97

D.—l

The Government may require the charges to be increased if of opinion that the proposed line is liable to become a competitor of an existing State railway. Should the earnings of a line be so low that the proportion handed over by the lessee is a less dividend than 3J per cent, on the capital the public authorities concerned must make up the difference between the dividend and their annuities. Any private shareholders, having subscribed in cash, simply receive the dividend as it stands. Should the dividend equal 3J- per cent, the public authorities are not called upon for their annuities. Should the dividend exceed 3J per cent, the annuities are settled, and the balance paid out to the public shareholders as a second dividend. Thus, supposing the capital is 1,010,000 fr., of which 1,000,000 fr. are public and 10,000 fr. private holdings. The 10,000 fr. would be paid in cash, and annuities equal to 35,000 fr. would be lodged by the public authorities concerned. Supposing the earnings to produce 40,400 fr., the private shareholders would receive 400 fr., equal to 4 per cent, on capital; the public shareholders would have Lheir annuities for the year met, and receive a cash dividend of 5,000 fr. Should the earnings only produce 30,300 fr. the private shareholders would receive 300 fr. (= 3 per cent, on capital), but the public shareholders would have to payin their annuities less the dividend —that is, they would require to supplement the earnings of the line by a cash payment of 5,000 fr. to the National Society. This cash payment would be made from the consolidated funds of the General Government, and from the ordinary revenue of the provinces and communes concerned. The necessary 35,000 fr. having been received from the public shareholders, either from their share of the earnings of the line or from the same augmented by direct payments under the terms of the annuities, the money is applied as follows : 3-per-cent. dividend to the debentureholders is first paid, this absorbing 30,000 fr. The remaining 5,000 fr. is used to pay off that amount of the debentures, the recipient being chosen by ballot. The next year the 35,000 fr. being again ready for division, 3 per cent, on the capital (now only 995,000 fr.) is first set aside; this, equalling 29,850 fr., leaves 5,150 fr. to pay off debentures, the recipient being again chosen by ballot. Next year 35,000 fr. is divided into 3 per cent, on 989,850 fr. (= 29,695 - 5 fr.), leaving 5,304 - 5 fr. to pay off further debentures. Thus the interest is gradually reducing, and the amount available for redemption of debentures is increasing, until at the end of ninety years (the term of the annuities) all the capital is paid off. As an instance of actual earnings of some of these lines, for passengers alone, on routes serving approximately two hundred persons per mile, the earnings were 1,856 fr., 2,647 fr., and 1,943 fr. per kilometre year, while from goods traffic approximately half the above would be about an average. In the past the State sometimes contributed less than 50 per cent, of the capital, but nowadays the State's share is practically always 50 per cent. The state of the finances five years ago was as follows : — _ Proportion per Cent. Total capital .. .. ... .. .. 249,226,000 State .. .. .. .. .. .. 103,606,000 41-6 Provinces .. .. .. .. .. .. 70,559,000 28-3 Communes .. .. .. .. .. .. 71,229,000 28-6 Private .. .. .. .. .. .. 3,832,000 1-5 while in 1912 the situation was as follows: — Total capital .. .. .. .. .. 350,144,000 State .. .. .. .. .. .. 153,098,000 43-7 Provinces .. .. .. .. .. .. 97,739,000 27-9 Communes .. .. .. . :■ 94,727,000 27-1 Private .. .. .. .. .. ... 4,580,000 1-3 We thus see that communes and private individuals are gradually contributing less to the schemes, the State finding the balance. Taking the new lines conceded during 1912, ten in number, we find that in only one case was the State's share less than 50 per cent. (44"4 per cent.), while of the lines on which an increase of capital was authorized during the same year, fifteen in number, the State's share was always 50 per cent., and three times over that—as high as 55"1 per cent. To show the variations in the different lines, I quote herewith the actual capital and percentages of same to the whole subscribed for the various lines conceded last year :—

13—D. L

Lii Capital. Private. Peree: itage. Total. State. Provinces. Communes. State. Provinces. Com- I . munes. Pnvate - a b c d e / 9 h 468,000 310,000 2,625,000 670,000 1,550,000 620,000 1,120,000 980,000 710,000 1,120,000 208,000 155,000 1,312,000 335,000 775,000 310,000 560,000 490,000 355,000 600,000 104,000 77,000 656,000 167,000 387,000 155,000 373,000 245,000 177,000 400,000 156,000 78,000 657,000 168,000 388,000 155,000 187,000 245,000 178,000 193,000 444 50 50 50 50 50 50 50 50 50 22-3 25 25 25 25 25 33-3 25 25 33-3 33-3 .25 25 25 25 25 16-7 25 25 16-1 7,000 0-6