Stratford Gap Railway

The Stratford Gap Railway (reporting mark SGRY) (Also known as "The Gap") is a Class 1 railroad running from Alturas CA to the Canadian border at Sumas WA, with major yards at Bend OR, Madras OR, Camp Sherman OR and Goldendale WA. The railroad mostly hauls forest products from all over it's system.

The "short squeeze" of 1901
With 1901 and the start of the new century, James Hill now had control of both the Great Northern Railway, and the Northern Pacific (which he had obtained with the help of his friend J. P. Morgan, when that railroad went bankrupt in the depression of the mid-1890s). Hill also wanted control of the Chicago, Burlington and Quincy railroad because of its Midwestern lines and access to Chicago. The Union Pacific Railroad was the biggest competitor of Great Northern and Northern Pacific Railroads. Although Great Northern and Northern Pacific were backed by J. P. Morgan and James J. Hill, the Union Pacific was backed not only by its president, Edward H. Harriman, but by the extremely powerful William Rockefeller and Jacob Schiff.

Quietly, Harriman began buying stock in Northern Pacific with the intention of gaining control of Chicago, Burlington, and Quincy. James J. Hill noticed this intrusion, but was unable to buy back enough stock and, in turn on July 15th. 1901, lost control of the Northern Pacific to Edward H. Harriman. Harriman Proceeded to put the Northern Pacific under the control of the SP creating a new road: The Stratford Gap Railway.

SGRR Era (1901 - 1918)


The "Stratford Gap Railroad" was a paper railroad that was made by Harriman to gain control of prominent business men and bankers. A single share of stock was roughly a half the price of a regular share of stock for the Southern Pacific. Many young and new investors started their careers by buying SGRR stock. In December of 1914 the average price of a share of stock was 55.00 USD ($55 in 1914 is equivalent in purchasing power to $1,385.94 in 2018, a difference of $1,330.94 over 104 years.)

SGRY Era - Reorganization and reform (1919-1927)
On January 1st, 1919 Julius Kruttschnitt, CEO of the Southern Pacific, reorganized the assets of the SGRR and reformed the railroad into the new "Stratford Gap Railway". On March 14th, 1919 a charter was made to make a new north-south rail line connecting the SP at Alturas CA to the Canadian Border. On April 5th, 1919 construction began by building south of Camp Sherman OR to Sisters and later Bend OR. Construction slowed down near Fort Rock OR due to ancient lava beds that had dried. By 1927 the SGRY reached Alturas CA, completing the southern portion of the charter.

Expansion north (1929-1939)
In 1929 the Stratford Gap gained control of the southern end of the Dechutes Railroad, Union Pacifics attempt to have their own rail service to Madras OR. In 1935 the northern section of the Deschutes Railroad finally was mothballed and acquired by SGRY. This gave them direct route to Moody OR and competition with the Great Northern, who partnered with the Western Pacific to compete with north-south Southern Pacific traffic.