The evening times., 1899-06-21
AMERICAN CAPITAL
IN SWISS RAILWAYS
A Profitable Field for United
States Investors.
An Interesting Report From Consul
Frankenthal.
Requirement. of the Authorities Be-
fore COncessiOns for TranspOrta-
tion Lines Are Granted.

The subject of American capital in Swiss
railways is most Interestingly treated by
Consul Adolph L. Frankenthal, OF Berne,
In a report just issued by the State De-
partment.
Firms seeking investments in Switzer-
land" says the report. will find conces-
sions granted for future roads of main in
terest In proportion to its area, no coun-
try equals Switzerland in the number OF
| railways in actual use and projected, or
in the diversified application of motive
powers
The existing roads of Switzerland are
classified in the following manner: Main
steam trunk lines, rs, aggregating 1,943
miles; narrow gauge lines, "a, 1886 miles;
| cogwheel lines. 10, 56.5 miles; cable lines,
&C. lis miles; street car lines, 26, SS9
miles. A table of the individual roads,
containing useful information concerning
them, is also included in the oonsufs re-
port.
On September /, 1898. the number OF
concessions granted for the building OF all
kinds of railways, says the consul, includ-
ing tramwayS or street car lines, amount
ed to 126. with a projected length OF l,263
miles, OF this number AZ are to be equip
ped with electricity. A table follows, CIV
ing the name of the proposed roads. the
holders Of the concessions FOR building
them and other pertinent information.
THE cheap and simple method OF obtain
ing concessions is, no doubt, responsible
for the great number OF projects, which
may be kept alive for quite length OF
time to prevent the construction OF other
lines and then traded off as seems most
advantageous. The time for which con-
cession is granted is for eighty years. No
deposit is required for the fulfillment OF
a project that has been conceded. Renew
ais may be granted at a stated time. II
proper reason for the same can be given.
The federal railway laws apply also TO
tramways or street-car lines.
"As a rule, the average time allowed IN
which to submit for approval to the Fed
eral Council plans of road for which a
concession has been granted is eighteen
months Six months later the building OF
the road must commence, and this should
be finished during the following eighteen
months; so in all, about three and half
years are given for the completion of a
road from the time that the concession Is
granted.
The first step to be taken, If a tramway
is projected, is to apply to the cantonal au-
thorities for permission to have the use OF
their streets. This is done by petition.
After receipt of the permission OF the can
tonal authorities, another petition is
drawn up to be presented to the federal
authorities. A printed formula sufEices,
and this is provided by the government
and is the same for electric, steam. or any
other railway. Annexed to this formula
are printed extracts and rules from the
federal laws. The Federal Council can
deny a concession if the same should be
against the military interests of the Con-
federation. The Federal Council has the
right to grant a concession even against
the protest of a canton. In concessions.
no discrimination OF exclusive rights not
to be shared by others can be granted and
no restrictions against the building of fu-
ture railroads. Rules and regulations OF
corporations cannot be altered. except by
permission of the Federal Council.
The following must also be presented:
A perspective plan upon the federal atlas.
where the projected line will be exactly
shown in red lines: a situation plan; a
profile plan: a statement of approximate
cost per kilometer; general technical
statement regarding the building of the
road; statements as to deviations from
the concessions, should occasion demand
any: two hundred extra perspective plans
for the use of the members of the Federal
Council; twenty copies of the printed by
laws. as accepted by the corporation and
certified by the Federal Council.
The Federal Council reserves the right
to alter plans even after their acceptance,
if the safety of the road is in question. All
articles having scientific value, such as
medals, moneys, petrihed objects, etc. If
found in the earth during the building of
the road, must be turned over to the can
tonal authorities without charge. fed
L..
building of the road, and has at all times
the right to enter the premises. At least
two trains each way have to be run daily.
1t is requested that the American system
of cars be used in contradistinction to the
French system.
"The rates of fare for a single fare have
to be: First class. 10 centimes; second
class, centimes: and third class, CEN
times per kilometer Q.93 cents, and O.955
cent per 062l374 mile.)
When the receipts show a profit of over
6 per cent annually for three successive
years, the maximum fare has to be re-
duced. Should the receipts not cover ex-
penses, inclusive of the interest on the
shares, the Federal Council has the power
to order an increase in the rate Of fare.
The corporation is compelled to open q
reserve and repair fund; also to have its
employees insured against sickness and ac-
cident. Further, under the law Of July !,
1875, regarding responsibility toward trav-
elers, the corporation is compelled to in
sure all of its travellers. At least every
third Sunday is to be allowed the en-
ployes as holiday.
NO concession can be made to third
parties without the consent of the Federal
Council. The federal laws as to obliga-
tions and right Of way are applicable to
all concessions.
AFTER completion OF the railroad. the
corporation must file with the Federal
Council full statement as to its cost, and
any further addition Of rolling stock, etc.,
must be described in supplementary sta e.
ments. The Federal Council reserves the
right to apply the following tax to rail-
roads. Fifty francs ($9.65) per annum,
provided the net receipts are per cent Of
the capital; 100 francs (s19.30) per annum,
provided the receipts should be between 5
and per cent; and 200 francs ts3S.6O),
provided the net receipts should. be over 6
per cent. These taxes are collected for
every kilometer operated.
After May /, 1915, the cantonal or fed
eral authorities have the right to purchase
any road in existence, provided three years
notice is given. If an agreement to pur-
chase be entered upon and concluded up to
May !, 1880, twenty-fv times the value of
the net earnings for the ten years previous
has to be paid; between the year 1880 and
1915, twenty-five and one-half times the
net value; between the years 1915. and the
end of the concession, twenty times the
net value is to be the sale price. In case
the canton is the buyer. and the federal
authorities demand control of the proper
ty, the canton is compelled to deliver to