New-York tribune., 1921-10-24
Rail Problem
Giving French
Much Trouble
LEGISLATORS Seek to Reduce
Government Deficit by In
creasing Tariffs; Economy
Being Stressed in Budget
Equilibrium Is Sought
Inability of Devastated Re-
gions to Meet Prc-War
Rate Cuts Tax Receipts
specia, coole to Tho Tssou~s


PARIS, Oct. 23.-With the return of
the Chamber of Deputies the dominant
question Of the hour is budgetary
equilibrium, but so far the only step
toward the required 100000, 900 franc
reduction has been an economy of
100000 francs net in the public serv.
ice department.
An adjustment undoubtedly will be
effected resulting in a small increase
In taxes, plus loan to cover the bal
ance. France is gradually adjusting
conditions to the heavy financial bur
dens, but with the trade crisis still to
be conjured with additional levies must
be gradual in order to avoid sitting
private initiative. The 1914 budget of
t,O0O,OOO,O0O now has been permanently
augmented more than four times
When it Is remembered that 80 per
cent of the levies were taken from the
section devastated during the war, and
that the full amount Of taxes will not
be available in these regions until 1927
when reconstruction will be completed
there, the situation indicates that in
600 annually will be obtained within
five years.
Railroad Problem
AS public opinion has now linked
signs of recovery with the agreement
reached with Germany at Wiesbaden
the paramount remaining problem
awaiting solution is the reorganization
of the railroads, which have always
been under private management except
the Quest Etat. Before the war the
railroads averaged enough to pay
fixed charges. Stocks and bonds OF
railroads are guaranteed by the govern
ment through an agreement by which
the railroads will gradually pass under
aSate ownership in 1880. Public opin-
ion is strongly opposed to an exten-
sion of state activity now and it would
not be surprising if public monopolies
are abandoned as improbable. During
the war the railroads were greatly
overworked and in the zone Of German
occupation were systematically de,
stroyed. Now the pre-war status has
been restored. Of the 600 bridges de-
stroyed 565 have been rebuilt, while
locomotives number more than 1000
above the pre-war total. Recently an
American block system has been in
stalled at great expense. Plans for
electrifcation are being rapidly pushed
and it is estimated that within six
years 5000 kilometers will have been
completed for harnesslng the water
power of the Alps and Pyrennes.
TO cover these productive expendi-
lures the Chamber of Deputies is now
preparing to ratify bill already
passed by the Senate for large in
crease in tariffs, amounts of which are
left to the discretion Of the railroads
These may reach 130 per cent for
freight and baggage and 100 per cent
for passengers. They are to continue
until 1926. The railroad deficit last
year of 3,0o0,000,o00 francs was due to
adoption of the eight-hour day and to
reconstruction improvements. Now con.
ditions are rapidly improving as q
result of lower coal prices and the ter
mination of reconstruction.
Small Holders Suffer
The government has already treated
holders of rail securities on a par
with holders of government bonds, be-
cause they are numerically powerful
Statistics show 100000 persons hold
less than ten shares, controlling more
than rs per cent of all issues. These
small holders have suffered from the