For the way in which the different roads have been handled, the reader is referred to the text. The order of treatment is very roughly determined by geographical location; that is, the Eastern roads are first considered, then the Southern, and then the Western. Each chapter, except the last, should be examined as a “case” in reorganization experience, and as part, therefore, of a united whole. No one has been so continuously with his work as the author himself, and no one can more keenly realize its defects. It is offered as a contribution in a field in which very little has as yet been done, and it is hoped that it will prove of value to those concerned with reorganization plans, as well as to those interested in the development of corporation finance during the last generation. Without the unselfish and intelligent assistance of the writer’s Mother, the preparation of this book would have been long delayed. To her, first of all, thanks are due. To Professor William Z. Ripley, of Harvard University, should be made warm acknowledgment of his constant interest and helpful suggestions. To the Carnegie Institution the author is indebted for grants in aid of research in this special field. Grateful acknowledgment should also be made of gifts by friends of the University to cover the expenses of publication. CONTENTS CHAPTER I BALTIMORE & OHIO 1 Early history—Extension to Chicago—Trunk-line rate wars—Effect on the company—Extension to New York—Sale of bonds to pay off floating debt—Unsatisfactory traffic conditions—Receivership—Mr. Little’s report—Reorganization—Subsequent history. CHAPTER II ERIE 34 Early history—Reorganization—Wall Street struggles—Financial difficulties—Second reorganization—Development of coal business —Extension to Chicago—Grant & Ward—Financial readjustment—New York, Pennsylvania & Ohio—Third reorganization—Later history. CHAPTER III PHILADELPHIA & READING 75 Early history—Purchase of coal lands—Funding of floating debt— Failure—Struggles between Gowen and his opponents—Reorganization— Second failure and reorganization. CHAPTER IV PHILADELPHIA & READING 118 Difficulties of the Coal & Iron Company—McLeod’s policy of extension— Collapse of this policy—Failure of company—Summary of subsequent history. CHAPTER V THE SOUTHERN 146 Richmond & Danville—East Tennessee, Virginia & Georgia—Formation of the Southern Railway Security Company—Growth and combinations— Failure and reorganization of the East Tennessee—Reversal of position between the Richmond & Danville and the Richmond & West Point Terminal—Acquisition of the Central of Georgia—Failure and reorganization of the whole system—Subsequent development. CHAPTER VI ATCHISON, TOPEKA & SANTA FE 192