I am not sure whether the following problem has been studied.
We have a undirected tree $T$. We would like to construct another tree $T'$. $T'$ is a binary tree. Each inner nodes of $T'$ is an edge of $T$. The set of leaves of $T'$ is the same as the set of leaves of $T$. $T'$ is constructed as follows:
We pick an edge $e$ in $T$, which breaks $T$ into two parts $T_1$ and $T_2$. $e$ is the root of T'. we recursively construct the left and right subtrees of T' from $T_1$ and $T_2$ respectively. The cost of T' is $\sum_{v:leaves}Length_{T'}(P_v)$ where $P_v$ is the path from the root to $v$. We would like to find the tree T' that minimizes the cost.
I suspect the optimal algorithm is to pick the edge which split the number of leaves as evenly as possible and recurse. However, it seems to be a clean problem that has been studied. But I have no idea what to search. Any help will be appreciated.