The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-03-16
JAPS UNABLE To
CARRY BURDEN
NATURALIZATION OF Railroads
Not So Easy to Bring
About.
PLAN MUST BE ABANDONED
OPPORTUNITY WILL BE GIVEN
OUTSIDE CAPITAL.
PLAN MUST BE ABANDONED

Toxic, March 15.-The government of
Japan, fading that the self-imposed
burden of nationalized railroads is like
1y to prove too heavy. is now engaged
in consideration of tentative projects
Tor relieving itself and at the same
time serving the double purpose of
building up the industries of the coun-
try. providing additional exports for
its subsidized steamship lines, and in
creasing its own income by the revenue
derivable from increased production.
To the layman nothing presents so diff
ficult a problem at the present time as
that of high finance in Japan.
But Little Left.
The tremendous outlay on army and
navy has been. and still continues, to
be the point on which statesmen, poll
ticians and financiers are quarelling.
With Sc per cent of its appropriations
given to the three divisions, finance,
army and navy, necessarily but little
is left for the so-much needed improve
ment of the railroads, and in the pres
ent condition of the country the $780,
100000 that must be paid TO the ola
railroad companies for the purpose
will strain the ingenuity of the finan-
ciers who have undertaken the re-
organization. Meanwhile but little can
be done to extend the trackage
Throughout those sections of Japan
where il is much needed for develop
ment, and to improve and equip the
present lines in such a manner as to
enable them to fetch and carry in an
adequate degree. 1t is quite realized
by commercial men who opposed the
. naturalization of the railroads at the
time the question came up, and by
those who favored the movement but
have since changed their views that
without a network of railroads in the
island il would be impossible to devel-
OPP resources. and consequently impos-
sible for the government to adjust it's
finances so that in future years its in
come may meet its necessary and le-
Ultimate expenses.
q Chance for Syndicate.
n is in this connection that finan-
cierS. engineers and railroad men from
foreign countries have been i'm confer
ence for the last month or more with
certain leading men in Japan. IL is
understood that the proposition now
finding favor is that the railroads of
Japan should be leased for period of
years to private companies or syndi-
Gates, which will take from the shout
ders of the japanese government the
financial burden and responsibility it
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. The
plans in this connection are at present
entirely tentative, but il may be
stated that they have assumed a some
what concrete form, and that under
certain conditions European financiers
have expressed their willingness TO un-
dertake the work. 1t is pointed out
that when the government of Italy
nationalized the railroads many years
ago it discovered, like Japan, that the
undertaking was likely to hamper the
normal movement of the country's
finances, and that a plan somewhat
similar to that now under considera-
tisn here was adopted with great sue
cess. 1t is doubtful, however, if any
thing more definite along these lines
viii, at least, be made public until
after the coming general election.
Moneybass Said Nay.
The influence that has undoubtedly
prompted aDan to at least take into
consideration this question OF the ~
Afure conduct of the railroads is stated
70 be the fact that, in view of the
financial necessities of the coming
twelve months. financiers believe that
a foreign loan was inevitable. and that
the foreign markets were sounded 1t
Continued on page 2.