The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-03-27
JAPAN MAY LEASE
HER RAILROADS
FINDS BURDEN OF NATIONALIzED
LINES TOO HEAVY FOR HER RE-
SOURCES.

TOXIC, March 15.-The government
of Japan, finding that the self-imposed
burden of nationalized railroads Is
likely to prove too heavy, Is now en-
gagged in consideration OF tentative pro-
iects for relieving itself and at the
same time serving the double purpose
of building up the industries of the
country, providing additional exports
for it's subsidized steamship lines, and
increasing it's own income by the reve-
nue. derivable from increased produc-
ton.
=, To the layman nothing presents too
difficult a problem at TIE present time
as that of high finance in Japan. The
tremendous outlay on army and navy
has been and still continues to be the
point on which statesmen, politicians,
and financiers are quarreling. With
&C per cent of it's appropriations given
to the three divisions, finance, army,
and navy, necessarily but little is left
for the much needed improvement OF
the railroads, and in the present condi-
ton of the country the $4O0,00O,O0O
that must be paid to the old railroad
companies for the purpose, will strain
the ingenuity of the fnanciers who
have undertaken the reorganization.
Meanwhile but little can be done tc
extend the trackage throughout those
sections of Japan where it is much
needed for development, and to inn
prove and equip the present lines Il
such a manner as to enable them t;
fetch and carry in an adequate de
gree. 1t is quite realized by CONNER
cial men who opposed the nationalist
ton of the railroads at the time thu
questions came up, and by those wht
favored the movement, but have since
, changed their views, that without
; network of railroads in the island !:
would be impossible to develop re
: sources, and consequently impossible
for the government to adjust it
finances so that in future years its In
come may meet it's necessary and legit
innate expenses.
1t is in this connection that tinan
ciers, engineers and railroad men from
foreign countries have been in confer
ence for the last month and more will
certain leading men in Japan. 1t Il
understood that the proposition nov
finding favor be leased for period o
years to {. private company or syndi
cate, which will take from the shoul
ders of the Japanese government tn
financial burden and responsibility
has undertaken in this connection
which will pay to the Government
certain percentage of profits and will
undertake improvements and extern
sions under a given schedule. TIT
plans to this connection are at pres
ent entirely tentative, but it may b.
stated that they have assumed some
what concrete form and that unde
certain conditions European financier
have expressed their willingness u
undertake the work.
1t is pointed out that when the gov
eminent of Italy nationalized the rail
roads many years ago it discovered
like Japan, that the undertaking wa
likely to hamper the normal mOvemen
of the country's finance, and that
plan somewhat similar to that nov
under consideration here was adopteu
with great success.
The influence that has undoubtedl
prompted Japan to take into consid
Grafton this question of the futur
conduct Of the railroads is stated to b
the fact that, in view of the financia
necessities of the coming twelv
months financiers believed that a for
eign loan was inevitable and the for
eign markets sounded. 1t then devel
oped that Europe and America re
garded the naval and military poll