tition, to build a net-work of feeders to these main lines. The companies finding this agreement a hard one to fulfil, the government, by laws of 1859 and '63, allowed them to issue bonds, itself guaranteeing 4.65 per cent. interest thereon for 50 years, the 65 p. c. becoming a sinking fund. The receipts from the old or main lines were calculated, and a sum per kilometre definitely proportioned to the income, was fixed, which each company might apply to its operating expenses, interest on bonds, dividends on stock, and any difference the company might have to pay between the interest guaranteed and the interest to be paid. Any excess beyond this fixed sum was applicable to any deficiency arising from the working of the new lines. If after such application of the excess, a deficiency should still exist, the government was to make it good to the extent of its guaranty. Any advance by the government to be treated as a loan, repayable with 4 per cent. simple interest.

The amount of aid which had been given to railway companies up to 1864, is shown below. Considerable further assistance has been given them since that date, but the exact statistics are not at hand: Aid Granted to the Railways of France.

Totals......

823,536,887

2,462,867, 2,818,637 634,576,670 187,556,153 6, 405,758 1,099,875, 548 218,991,009 14,176,976 937,446, 391 338,705,803 4,002. 275 1,316, 405,652 369, 586, 677 27,009,824 2,233, 455,572 175, 200.000 390,000 647,946, 887

8,217, 008, 499 1, 292, 502,509 54, 803, 470 6,869, 702, 520

The regulations governing rates were the same for all the companies, and the financial arrangements in accordance with a fixed principle. All charters are for 99 years, at the end of which period the government becomes possessed of the roads on condition of paying for the rolling stock and other movable property. It may, indeed, purchase the lines of a company after 15 years from date

of charter, on condition of paying the company an annuity equal to the mean net profit of the most profitable five of the last preceeding seven years; provided that such annuity shall in no case be les than the net profit of the last year of the seven.

Maximum rates and fares, as well as the classification of freights, are determined with the approval of the government, but much liberty is allowed as to lowering rates and making special tariffs. Publicity of all rates is imperative and no change can be made without a month's notice. Through rates, running powers and

other facilities about which there has been so much discussion in England and in this country, are provided for by law. The control of railway matters is with the Central Railway Commission, of which the Minister of Public Works is president.

The surveillance is very extensive and minute, being in the hands of officers who have been thoroughly trained in the great technical schools of the empire.

It has been claimed that the absence of competition results in a falling behind other countries in the matter of improvements, etc., but the system certainly works smoothly and very satisfactorily in all other respects. The Republic appears to have considered it good enough to let alone.

3. The railway problem in Germany.

In Germany the railway system is mixed; some roads being owned and managed by the state, others by chartered companies.

The Prussian government started out in 1838 on the anti-competition principle, enacting that no second railway running in the same direction as the first, and touching the same principal points, should be constructed by any other parties than the company conducting the first railway, within a period of 30 years from the opening of such railway-a law which proved repressive of railway enterprise and often disadvantageous to the public. The same law reserved to the state the right to purchase any railway, for due consideration, within 30 years from date of opening.

Under the Empire all railways in the several states confederated are to be administered as one system, which has been considerably extended in liberality as well as scope, since its inauguration.

As the constitution of the empire lays down the general principles of the system, we here introduce so much of that instrument as relates to railways:

"PART VII. RAILWAY MATTERS.

"ART. 41. Such railways as are deemed necessary, either for the defence of Germany or the public intercourse, may be constructed by virtue of an imperial law on account of the empire, notwithstanding any opposition of members of the confederation, without prejudice, however, to territorial rights of sovereignty, or may be conceded for execution to private contractors, and invested with the right of expropriation. Every existing railway administration is bound to consent to new railways being connected with their own at the expense of the former. The legal dispositions granting to existing railway undertakings the right to enterdict the construction of parallel or competing railways, are hereby abolished for the whole empire, without prejudice to rights already acquired. No such right of interedict can be hereafter granted in future concessions.

"ART. 42. The governments of the confederation engage, in the interest of the public traffic, to cause the German railways to be administered as one system, and for this purpose all new railways are to be constructed and equipped according to uniform rules.

"ART. 43. Consequently, uniform working arrangements shall as far as possible be laid down, and especially uniform railway police regulations introduced. The Empire will take care to provide that the railways are constantly maintained by their administrations, in a proper state so as to guarantee their safety, and also that they have the full complement of working material as needed for the public service.

“ART. 44. The railway administrations are bound to establish as many passenger trains, with corresponding rapidity, as are needed for the transit traffic, and to make the proper time arrangements corresponding to each other, also to establish goods' trains in sufficient number having regard to the traffic, also to arrange in return for the usual remuneration, through passengers' and goods' trains, allowing the rolling stock to pass from one railway to the other.

"ART. 45. The Empire is charged with the control of all matters of tariff; it will especially provide:

"(1) That uniform working regulations, as soon as possible, be established for all German railways.

"(2) That the greatest possible uniformity and reduction of the tariff shall take place, especially, that for greater distances, a reduced tariff, corresponding to the wants of agriculture and industry, be introduced for the transport of coals, coke, wood, ore, stones, salt, pig-iron, manure, and similar objects, and, in the first instance, so far as possible, the one pfennig tariff.

"ART. 46. For times of public calamities, especially of dearness of the necessaries of life, the railway administrations are bound to establish, temporarily, for the transport especially of corn, flour, husk fruits and potatoes, a lower special tariff corresponding to the want, to be fixed by the Emperor on the proposition of the proper committees of the Bundesrath, which tariff, however, must not be lower than the lowest rates in force on the respective railway for raw produce.

"The foregoing provisions, as also those contained in Art. 42 to 45, do not apply to Bavaria, The Empire, however, remains invested with the right, even as concerns Bavaria, to lay down, by legislative means, uniform rules for the construction and equipment of such railways as are of importance to the defense of the country.

“ART. 47. All railway administrations are bound unconditionally to obey the demands of the authorities of the Empire as regards the use of the railways for the defense of Germany. In particular, soldiers and all war material must be transported at uniformly reduced rates.”

The laws now in force wisely regulate the matter of through shipments; under general restrictions, leave the companies considerable freedom as to tariffs; require publicity of rates, as in France; are steadily arriving at a desirable uniformity in the matter of classification and working arrangements; and distinctly assert the right of state supervision.

Considerable complaint is made since the Franco-Prussian war, of a want of facilities for the rapidily growing traffic, but the system as such appears to have the approval of the people.

4. The Austrian railway system.

The Austrian closely resembles the German system, being mixed as to ownership and state management. In fact, however, but a very inconsiderable proportion of the lines is worked by the state. The concessions are granted by the emperor for a term not exceeding 90 years, when the line, with their appurtenances, become the property of the state, the rolling stock still remaining the property of the companies. Every charter includes a maximum of rates or charges, but under the maximum the company has general license, subject to a triennial approval by the minister of commerce, and the further provision that when the net profits exceed 15 per cent. the government can reduce the maxima. The government has guaranteed interest on a large proportion of the aggregate cost of the roads. The management is obnoxious to but little censure. In some respects, it is most admirable. The passenger service is especially good.

5. Other countries having similar systems.

Italy, Russia and the Scandinavian states have essentially the German and Austrian systems. They are the more backward of the European states in their railway development, especially Russia, which has but 1 mile of railway to 284 square miles of area, and

Sweden and Norway, which have 180 square miles of territory to one mile of road. Their roads are well constructed, and their working is efficient, and apparently satisfactory to the public.

6. Spanish and Portuguese railways.

As might have been anticipated, Spain and Portugal are imitators of France rather than Germany. All their roads are owned and managed by companies. They show good engineering, but are managed with less efficiency than those of France. The railway problem has not as yet very much agitated either government or people, so far as we have been able to learn.

7. The Belgian system.

The railway history of Belgium is one of peculiar interest. From the beginning of their construction until 1850, the building and extension of the lines was pretty much monopolized by the state; at least to such an extent that, in that year, the proportion of mileage belonging to the state was 64 [per cent. of the whole; the remaining 36 per cent. being in the hands of corporations.

Moreover, during this period the government had occupied the most important routes. Feeling secure, therefore, in its supremacy, it practiced more liberality, granting concessions for the building of very short lines quite freely; so that in 1860 the scale had turned, the proportion of state railways mileage then being but 33 per cent. The concessions to companies are for 90 years, and in most cases contain a reservation of power to purchase on about the same terms as is provided in the French concessions already explained, with the addition, by the government, of a premium of 15 per cent.

It is rarely that pecuniary aid in the way of guaranteeing interest on bonds, or in any other form, has been granted to companies by the state.

The principle of legislation has been to have the companies entirely free as to earnings within the powers allowed, there being no limitation of dividends or provision for a reduction of the maximum rates prescribed in the forms of the concession.

The reliance of the state has been simply on its own skillful management of the great trunk lines of which it was the owner. And so long as the other lines were short and weak, there was little embarassment from any quarter. After 1860, however, some of the lesser companies owning lines susceptible of advantageous consoli