Atlas Shrugged: Part 1, Chapter 1 Summary & Analysis

Eddie Willers walks through a crumbling New York City at dusk. The sidewalks are cracked, the buildings are stained and neglected, and a large public calendar flashes the date: September 2. A ragged man approaches him for spare change and casually asks, “Who is John Galt?” The question unsettles Eddie, even though he doesn’t understand it. He hands the man a dime and continues walking, feeling an old, nameless anxiety return to him. As he walks, Eddie remembers the grounds of the Taggart estate where he grew up. He recalls a huge oak tree on the lawn, once a symbol of strength and permanence. One day lightning struck it, and when the trunk split open, it was hollow—nothing inside but dust and rotted wood. That image has stayed with him, as a reminder that even the strongest things can turn out to be empty illusions.

Eddie arrives at the headquarters of Taggart Transcontinental, the railroad company he works for. The clean, solid, and well-maintained building stands in sharp contrast to the city around it. Stepping inside gives him a brief sense of reassurance, but that disappears once he enters the office of James Taggart, the company’s president. Eddie reports that the Rio Norte Line is falling apart. Trains keep breaking down, shipments are late, and customers are switching to the newer Phoenix-Durango Railroad. If they lose Colorado, which is booming thanks to its oil fields, Taggart Transcontinental will lose its last profitable market.

James dismisses Eddie’s concerns. He insists that Associated Steel, owned by his friend Orren Boyle, will eventually deliver the needed rail materials—despite the fact that the order has been delayed for over a year. When Eddie suggests switching to Rearden Steel, a supplier that can actually deliver, James refuses. He gives vague justifications about loyalty and business relationships.

James also complains about Ellis Wyatt, the oil magnate whose success in Colorado has made Phoenix-Durango a threat to Taggart. Rather than admire Wyatt’s achievement, James sees him as disruptive. Eddie tries to make James understand that the company must act quickly or lose Colorado altogether, but James shrugs off the warning. He is more interested in Taggart’s investment in a rail line serving the San Sebastian Mines in Mexico—a venture Eddie knows is doomed. Seeing the discussion is going nowhere, Eddie leaves the office.

In the lobby, Eddie runs into Pop Harper, an elderly clerk who complains about how things are falling apart—cheap tin replacing quality metal, supply shortages, rising costs. He says that when the old typewriters wear out, there won’t be any good ones left to replace them. As Eddie turns to go, Harper sighs and repeats the question Eddie heard earlier: “Who is John Galt?”

Meanwhile, Dagny Taggart, vice president of operations at Taggart Transcontinental and James’s younger sister, is riding a train back to New York. A melody she hears brings her a sudden burst of energy and clarity. She recognizes the style as that of Richard Halley, a composer she admires, but she doesn’t recognize the piece. Curious, she asks a young brakeman who is whistling the tune. He tells her it’s Halley’s Fifth Concerto. Dagny replies that Halley only wrote four. When she presses him, the brakeman suddenly goes quiet and refuses to answer.

Later, Dagny wakes from a nap to find the train stopped in the middle of nowhere. She walks to the front and finds the crew standing under a red signal light that won’t change. The engineer says the light is probably broken, but they won’t move the train without orders—they’re afraid of being blamed if anything goes wrong. Dagny takes control. Identifying herself to the crew, she orders them to proceed slowly until they get back to the main line. The men obey immediately. As the train gets moving again, Dagny thinks about how hard it has become to find capable workers. One of the few she still trusts is Owen Kellogg, a reliable employee working in New York. She decides to promote him when she returns.

Back in the city, Dagny goes straight to James’s office. She tells James the Rio Norte Line is falling apart and informs him that she canceled the order with Associated Steel. Without waiting for approval, she placed a new order with Rearden Steel instead. James protests, saying she should have consulted the board, but Dagny reminds him that the board approved the purchase over a year ago. She simply chose a supplier who could follow through.

James becomes even more anxious when he learns that the rails will be made of Rearden Metal, a new alloy developed by Hank Rearden, which has never been used in a major project before. James argues that the public is skeptical, and no other railroad is using it. Dagny stands firm. She believes in the metal’s strength, durability, and cost-efficiency. When James refuses to support the decision, Dagny tells him he doesn’t have to—she’s taking full responsibility. Left with no choice, James lets the order stand.

Before leaving for the day, Dagny meets with Owen Kellogg to offer him a promotion. But to her surprise, he hands in his resignation instead. He offers no explanation, only saying the company has done nothing wrong. When Dagny asks what it would take for him to stay, he answers: “Nothing.” As he walks away, he gives her a strange, unreadable smile and says, “Who is John Galt?”