• Corpus ID: 54649172

Political-Legal Institutions and the Railroad Financing Mix, 1885-1929

  title={Political-Legal Institutions and the Railroad Financing Mix, 1885-1929},
  author={Daniel Schiffman},
During the 19th Century, U.S. railroads relied primarily on debt issues to finance their growth. This policy contributed to major financial crises, beginning in 1857, 1873 and 1893. Nevertheless, railroads failed to reduce their leverage over 1900-1929, and suffered severe consequences during the Great Depression. In order to explain this puzzle, I focus on several key political-legal developments that originated around 1885. These are: (a) Changes in the bankruptcy process; (b) the emergence… 
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