Saginaw Western is a fledgling railroad company that connects Saginaw and Mount Pleasant, Michigan. They have 2 15-year old locomotives and 60 miles of track. Their last profitable year was 1891 in which they made a miserly $8k. I short sold their stock and rode it all the way down from $11 to $2, then got popped in a squeeze when it went back up to $3, where it currently resides.
The chairman of Saginaw Western is Daniel Drew, who has been raking in a sweet $3k a year as CEO for the past several years.
This is the chart of a company going bankrupt. A quick look at the books shows a trend of increasing yearly losses, and even though they recently reduced their debt by half they still pay $110k a year on loan interest, a number that is bigger than all revenue sources combined.
So, who's the bagholder? Mr. Drew owns 5k shares of his own company, that's to be expected. But wait a minute, two other robber baron magnates, Charles Crocker and Jay Cooke are on the list. Both have as much or more shares than Drew and both of their respective companies are performing much better!
Mr. Cooke purchased 6,000 shares at roughly $11 a share, that means he lost about $48k of his personal wealth on a failed investment. He could have just as easily put this money into his own company (which currently sits at $31 per share), but since he decided to ride the Saginaw Express down into the dirt instead, Mr. Cooke is our Bagholder of the Week!
You know who's name you _don't_ see on that list above? Cyrus P. "Mothafuckin" Train, that's who! JP Morgan was also smart and steered clear of the Saginaw Western fiasco. That's why they're still around today.
This is only my second game. In my first one, some dude went the whole game only having 80 miles of rail but he had a knack for buying up mad profitable industries and he beat me that way.