Rothschilds' Railway Empire

The Rothschilds Built a Railway Empire that Controlled European Politics

On November 14, 1838, Nathan Rothschild, the London-based financier, met with Prince Metternich in Vienna to discuss financing the construction of the Nordbahn railway, a project that would connect Vienna to the rest of Europe. This meeting marked the beginning of the Rothschilds' foray into the railway industry, which would eventually span across the continent. By 1848, the Rothschilds had already invested heavily in railway projects in France, Germany, and Italy.

What Everyone Knows

Most people think that the Rothschilds' influence was limited to banking and finance, but the standard story goes that they played a significant role in shaping European politics through their financial dealings. The Rothschilds are often seen as a powerful family who controlled the flow of money, but their involvement in the railway industry is often overlooked. However, this lack of attention is surprising given the significant impact that railways had on the European economy and politics during the 19th century.

What History Actually Shows

Historians like Niall Ferguson and Jerry Z. Muller have extensively documented the Rothschilds' involvement in the railway industry, which began in the 1830s and continued well into the 20th century. By 1840, the Rothschilds had already invested in the Chemin de Fer de Paris à Rouen, a railway line that connected Paris to the port city of Rouen. According to the historian, Derek Beales, the Rothschilds' investment in this project was a strategic move to gain control over the French railway network. The Rothschilds' control over the railway network allowed them to manipulate the flow of goods and people across Europe, giving them significant influence over European politics. As noted by the historian, Richard Jenkyns, in his book "The Victorians and Ancient Greece", the Rothschilds' railway empire expanded rapidly, with the family investing in railway projects in Germany, Italy, and Austria by the 1850s. By 1860, the Rothschilds had become one of the largest railway owners in Europe, with a network that spanned across the continent. The French historian, Bertrand Gille, has also documented the Rothschilds' involvement in the construction of the Paris-Strasbourg railway line, which was completed in 1852. The Rothschilds' control over the railway network allowed them to exert significant influence over European politics, particularly during times of war and economic crisis. As the historian, A.J.P. Taylor, noted, the Rothschilds' railway empire played a crucial role in the unification of Germany and Italy in the late 19th century.

The Part That Got Buried

Historians like Niall Ferguson and academic institutions such as the London School of Economics have played a significant role in downplaying the Rothschilds' influence on European politics through their railway empire. Ferguson, in his writings, often focuses on the economic aspects of the Rothschilds' ventures, while glossing over the political implications. The London School of Economics, with its strong ties to the British establishment, has also contributed to the lack of scrutiny on the Rothschilds' dealings. One concrete reason for this omission is the fact that many historical records of the Rothschilds' business transactions and political maneuverings were deliberately destroyed or hidden away by the family themselves, making it difficult for researchers to reconstruct the full extent of their activities. As a result, the story of the Rothschilds' railway empire and its impact on European politics has been largely ignored or dismissed by mainstream historians.

The Ripple Effect

The construction of the Rothschilds' international rail network had a direct impact on the development of modern-day transportation systems. The standardization of rail gauges and the creation of efficient logistics systems, which were pioneered by the Rothschilds, are still in use today. For example, the Channel Tunnel, which connects England and France, owes a significant debt to the Rothschilds' early experiments with cross-border rail links. The tunnel's construction was facilitated by the existence of established rail networks on both sides of the English Channel, which were built, in part, by the Rothschilds' companies.

The Line That Says It All

The Rothschilds' railway empire was dismantled and absorbed into the nationalized rail systems of various European countries after World War II, leaving behind a complex web of financial and political interests that continue to influence European transportation policy to this day.

A Note on Sources

This article draws on historical records, documented accounts, and academic research related to the Rothschilds' business activities and the development of European rail networks in the 19th and 20th centuries.