Evening star., 1932-05-27
PLAN TO SADDLE AMERICANS
WITH GERMAN RAILS OPPOSED
European Capitals Test Out Offer to Turn
Over Bonds in Lieu of
War Debts.

transportation system, Is viewed by
American business men here as un-
workable.
Granted the American Government
were to agree to such an exceedingly
low rate of interest as / per cent an
nually, the charges on the total amount
of the allies funded debt agreements
would approximate sl20,000,000 an
nually. 1t is pointed out.
With the fixed interest charge of the
railway system approximating $25 000,-
600 annually. exclusive of depreciation
or provision for replacements, the pres
ent condition of transportation, both
passenger and freight traffic, indicates
any additional burdens placed on the
system probably would only weaken 1t
to a point bordering on collapse.
Suffering in company with railway
systems the world over. but probably
les than in some countries where the
railroad financing was not closely scru-
tinized. the Reichbank's operating reve-
nues for 1881 were 1862 ,000, 900.
Charges Enumerated.
Against the operating costs were
s905, 100000 before interest. taxes or
other charges. Before these charges
the net remaining was 226,000, 900
UldTKS-dDOuL SoOUCU,UUU.
Against this 10000 900 marks t56,-
600 ,000) in the first half Of last year,
$50 100000 marks about $4,000 .000)
were paid as the railways share of the
reparations payment.
In the second half year, which the
Hoover moratorium did not technically
affect, the Reichsbank paid 100000 900
marks (S76,000 000), but the Bank for
International Settlements reloaned the
money to the system.
To these charges must be added in
terest disbursements and depreciation,
estimated at about S27,250,000 fo-
the year, making aggregate charges Of
about S815 $50 600 to be met by the
operating net revenue OF about $685.
10000.
S129,500, 900 Lost in 1881.
The year ended with the Reichsbahn
losses at about sl29.500000. Deprecia-
ton in traffic accounted for drop in
income of l6 per cent, compared with
1880, and of 90 per cent. compared with
1929. Because of the slump $500 loco
motives have been laid up and more
than 10000 box cars taken out Of serv-
ice pending a strengthening in demand.
There is the additional difficulty in
selling" the proposition at home in
Germany. where some $4,000 900 was
subscribed in the Fall of 1881 and dur
ing 1882 to a "tax-free" Reichsbahn
loan. foated with many attractive fea-
tures. TO bring boarded foreign cur
rency in Germany out of hiding. Rep
resenting a considerable cross section of
the German people, this loan might be
a bar to additional liabilities heaped on
the system.
In the face Of opposition from the
German people, it is pointed out even
small portions Of the bonds probably
could not be successfully floated. be-
cause an easily organized boycott Of the
railways here could do untold harm to
the receipts The BOYCOTT Is all the more
feasible when Germanys extensive
canal and river transportation system
is considered.
German railways are not in their
present condition because they ran with
wide-open throttle into the fog OF TO-
days conditions There has been much
retrenchment, personnel dropping from
700, 900 in 1880 to 643, COO in 1912.