The decades after the Civil War witnessed a massive expansion of Michigan's railroad network: in 1865 the state possessed roughly of track; by 1890 it had . These new lines were built by private companies and financed by a mixture of borrowed money, stock sales and, for a time, aid from local governments. During what one historian called "southern Michigan's railroad mania" many lines were built without a true appreciation of potential profitability, resulting in a financial landscape littered with bankruptcies and companies in receivership.
