Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-08-29
france and Her railroads.
Springfield Republican.

France, about whose financial sa
gacity there has been absurd boasting,
has at length got to the end of her
rope of perpetual borrowing and not
paying. The country that borrowed
the millionswith which to pay Ger
many so easily has been borrowing
ever since, and now can borrow no
longer. The debt of France is S6,0O0,-
100000, or II times that of Great
Britain and q times that OF America.
Every Frenchman owes $50 francs,
every Engl shman 759 and every
American 253. The French governs
ment required of late years substanti.
ally $500, 100000 every year to meet its
current expenses and interest. Even
then there was an accumulation of
floating debt so large that the public
refused longer to subscribe to the
rentes. Now it makes no difference
how many troops and ships a power
may have it is in no coalition to
take an aggressive attitude when its
own bourse throws back its bonds in
its face. France is really to day,
therefore, financially crippled. The
effort to refund the debt and reduce
the rate Of interest has not proceeded
far enough to relieve the treasury
very much, but something has got to
be done.
Of recent years much debt has been
incurred to carry out the unfortunate
railroad development project in 1878
by Minister Freycinet. The French
railway system consists of six great
companies, constituting the old net.
work, as it is called, and the lateral
lines, constituting the new network.
On the LIST Of January, 1879, the trunk
lines had a mileage Of 9706 kilomes
metres, and the laterals 1857 kilo
metres, or together about $1,000 kilo.
metres--say l4,000 miles, when Great
Britain at the same time had nearly
$4,000 and the United States 81 GOO
miles. The railroads of France, in
fact, failed to develop with that activ-
ity which the opening of the whole
country demanded, notwithstanding
the ACKNOWLEDGEMENT dividend
on all new lines of four per cent.
While the six trunk lines radiating
out from Paris became rich and poWA
erful companies, they have not been
stimulated to build branches to out of
the way places. Minister Freycinet
projected a scheme of petty railway
branches which would cost 81 ,600,-
600, 900, or more than the bonded debt
Of the United States at this time
The adoption of this scheme and the
attempts to. carry it out explains why
France is much over burdened with
debt and taxes to day.
The French ministry is engaged
during the present session of the As.
sembly in extricating itself from this
fatal enterprise by an agreement with
all the six great trunk lines to build
the six new laterals and take them
partly off the hands of the governs
ment. The six main lines are the
Paris, Lyons and Mediterranean, the
Paris and Orleans, the Northern,
Western, Southern and Eastern. The
greatest of all is the Paris, Lyons
and Mediterranean, which control
some $500 miles, and has gross receipts
of S60,000,000, which is more than
that of the Pennsylvania railroad, and
double that OF the New York Central.
Its net earnings are about 10000, 900.
These great properties have been
somewhat depressed by the apprehen-
sion that the government would exer-
else the right reserved to it
under the charter to foreclose them
outright, and, in fact, parliamentary
opinion leaned that way until it be-
came evident that no government
could stand under such load OF debt
and Administrative labor.
The railroads, therefore, are very
glad to observe the healthy change Of
opinion in this respect, and are more
willing to undertake the construction
Of new lines. They were at first dis
posed to demand the surrender Of the
government right of purchase, but
when they saw the public were cons
WINGED of the futility OF ever exercising
that right, they ceased to use the formal
concessions. The Ferry Ministry
is therefore about concluding con
ventions" or agreements with all six of
the trunk lines substantially to take
off the hands of the government the
self-constructed new lines and to com
plete them at a specific mileage per
year. These conventions differ with
different roads, but in general the ex-
listing trunk lines agree to build new
laterals in its own field at such rate
per year, furnishing from $4,000 to
$4,000 capital, and above this amount
issuing bonds, guaranteed by the gov
eminent and agreeing to division of
net earnings above q certain per cent.
The roads are to furnish rolling stock
and equipment.
OF course there is opposition to the
project, and altogether it is one Of the
most delicate, economic questions
which the republic has had to deal
with. The people and the grangers
are afraid that the great monopohes, "
as they call the six trunk lines, are
getting the best of the bargain, and so
bright man as DR.. Clemenceau, of
Paris, we think, takes this view. This
disposition of the matter, if it is
finally adopted by the Senate and the
Assembly, probably postpones forever
the State purchase Of railways in
France.
The police -ol Toulouse, France,
made descent upon the house Of
grocer, named Rouzoul, and rescued