All language subtitles for Titans.The.Rise.of.Wall.Street.S01E02.RAILROAD.RIVALRY.1080p.AMZN.WEB-DL.DDP2.0.H.264-TEPES

- After the
death of his father,

JP takes complete control
of the House of Morgan,

consolidating the firm's
branches under a new name,

JP Morgan and Company.

Morgan moves the
official headquarters

from London to New York,

where the firm runs
over 100 railroad lines

and a dozen major corporations

including General Electric.

- The House of Morgan
touches and influences

almost every major part
of the American economy.

- As JP's
railroad empire grows,

he's ready to make
his biggest move,

controlling every mile

of a new transcontinental
railroad.

- With JP
Morgan and Company

firmly established in New York

and a huge amount of
capital at his disposal,

JP turns his attention
to his railroads.

For years the railroad
business has been chaotic.

Thousands of lines

with competing owners

have led to tremendous waste.

But as railroads
become widely used

for moving goods
across the country,

Morgan knows it's
time to strike.

- The House of Morgan
really understood

that railroad securities
were going to be

an important part
of their business,

of their brokerage.

It was America's
first big business,

and the House of Morgan,

as America's premier
financial institution,

was right in the middle
of this industry.

- He already controls
the major East Coast lines,

and his newest acquisition,
the Northern Pacific,

now gives him access
to the West Coast.

Soon JP will forge a new
transcontinental railroad

and with it achieve
what previous attempts

have failed to do,

dominate the American
economy from coast to coast.

The first line to
span the nation

started construction in 1862

out of need during
the Civil War.

But it was soon mired in scandal

and fell into bankruptcy.

- The first
transcontinental railroad

had had something of
a checkered history.

Its builders had built
fast so that they could get

government subsidies for the
miles they were building.

They didn't care so much
about building competently.

- JP plans
to do what he does best,

using morganization
to combine his lines,

creating the most efficient

and profitable railroad
company in the country.

But Morgan is not the only
one who has his sights

set on controlling a
transcontinental line.

A determined young banker
intends to overtake him.

- Meyer, check the
mail room for delivery

from the Union Pacific.

I'm expecting an
updated inventory

of their rolling stock today.

- German
born investment banker

Jacob Schiff is managing
partner at Kuhn Loeb,

the largest and most influential
Jewish investment bank

on Wall Street.

- JP Morgan was 2 1/2
times as big as Kuhn Loeb

and Kuhn Loeb was the second
biggest in the country.

- Schiff
has worked hard

to bring Kuhn Loeb to
its place at the top.

He single-handedly took
his firm from obscurity

to Wall Street royalty,

but it hasn't come easy.

He's fought to
overcome an obstacle

faced by Jewish people
around the world.

Antisemitism.

- The major banking
institutions in Wall Street

at the time were
all anti-Semitic.

They had no interest in
allowing any Jewish firms

to come in and participate with
them in any kind of matter.

The result was that you
had the Jewish bankers

and you had the WASP bankers,

and there was no
connection between the two.

- We have to remember
that Wall Street

was a very clubby place.

Deals were made
over drinks at clubs

where only people from certain
backgrounds could be members.

So Jews were often excluded.

It was about being part

of the trusted set of families,

being from the right background.

- For Jacob Schiff,

the discrimination
serves as motivation.

He starts buying small railroad
lines across the country,

becoming the first
Jewish firm to do so.

- His strategy was to identify

up and coming underdogs
and to invest in those.

He was able to see opportunities

and take risks

that the big houses
simply didn't see

or didn't want to take

because they were too
small or too high-risk.

- Before long, Schiff
has an impressive portfolio

of East Coast railroads.

But now he wants

a West Coast line

the Union Pacific.

Once the greatest
railroad in the country

and half of the first
transcontinental railway,

now it's bled dry,

abandoned and driven
into bankruptcy.

- The Union Pacific
Railroad had massive debts

and it was in huge trouble.

- Schiff wants
Kuhn Loeb to overtake

the House of Morgan.

To do that, he needs to take
control of the Union Pacific.

But to avoid making an enemy
of the most powerful banker

on Wall Street,

he needs Morgan's blessing.

- We think of JP Morgan as
a banker and a financier,

but he was really
a power broker.

He was a politician.

There was a period in time

from the late 1800s
to the early 1900s,

where if you are in
railroads, steel,

any major industry,

at some point in time,

you were gonna have to
sit down across the desk

from JP Morgan.

- My new yacht.

It's very impressive.

- 300 feet.

A crew of 70.

Most importantly a humidor.

- Oh.

- You care to join me?

- No, thank you.

I'm interested in buying
the Union Pacific.

- Really?

- Which is why I've come
to you out of respect.

If you have any interest,
I won't pursue it.

- Why in the world
would you think

that I would want anything
to do with that disaster?

- It's in rough shape,
but I see potential.

- Did I miss something?

- Probably not. It's
just a feeling I have.

And what's life
without a little risk.

- I'll leave that to you.

- Congratulations on the boat.

- Yacht.

- Oh.

- Though
Morgan sees no threat

in the long-abandoned railroad,

he sees one in Jacob Schiff.

With Morgan's consent, Schiff
quickly buys up the rights

for the long-neglected
Union Pacific.

He is convinced he
can turn it around

and create a
thriving, profitable
transcontinental railroad

to compete with Morgan's lines.

But now he has a new problem.

He needs the money to do it.

- John Rockefeller was the
great monopolist of the era.

His Standard Oil Company

had 92 plus percent

of the refining
capacity of the country.

If you added up the value
of all of his Standard Oil,

at that point, he probably was
the richest man in America.

- Jacob Schiff's
plan is to turn one tycoon

against the other,

offering something
priceless to Rockefeller,

the opportunity
to hurt JP Morgan.

- Mr. Rockefeller.

I remember the
newspaper accounts

of when the golden spike was
driven like it was yesterday.

To think that the Union Pacific

would be in the
condition it is today

is a travesty.

But for all the
damage Mr. Gould did,

the line's most valuable
asset still remains,

it's potential.

Same potential that
provided the drive

to see it built in the
first place is still there.

With strong and
honest management

and the proper
infusion of capital,

I believe the Union Pacific

can provide the spine

of an unmatched
network of commerce,

not only within our borders,

but as a global link
to South America

and the Far East.

I can only imagine
how this might serve

to expand and strengthen

your family's business interests

to say nothing of
providing an alternative

to Mr. Morgan's
Northern Pacific.

- There are an incredible
amount of stories

about some of the greatest
titans in the world

becoming emotional effectively,

deciding that they
need to do something

not because it will
make them money

but because it will
humiliate their competitor.

Not just to beat
their competitor,

to take something from them,

but to really humiliate them.

You saw that of course, back
in the robber baron days

with the JP Morgans
and the Rockefellers.

There was an intense
competition between them.

- Good to send.

- Schiff secures

over $200 million
from Rockefeller.

His transcontinental
line is within his grasp.

The backing of the Rockefellers

doesn't go unnoticed
by JP Morgan.

But now Jacob Schiff
must avoid the pitfalls

that brought the line to ruin,

making sure that not
a dollar is wasted.

- Sir, with all due respect,

I'm well aware of
the line's assets,

but by my calculations,

mileage has been
reduced by almost half

since the line's inception.

As for debts-

- Jacob Schiff was
extraordinarily detailed

in every single aspect.

And he did it himself.

- And to say nothing of
the three decades worth

of accumulated unpaid interest.

- He was competent,
knowledgeable about everything

that he invested in.

- Well, I understand,

but if we're going to
continue this conversation,

I'm gonna need you to
negotiate in good faith.

I do my homework, sir.

- Nobody was more
painstaking about the assets

that he controlled.

When he acquired
a railroad line,

he would travel that
line personally,

and he would really
examine every inch,

every foot, every mile.

- Schiff uses

Rockefeller's money to
bring the Union Pacific

roaring back to life.

JP Morgan now knows Schiff
is in a position to compete

and that he needs to
be two steps ahead.

Morgan partners with the
greatest railroading mind

at the time, James Hill,

who takes over management

of Morgan's nearly complete
transcontinental line.

With demand for the Union
Pacific rapidly increasing,

the only thing Schiff is missing

is his own strong management.

He reaches out to
Edward Harriman,

head of the Illinois Central,

one of the best run,

most profitable
railroads in the country.

- Edward Harriman had
started out on Wall Street

but quickly moved
into running railroads

and proved himself to be

a remarkably adept
and skilled manager.

- Schiff always was
seeking out ways

of creating partnerships.

So he says to Harriman, "All
right, what's your price?"

And they strike a bargain.

- Within three years,

the Union Pacific pays
back all its debts,

laying over 32,000
miles of track.

It becomes one of the
most traveled lines

in the Western United States.

- Schiff would hire people

and put them in
positions of power

who he knew were
leaders of the industry,

who he knew could
turn railroads around.

He recognized ability and
he rewarded it enormously.

That was how the
Union Pacific became

one of the most powerful,
valuable assets in America.

- JP Morgan has
been tracking the revival

of the Union Pacific

and he knows Schiff
is closing in

on a transcontinental railroad,

one that could rival his own.

But any railroad
crossing the country

must connect with the
Chicago-Burlington-Quincy
Railroad,

also known as the CBQ.

So Morgan and Hill have
been strategically buying up

control of the CBQ.

- Well, what was at
stake in the competition

for the Burlington was
basically that it was a keystone

of the ambitions
of both tycoons.

- All they would tell me is
that someone's buying up shares

and lots of them.

- Do you want me
to look into it?

- No, I have a pretty good
idea I know who it is.

- Jacob Schiff
knows all the players

and suspects an old friend.

James Hill.

- Jacob Schiff, he had a
relationship with James Hill.

- They used to
socialize together.

Hill would spend
time with Schiff.

They talked a lot.
They was close friends.

- If Morgan and
Hill gain control of the CBQ,

they will render the
Union Pacific worthless

and be that much closer

to forming their own
transcontinental railroad.

Schiff needs to confront Hill

or he could lose the
millions he's invested

into his railroad.

- So Jim, I'm just gonna
come right out and ask you.

Are you and Morgan
going after the CBQ?

- Oh, of course not.

- Well, no offense
intended, my friend,

but I am trying to buy it.

And I'm running into
some trouble in the form

of a very aggressive
competitor for the stock.

- Well, Jacob, last
time I checked,

we're not the only
ones buying railroads.

- Yes, but I figured
I'd start with the men

who had the most interest.

- Well, the way you're talking,

it sounds like maybe we should.

- I'm going to take that as
the joke it was intended to be.

- You know me too well.

- This is an era in which
a man's word was his bond.

There was a point at
which Harriman and Schiff

discovered that there
was another bidder

for the Burlington.

They figured that
it had to be Hill

and Hill basically
said, "No, we're not."

And that was a lie.

In fact, it was a flagrant lie.

- But as the
days pass, shares of the CBQ

continue to disappear
at very high prices,

prices Schiff knows only
one man would be willing

or able to pay.

- A showdown between
the Hill-Morgan

and Harriman-Schiff
camps was inevitable.

They were both
competing for primacy

in the same part of the country

and along the same route.

- Gentlemen, apologies
for asking to meet

so late in the day

but after my
conversation with Jim,

it occurred to me that
I may have been lied to.

- It's just business.

- Then let me suggest in
the spirit of good business

to offer shares in the
purchase to me and my partners.

- I'm Sorry, Jacob-

- We want it all.

- I have remained a gentleman
regarding this matter

and have acted only
with the utmost respect

but this is a hostile act

and it will be dealt
with accordingly.

- Wall Street in and of
itself is a competition.

Don't let anybody
tell you different.

There's always a
scorecard being kept

and they wanna do nothing more
than outdo their competitor.

- JP Morgan seized
control of the Burlington

before Schiff ever
really had a chance.

It's a devastating
blow for Schiff.

Without the Burlington line,

all of his work and the
millions he's invested

will be for nothing.

Desperate, Schiff is
unwilling to surrender.

While Jacob Schiff
plots his revenge,

JP Morgan moves onto
something even bigger,

the creation of
a new corporation

unlike any the
world has ever seen,

a company that
promises to dominate

the steel industry worldwide.

- Morgan had gained most of
his control over the economy

through railroads but
now he's branching out

into other industry.

And Morgan discovered that steel

was as poorly organized
as railroads had been

and he thought that
he could do something

with the steel business.

- For JP
Morgan, railroads and steel

are inherently tied together.

By controlling the
entire supply chain,

he maximizes his profits
in both industries.

On March 2nd, 1901,

JP Morgan shocks the world

with a monumental announcement,

the creation of US Steel.

- The largest corporation
in the world at the time,

the first billion
dollar corporation,
United States Steel.

- In the industries
that he commanded,

his goal was consolidation.

- He buys
out Andrew Carnegie

and moves to take total control.

- When J. Pierpont
Morgan formed US Steel

and acquired Carnegie
Steel for $480 million,

it was unprecedented.

- Striking awe
in friend and foe alike,

JP Morgan becomes the toast
of the financial world.

- When Morgan announced
the creation of US Steel,

you know, there was incredible
excitement about this.

Imagine the first
billion dollar company,

controlled by Morgan

who everyone understood to
be powerful, influential,

and up to that point,
pretty successful.

- The US Steel deal

doesn't just enrich
the men behind it.

The confidence it instills
in the stock market

triggers the strongest
bull run in years.

With Wall Street
so awash in shares,

the New York Stock Exchange
declares a special holiday

just to catch up on paperwork.

- More and more people were
investing in the market

who got caught up in
what became a frenzy.

- As the stock
market drives higher,

one stock is leading the pack,

JP Morgan's Northern
Pacific Railroad.

- They had to hire more
clerks in the office

to deal with all of the
mail and other requests

that they were
getting for the stock.

- Nearly
4,000 miles away,

JP Morgan basks in his victory.

- Morgan took this opportunity

to go on his customary
trip to Europe

where he would spend his time
basically taking the waters

in the South of France

but also building up
his art collection,

buying paintings and sculptures.

- With
Morgan distracted,

Schiff sees the
perfect opportunity

to exact his revenge.

- Yes, Gramercy 302 please.

Yes, I'll wait.

Yes, Harriman, Schiff.

You see the paper?

Well, I suppose I'd
ask you for a favor.

- Schiff saw a target.

They noticed that the executives

were distracted by US Steel.

Morgan himself was
out of the country

and most people

never expected anyone
to challenge Morgan.

- Meyer, that list of brokers.

I want you to spread those
buys out evenly among them.

So buy 10,000 at 50,

12,000 at 52, 15,000 at 55.

Don't worry if you
don't get the exact cost

as long as it's close

and you get the shares.

Go!

- Schiff starts
quietly buying shares

of Morgan's Northern Pacific.

- They were attempting a
hostile takeover of the railroad

controlled by the most
powerful financier

and one of the most
powerful railroad executives

in the country.

It was a very bold move.

- Schiff moves to
the next phase of this plan,

manipulating the press.

And he has just the
vehicle to do it,

"The Wall Street Journal".

Founded by Charles Dow
and Edward Jones in 1889,

the financial industry
now has its own instrument

to help keep up with and
understand the markets.

And also of course
to influence them.

- When you view events

from a larger canvas,

McKinley's election clearly
set a pro-business tone.

And the bullish environment

created by Mr. Morgan's
new steel conglomerate

is an obvious factor.

As for what's driving
Northern Pacific's price,

don't quote me by name.

My partners will have my head.

But I believe Morgan
and Hill's acquisition

of the CBQ Railroad

has captured American
investors' attention

and they're voting
with their wallets.

It's a safe bet.

- To keep Morgan
and Hill in the dark,

Schiff executes a
brilliantly simple plan,

using the bull market as cover

while planting flattering
quotes in the press

to explain the Northern
Pacific skyrocketing price.

- Schiff's and Harriman's
buying of Northern Pacific stock

was driving the
price up bit by bit

but it didn't occur to
either the House of Morgan

or Hill that it was
buying by a competitor

because the entire
market was rising.

- As the
price neared $70 a share,

shareholders keep selling
to Jacob Schiff's brokers,

thinking it can't
possibly go higher.

- Oh, but then as the stock
price continued to increase,

James Hill started to
wonder what was going on.

- As Schiff
nears majority control

of the Northern Pacific,

Hill pieces together
what's happening

but can only hope
he's not too late.

- Jim.

What a pleasant surprise.

- Is it you?

- I thought you were in Seattle.

- I asked you question.

- Have a seat, Jim.

It's over.

- You can't possibly
get control.

Morgan and my friends alone
have $40 million worth

and I'm sure none of
them has sold a share

as far as I know.

- What do any of us really know?

- How much do you have?

- A lot, Jim. A lot.

More than enough.

- Well done, my friend.

- While JP
Morgan is distracted,

Jacob Schiff has seized control
of his biggest railroad,

taking revenge on a scale

no one could have imagined.

- Throughout the
history of finance,

no matter what, investors
always want to kind of win.

And they're willing to
sometimes do whatever it takes

to crush the competition.

- Desperate, Hill fires off

a frantic telegram to Morgan.

- Send a cable to New York.

James, regarding
Northern Pacific,

assume he's lying
or pray he's wrong.

Time is of the essence.

Marshal our resources
to NYC for Monday open,

approving order to
buy 150,000 shares

at any price.

What are you waiting
for? Send it.

- Hill alerted the Morgan forces

who were caught
basically unawares.

In fact, the House of Morgan
had been selling into the rise.

So they'd been selling shares

that Hill was going to need
to protect his position.

- He understood
immediately the threat

that Schiff and
Harriman had created

and that there was only
one way to stop them now.

- JP
refuses to give up

and dispatches all his resources

to stop Schiff from winning.

A team of Morgan
brokers have orders

to buy up all the Northern
Pacific stock at any price.

It's a desperate plan,

driving the price from
$70 to over $100 by noon.

- We need to talk.

Something's going on
with Northern Pacific.

It's over a hundred
and it's not stopping.

- It's Morgan.

- How?

I told Hill we have control.

- Actually that may
not be the case.

- Meyer, cancel all my
appointments for the afternoon.

- Schiff misunderstood and
ultimately miscalculated

what was required
to take control

of the Northern Pacific.

- Jacob Schiff
didn't expect Morgan

to spend as much as he did
in a single day to stop him.

And Morgan's bet has paid off.

With his army of buyers he
is able to take back control

of the railroad.

Schiff spent months secretly
investing over $80 million

and still couldn't beat Morgan.

- The price of Northern Pacific

essentially went
through the roof.

It went from $141

to 200, 300, 400,

500, 700, and peaked at a
thousand dollars a share.

- Ego gets the best of you.

And those one-on-one battles

between one titan and another

end up being because
one person or two people

won't let their
egos take the hit

that maybe needs to be taken.

And for that reason sometimes,

you'll have one
really big winner

and then one really big
loser on the other side.

- He just wasn't big enough
to compete when he started.

He couldn't do it.

Nobody could
compete with Morgan.

- Morgan has
crushed Jacob Schiff's attempt

at a hostile takeover.

But now there's
a bigger problem.

The market for Northern
Pacific stock refuses to die.

As Morgan drove up the price,

speculators have been
furiously shorting the stock,

waiting for the bubble to burst.

- When people talk
about shorting stocks,

it sounds complicated,
but in essence all it is

is a bet against a company

and borrowing that
investment from somebody else

and then paying it back when
that stock is actually lower

sometime down the line.

- Short selling is
inherently risky

because you're betting
not only on something

that can go down, but your
bet is basically predicated

on the idea that you could
potentially lose everything

that you have at stake

and even potentially more.

- As the short
sellers bet against the stock,

the price keeps rising,

forcing them to liquidate
other stock holdings.

- Oftentimes with short
selling or shorting stocks,

you then have to make
good to somebody else.

When you short stocks
or sell them short,

you have to borrow money
or put up collateral

in some ways that
could be wiped out

if a stock goes the
wrong direction for you.

- The fever
infecting Northern Pacific

has now spread to the
rest of the stock market.

And it's threatening

to take it all down.

- The competition
between Morgan and Schiff

really did cause a crash

and it did cause a
panic in the market.

Dozens, if not
scores of brokerages

were basically
facing bankruptcy.

It was a disaster in the making.

- Reporting
on the devastation,

headlines placed the blame

squarely with JP Morgan
and Jacob Schiff.

- One of the big consequences

of the Industrial Revolution

and all of the folks
who financed it

was the competitive nature of
the individual players here.

There became a
competition so intense

that it became less about money

and it became about
ego and pride.

This was personal.

And what some of these guys did

in order to hurt
the other person

it ended up not
only hurting them,

but it ended up hurting
the whole economy.

- Jacob.

- Something has to
be done about this.

- You say that as
if this is my fault.

- I certainly wasn't the one
who sent an army of traders

with sacks full of cash
to drive Northern Pacific

through the roof.

- The goal was to
reclaim what's mine,

what was being stolen from
me under cover of darkness

by you and Harriman.

- Which never had to happen

had we merely been given
the respect we deserve,

had I not been
lied to to my face.

- The market is in free fall

and your first thought
is to barge in here

and absolve yourself
of all responsibility.

- I will own up to my role,

but you and I both know,

either of us could
have done what I did.

Only one of us has the power
to take the actions you did

because you simply
cannot bear to lose.

Better the world
crumble down around you.

- I will never let that happen.

- Schiff and Morgan
ultimately realized

that the battle
that they had waged

over the Northern Pacific
had had a terrible impact.

- They understood immediately

that they had to
calm the market,

that they had to intervene.

- They were forced
to work together.

So when they met,
that was the tension

that was in the
room was this sense

of mutual distaste,
mutual distrust,

but a need to work together.

- The two men
quickly hammer out an agreement

to bail out the short sellers,

allowing them to buy
up shares at only $150

to cover their bets,

a fraction of what it
would have cost them.

- They gave the short
sellers extra time

to conclude their deals

and essentially quieted
the market down.

It didn't mean that small
investors didn't suffer

but it did prevent
a catastrophe.

- While
the two rivals

have found a way
to move forward,

the public is still
reeling from the panic

and not nearly as forgiving.

- The panic basically
brought home

to ordinary Americans as
well as to small investors,

that there was a
concentration of capital

and a concentration of power

that could not actually
be trusted to work

in the public's interests,

that had to be reigned
in in some way.

- There was a growing
sense of anger and concern,

despair among some that
there was a group of people

who were becoming wealthier,

who were exerting more control,

who had a lot of
influence and power.

- Starting in the 1870s,

there had been the emergence

of a coherent labor
movement in America.

And this was the first
time that ordinary,

sort of working class people

developed organizations to
promote their interests.

Now, at the left wing
of the labor movement

were left wing,
radical unionists

and slightly down there
were the anarchists

who basically
wanted to bring down

the capitalist system.

- The public
holds JP Morgan responsible

for the panic.

But as social unrest grows,
he refuses to apologize.

- Morgan was an aristocrat

and he really didn't
pay too much attention

to what public
opinion was about him.

He believed that he was right

and that was mostly
enough for him.

- JP Morgan is often
credited with saying,

"I owe the public nothing."

Now, if he actually said that
or not, that's debatable,

but the sentiment behind it,
it was classic JP Morgan.

And in fact it was a sentiment

shared by a lot of bankers then,

and to a certain extent,
a lot of bankers now.

Many of them wouldn't be brave
enough to say that out loud

in front of a camera or
in front of the public.

These aren't people who are
doing this because of altruism.

They got into this
business to make money.

- As Morgan
and the financial elite

solidified their
grip on the nation,

some take their protests
to new extremes.

Anarchist violence

breaks loose in the aftermath

of the Haymarket
Riots in Chicago.

- What we have to remember

is the early 20th century

was a period of very intensive

and frequent political
violence in the United States.

There was a large
mobilization of people

against what they saw
as wealthy fat cats

who they thought was
not allowing them

to have access to our democracy.

And so there was a
widespread anarchist

revolutionary radical movement.

- Bombings,
shootings, and riots

filled the headlines

while death threats reach
even the most guarded members

of society like JP Morgan.

It becomes clear.
No one is safe.

On September 14th, 1901,

the president of the United
States, William McKinley,

is assassinated, a close
friend and ally of JP Morgan.

The President is gunned
down by an anarchist

enraged over Wall
Street's stranglehold

on the American economy.

- Leon Czolgosz, the guy
who shot William McKinley,

was a self-professed anarchist.

And when it became apparent
that an anarchistic

had killed the president
of United States,

the shock was much
like if a terrorist

had somehow managed
to assassinate

a president of the United
States sometime after 9/11.

- The radicalism of this moment

was inspired by the inequities

and what were seen
as grave disparities

in the way our economy and
our democracy operated.

- The murder
of President McKinley

elevates a trust buster to
the nation's highest office.

Theodore Roosevelt is
committed to taking on

the massive trusts that
dominate the country.

- There was a lot of pressure

to address the
problems of monopoly.

Theodore Roosevelt sees
antitrust activities

as a key way to
prevent a few families

from dominating the economy.

- His first
order of business

is to go after the biggest
monopolies on Wall Street,

most of which are controlled

by one man, JP Morgan.

- Roosevelt was picking a fight

for the purpose
of picking a fight

and he thought, well, if
you're gonna pick a fight,

you know, you pick the
biggest bully around,

the person who's perceived
as the biggest bully.

You know, taking on

the JP Morgan.

- Morgan in particular

and some of the other
Wall Street folks

were pretty wary of him.

Roosevelt had a
reputation as a reformer.

He had taken on Wall Street

when he was governor
of New York.

And you know, they viewed him

as impetuous, unpredictable.

- Roosevelt
brings a case

against Morgan's
Northern Securities,

a railroad trust containing

over 40 different
railroad companies,

including those that make up

Morgan's transcontinental line.

- Morgan instantly understood

that his efforts to concentrate
power in his enterprises,

that these were actually
in great danger.

- Roosevelt's
lawsuit against Morgan

is taken up by
the Supreme Court,

which sides with Roosevelt

and shatters the Northern
Securities Company.

- Nobody would go after Morgan
and TR was utterly fearless

and it threw Morgan into
a kind of conniption

that this cowboy pipsqueak guy

who's an accidental president
is suddenly telling me

I have to break up
my business assets.

- Morgan came of age at
a time when presidents

were not very powerful.

The people who actually
understood power,

the people who managed power,

were people like himself
and he wasn't wrong.

That's how American
power was built

in the second half
of the 19th century.

- Forced
to disband the trust

and manage each
railroad independently,

each line is left to
compete on its own,

leading to a loss of
control and profits.

And Roosevelt has
Morgan's greatest triumph,

US Steel, targeted next.

Knowing he can't take
down the President,

to protect his interests,

Morgan knows he
needs more leverage,

a way to turn
Roosevelt into an ally.

His massive shipping
trust has deep roots

in Central America.

He plans to use his
connections in Panama

to give the President
something he's longed for.

- Theodore Roosevelt
was a naval historian.

So he recognized
that a shortcoming

for American national
security was our inability

to move our Atlantic fleet

together with our Pacific fleet.

Just as the
transcontinental railroads

were connecting east to west,

Theodore Roosevelt wanted to
create a pathway for our ships

to go from east to
west or west to east.

- The French
have partially completed

a canal in Panama,

but they won't sell
the land rights

for less than $100 million.

It's too expensive for
the American government

so Congress recommends
to Roosevelt

the only other
alternative, Nicaragua,

a route that would
be twice as long.

Morgan must persuade the
President to defy Congress

and back Panama instead.

- Mr. President.

Thank you so very much
for meeting with us, sir.

Mr. President, as you know,

I pursued financing
for a Nicaraguan canal

prior to the financial
difficulties of 1893.

Is it a workable option? Yes.

But with all due respect
to the commission,

the Panamanian site is superior.

The French for
all their missteps

have already completed a
substantial amount of the work.

With our far better
American engineers,

we will be able to
overcome whatever obstacles

stood in their path.

Mr. President, I do
understand your hesitancy,

but I have not
arrived at my opinion

without the utmost
consideration.

- Morgan
promises Roosevelt

he will use his
influence and resources

to secure a better
deal from the French.

- Theodore Roosevelt
needed the very bankers

he attacked sometimes

because he wanted to build
American power internationally

and he needed capital for that.

The US government did
not have enough money

to do it on its own.

- Now, Mr. President,
if you were amenable,

I'd be delighted to go over the
Panamanian details with you.

Thank you, sir.

- Morgan
convinces the President

and offers to pay the French
for the land rights upfront

and entirely in gold.

It's so unbelievable that JP
is able to cut down the price

from 108 million
to just 40 million,

the modern day equivalent of
just over a billion dollars.

- To give you an idea of
how much money that was,

it's more than the US paid
for the Louisiana Territory,

Alaska, Hawaii, and the
Philippines combined.

Roosevelt chose Morgan

because it was the only banker

in the world that could
perform this feat.

- For Pierpont, money and
power were one and the same.

Money was a currency of power.

Some use guns to get
control, others use money.

Pierpont recognized that
in the late 19th century

money was a more effective
tool for control than guns.

- Money well spent.

Transport'll be here

in an hour.

Roosevelt names Morgan

the US government's
agent to Panama

and the country's
official banker.

Leading the way, JP
turns Wall Street

into an international power.

The Panama Canal is the
largest public works project

in the history of the world.

Every dollar spent passes
through Wall Street.

Morgan's US Steel
and General Electric

make millions creating
the materials needed

all of which are transported

on his rail

and shipping lines.

- Morgan was making money
in the Panama enterprise

before, during, and
after the construction

of the Panama Canal.

The Panama Canal
was Morgan's entry

into the world stage

where kings and emperors
had entered before.

He was able to manage the
probably most expensive

and greatest engineering
construction work of all time.

- JP Morgan

has reshaped the world

in what is undeniably the
biggest engineering feat

of all time.

He did this while turning a
would-be enemy into an ally.

His trusts are now safe
from Teddy Roosevelt

and he's never made more money.

His empire expanded beyond
even his wildest dreams.

JP Morgan has
reached the pinnacle,

the king of Wall Street,

the most powerful
banker on earth.

But his greatest
challenge is yet to come.

New rivals.

- This company has the
know-how to succeed.

- And new
industries emerge.

- If Morgan can't see that,

he's making a big mistake.

- But when
the greed of lesser men

threatens to tear it all down,

it brings on a crash
the likes of which

the nation has never seen.

- This is for Knickerbocker.

We already know
Knickerbocker is failing.

- While
everyone looks to one man

to stop from
destroying them all.