Corporate Governance and Ethics: The Mobile & Ohio Railroad in the Mid-Nineteenth Century

• In Event: Accounting History

Abstract

The Mobile and Ohio (M&O) Railroad accounting records from the 1850s and 1860s reflect examples of corporate governance and ethics during the antebellum period. Corporate minute books, annual reports, and payroll records provide evidence of conflicts of interest. Although the corporation had a model program of corporate governance and ethical rules, such was not sufficient to eliminate corruption. Transgressions by directors, officers, and employees of corporate bylaws and motions demonstrate undesirable business behavior of the day. Nevertheless, the governance system was used as a basis to fire offending employees. The mid-19th century governance system at the M&O Railroad was in many respects a model of what a good system should entail, and would be comparable to what exists at many modern corporations today.

Authors

• Dale L Flesher, The University of Mississippi

• Gary John Previts, Case Western Reserve University

• Andrew D Sharp, Spring Hill College