Morning journal and courier., 1883-07-10
5olriraI arl6 Gmuier.
EDITED AND PUBLISHED BY
Tuesday, July 10. 1888.
FRANCE,s RAmnoAD PRoBLEsT.

FRANCE's RAm4a0AD PROBLEM. France has 8 good.sized railroad prob.
 lem" on hand. The plan, of public works
 known as the Freycinet plan. which was en-
 Enthusiastically adopted by the Chamber and
 Senate in 1878. and faYored by the
 people, included the construction and operation by the State of lines of rail road in all portions of France. But the
 Freycinet scheme was too big, even for
 France, and it has lately become clear that it
 cannot be carried out, because money enough
 cannot be obtained. But good
 many millions have been spent, and
 the people are expecting the new railroads
 which have been promised and in some cases
 begun. Therefore it was decided to have the
 projected railroads made by the railroad com. panies already in existence. As some re- sistance to this plan was expected from the companies they were given to understand that if they did not relieve the State of the
 burden of constructing and working the pro- jected lines of railroad the State would ex- ercise it's right of repurehase. This right of repurchase is one given to the State by the charter of every railroad corporation in France, to purchase the road, rolling stock and fixtures of the corporation whenever it may see fit to do 50. Under this pressure the companies yielded, and after months of negotiations conve ntions have been signed with four ont of the six companies of France, by which each one of these compa- nies assumes the burden of constructing and working the lines of railroad projected in that portion of the country traversed by it's line, and of operating those lines already completed and operated by the State, which lines are worked at dead loss. If the gov. ernnent chooses to buy out the railroads | within fifteen years it must reimburse the | lines, in addition to paying for the lines. 1 Purchase made after fifteen years will be &C., l cording to the terms in the original conses- l sion. The government is to have share in | the surplus earnings, and provision Is made | for Q reduction of freights and fares.
 This scheme does not meet with universal | approval. Among those who do not favor it | is M. Clemenceau. He is reported as say- | ing: These conventions, if finally agreed I upon, will be nothing more than an abandon ment of the right of repurchase in exchange
  right is one which the State reserved when it granted to the companies the monopoly of | the railroad business of the country. The lines created by the companies net being suf- fcient for the necessities of the country, the State is obliged to create another series, and by the convention the companies ars to con- struct three lines within period of ten years. It is clear to me ? that during these ten years the State win not be able to exer- cise it's right of fepurchase, and when 1t dees so 1t will have to give the companies, during the time that their concessions will still have to run, an annual sum equal to their annual net earnings at the tine of the repurchase. beside paying in cash for the rolling stock, etc. The conven- tions have rendered this very much mere extensive operation than it would be now. They provide for division of the profits beyond a certain figure between the State and the companies. This means, simply, that when any one of the companies is earn ing enough money. not only to pay the in- 5erest and principal of it's funded debt but also to give it's stockholders certain fixed dividend, then all that it gains annually above hat amount shall be divided between it and he State.
 Possibly all will turn out as M. Clemen- ,eau predicts, but the State has failed to 'arry out it's railroad programme and some body must do it. If the railroad companies and carry cut the great work they will deserve all they will make out of 1t, and no1e Loo' ..-..-