Corporate Governance in the 19th Century: Evidence From the Chesapeake and Ohio Canal Company

Abstract

Presenting evidence from a 19 th century corporation, the Chesapeake and Ohio Canal Company (C&O), the paper shows that issues of corporate governance have existed since the first corporations were established in the United States. The C&O used a stockholder committee to review the annual report of the president and directors. The paper shows how the C&O stockholders used this committee to supplement the corporate governance structure. The corporate governance structure of the C&O is also viewed from the theoretical structure as espoused by Hart (1995).

A historical perspective on nature: Insights from environmental philosophy and the construction of the Erie and Rideau Canals

“…While canals are acknowledged to have served as an important impetus to settlement, local improvements and economic growth, manufacturing, reduced transportation costs, and trade (Arnold and McCartney, 2008; Bujaki, 2010; Kistler, 1980; Russ et al, 2006; Schultz and Hollister, 2014), within the accounting history literature there is a limited focus on canals (Arnold and McCartney, 2008; Schultz and Hollister, 2014). Researchers in this area have focused primarily on canals in the United Kingdom (Arnold and McCartney, 2008; Edwards, 1985; Forrester, 1980), United States (Kistler, 1980; Russ et al, 2006, 2009; Schultz and Hollister, 2014) or Canada (Bujaki, 2010, 2014; Bujaki and McConomy, 2022).…”

“…In the United States, Kistler (1980) examines the early annual reports of the Middlesex Canal in Massachusetts, which operated from 1793 to 1850, and identifies the use of a committee of the board of directors to conduct annual internal audits of financial records. Russ et al (2006, 2009) look at the emergence of corporate governance practices at the Chesapeake and Ohio Canal Company from 1828 to 1857. In particular, Russ et al (2006: 126) identify the use of a stockholder review committee in fostering corporate governance at a time when ‘there were no known established corporate governance or financial reporting practices in the U.S.’.…”

“…As we describe further in the literature review, other researchers have examined early canal accounts (e.g. Bujaki, 2010, 2014; Bujaki and McConomy, 2022; Forrester, 1980; Kistler, 1980) and governance practices (Russ et al, 2006, 2009). Environmental matters related to eighteenth- and nineteenth-century canal construction have not previously been addressed in the accounting history literature.…”

Evolution of reporting and control for churches and charities in the United States: A study of the Southern Baptist Convention Annuals, 1845–2010

“…The bylaws of the SBC’s counterpart from the north during the mid-nineteenth century, the American Baptist Publication Society (ABPS), also specified that the treasurer “shall give to the President …satisfactory security for the safekeeping of funds committed to him” (American Baptist Publication Society, 1853: 36). 10 Although it is clear that the early SBC borrowed much of their stewardship and control concepts from other contemporary religious organizations, Russ, Previts, and Coffman (2009) showed that there were similar board controls for the treasurer and auditor at one of America’s early joint stock companies, the Chesapeake and Ohio Canal Company. This evidence shows that the methodology being used by the SBC also applied well in a secular context, whereas Laughlin (1988), using the accounting methods of the Church of England as his research base, posited that “the more visible elements of accounting systems find their meaning and nature … with the social and historical context implicit in any particular organization”.…”