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Russell Sage

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Russell Risley Sage was a prominent American financier and railroad executive. He lived from 1816 to 1906. During his life, he became one of the wealthiest individuals in American history. He was known for his deep involvement in the financial markets and the growing railroad industry. Sage was a man of many roles, serving as a politician, a banker, and a business leader. His career helped shape the way modern stock trading works today.

Margaret Olivia Slocum Sage
Margaret Olivia Slocum Sage

Sage's early life was defined by hard work and steady progress. He was born in Verona, New York, to Elisha Sage Jr. and Prudence Risley. As a young man, he worked as a farmhand until he reached age 15. He then moved to Troy, New York, to work as an errand boy. He worked in his brother Henry's grocery store before eventually owning interests in retail and wholesale businesses. This early experience in commerce provided the foundation for his future success in finance.

Before focusing entirely on money, Sage entered the world of politics. He was a member of the Whig Party. In 1841, he was elected as an alderman in Troy. He also served as a treasurer for Rensselaer County for seven years. From 1853 to 1857, he served in the U.S. House of Representatives. While in Congress, he sat on the Ways and Means Committee. He was also the first person to suggest that the government should purchase Mount Vernon, the home of George Washington.

Sage's most lasting impact was on the American financial system. He is credited with developing the market for stock options in the United States. He invented specific trading strategies known as the "spread" and the "straddle." Because of these innovations, people gave him nicknames like "Old Straddle" and the "Father of Puts and Calls." He used these tools to create loans at higher interest rates. In 1869, this led to a legal conviction and a $500 fine.

Milwaukee and St. Paul RW 1870
Milwaukee and St. Paul RW 1870

As a financier, Sage focused heavily on the expansion of the railroads. He bought a seat on the New York Stock Exchange in 1874. He secured stocks in western roads, such as the Chicago, Milwaukee and St. Paul Railway. He often worked with Jay Gould to manage various railroad corporations. These included the Wabash Railway and the Missouri Pacific Railroad. He also served as a director for the Western Union telegraph company and the Union Pacific Railroad. His ability to navigate these investments helped him amass a massive fortune.

His life was not without significant danger or controversy. In 1891, a man named Henry L. Norcross entered Sage's Manhattan office. Norcross demanded $1,200,000 and used a bag of dynamite. The resulting explosion killed Norcross and wounded Sage and a clerk named William R. Laidlaw Jr. This event led to long legal battles regarding damages. Additionally, Sage was often criticized as a miser for his handling of wealth.

Russell Sage assassination attempt
Russell Sage assassination attempt

Upon his death in 1906, Sage left a fortune of approximately $70 million to his second wife, Olivia Slocum Sage. Olivia used this unrestricted wealth for significant philanthropic work. She focused heavily on the education of women. In 1907, she established the Russell Sage Foundation. In 1916, she founded Russell Sage College in Troy. She also provided support to the Emma Willard School and Rensselaer Polytechnic Institute.

Lawrence College bulletin (1909) (14596350539)
Lawrence College bulletin (1909) (14596350539)

Today, the legacy of Russell Sage is seen through many institutions. Many buildings and schools carry his name to honor his memory. For example, Russell Sage Dormitory was established at Lawrence University in 1917. Even a Liberty ship built during World War II was named in his honor. Sage is buried in a Greek-style mausoleum in Oakwood Cemetery in Troy, New York.

Russell Sage Mausoleum 3
Russell Sage Mausoleum 3
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File:Milwaukee and St. Paul RW 1870.jpg
Milwaukee and St. Paul RW 1870.jpg
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File:Russell Sage Mausoleum 3.JPG
Russell Sage Mausoleum 3.JPG
File:Margaret Olivia Slocum Sage.jpg
Margaret Olivia Slocum Sage.jpg
File:Lawrence College bulletin (1909) (14596350539).jpg
Lawrence College bulletin (1909) (14596350539).jpg
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