The visible hand of invisible giants: Chandler's visible hand thesis and the use of accounting data applied to the rise of a railroad empire: 1916–1929

This article examines Alfred Chandler's visible hand thesis and how accounting data was utilised to innovate and grow the New York, Chicago & St Louis Railroad Company (Nickel Plate Road – NKP) from 1916 to 1929. The Van Sweringen Brothers, Oris Paxton (OP) and Mantis James (MJ), and their President Jon Bernet created an empire worth over US$3 billion (US$45 billion today). They utilised a multifaceted management structure and advanced accounting data to create a virtuous cycle. Their methods emphasised freight, accounting analytics, logistics, economies of scale, increased throughput, and efficiency. Their techniques delivered increased profits and innovation, and created the first coast-to-coast railroad company in the United States. The study of the NKP serves accounting and business historians by assessing the implications of its operations that exemplify the thesis of Alfred Chandler that, as the first modern corporations, the railroads typified the activities of the visible hand of management.