The Birmingham age-herald., 1908-03-16
OWNERSHIP
 IS WHITE ELEPHANT
Japan Wants to Rid Itself of
 Burden
MAY LEASE PROPERTIES
Financiers, Engineers and Railroad Men From Foreign Countries Are Called Into Consultation by
 Japanese Officials.

Tol<io, March 15.-The government of Japan, finding that the self-mposed bur den of nationalized railroads is likely to prove too heavy, is now engaged in con- sideration of tentative projects for reliev- ing itself and at the same time serving the double purpose of building up the indus tries of the country, providing additional lines and increasing its own income by the revenues derivable from increased produc ton. To the laynan nothing presents so difficult a problem at the present as that of high finance in Japan.
 The tremendous ontlay on army and navy has been and still continues to be the point on which statesmen, politicians and financiers are quarrelling With 66 per cent of its appropriations given to the three divisions, finance, army and navy, necessarily but little is left for the so much needed improvements of rail roads, and in the present conditions Of the country the s400,000,000 that must be paid to the old railroad companies will strain tho ingenuity of the financlers who
 
 It is in this connection that flnanciers, engineers and railroad men from foreign countries have been in conference for the last month and more with certain leading men in Japan. It is understood that the proposition now finding favor is that the railroads of Japan should be leased for a period of years to a private company or syndicate, which will take from the shoulders of the Japanese government the financial burden and responsibility it has undertaken in this connection, which will pay to the government certain percent age of profits and undertake improve mcnts and extensions under a given per centage.
 The present plans In this connection are entirely tentative, but it may be stated that they have assumed a somewhat con crete form, and that under certain con ditions European financiers have ex- pressed their willingness to undertake the work. It Is pointed out that when the government of Italy nationalized the rail- roads many years ago, 1t discovered, like Japan, that the undertaking was likely to hamper the normal movements of the country's finances, and that a plan some what similar to that now under considera tion here was adopted with great suc-
 
 more definite along these lines will be made public until after the coming gen eral election.
 The information that has undoubtedly provoked Japan to take into consideration this question of the future conduct of the railroads is stated to be the fact, that, in view of the financial necessities of the coming F months, financiers believed that a foreign loan was inevitable and the foreign markets were sounded
 It then developed that Europe and America regarded the naval and military policies of Japan, which it was thought indicated an expectation of trouble. as fatal to Japan's credit as borrower of large amounts in the foreign financial field. In other words Japan has been told that money will not be forthcoming for the building up of an army and navy beyond such standard as it Is reasonable to expect Japan to maintain.