Charles Tyson Yerkes American financier Date of Birth: 25.06.1837 Country: USA

1. Birth and Early Life
2. Education and Early Career
3. Scandal and Imprisonment
4. Redemption and Return to Business
5. Chicago Transportation Tycoon
6. Civic Legacy: Yerkes Observatory

Birth and Early Life

Charles Tyson Yerkes was born on June 25, 1837, in Northern Liberties, a neighborhood adjacent to Philadelphia. His mother passed away from puerperal fever when he was five years old, and his father was subsequently expelled from the Society of Friends for marrying a non-Quaker.

Education and Early Career

After completing a two-year course at Philadelphia Central High School at age 17, Yerkes embarked on a business career as a clerk at a local grain commission house. By the age of 22 (1859), he established his own brokerage firm and joined the Philadelphia Stock Exchange. Over the next few years, he ventured into banking, specializing in the sale of municipal, state, and federal bonds.

Scandal and Imprisonment

While serving as a financial agent for Joseph Marcer, Treasurer of Philadelphia, Yerkes engaged in risky stock market speculations using public funds. These speculations backfired when the Great Chicago Fire of 1871 triggered a stock market panic. Financially ruined and unable to repay the city, Yerkes was convicted of embezzlement and sentenced to 33 months in Eastern State Penitentiary's infamous solitary confinement system.

Redemption and Return to Business

After serving seven months in prison, Yerkes attempted to blackmail two influential Pennsylvania politicians, but the plan failed. However, the damaging information he possessed placed both politicians at risk of losing their upcoming elections. Yerkes was granted a pardon in exchange for recanting his accusations, which he did. Freed, he spent the next decade rebuilding his fortune.

Chicago Transportation Tycoon

In 1882, Yerkes moved to Chicago after divorcing his wife of 22 years. He established a brokerage and grain commission business but soon became involved in the city's public transportation system. Through a series of financial maneuvers, Yerkes and his partners gained control of the North Chicago City Railway in 1886. He then embarked on a systematic acquisition of street railways, eventually controlling a vast majority of public transportation in the city's northern and western sections. However, his goal of a complete monopoly over Chicago's transportation system remained elusive.

Civic Legacy: Yerkes Observatory

In an attempt to improve his negative public image, Yerkes agreed in 1892 to finance the construction of the world's largest telescope, an ambitious project spearheaded by astronomer George Hale and University of Chicago president William Harper. While initially intending to fund only the telescope, he unexpectedly agreed to provide funds for the entire observatory. Yerkes contributed around $300,000 towards the establishment of what became known as the Yerkes Observatory in Williams Bay, Wisconsin.