The railroad companies possessed large sums in Confederate currency and in securities which were now valueless.
About two-thirds of all the lines were hopelessly bankrupt.

Fortunately, the United States War Department took over the control of the railway lines and in some cases effected a temporary reorganization which could not have been accomplished by the bankrupt companies.

During the summer and fall of 1865, "loyal" boards of directors were appointed for most of the railroads, and the army withdrew its control.

But repairs and reconstruction were accomplished with difficulty because of the demoralization of labor and the lack of funds or credit.

Freight was scarce and, had it not been for government shipments, some of the railroads would have been abandoned.