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Union Pacific Corporation
Union Pacific Corporation is a publicly traded railroad holding company. It is incorporated in Utah and is headquartered in Omaha, Nebraska. Its only operating subsidiary is Union Pacific Railroad.[1] Along with BNSF Railway, owned by Berkshire Hathaway, the companies have a near-duopoly on freight railroad transportation west of the Mississippi River.[2] The corporate entity currently called Union Pacific Corporation was incorporated in 1969 as a holding company. Notable companies acquired by Union Pacific and merged into Union Pacific Railroad include Missouri Pacific Railroad which included the Missouri–Kansas–Texas Railroad, the Chicago and North Western Transportation Company, the Western Pacific Railroad, the Denver and Rio Grande Western Railroad, the St. Louis Southwestern Railway, the SPCSL Corporation, and the Southern Pacific Transportation Company. HistoryOn July 1, 1862, after the passage of the Pacific Railway Acts, an entity called Union Pacific Railroad was incorporated. The act was approved by President Abraham Lincoln, and it provided for the construction of railroads from the Missouri River to the Pacific as a war measure for the preservation of the Union.[3][4][5][6] The railroad was constructed westward from Council Bluffs, Iowa to meet the Central Pacific Railroad line, which was constructed eastward from San Francisco Bay.[3] The railroads were united with the "Golden spike" in May 1869.[3] The combined Union Pacific-Central Pacific line became known as the First transcontinental railroad and the train route that operated on it was called the Overland Route.[3] Union Pacific was entangled in the Crédit Mobilier scandal, a fraud involving the company, which hurriedly constructed the railroad, and Crédit Mobilier of America, which was formed to finance the construction, from 1864 to 1867 and exposed in 1872.[3] The company was significantly overbilled, with executives and financiers, led by Thomas C. Durant, Oakes Ames, and Oliver Ames, embezzling large sums of money.[3] The company faced financial difficulty during the Panic of 1873.[3] In the 1870s, under the ownership of Jay Gould, the company expanded its rail network noticeably.[3] On January 24, 1880, Union Pacific Railroad was consolidated with Kansas Pacific Railway and Denver Pacific Railway under a new holding company called Union Pacific Railway. Jay Gould controlled all three railroads but, after leveraging the company and paying large dividends, Gould sold a large stake that year.[3] The Union Pacific Railway declared bankruptcy during the Panic of 1893, in part due to losses from the fraud and new competition, and went into government receivership.[3] In 1898, under a bankruptcy plan sponsored by Kuhn, Loeb & Co., it emerged from the receivership under a new similarly named entity controlled by E. H. Harriman.[3][7] In 1901, the company acquired a 46% interest in Southern Pacific Railroad; however, the government forced the company to sell the stake in 1913 due to antitrust concerns.[3] The current holding company, Union Pacific Corporation, was established in 1969 with its incorporation in Utah as a holding company for the railroad and other subsidiaries.[3] In 1982, Union Pacific Corporation acquired Missouri Pacific Railroad, which included the Missouri–Kansas–Texas Railroad, and the Western Pacific Railroad.[8][9] The Missouri Pacific Railroad continued operations until January 1, 1997 when it was legally merged into Union Pacific Railroad.[10] In 1986, the company acquired Overnite Transportation Company (now TForce Freight) for $1.2 billion.[11] At the time, it was the fifth largest trucking company in the United States and represented the expansion of Union Pacific east of the Mississippi River. It also created the first transcontinental transportation system in the United States.[12] However, the companies did not integrate well, exacerbated by issues with labor unions.[13] In 2001, the division acquired Motor Cargo Industries for $580 million.[14] In 2003, Union Pacific completed a corporate spin-off and initial public offering of Overnite. In 2005, the company was acquired by United Parcel Service for $1.3 billion.[15] Union Pacific completed the corporate spin-off of Union Pacific Resources, its hydrocarbon exploration subsidiary, in 1996.[16][17] Anadarko Petroleum acquired Union Pacific Resources in 2000 for $4.4 billion in stock.[18][19][20] In June 1995, the company acquired the 70% of Chicago and North Western Transportation Company that it did not already own for $1.1 billion.[21][22][23][24] In 1996, Union Pacific Corporation acquired the Southern Pacific Rail Corporation, which included the Southern Pacific Transportation Company, the Denver and Rio Grande Western Railroad, the St. Louis Southwestern Railway and the SPCSL Corporation, for $5.4 billion. It was led by Philip Anschutz.[25] In 1997, the company sold 220 miles of track in northern Wisconsin and Michigan to Wisconsin Central Ltd. for $85 million.[26] In 2000, due to a slowdown in business activity during the early 2000s recession, the company cut 2,000 jobs.[27] In 2005, James R. Young was named CEO of the company.[28] In 2015, Union Pacific Corporation legally merged the Southern Pacific Rail Corporation into Union Pacific Railway.[29] Headquarters historyUnion Pacific was headquartered in New York City at the time of the company's re-founding in 1969.[3] In 1998, CEO Drew Lewis relocated the corporate headquarters to Bethlehem, Pennsylvania.[30] In 1997, the headquarters was shifted to Dallas, Texas.[31] In 2004, the corporate headquarters was relocated to Omaha to join the Union Pacific Railroad headquarters.[32] Finances
See alsoReferences
External links Wikimedia Commons has media related to Union Pacific Railroad.
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