SITUATION OF Faysai RAILWAYS OF GENES/AL brrgaasr ix 1912 In operation 40,750 kilometers (25,320 miles) Concessions 43,000 kilometers (26,719 miles) Million Preliminary expenditure francs By the State or localities 8,038 $1,607,600,000 By the companies. 11,682 2,336.400,000 19,720 83,944,000,000 Characteristics of the Present System of French We have seen that the railway system which has prevailed in France is rather due to circumstances than to the reali zation of theoretical ideas.
It is a mixed system, .which, while respect ing the supreme rights of the state and accord ing it a very extensive control over the com panies, leaves the latter as much independence and initiative as are necessary for the proper management of their business.
The companies enjoy a monopoly and oper ate the lines, while the state continues to own them, and only concedes them for a limited period. Entrusted with a public service the rights and duties of the companies depend, on contracts made with the state, which exercises over their management a threefold control— financial, technical and commercial, in virtue of the threefold character of the railway system. The exercise of this control comes under the powers of the Minister of Public Works, who is assisted by various commissions, according to the nature of the questions at issue. The most important of these commissions is the Advisory Railway Board, whose functions are chiefly commercial. .
Financial The financial system of the companies is regulated by agreements, viz.: Those of 1883, which are actually in force, and of which the details have been given above. The state, having refused to divest it self of its proprietary rights over the railways, and on the other hand having compelled the companies to construct costly lines, has been led not only to undertake a part of the initial out lay but also to guarantee a minimum interest on the capital invested. Consequently, the state must satisfy itself as to the correctness of the companies' accounts in respect of initial outlay and working expenses. since these determine
the amount of the guarantee of interest, and also of the annuity to be paid the companies in reimbursement of their advances. The state also controls the financial situation of the com panies. It sees that the issues of bonds are sufficiently guaranteed, and that a right propor tion is observed between the shares and the bonds. Lastly, the law of 27 Dec. 1890, places the statutes of the companies' pension funds under ministerial control.
Technical The state intervenes also in technical questions. When the com panies are constructing new lines, the plans and estimates must be submitted to the minis ter, who has the draught verified, and sees that all the works are planned in accordance with scientific requirements and satisfy the terms of the accepted estimates. Moreover, he causes the execution of the works to be supervised. 'hen the companies wish to improve existing lines or to increase the working stock, they must likewise submit their plans and estithates to 'the minister's approval. There is govern ment control also over all regulations touching the working of the lines, over the speed of the trains, the limitation of hours of labor, and various internal matters. The railway police is regulated by the law of 1845 and the ordinance of 1846, modified in 1901.
Commercial System.— Railway tariffs affect public wealth too deeply to have escaped gov ernment control. To begin with, in the terms of contract appended to the grants, maximum tariffs were laid down for passenger and freight services; these cannot be exceeded by the com panies though they may reduce them as much as they please. However, such reductions can not come into force till they have been con firmed or approved by the minister, who has right to withhold confirmation or only to accord it subject to certain modifications. This gives the government a means of exercising pressure on the companies in such direction as it may desire.