The Pope and the Train: Financial Reporting Practices in the Railroad Companies of the Papal States (1846-1870)

This study investigates the accounting practices of the railroad companies operating in the Papal States (Italy) between 1846 and 1870. The Papal States’ agreements, edicts and laws, the railroad companies’ statutes, financial statements, meeting proceedings, auditors’ reports and management reports are the main primary sources we consulted for our historical analysis. By reviewing such documents, the role played by accounting in managing the relationship between directors and shareholders emerged. This paper makes two contributions to international literature in accounting history. It sheds light on the financial reporting practices in Italian railroad companies. Moreover, it investigates how accounting was used to manage the relationship between railroad companies, their shareholders and the Papal government.