History
The financial firm of Drexel, Morgan and Company created the newly formed Southern Railway Company in 1894 following the financial failure of the Richmond and Danville Railroad system, which had included the East Tennessee, Virginia and Georgia Railroad, and several other smaller railroads. The finance company's railroad expert was Samuel Spencer, who had previously served as superintendent of the Long Island Rail Road in 1878 and headed the Baltimore and Ohio Railroad (1887–1888). J. Pierpont Morgan tapped Samuel Spencer to head the new enterprise, one of the largest in the United States.
The new Southern Railway began with two major repair facilities, one in Atlanta, Georgia, the other in Knoxville, Tennessee. Much of the inherited rolling stock from the acquisitions of the defunct railroads were in need of major repairs. These two "back shops" service centers could not handle this extensive service need. These facilities were antiquated and poorly equipped and not sufficient for their purposes as Samuel Spencer is quoted of saying. Spencer saw the need for a third major "back shop" service facility on this eastern main line between Washington D.C. and Atlanta. He reported also in the first annual meeting of June 1895 one additional large shop may be necessary. This way the repair facilities would be divided up into segments of about 160 miles (260 km) apart. The switch locomotives needed to be inspected for repair and service and refueled at this increment. The new major "back shop" service facility was proposed to be in the middle of these two major cities.
Read more about this topic: Southern Railway's Spencer Shops
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