It was founded by the Vering & Waechter railway construction and operating company, the firm of Doertenbach & Co and the Central German Credit Bank (Mitteldeutsche Creditbank).
The DEBG immediately took over from Vering & Waechter the running powers for twelve branch lines with a total length of 184 km.
The loss of the lines in Alsace-Lorraine was balanced out by the procurement of five railways from the Badischen Lokal-Eisenbahn-Gesellschaft (BLEAG) on 22 December 1931.
In 1956/57 it sold the electrified sections of the Alb Valley Railway, that ran from Karlsruhe to the northern Black Forest, to the state of Baden-Württemberg, who transferred them to the newly founded Abtal-Verkehrs-GmbH.
The remaining ten lines in Baden-Württemberg were transferred by the DEBG on 1 May 1963 into the newly formed state-owned Südwestdeutsche Eisenbahn.