months after the surrender.

The railways were in a state of physical dilapidation little removed from
destruction, save for those that had been captured and kept in partial repair
by the Federal troops. The rolling stock had been lost by capture, by
destruction to prevent capture, in wrecks, which were frequent, or had been
worn out. 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. Not many people were able to travel. It is recorded
that on one trip from Montgomery to Mobile and return, a distance of 360
miles, the railroad which is now the Louisville and Nashville collected only
thirteen dollars in fares.

Had there been unrestricted commercial freedom in the South in 1865-66, the
distress of the people would have been somewhat lessened, for here and there
were to be found public and private stores of cotton, tobacco, rice, and other
farm products, all of which were bringing high prices in the market. But for
several months the operation of wartime laws and regulations hindered the
distribution of even these scanty stores. Property upon which the Confederate
Government had a claim was, of course, subject to Confiscation, and private
property offered for sale, even that of Unionists, was subject to a 25 percent
tax on sales, a shipping tax, and a revenue tax. The revenue tax on cotton,