Corporate Reorganization

Bradley A. Hansen

Chapter Chapter 5 in Institutions, Entrepreneurs, and American Economic History, 2009, pp 95-128 from Palgrave Macmillan

Abstract: Abstract Railroads were America’s first big businesses; they were also America’s first big business failures. At one point during the depression of the 1890s, one in every four miles of railroad track was in the hands of a court appointed receiver. While the financial failure of the nation’s largest businesses might be regarded as a source of embarrassment, some people at the time noted that the way the country dealt with these failures could be regarded as a source of pride. According to Edward S. Meade, “the reorganization of American railways is a more noteworthy financial achievement than the payment of the French indemnity or the refunding of the United States debt.”1 Arthur S. Dewing declared that “the development of the theory and practice of railroad reorganization is one of the most original and noteworthy achievements of American business genius.”2 The theory and practice of railroad reorganization also formed the template for corporate reorganization in the United States. When Congress integrated corporate reorganization into American bankruptcy law in the 1930s, legislators used railroad receivership as the model.3

Keywords: Rolling Stock; Railroad Company; Trust Company; Incumbent Management; Current Debt (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-61913-5_5

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DOI: 10.1057/9780230619135_5

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