Paper railroad

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In the United States, a paper railroad is a company in the railroad business which exists "on paper only": as a legal entity which does not own any track, locomotives, or rolling stock. Frequently, paper railroads were set up as subsidiaries by larger parent railroads. Paper railroads were also known as non-operating subsidiary railroads of the parent railroad. In most cases, paper railroads were still known as such even after plans to build them may have been canceled.