious and charitable objects, and in his will disposed more than $500,000 for public causes.
The New Jersey Junction Railroad (NJJ) was part of the New York Central Railroad and ran along the Hudson River in Hudson County, New Jersey, from the West Shore Railroad (NYCRR) yards at Weehawken Terminal south to Jersey City. It later owned an extension to the north, separated by the Weehawken yard from the original line.
The company was incorporated under the laws of New Jersey on February 27, 1886. On July 1, 1886, it was leased for 100 years to the New York Central and Hudson River Railroad. The line opened for freight in May 1887 and passengers in June 1887.
About 0.24 mile of the New York and Fort Lee Railroad was leased to the New Jersey Junction Railroad on June 30, 1886.
The NJJ owned the entire stock of the New Jersey Shore Line Railroad, Jersey City and Bayonne Railroad, and State Line and Stony Point Railroad; only the former constructed track. On October 24, 1914, the NJJ was reorganized as a merger with the New Jersey Shore Line Railroad.
In 1952, the New York Central Railroad officially subsumed the New Jersey Junction Railroad, which it had controlled since its beginning. The line eventually passed under control of CSX and Norfolk Southern as their River Line and Weehawken Branch. The southern section is now being used for New Jersey Transit's Hudson-Bergen Light Rail, from North Bergen, south to Hoboken, with freight now running along the former Northern Railroad of New Jersey on the other side of the New Jersey Palisades.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.