TRANSPORTATION. At the close of the nine teenth century Italy had a railway system with a total length of nearly 10.000 miles. The mileage is the smallest of any leading country in Europe, and is less per square mile of area than is eom mon in Western European countries. As a result of the peninsular position of Italy. the traffic of its railroads is mainly local, which has not justi fied the construction of a large mileage, and is partly responsible for the financial difficulties which have overtaken the operation of the system, as below described. The Apennines. extending through the length of Italy, divide the railway system into two distinct. groups. called the Medi terranean and Adriatic. respectively. Each of these, as well as the respective lines of Sicily and Sardinia, is operated under the of 1885 by separate eompanies. The first railway in Italy was built in 1839. to connect the city of Naples with Portici. a distance of live miles. In 1860 there were 1118 miles. about one-fifth of which belonged to the State, the remainder being owned by seven railway companies. In 1869 the State undertook the construction of new railways, and by 1870 owned nearly two-thirds of the total, 3962 miles. By 1879 the mileage had increased to 5228 miles, and as the growth of the system did not keep up with the needs of the country, there was a popular clamor for a more rapid construction of railways by the Government. In 1879 a law was enacted with a view to meeting this demand, providing for the construction of upward of 3728 miles, at an expense of about $240.0m.000. As the Govern ment found insuperable financial difficulties in trying to carry out this provision. it was com pelled to give up the undertaking in a few years.
In 1SS5 an agreement was reached with three private railway companies. whereby the latter were to take over the three principal lines of the Kingdom, and were to he designated as the Mediterranean, the Adriatic, and the Sicilian Railway companies. By virtue of this agreement these companies have the operation of the Gov ernment lines for a period of sixty years, either side, however, to have the right to terminate the contract at the expiration of twenty-year periods.
The companies pay the Government the total sum of $53,000.000—$28,800,000 to be rebated by the latter for the extension and improvement of existing lines. and the remainder to be spent for the purchase of additional rolling stock and the construction of new lines. The companies pay all operating expenses, and. in addition. from 10 to 15 per cent. of the gross revenue of each road is put into a reserve fund to offset the wear and tear on roads and rolling stock. The State receives, moreover, per cent. of the gross revenue of the continental roads, and 3 per cent. on the Sicilian roads as rent. besides an equal share of all profits in excess of an annual dividend on the capital stock of per cent. The Government may demand from the companies an annual expenditure of not more than 820. 000,000 for new railway construction. The money is raised by issuing 3 per cent. bonds guaranteed by the Government. When the lines revert again to the Government, the companies are to be reim bursed the sums originally paid by them for the railways, with due allowance for the depreciation of the property.
This scheme has not resulted in a more rapid development of the railway system of Italy, the cost of construction hat ing proved so high that it has involved the Government in financial difficulties. A Parliamentary commission ap pointed in 1895 to investigate the method em ployed in the construction of nine lines elicited the information that the actual expense incurred exceeded the amount originally authorized by $30,000,000. the respective figures being $70,600, 000 'and $40.600.000. making an excess of 74 per cent. over the sum authorized.
The total cost of the railway system up to IS9S was $993.933.000. The number of passen gers carried annually increased from 34,040,515 in 18S1 to 54,415.294 in 1897.