Gary J. Previts

2020 Charlotte, North Carolina

Abstract: This is a case study in historical form reflecting the economic costs and recovery plans relating to the US Civil War on an antebellum railroad enterprise, the Mobile and Ohio (M&O) Railroad, one of the first land-grant railroads in America. The completion of the track from Mobile, Alabama, on the Gulf of Mexico, to the Ohio River, where a route to Chicago would join the Illinois Central, in the spring of 1861 coincided with the southern secession from the United States. The authors’ archival research includes source documents such as annual reports, board of director minutes and ledgers kept during the Civil War. The April 1866 annual report (covering the years 1864 and 1865) is a key source document reporting upon the operation of the railroad the last two years of the war and details the board of directors’ plans for reorganization during the Reconstruction Period. In this report are relevant materials about the plans and progress of bringing the company’s operations back in order to attract renewed interest of investors in London. From the Civil War ledger and the 1866 annual report, a clear picture emerges about the impact that the war had on railroad operations and assets. Destruction of equipment, right of way and facilities, the emancipation cost of its slave labor force, and losses from Confederate debt are detailed. As well, the M&O substantial “hidden” asset is identified. The M&O statements of 1866 are significant in that they indicate the manner in which negative circumstances can be addressed by effective leadership and meaningful disclosure. Seemingly meaningless information—statements reflecting Confederate dollars—are given meaningful interpretation for potential investors. An analysis of the 1866 annual report produces evidence that the M&O was profitable under the most adverse of condition.