The former South Side Railroad was originally one of three AM&O divisions, and was later consolidated with the former N&P into a single division. The AM&O did well for several years, but fell on hard times in the financial panic of 1873 which negatively impacted almost all of the railroads. After several years of operating under receiverships, Mahone's role as a railroad builder ended in 1881 when northern interests purchased the AM&O and renamed it Norfolk and Western. Mahone was able to arrange for a portion of the State's proceeds of the sale to help found a school to prepare teachers to help educate black children and former slaves. The Virginia Normal and Collegiate Institute near Petersburg was forerunner of Virginia State College, which expanded to become Virginia State University.