SIGNED BY CONFEDERATE GENERAL WILLIAM MAHONE - ATLANTIC MISSISSIPPI OHIO RAILRAOD COMPANY STOCK CERTIFICATE to Benjamin Deyerlee for 2 shares dated June 20, 1872 and redeemed May 7, 1881. Serial Number 610 . Nice engraving of Steam Locomotive on the obverse and water scene on reverse with steam locomotive, bridge and boats. The certificate is in VERY GOOD FOLDED condition and measures 11" x 7 1/2". Insured USPS mail delivery in the Continental US.

A scrip (or chit in India) is any substitute for legal tender. It is often a form of credit. Scrips have been created and used for a variety of reasons, including exploitive payment of employees under truck systems; or for use in local commerce at times when regular currency was unavailable, for example in remote coal towns, military bases, ships on long voyages, or occupied countries in wartime. Besides company scrip, other forms of scrip include land scrip, vouchers, token coins such as subway tokens, IOUs, arcade tokens and tickets, and points on some credit cards.

Scrips have gained historical importance and become a subject of study in numismatics and exonumia due to their wide variety and recurring use. Scrip behaves similarly to a currency, and as such can be used to study monetary economics.

History
A variety of forms of scrip were used at various times in the 19th and 20th centuries.

Company scrip
Company scrip was a credit against the accrued wages of employees.

In United States mining or logging camps where everything was owned and operated by a single company, scrip provided the workers with credit when their wages had been depleted. These remote locations were cash poor. Workers had very little choice but to purchase food and other goods at a company store. In this way, the company could charge enormous markups on goods, making workers completely dependent on the company, thus enforcing a form of loyalty to the company. Additionally, while employees could exchange scrip for cash, this could rarely be done at face value. This kind of scrip was valid only within the settlement where it was issued. While store owners in neighboring communities could accept the scrip as money, they rarely did so at face value, as it was worth less.

When U.S. President Andrew Jackson issued his Specie Circular of 1836 due to credit shortages, Virginia Scrip was accepted as payment for federal lands.

In 19th-century Western Canada, the federal government devised a system of land grants called scrip. Notes in the form of money scrip (valued at $160 or $240) or land scrip, valued at 160 acres (65 ha) or 240 acres (97 ha), were offered to Métis people in exchange for their Aboriginal rights.[1]

During the Great Depression, at the height of the crisis, many local governments paid employees in scrip. Vermilion, Alberta was just one example. [2]

In the U.S., payment of wages in scrip became illegal under the Fair Labor Standards Act of 1938.[3]

The expression scrip is also used in the stock market where companies can sometimes pay dividends in the form of additional shares/stock rather than in money.[4] It is also a written document that acknowledges debt.

After World War I and World War II, scrip was used as notgeld ("emergency money") in Germany and Austria.

Scrip was used extensively in prisoner-of-war camps during World War II, at least in countries that complied with the Third Geneva Convention. Under the Geneva Conventions, enlisted prisoners of war could be made to work and had to be paid for their labor, but not necessarily in cash. Since ordinary money could be used in escape attempts, they were given scrip that could only be used with the approval of camp authorities, usually only within the camps.

Poker chips, also referred to as casino tokens, are commonly used as money with which to gamble. The use of chips as company money in the early 19th century in Devon, England, in the Wheal Friendship[5] copper mine gave its name to a local village of Chipshop.

Stamp scrip
Stamp scrip was a type of local money designed to be circulated and not to be hoarded.

One type of this worked this way. Each scrip certificate had printed boxes; every month a stamp costing a certain amount (in a typical case, 1% of the face value) had to be purchased and recorded in a box, otherwise the scrip lost all its value. This provided a great incentive to spend the scrip quickly. The scheme was used successfully in Germany and Austria in the early 1930s, after national currencies collapsed. National governments considered themselves threatened by the success of stamp scrip projects, and shut them down; similar misgivings discouraged their later use elsewhere.[6]

The Alberta Social Credit Party government in 1937 issued prosperity certificates, a form of provincial currency, in an effort to encourage spending. This scrip had boxes in which a stamp equal to 2% of the value had to be affixed each week. Thus, the value of the certificate was covered by the cost of the stamps at the year's end when it matured.

Modern usage
Scrip survives in modern times in various forms.

Community-issued scrip

This section needs to be updated. Please help update this article to reflect recent events or newly available information. (August 2020)
The use of locally issued scrip accepted by multiple businesses within a community has increased during the late-2000s recession. Community-wide scrip usage has begun or is on the rise in Ithaca, New York; Detroit; The Berkshires; Pittsboro, North Carolina; Traverse City, Michigan; Lamar, Colorado; Calgary, Canada; Bristol, UK; and Hagen, Germany.[7][8][9][10]

Breadcoin scrip was created in Washington DC in 2016 to address food insecurity.[11]

Thailand's township Amphoe Kut Chum once issued its own local scrip called Bia Kut Chum: Bia is Thai for cowry shell, which was once used as small change, and still so used in metaphorical expressions. To side-step implications that the community intended their scrip as an unlawful substitute for currency, it now issues exchange coupons called Boon Kut Chum.[12]

Company-issued customer scrip
Some companies still issue scrip notes and token coin, good for use at company points of sale. Among these are the Canadian Tire money for the Canadian Tire stores and gasbars in Canada, and Disney Dollars (no longer printed, but still accepted), in circulation at The Magic Kingdoms and at other establishments owned and operated by The Walt Disney Company.

Scrip gift cards and gift certificates

A scrip card from a babysitting group
In the retail and fundraising industries, scrip is now issued in the form of gift cards, eCards, or less commonly paper gift certificates. Physical gift cards often have a magnetic strip or optically readable bar code to facilitate redemption at the point of sale.

In the late 1980s, the term scrip evolved to include a fundraising method popular with non-profit organizations like schools, bands and athletic groups.[13] With scrip fundraising, retailers offer the gift certificates and gift cards to non-profit organizations at a discount. The non-profit organizations sell the gift cards to member's families at full face value. The families redeem the gift cards at full face value, and the discount or rebate is retained by the non-profit organization as revenue.[14]

Commercial gift cards
Main article: Gift card
Visa, Mastercard and American Express gift cards are initially funded by a credit card or bank account, after which the funding account and gift card are not connected to one another. Once the predetermined funds are consumed, the card number expires. A gift of a gift card, maybe in an attractive wrapper, may be seen as more socially acceptable than a gift of cash. It also prevents the gift being spent on something the giver views as undesirable (or used as savings).

However, unless the gift card is obtained at a discount (paying less than the actual value of the card), buying scrip with ordinary money is arguably pointless, as it then ties up the money until it is used, and usually it may only be used at one store. Furthermore, not all gift cards issued are redeemed. In 2006, the value of unredeemed gift cards was estimated at almost US$8 billion.[15]

Another disadvantage of gift cards is that some issuers charge "maintenance fees" on the cards, particularly if they are not used after a certain period of time; or the card will expire after a given period of time.[16] Some provinces and states in North America (e.g. California, Ontario, Massachusetts, Ohio, Washington) have enacted laws to eliminate non-use fees or expirations,[17] but because the laws often only apply to single-merchant cards[18] buyers have to review the gift card conditions prior to purchase to determine exact restrictions and fees.[19] Additionally, if a retailer goes bankrupt, gift cards can suddenly become worthless. Even if stores do not close immediately, the company may stop accepting the cards.[20] This became a significant issue during the global financial crisis of 2008–2009, prompting the Consumers Union to call upon the Federal Trade Commission to regulate the issue.[21]

Land scrip (United States)
Land scrip was a right to purchase federal public domain land in the United States, a common form of investment in the 19th century. As a type of federal aid to local governments or private corporations, Congress would grant land in lieu of cash. Most of the time the grantee did not seek to acquire any actual land but rather would sell the right to claim the land to private investors in the form of scrip. Often the land title was finalized only after the scrip was resold several times utilizing land agents also called warrant brokers.[22] These grants came in the form of railroad land grants, university land grants, and grants to veterans for war service.[23][24]

Obsolete currency refers to paper money issued by entities other than the federal government, e.g. state banks, railroads, merchants, state and local governments. The money issued by state banks makes up the largest portion of obsolete currency, also commonly referred to as “Broken Banknotes”.

Scripophily is the study and collection of stock and bond certificates.[a] A specialized field of numismatics, scripophily has developed as an area of collecting because of the inherent beauty of certain historical certificates, and because of the interesting historical context of many of the documents. In addition, some stock certificates serve as excellent examples of engraving. Occasionally, an old stock certificate is found that still has value as actual shares in the original or a successor company.

History

Ezekiel Air Ship stock certificate
Scripophily, the collecting of old stocks and bonds, gained recognition as a hobby around 1970. The word "scripophily" was coined by combining words from English and Greek. The word "scrip" represents an ownership right and the word "philos" means to love.

Today, there are thousands of collectors worldwide (Scripophilists) in search of scarce, rare, and popular stock and bond certificates. Whether they are private investors or a variety of different types of businesspeople, many collectors enjoy scripophily as a hobby, while many others also consider it a good form of investment.

Many collectors appreciate the historical significance of old certificates. Others prefer the beauty of older stock and bond certificates that were printed in various colors with fancy artwork and ornate engravings. In recent times, certificates issued by dot-com companies and companies involved in scandals have become particularly popular amongst Scripophilists.

A recent addition to the hobby of Scripophily is collecting real, live shares issued in one's name. Common companies that issue personalized stock certificates include The Walt Disney Company, Harley-Davidson, McDonald's, Starbucks, Google, Ford Motor Company, The Coca-Cola Company, and Berkshire Hathaway. Framing is a popular option for these certificates.

Many autograph collectors engage in Scripophily, looking for certificates signed by historic or well-known figures, such as stock certificates issued by Standard Oil Company and signed by John D. Rockefeller, Franklin Fire Insurance Company and signed by Henry Charles Carey, Ringling Brothers and Barnum & Bailey Circus, Atari Corporation, Eastern Air Lines and signed by Eddie Rickenbacker when he served as the company's president, Tucker Corporation, and many others.

As a hobby

Columbia Pictures
A large part of scripophily is the area of financial history. Over the years there have been millions of companies which needed to raise money for their business. In order to do so, the founders of these companies issued securities. Generally speaking, they either issued an equity security in the form of stock or a debt security in the form of a bond. However, there are many varieties of equity and debt instruments. They can be common stock, preferred stock, warrants, cumulative preferred stocks, bonds, zero-coupon bonds, long term bonds (over 15 years) and any combination thereof.

Each certificate is a piece of history about a company and its business. Some companies became major successes, while others were acquired and merged with other companies. Some companies and industries were successful until they were replaced by new technologies. Some companies have been the center of scandal or fraud. The color, paper, signatures, dates, stamps, cancellations, borders, pictures, vignettes, industry, stockbroker, name of company, transfer agent, printer, and holder name all add to the uniqueness of the hobby.[citation needed]

A lot of companies either were never successful or went bankrupt, so that their certificates became worthless pieces of paper until the hobby of scripophily began. The mining boom in the 1850s, railroad construction in the 1830s, the oil boom in the 1870s, telegraphy (1850s), the automobile industry beginning around 1900, aviation (around 1910), electric power and banks in the 1930s, the airline wars and mergers in the 1970s, cellular telephones (1980s), long distance telephone service in the 1980s and 1990s, and most recently the Dot-com era and Enron all resulted in historically significant certificates being generated and issued.[citation needed]

Today, more stocks and bonds are issued electronically, meaning fewer paper certificates are issued as a percentage of actual stock issued. The Internet has played a dramatic role in raising awareness of the hobby. A number of websites now exist that sell old stocks and bonds to include scripophily.com and oldstocks.com.

Guidelines

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Baltimore and Ohio Railroad
There are many factors that determine value of a certificate. These include condition, age, historical significance, signatures, rarity, demand for the item, aesthetics, type of company, original face value, bankers associated with issuance, transfer stamps, cancellation markings, issued or unissued, printers, and type of engraving process.

Condition - The grading scale that could be used in stocks and bonds is shown below. Generally speaking, the grading is not used in the hobby as strictly as it is in coins and stamps. Most people acquire certificates because of the artwork and/or history.

Uncirculated - Looks like new, no abnormal markings or folds, no staples, clean signature and no stains
Extremely Fine - Slight traces of wear
Very Fine - Minor traces of wear
Fine - Creased with clear signs of use and wear
Fair - Strong signs of use and wear
Poor - Some damage with heavy signs of wear and staining
Age - Usually the older the certificate, the more valuable, but this is not always the case.

Historical significance - What product did the company produce? Was it the first car, airplane, cotton gin, etc. Was the company successful? Was it a fraud? In what era (i.e. during a war, depression, revolution) was the item issued?

Signatures - Did anyone famous or infamous sign the certificate?

Cross Collecting Themes - Sports, finance, automotive, and railroad enthusiast interest.


H. J. Heinz Company
Newsworthy - Some companies that are in the news (good or bad).

Certificate Owner's Name - Was the certificate issued to anyone famous or to a famous company?

Rarity - How many of the certificates were issued? How many survived over the years? Is the certificate a low number?

Demand for Item - How many people are trying to collect the same certificate?

Aesthetics - How does the certificate look? What is in the vignette? What color of ink was used? Does it have fancy borders or writing on it?

Type of company - What type of company was it issued for? Does the industry still exist? Has the industry changed a lot over the years?

Original Face Value - How much was the stock or bond issued for? Usually, the larger the original face value, the more collectible it is.

Bankers associated with Issuance - Who worked on the fund raising efforts? Was it someone famous or a famous bank? Is the bank still in existence?

Transfer Stamps - Does the certificate have tax stamps on it? Are the stamps imprinted or attached? Are the stamps valuable or unusual?


Specimen Stock Certificate
Cancellation Markings - Are the cancellation markings interesting to the item? Do they detract or add to its history and looks?

Issued or Unissued - Was the item issued or unissued? Was the certificate a printer's prototype usually stamped with the word "specimen"? Usually, issued certificates are more valuable and desirable.

Printers - Who printed the certificate? Was it a famous printer?

Type of Engraving Process - How was the certificate made - By hand? By wood engraving? Steel engraving? Lithograph? Preprinted form?

Paper - Was the paper used in the printing high-quality or low-quality? Has it held up over time? Does it have a watermark to prevent counterfeiting?
 
The Vicksburg, Shreveport and Pacific Railway (May 1, 1901, to December 31, 1926) was chartered as the Vicksburg, Shreveport, & Texas Railroad Company with an east and west division[1] on April 28, 1853, to be a link, via a transfer boat, between Vicksburg, Mississippi, Shreveport, Louisiana, and points west.

The line owned 188.448 miles of single-track, standard gauge track from Delta Point to Lorraine, on the Texas-Louisiana state line.[2] The Vicksburg, Shreveport and Pacific Railway came into existence through acquisitions from foreclosures, court decisions, and reorganization, some of these were argued by the company lawyer Edward H. Randolph. The company was also known as the North Louisiana and Texas Railroad from 1868 until 1875, when the acquisition was set aside by court decision, and the railroad went into receivership. The Vicksburg, Shreveport and Pacific Railroad was chartered December 2, 1879, and ran until 1901.

History

Unissued share of the Vicksburg, Shreveport and Pacific Railroad Company
The Confederate Army seized the line in 1862 and in 1863 disassembled a large portion. The Union Army took apart the entire line east of Monroe. Following the Civil War the company went into receivership on Dec. 30, 1865, into foreclosure on Feb. 5, 1866, and was purchased by the North Louisiana and Texas Railroad Company in 1868.[3]

The Alabama, New Orleans, Texas, and Pacific Junction Railways Company, Limited, of London, England, acquired the Vicksburg, Shreveport, and Pacific Railroad in 1881 to 1882, through the Erlanger Interests of Europe. The railroad operated until 1926, when leased to Yazoo and Mississippi Valley Railroad for 365 years and[4] merged with the Illinois Central Railroad on May 29, 1959.

At one point there were twenty-four stops between Shreveport and Delta Point[5] but by 1967 there were only twelve depots.[6]

Waskom extension
The tracks between Shreveport and Waskom, which was spelled Wascom in 1917 documents, was built by the Vicksburg, Shreveport, & Texas Railroad Company, and leased to the Texas and Pacific Railway in 1862.[7] On September 12, 1882, the T&P completed their own tracks from Waskom to Shreveport.[8]

Atlantic, Mississippi and Ohio Railroad (AM&O) was formed in 1870 in Virginia from three east–west railroads which traversed across the southern portion of the state. Organized and led by former Confederate general William Mahone (1826-1895), the 428-mile (689 km) line linked Norfolk with Bristol, Virginia by way of Suffolk, Petersburg, Lynchburg, and Salem. The AM&O was promoted as a trade link to the west, and further expansion was envisioned with the goal of increasing Virginia's Ohio Valley and Mississippi Valley commerce. It was heavily backed by investors from England and Scotland.

The AM&O went into receivership after the U.S. Financial Panic of 1873. After several years of continuing financial problems, Mahone's relationship with the bondholders soured, and he was removed as trustee, but was permitted to continue to lead operations. Finally, in 1881, the AM&O was sold at auction. It was acquired by other U.S. interests based in Philadelphia who outbid Mahone. They were already building Shenandoah Valley Railroad and had a new commodity in mind: bituminous coal. The AM&O was renamed to Norfolk and Western Railway (N&W). Norfolk & Western Railway was expanded west into the coalfields, and later into a much large system, eventually tapping the Ohio Valley and Mississippi Valley commerce as earlier promised Virginia. The N&W was combined with the Southern Railway, another profitable carrier, to form Norfolk Southern Corporation (NS) in 1982.

Today, much of the former Atlantic, Mississippi and Ohio Railroad remains in service for Norfolk Southern. The Fortune 500 company, headquartered in Norfolk, transports bituminous coal, intermodal shipping containers, automobile parts and completed vehicles, and other commodities in the 21st century global transportation markets. Most of the former AM&O lines are still part of the NS rail network.

Predecessor lines
Three pre-civil war era railroad lines were combined to form the AM&O. They are listed from east to west:

Norfolk and Petersburg Railroad
The Norfolk and Petersburg Railroad, organized by Dr. Francis Mallory of Norfolk was built between 1853 and 1858 by a young civil engineer named William Mahone (1826-1895). It featured an innovative and durable roadbed through a portion of the Great Dismal Swamp and an arrow-straight 52-mile (84 km) tangent between Suffolk and Petersburg. Mahone was named its head in 1860.

South Side Railroad
The oldest predecessor was the City Point Railroad a 9 miles (14 km) long line to Petersburg completed in 1838. In 1854, it became part of the South Side Railroad. The South Side Railroad was the middle section of the AM&O, stretching 132 miles from City Point (part of today's City of Hopewell) to Lynchburg in 1854.

Virginia and Tennessee Railroad
The Virginia and Tennessee Railroad extended 204 miles (328 km) from Lynchburg to Bristol. It made important westward connections which reached New Orleans, Louisiana, before the war began in 1861.

William Mahone and the American Civil War
All three railroads were severely damaged during the American Civil War (1861-1865). After Virginia seceded in April 1861, William Mahone, as its president, used the Norfolk and Petersburg Railroad (N&P) to deliver a small force to Norfolk to secure the Gosport Navy Yard, an important resource for the Confederacy. After Union leaders declined a request to surrender possession, he used an N&P train and other deception to bluff them into thinking large numbers of rebel troops were arriving, causing them to abandon the shipyard with no loss of life. He accepted a commission in the Confederate Army and during the remainder of 1861 and until May 1862, also continued as head of the N&P. Mahone was relieved of N&P duties in 1862 as he took on increasing responsibilities with the Confederate Army. He was active in many campaigns and was an able leader during the war, best known as the hero of the Battle of the Crater in 1864 where he rallied troops and foiled an initial Union success during the Siege of Petersburg.

Post-war, rebuilding and linking

Atlantic, Mississippi & Ohio Railroad Stock Certificate from 1871.
After the end of hostilities, defeated Confederate General Robert E. Lee advised his generals to go back to work rebuilding. William Mahone did just that. He returned to his old job and quickly set about repairing the N&P. Meanwhile, the managers of the South Side Railroad and Virginia and Tennessee Railroad also worked hard to restore service and rebuild bridges, stations, and rolling stock. The war had demonstrated the need to consolidate resources and connections, and the stockholders of the South Side Railroad elected Mahone as president of their road also before the end of 1865.

It was known that the Baltimore and Ohio Railroad (B&O) and other northern interests were trying to develop connections in the Shenandoah Valley which would favor Baltimore over Norfolk and other Virginia ports. Mahone could see that the Virginia and Tennessee Railroad was the key to western connections for the other two roads and he became a driving force in the linkage of N&P, South Side Railroad and the Virginia and Tennessee Railroad (V&T). He was president of all three by the end of 1867. However, the V&T board was opposed to consolidation which was favored by the other two roads. Rumors indicated that the B&O would expand its Valley line southward to meet the V&T near Salem, Virginia. Ultimately, the B&O did reach as far as up the valley as Lexington, Virginia, only 50 miles (80 km) short of reaching Salem.

When Mahone could not persuade the V&T board, he took another route to force consolidation, and worked diligently in lobbying the Virginia General Assembly, a part-owner of all three roads, to gain the legislation necessary to combine them into a single entity, and expand westward.

"All Mine and Otelia's"

Advertisement for the Atlantic, Mississippi & Ohio Railroad from 1880, one year before its merger into the Norfolk and Western Railway
Mahone was finally successful, and in 1870, the Atlantic, Mississippi & Ohio Railroad (AM&O) was organized as a new line comprising the three railroads he headed, extending 428 miles in Virginia from Norfolk to Bristol. The former general and his wife Otelia (a character in her own right) moved to Lynchburg, where the AM&O established headquarters and shops. The letters A, M and O were said to stand for "All Mine and Otelia's." Instead of utilizing northern financial interests, in addition to the state's investment, Mahone obtained the needed funded through bonded indebtedness from across the ocean through a British financial agent.

The AM&O did well for several years. The three former railroads initially each became divisions, and the former South Side Railroad was later consolidated with the former N&P into a single division. Unfortunately for Mahone's dreams, before much expansion could take place, the AM&O fell on hard times in the financial Panic of 1873 which negatively impacted almost all of the railroads.

After several years of operating under receiverships, Mahone had a falling out with his agent, who claimed a breach of integrity. There are some historical indications that this may have resulted from miscommunication, interference by Mahone's many enemies, or both. In any event, the foreign bondholders requested other receivers be appointed, and one of his lieutenants, Henry Fink, was named. In early 1881, the AM&O was sold at public auction. Mahone forces had gathered what he thought would be sufficient funds to place a winning bid, but they were outbid by a surprise entry of a principal of a Philadelphia-based financial company, a previously unidentified competitor. The new owners renamed it Norfolk and Western, possibly utilizing an earlier name proposed by citizens of Norfolk in the pre-war efforts to secure rail service.

Mahone was able to arrange for a portion of the State's proceeds of the AM&O sale to help found a school to prepare teachers to help educate black children and former slaves. The Virginia Normal and Collegiate Institute near Petersburg was forerunner of Virginia State College, which expanded to become Virginia State University. A leader of the Readjuster Party, after leaving the railroad business, he became even more active in Virginia's politics and served as a Senator in the U.S. Congress from 1881 to 1887.

What became of the former AM&O

Atlantic, Mississippi & Ohio Railroad, Jefferson Street Tunnel, Norfolk & Western RY main line, Lynchburg, VA
The new owners were E. W. Clark & Co., a private banking firm in Philadelphia which already owned a controlling interest in the Shenandoah Valley Railroad. The latter was expanding south from Hagerstown, Maryland, and seeking a potential connection. Under the common ownership, the link was established between Lynchburg and Salem on the old AM&O at the tiny community of Big Lick on the Roanoke River, which soon became the city of Roanoke and a major office and shops location of the N&W. It became known as the "Magic City."

While Mahone's vision for the Atlantic, Mississippi and Ohio Railroad was western trade and the transportation business, the new owners were focused on their investments in the rich, largely untapped coal reserves of southwestern Virginia and southern West Virginia. They knew older anthracite coal fields in northwestern New Jersey, southern New York, and northern Pennsylvania were playing out. Under their auspices, the former AM&O was greatly expanded as the N&W into the coal fields and beyond and became a system larger and far more wealthy than Mahone probably had ever dreamed.

In the mid 20th century, N&W merged with long-time rival Virginian Railway in the Pocahontas coal region and grew even more in size and profitability by mergers with other rail carriers including Nickel Plate Road and Wabash in adjacent areas to form a system serving 14 states and a province of Canada between the Atlantic Ocean and the Mississippi River and Great Lakes with more than 7,000 miles (11,000 km) of trackage.

100 years later after its name was changed from AM&O, the N&W was combined with the Southern Railway, another profitable carrier, to form Norfolk Southern Corporation (NS) in 1982.

Today, much of the former Atlantic, Mississippi and Ohio Railroad remains in service for Norfolk Southern, a Fortune 500 company headquartered in Norfolk, Virginia. The modern railroad transports bituminous coal, intermodal shipping containers, automobile parts and completed vehicles, and other commodities in the 21st century global transportation markets. Mahone's trackbed through the Great Dismal Swamp, the 52 miles (84 km) tangent, and much of the rest of the AM&O route are still in service.

William Mahone (December 1, 1826 – October 8, 1895) was an Confederate States Army General, civil engineer, railroad executive, prominent Virginia Readjuster and ardent supporter of former slaves.[1]


As a young man, Mahone was prominent in building Virginia's roads and railroads. As chief engineer of the Norfolk and Petersburg Railroad, he built log-foundations under the routes in the Great Dismal Swamp in southeast tidewater Virginia that are still intact today. According to local tradition, several new railroad towns were named after the novels of Sir Walter Scott, a favorite British/Scottish author of Mahone's wife, Otelia.


In the American Civil War, Mahone was pro-secession and served as a general in the Confederate States Army. He was best known for regaining the initiative at the late war siege of Petersburg, Virginia, while Confederate troops were in shock after a huge mine/load of black powder kegs was exploded beneath them by tunnel-digging former coal miner Union Army troops resulting in the Battle of the Crater in July 1864; his counter-attack turned the engagement into a disastrous Union defeat.


After the war, he returned to railroad building, merging three lines to form the important Atlantic, Mississippi and Ohio Railroad (AM&O), headquartered in Lynchburg. He also led the Readjuster Party, a state political party with a coalition of freemen blacks, Republicans, and populist Democrats. The Virginia General Assembly elected Mahone to the U.S. Senate in 1881.


Early life

William Mahone was born at Brown's Ferry near Courtland in Southampton County, Virginia, to Fielding Jordan Mahone and Martha (née Drew) Mahone.[2] Beginning with the immigration of his Mahone ancestors from Ireland, he was the third individual to be called "William Mahone". He did not have a middle name as shown by records including his two Bibles, Virginia Military Institute (VMI) diploma, marriage license, and Confederate Army commissions. Likewise, the General and Otelia's first-born son was christened William Mahone. During similar cultural naming transitions in Virginia, the suffix "Jr." was added to his name later.


The little town of Monroe was on the banks of the Nottoway River about eight miles south of the county seat at Jerusalem, a town which was renamed Courtland in 1888. The river was a vital transportation artery in the years before railroads, and later highways served the area. Fielding Mahone ran a store at Monroe and owned considerable farmland. He also enslaved several people for their forced labor.[3] The family narrowly escaped the killings of local whites during Nat Turner's slave rebellion in 1831.


The local transportation shift in the area was from the river to the new technology emerging with railroads in the 1830s. In 1840, when William was 14 years old, the family moved to Jerusalem, where Fielding Mahone purchased and operated a tavern known as Mahone's Tavern.[4] As recounted by his biographer, Nelson Blake, the freckled-faced youth of Irish-American heritage gained a reputation in the small town for both "gambling and a prolific use of tobacco and profanity".


Young Billy Mahone gained his primary education from a country schoolmaster but with special instruction in mathematics from his father. As a teenager, for a short time, he transported the U. S. Mail by horseback from his hometown to Hicksford, a small town on the south bank of the Meherrin River in Greensville County, which later combined with the town of Belfield on the north bank to form the current independent city of Emporia. He was awarded a spot as a state cadet at the recently opened Virginia Military Institute (VMI) in Lexington, Virginia.[5] Studying under VMI Commandant William Gilham, he graduated with a degree as a civil engineer in the Class of 1847.


Early career


William Mahone in his younger years

Mahone worked as a teacher at Rappahannock Academy in Caroline County, Virginia, beginning in 1848, but was actively seeking an entry into civil engineering. He did some work helping locate the Orange and Alexandria Railroad, an 88-mile line between Gordonsville, Virginia, and the City of Alexandria.[6] Having performed well with the new railroad, was hired to build a plank road between Fredericksburg and Gordonsville.[7][8]


On April 12, 1853, he was hired by Dr. Francis Mallory of Norfolk, as chief engineer to build the new Norfolk and Petersburg Railroad (N&P).[9] William Mahone, chief engineer, advertised for contractors who would regrade the Norfolk and Petersburg Railroad for 62 miles from the Warwick Swamp of the Blackwater River to Norfolk in 1853.[10] Mahone's innovative 12-mile-long roadbed through the Great Dismal Swamp between South Norfolk and Suffolk employed a log foundation laid at right angles beneath the surface of the swamp. Still in use over 160 years later, Mahone's corduroy design withstands the immense tonnages of modern coal trains. He was also responsible for engineering and building the famous 52-mile-long tangent track between Suffolk and Petersburg. With no curves, it is a major modern Norfolk Southern rail traffic artery.


In 1854, Mahone surveyed and laid out with streets and lots of Ocean View City, a new resort town fronting on the Chesapeake Bay in Norfolk County.[11] With the advent of electric streetcars in the late 19th century, an amusement park was developed there, and a boardwalk was built along the adjacent beach area. Most of Mahone's street plan is still in use in the 21st century as Ocean View, now a section of the City of Norfolk is redeveloped.


Mahone was also a surveyor for the Norfolk and South Air Line Railroad on the Eastern Shore of Virginia.[11]


Marriage and family

On February 8, 1855, Mahone married Otelia Butler (1835–1911), the daughter of the late Dr. Robert Butler from Smithfield, who had been State Treasurer of the Commonwealth of Virginia from 1846 until he died in 1853.[12] Her mother was Butler's second wife, Otelia Voinard Butler (1803–1855), originally from Petersburg.[7]


Young Otelia Butler is said to have been a cultured lady. She and William settled in Norfolk, where they lived most of the years before the Civil War. They had 13 children, but only three survived to adulthood, two sons, William Jr. and Robert, and a daughter, also named Otelia. From 1862 to 1868, the family resided in Clarksville, Virginia at the Judge Henry Wood Jr. House.[13]


The Mahone family escaped the yellow fever epidemic that broke out in the summer of 1855 and killed almost a third of the populations of Norfolk and Portsmouth by fleeing the city and staying with his mother 50 miles away in Jerusalem (now known as Courtland) in rural Southampton County. However, because the epidemic decimated the Norfolk area, with financial consequences as well, work on the new railroad to Petersburg almost came to a standstill.


Ever frugal, Mahone and his mentor, Dr. Mallory, nevertheless pushed the project to completion in 1858, and Mahone was named its president a short time later. Popular legend claimed Otelia and William Mahone traveled along the newly completed railroad, naming stations from Ivanhoe and other books she was reading written by Sir Walter Scott. From his historical Scottish novels, she chose the place names of Windsor, Waverly, and Wakefield. She tapped the Scottish Clan "McIvor" for the name of Ivor, a small Southampton County town. When they reached a location where they could not agree, Disputanta was created.


American Civil War


General Mahone in Confederate uniform

As the political differences between Northern and Southern United States factions escalated in the second half of the 19th century, Mahone favored southern states' secession. During the American Civil War, he was active in the conflict even before he became an officer in the Confederate Army. Early in the war, in 1861, his Norfolk and Petersburg Railroad was especially valuable to the Confederacy and transported ordnance to the Norfolk area, where it was used during the Confederate occupation. By the war's end, most of what was left of the railroad was under U.S. control.


After Virginia declared secession from the United States in April 1861, Mahone was still a civilian and not yet in the Confederate Army. Still, working in coordination with Walter Gwynn, he orchestrated the ruse and capture of the Gosport Shipyard. He bluffed U.S. Army troops into abandoning the shipyard in Portsmouth by running a single passenger train into Norfolk with great noise and whistle-blowing, then much more quietly sending it back west and then returning the same train, creating the illusion of large numbers of arriving troops to the U.S. soldiers listening in Portsmouth across the Elizabeth River (and just barely out of sight). The ruse worked, and not a single Confederate soldier was lost as the U.S. authorities abandoned the area and retreated to Fort Monroe across Hampton Roads. After this, Mahone accepted a commission as lieutenant colonel and later colonel of the 6th Virginia Infantry Regiment, and remained in Norfolk, which was now under the command of Benjamin Huger. Mahone was subsequently promoted to brigadier general on November 16, 1861, and commanded the Confederate's Norfolk district until its evacuation the following year.


In May 1862, after Confederate forces fled Norfolk during the Peninsula Campaign, Mahone aided in the construction of the defenses of Richmond on the James River around Drewry's Bluff.[14] A short time later, he led his brigade at the Battle of Seven Pines,[14] and the Battle of Malvern Hill. After the defense of Richmond, Mahone's brigade was assigned from Huger's division to the division of Richard H. Anderson and fought at the Second Battle of Bull Run, where Mahone was shot in the chest while leading his brigade in a charge across Chinn Ridge. Short (5 feet 6 inches (168 cm)) and weighing only 100 pounds (45 kg), he was nicknamed "Little Billy". As one of his soldiers put it, "He was every inch a soldier, though there were not many inches of him." Otelia Mahone worked in Richmond as a nurse when Virginia Governor John Letcher sent word that Mahone had been injured at Second Bull Run, but had only received a "flesh wound". She is said to have replied, "Now I know it is serious for William has no flesh whatsoever." The wound was not life-threatening, but Mahone missed the Maryland Campaign the following month. After two months of recovery, he returned to command, not seeing any significant action at the Battle of Fredericksburg. Mahone used his considerable political skills to lobby for a promotion to major general during the winter of 1862–63. Although several of his fellow officers in the Army of Northern Virginia agreed, Robert E. Lee argued that there was no available position for a major general just then, and Mahone would have to wait until one opened up.


Mahone's brigade was one of the portions of the First Corps that remained with the main army for the Battle of Chancellorsville. After Lee reorganized the army in May 1863, Mahone ended up in the newly created Third Corps of A. P. Hill. At the Battle of Gettysburg, Mahone's brigade was mostly unengaged and suffered only a handful of casualties the entire battle. Mahone was supposed to participate in the attack on Cemetery Ridge on July 2, but against orders, held his brigade back. During Pickett's Charge the following day, Mahone's brigade was assigned to protect artillery batteries and was uninvolved in the main fighting. Mahone's official report for the battle was only 100 words long and gave little insight into his actions on July 2. However, he told fellow brigadier Carnot Posey that division commander Richard H. Anderson had ordered him to stay put. Despite his failure to move his command into action, Mahone suffered no punishment due to his seniority and the fact that he would ultimately become one of a handful of officers in the Army of Northern Virginia to lead a brigade for an entire year's duration.


Although his wound at Manassas had not been severe, Mahone experienced acute dyspepsia all of his life. A cow and chickens accompanied him during the war to provide dairy products. Otelia and their children moved to Petersburg to be near him during the war's final campaign in 1864-65 as Grant moved against Petersburg, seeking to sever the rail lines supplying the Confederate capital of Richmond.


During the Battle of the Wilderness, Mahone's soldiers accidentally wounded James Longstreet. Richard Anderson was appointed to corps command. Mahone took command of Anderson's division, which he led for the remainder of the war, starting at the Battle of Spotsylvania Court House. He became widely regarded as the hero of the Battle of the Crater on July 30, 1864. There, U.S. Army coal miners tunneled under the Confederate line. They blew it up in a massive explosion, killing and wounding many Confederates and breaching a critical point in the defense line around Petersburg. Nevertheless, Mahone rallied the remaining nearby Confederate forces, repelling the attack, and the U.S. soldiers lost their initial advantage. Having begun as an innovative tactic, the Battle of the Crater became a terrible loss for the United States. Mahone's quick and effective action was a rare cause for celebration by the occupants of Petersburg, embattled citizens, and weary troops alike. On July 30, he was promoted to major general.[15]


However, in early April 1865, Grant's strategy at Petersburg eventually succeeded in severing the last rail line from the southern states to supply Petersburg (and hence Richmond). At the Battle of Sailor's Creek on April 6, Lee exclaimed in front of Mahone, "My God, has the army dissolved?" to which he replied, "No, General, here are troops ready to do their duty." Touched by the loyalty of his men, Lee told Mahone, "Yes, there are still some true men left ... Will you please keep those people back?"[16] Mahone was also with Lee at the surrender at Appomattox Court House three days later.


Return to railroading


Share of the Atlantic, Mississippi & Ohio RR from 1871, signed by William Mahone as president

After the war, Lee advised his generals to return to work rebuilding the southern states' economies. William Mahone did just that and became the driving force in the linkage of N&P, South Side Railroad, and the Virginia and Tennessee Railroad. He was president of all three by the end of 1867.[17] During the post-war Reconstruction period, he worked diligently lobbying the Virginia General Assembly to gain the legislation necessary to form the Atlantic, Mississippi & Ohio Railroad (AM&O), a new line comprising the three railroads he headed, extending 408 miles from Norfolk to Bristol, Virginia, in 1870.[18] This conflicted with the expansion of the Baltimore and Ohio Railroad from Baltimore and Alexandria, Virginia. The Mahones were colorful characters: the letters A, M & O were said to stand for "All Mine and Otelia's".[7] They lived in Lynchburg, Virginia, during this time, but moved back to Petersburg in 1872.


The Panic of 1873 put the A, M & O into conflict with its bondholders in England and Scotland. After several years of operating under receiverships, Mahone's relationship with the creditors soured, and an alternate receiver, Henry Fink, was appointed to oversee the A, M & O's finances. Mahone still worked to regain control. His role as a railroad builder ended in 1881, when Philadelphia-based interests outbid him and purchased the A, M & O at auction, renaming it Norfolk and Western (N&W).


Before the Civil War, the Virginia Board of Public Works had invested state funds in a substantial portion of the stock of the A, M & O's predecessor railroads. Although he lost control of the railroad, as a significant political leader in Virginia, Mahone was able to arrange for a portion of the state's proceeds of the sale to be directed to help found a school to prepare teachers to help educate black children and formerly enslaved people near his home at Petersburg, where he had earlier been mayor. The Virginia Normal and Collegiate Institute eventually expanded to become Virginia State University, with Virginia native John Mercer Langston returning from Ohio to become its first president. Mahone also directed some funds to help found the predecessor of today's Central State Hospital in Dinwiddie County, also near Petersburg. Mahone personally retained his ownership of land investments which were linked to the N&W's development of the rich coal fields of western Virginia and southern West Virginia, contributing to his rank as one of Virginia's wealthiest men at his death, according to his biographer, author Nelson Blake.


Political career


Mahone after the war

Mahone was active in Virginia's economic and political life for almost 30 years, beginning amid the Civil War when he was elected to the Virginia General Assembly as a delegate from Norfolk in 1863. He later served as mayor of Petersburg. After his unsuccessful bid for governor in 1877, he became the leader of the Readjuster Party, a coalition of Democrats, Republicans, and African-Americans seeking a reduction in Virginia's prewar debt, and an appropriate allocation made to the former portion of the state that constituted the new State of West Virginia.[19] In 1881, Mahone led the successful effort to elect the readjuster candidate William E. Cameron as the next governor, and he became a United States Senator.[20]


The Readjuster Party did more than refinance the Commonwealth's debts. The party invested heavily in schools, especially for African Americans, and appointed African American teachers for such schools. The party increased funding for what is now Virginia Tech and established its black counterpart, Virginia State. The Readjuster Party abolished the poll tax and the public whipping post. Because of expanded voting, Danville elected a black-majority town council and hired an unprecedented integrated police force.[21]


With the Senate split 37–37 between Republicans and Democrats, Mahone and another third-party candidate willing to caucus with the latter had political influence. Under Senate rules, Vice President of the United States Chester A. Arthur, a Republican, would cast any tie-breaking votes. Mahone bargained for significant concessions before he decided to caucus. Despite being a first-year senator, he became chair of the influential Agriculture Committee. He gained control over Virginia's federal patronage from President James A. Garfield and by the right to select both the Senate's Secretary and Sergeant at Arms.[22]


However, Mahone still faced opposition from the Conservative Party of Virginia, which aligned with the Democrats and grew even more powerful after the 1884 election, when Democrat Grover Cleveland was elected president (with its patronage perks). Mahone maintained his Republican Party affiliation, leading Virginia delegations to the Republican National Conventions of 1884 and 1888. However, he lost his Senate seat to Conservative Democrat John W. Daniel in 1886.[23]


In 1889, Mahone ran for governor on a Republican ticket but lost to Democrat Philip W. McKinney.[24] It was to be 80 more years before Virginia sent another non-Democrat to the Governor's Mansion (Republican A. Linwood Holton Jr., in 1969).


Death

Although out of office, Mahone continued to stay involved in Virginia-related politics until he suffered a catastrophic stroke in Washington, D.C., in the fall of 1895. He died a week later, at 68. His widow, Otelia, lived in Petersburg until her death in 1911.


Legacy

Although Mahone was not to live to see the outcome, Virginia and West Virginia disputed the new state's share of the Virginia government's debt for several decades. The issue was finally settled in 1915 when the United States Supreme Court ruled that West Virginia owed Virginia $12,393,929.50 (~$270 million in 2023). The final installment of this sum was paid off in 1939.



Mahone mausoleum at Blandford Cemetery, identified by its "M" insignia

He was interred in the family mausoleum in Blandford Cemetery in Petersburg, Virginia.[25] His widow was interred alongside him. His well-known monogram identifies the mausoleum, an initial "M" centered on a star inside a shield.


Their first home in Petersburg, originally occupied by John Dodson, Petersburg's mayor in 1851–2, was on South Sycamore Street. That structure is now part of the Petersburg Public Library. In 1874, they acquired and greatly enlarged a home on South Market Street, their primary residence after that. Virginia State University, which he helped found as a normal school, is a major community presence nearby.


A large portion of U.S. Highway 460 in eastern Virginia (between Petersburg and Suffolk) parallels the 52-mile (84 km) tangent railroad tracks that Mahone had engineered, passing through some of the towns that the two are believed to have named. Several road sections are labeled "General Mahone Boulevard" and "General Mahone Highway" in his honor. The Route 35 overpass of Route 58 in his native Southampton County, Virginia is named "The General William Mahone Memorial Bridge".


A monument to Mahone's Brigade is on the Gettysburg Battlefield.


The site of the Battle of the Crater is a major feature of the National Park Service's Petersburg National Battlefield Park. In 1927, the United Daughters of the Confederacy erected an imposing monument to his memory. It stands on the preserved Crater Battlefield, a short distance from the Crater itself. The monument states:


To the memory of William Mahone, Major General, CSA, a distinguished Confederate Commander, whose valor and strategy at the Battle of the Crater, July 30, 1864, won for himself and his gallant brigade undying fame.