One of the most interesting features of the law is the establishment of an elaborate system of railway service. All employees, excepting occasional supernumeraries, are obliged to pass a satisfactory examination under a board of examiners appointed by the governor. A record of all examinations and appointments must be kept and, in case the number of successful candidates in an examination exceeds the number of vacancies to be filled, the names of such successful candidates are placed upon the books and their appointments follow as vacancies may occur in the order of their relative ranks. Original appointments are made upon probation for a period of 6 months, after which such appointments may be made permanent on presentation of a certificate from the officer at the head of that branch of the service, stating that such probationer performed the duties of his position in an efficient and satisfactory manner. Promotions to the higher grades of the railway service are made on the basis of competitive examinations. Officers at the head of the different branches of the railway service have power, for good cause, to reduce employees in rank, and even to dismiss them from office; however, such employees have the right, under the law, to sue the commissioners in any court for such dismissal, or for any other cause. The usual police provisions and punishments for fraudulent and other misdemeanors are

contained in the law.

France. For nearly a quarter of a century the railway history of France has been the history of the "conventions" or contracts made between the Government and the 6 great railway companies. In no country has territory been parceled out so systematically, and no pretense is made of active competition between the different lines, for each controls quite absolutely its own district.

The earliest history of French railways is very similar to our own. Up to 1833 charters were granted containing practically no restrictive features and no reserved rights of the State. In later years the State usually reserved the right of repurchase or caused a railway to revert to the State after a certain period of time; these provisions are entirely wanting in the earliest French charters. Passenger traffic was not then considered of importance, and charters contain no reference to it. A very simple schedule of freight rates was used; and the entire project left in the hands of the company.

In 1833 a turning point was reached, for in that year a law on expropriation for causes of public utility" was enacted, after which a declaration of public utility, which has remained an essential preliminary step to this day, was necessary before a railway could be chartered. Frederick List, whose name is identified with the early railway history of Germany and of the United States, had elaborated a complete system of French railways, which, however, did not in those early years appear to be within the resources of the State. He succeeded in interesting the Government, and it was perhaps in part as a result of his agitation that 500,000 francs were set aside for the study of railways in France. In 1835 a new set of conditions was inserted in French charters. Corporate life was limited to 99 years and the powers, duties, and privileges of the corporation carefully described in from 40 to 50 different sections. The Government had evidently seen the necessity of departing from the earlier method of laisser faire. As early as 1835 a plan was proposed for the construction of certain main lines by the Government and the building of branch lines through private effort. With some modifications this was enacted into a law in 1842, under which railway companies provided the rolling stock, while the Government contributed heavily to the cost of construction. The crisis of 1847 compelled the State to assume the operation of several of these roads in order to prevent the complete cessation of traffic. As a result of this reaction, the Government refused to give direct financial aid; although in 1851 governmental authorities encouraged railway building with much vigor through the establishment of great railway corporations. The number of railway companies was never so great as in England and the United States-due in part perhaps to the early reaction against the theory of free competition. In 1846 there were but 33 railway companies in existence; in 1855, 24; in 1857, 11; and in 1859, excepting 8 subordinate lines, only 6, constituting the great companies of to-day. The feverish activity which had prevailed in railway circles during the early fifties received a setback during the crisis of 1857, as a result of which railway building practically ceased for a time. The investigation of the railway crisis of 1857 led to the contracts of 1859 between the Government and the railways. The conventions of 1859 divided the railways of France into 2 groups, known as the old and the new networks, respectively; to the former, including the 6 great railways of the country, the Government guaranteed a certain normal amount, while to the latter it guaranteed a certain rate of interest. From 1859 to 1876 numerous other agreements were made with a view of correcting the errors which had crept into the estimates of 1859. In 1876 France entered upon a

career of State railways. Freycinet, whose "programme" of 1878 became law the following year, was the champion of this system. His programme involved a careful elaboration of the present railway systems through the construction of new lines by the State. He estimated that 10 or 12 years would be sufficient to carry out his programme and practically to complete the "normal railways"— that is, standard-gauge main lines. In the attempt to carry out the programme, railway construction was prosecuted simultaneously in all parts of the country. There was a lack of concentration of effort and, as a result of the division of energy in so many different parts of the land, progress in construction was checked whenever the treasury found itself in difficulties. It was soon found that the execution of Freycinet's programme was impossible, and in 1883 the Government entered into the conventions or contracts under which the great railway systems of France do business to-day.

Under the contracts of 1883 the railway companies bound themselves to complete the construction of the roads embraced in Freycinet's programme, and to construct the so-called "third network." The former division into old and new network was abandoned. Eventually, companies might come into possession of other lines in case a declaration of public utility was issued. The Government reserved control of further extensions of the different systems. The chartered railways were henceforth to be constructed by the State, but the companies must advance 25,000 francs per kilometer and supply the rolling stock. The remainder of the capital necessary for construction was to be advanced by the companies to the State, but the State agreed to pay the interest and amortize the stock of the company in 74 years. In case the earnings of the company are inadequate, and the State must pay out of the treasury sums of money to make up the guaranteed rate of interest, such sums with interest must be returned by the company out of future earnings. Indebtedness incurred under the contracts of 1859 on the part of the companies was to be liquidated under the new contracts by assuming that advances had been made to the respective companies by the State to the extent of their indebtedness under the earlier contracts.

Reference to the sections on classification of foreign railways will recall the administrative division of French railways into three classes. General laws governing the incorporation of railway companies for the construction of each of these classes have been enacted by the national legislature. These laws, while distinct from one another, are identical in their arrangement and very similar in their contents. The differences existing between the general laws governing railways of general interest of normal width, and railways of general interest with narrow tracks are only such secondary variations, which naturally result from the different degrees of importance represented by these 2 classes of roads. And in comparing the general law for the construction of local railways, the differences noticeable are still of minor significance, the latter law containing only 69 sections, while the other 2 laws contain 70. In the case of local railways, Part IV of the law containing, among other things, a classification of freight and charges for transportation, rates must be supplied for every road chartered, while, in case of the other 2 classes of railways, these rates are prescribed in the laws themselves. In this connection the fact should also be recalled that in some of the early American charters the rates established involved 2 parts, one being assumed as a charge for "toll," or the privilege of using the road, and the other a charge for transportation, or a return for services actually performed. In all 3 of the French laws this division of the aggregate price of transportation, into a charge for toll and a charge for transportation, is maintained.

Under these general laws the minister of public works has supervisory power over the railways of the country. All projects for the construction of new lines must first receive his approval. The petition for a charter must be accompanied by a map and profile stating distances, grades, and curves, and, in addition, it must contain a memoir in which the necessity of the projected railway and its beneficial influence on social and economic life are established. The minister of public works has power to order the establishment of stations, freight houses and to supervise the construction of tracks. The law prescribes that all material used shall be of good quality, and certain minimum requirements, such as weight of rails, are indicated. The conditions under which the right of eminent domain can be exercised are described, and all incorporators are bound to maintain the entire road in good condition. The Government reserves the right to purchase the entire railway, and the manner in which the price is to be determined is prescribed in the law. The relation between railways and the post-office is prescribed, as well as the right of the Government to maintain telegraph lines on the the right of way. It general, it may be asserted that the 3 laws illustrate the French love of system. First, a systematic classification was established, and then a law enacted to govern the railways in each class.

With the exception of the Orleans system, a State railway controlling transportation in that district, the railways of France are in the hands of 6 great companies. The few lesser companies are not of sufficient importance to be seriously considered in the study of French railways. A view of the railway map of France shows at a glance a clear-cut division of that country into sections, each absolutely controlled by some one railway administration. In no country has the theory of railway competition been so completely abandoned, under a system of private management, as in France. The railways of France are, in their nature, similar to the railways of every other country; but in that country it would seem strange, indeed, if someone were to arise at this time and advocate a régime of free and unrestricted competition among railways-a theory which was long ago abandoned.

Norway. The first important Norwegian railway was constructed by an English company, with the assistance of the State, under a charter of 1850. The experiences of the State with this company were not favorable, and a policy of State railways was early entered upon, and has been continued into our own times. The English company had power to appoint one-half of the board of directors, while the State appointed the other half. In case of the so-called State railways of Norway, the administration is centered in the minister of public works and subordinate officials, the entire State system being divided into 6 circuits, each having its appropriate set of officers. The State railway companies are organizations in which private and public interests are merged. The State, as a rule, furnished the necessary lands on which the company agreed to make a certain return; the additional capital was supplied by the State, and subordinate political units and by private companies, each contributing approximately one-half of the entire capital.

The fundamental railway law of Norway is found in the acts of 1848, 1854, and the supplement of 1898, the latter being very brief and not important.

The law of 1848 sets out with the stipulation that private persons desiring to begin the construction of railways must submit a plan for the approval of the King, acting through the proper officials. Having been satisfied as to the usefulness of the projected road, the probability of the satisfactory execution of the plan, together with the reasonable certainty that it will be a success, a charter may be granted, authorizing the petitioners to obtain possession of the necessary lands and materials. Iron and other essential materials in railway construction are exempted from import duties. The time for which chartered rights may be granted is not to exceed 100 years.

Section II of the act prescribes time limits during which the railway must be constructed, and prescribes the manner in which rates shall be established, keeping in view the public interests involved in maintaining the lowest possible rates. While rates are supposed to be fixed before the road is opened, in case it seems impossible to make equitable schedules of rates before the road is opened for traffic, this may be postponed until the road has been operated for a reasonable length of time. The company is bound to transport government property, mails, and munitions of war at all times in return for fair remuneration. The manner of constructing crossings is regulated, and other measures for the security of the public prescribed, including the usual inspection by order of the King before the railway is opened. The State reserves the right to purchase the railway and the manner of determining the purchase price is described. Succeeding sections deal with possible differences as to reasonable rates which may arise between the railway corporation and the Government, and a system of arbitration on rates is outlined. In this connection a law of 1830, regulating the fee system, is referred to. Other provisions of the law do not present any peculiarities worthy of special mention.

The law of 1854 deals largely with the question of appropriation and police regulations. A limit is fixed within which only fireproof houses and sheds can be erected, and other considerations of safety, regulating excavations and the construction of accessory arrangements, introduced. Penalties are provided for persons who prejudice the safety of railway traffic or do injury to railway property. Employees who neglect to do their full duty or become intoxicated become liable to fines prescribed in the law. In all these matters final authority resides in the King.

The supplement of 1898 to the law of 1848 merely states that all railways or street railways for public use not operated under the direct management of the State can only be constructed and operated under a charter expressly granted for that purpose in accordance with the terms of the law of 1848. No subordinate political unit can grant a franchise which is valid without special recognition from the King.

The charter which was submitted as typical of Norwegian charters was granted in 1899, and in many respects it is quite similar to charters granted in other countries. A number of commissioners are named and a certain amount of government subsidy is specified, together with the contributions to be made by the districts through which the proposed road is to run. The charter is granted under the same general conditions under which previous charters have been granted, in accordance with the terms of the general laws just considered. The minister of public works must approve the construction of the road from time to time as progress is made. A map and profile must be submitted, not only to the department of public works but also to military authorities before the full franchise can be granted. The charter regulates the relation between this and other railways in regard to the common use of tracks, stations, crossings, etc. Minimum curves are fixed, the width of track, weight of rail, and other matters relating to the physical requirements of construction, with the final power of decision in the department of public works. A careful estimate of costs must accompany the map and profiles, and the laws of 1848 and 1898 are expressly made a part of the charter. The incorporators are empowered to exercise the right of eminent domain, a detailed plan of all lands necessary having been previously approved by the King. Rails, locomotives, cars, coal, and other materials necessary for construction may be imported free of duty. Railway property is exempt from taxation under the law of 1848 for a period of 30 years from the date of opening. The limits for beginning and completing construction are stated, and it is further specified that Norwegians shall do the work. The incorporators and their franchises are subject to the control of the State, acting through the proper railway officials, who may order minor changes. The department of public works may also approve safety appliances, the rules regulating speed of trains, and similar matters. The capital stock of the company can not be increased without the consent of the Government. A reserve fund is provided for and pensions for employees, and these, together with the working capital of the road, are governed by regulations issued by the King. No money can be borrowed by the company, the interest on which is to be paid out of the railway income, except with the consent of the Government. The Government has the right to appoint two commissioners to assist in supervising construction, and one or two to examine accounts and to assist in controlling the operation and management of the road. The minister of public works represents the Government, to the extent of the amount of stock held by the same, at stockholders' meetings. The King may order several roads to be operated as a single system, and all rates are ultimately determined by him; that is, the company submits schedules and rules for royal approval. The rates for the transportation of troops and munitions of war are prescribed. The company is not entitled to damages resulting from war. The franchise can not be sold or transferred without the consent of the King. Should the company fail to construct the road, the Government may itself complete the same or grant the franchise to others. Similarly, if the road is not operated in a satisfactory manner, the Government may assume the duty of managing it. The company deposits permanently in the Government treasury $5,000 in cash or negotiable paper, which is forfeited in case of violation of charter privileges. The Government reserves the right to build telephone and telegraph lines along the right of way without compensation to the company. Forms for periodical reports are prescribed. The State reserves the right to purchase the railway after 30 years, and, if necessary, at any time before the expiration of that period, on giving 1 year's notice. The purchase price is to be determined according to one of two methods prescribed in the charter.

The company must accept all future laws which may be enacted on the subject of railways, and the King has authority to construe the application of such laws.

Switzerland. Two railway charters, granted in 1898, and submitted by the minister of railways as typical for primary and secondary roads, respectively, constitute a fitting introduction to the railway legislation of Switzerland.

The charter for the primary road was granted for a period of 80 years. All the incorporators are required to be citizens of Switzerland. The entire line is to be completed within 2 years after the beginning of the work of construction; but even after construction has been begun the federal council may demand such modifications in the plans as conditions of safety and other contingences may make necessary. The Cantonal Government preserves the right to claim all fossils and other objects of scientific and historical interest. (This provision is similar to an analogous section in the charter of New South Wales, in accordance with which minerals and oils discovered by the incorporators remain in the possession of the State.) The charter makes it the duty of the railway officials to furnish the federal officers with all the information and other means necessary for the execution

of their duties of supervision; and any railway official who is derelict in the performance of his duties and is not dismissed by the management may be peremptorily discharged by the federal council. The number of trains per day in each direction is specified, and the minimum rate of speed prescribed. In addition, the railway is subject to all the provisions of the regular Swiss railway regulations. Passenger cars are to be constructed on the American plan, and all trains must contain a specified number of classes of coaches, unless expressly permitted to do otherwise by the federal council. On demand of the council passenger coaches may be attached to freight trains. Rates of fare are fixed for each of the different classes of passengers, being 20 per cent less in case of freight trains. Children under 3 years of age must be transported free, and those from 3 to 10 years old at half fare. Freight rates for the transportation of different classes of animals are fixed in the charter, and differences in rates are allowed in case of carload and less than carload shipments. A classification of freight is also included with corresponding rates for the different classes. All rates are subject to the approval of the federal council 2 months before the railway is open for traffic. The rates may be lowered whenever more than 6 per cent net profits are realized. In case of disagreement upon this point between the railway company and the federal council, the national assembly shall decide. On the other hand, whenever rates are not high enough to provide adequately for the expense of operation, they may be raised with the consent of the federal council. The railway company is required to maintain a reserve fund and a benefit fund for its employees. In accordance with the provisions of the federal law, all railway employees are required to carry insurance. In common with provisions of the general law of 1872, this charter reserves to the State the right of repurchase at any time after the expiration of 30 years of the life of the charter on 3 years' notice, and on every 1st of May thereafter. The company is to hand over the property in first-class condition, and all rights of employees, with respect to the benefit fund and insurance, are guaranteed in case of a transfer of the property of the road to the State. Should the railway property be in imperfect condition and the reserve fund not sufficient to enable the State to repair such defective portions, a sum of money shall be deducted from the purchase price equal to such deficiency in the reserve fund. The purchase price is determined under the charter as follows: In case the railway is purchased before the year 1935, the price paid shall be 25 times the average of the net profits of the 10 years preceding the giving of notice of such contemplated purchase to the company; if the repurchase is made between 1935 and 1950, the price shall equal 224 times the average net profits of the last preceding 10 years; and if the repurchase is made in 1950, 20 times such average net profits. The net profits are defined as that sum that remains after all expenses, including contributions to the reserve and amortization funds, have been met. In case the State does not purchase the road until the expiration of the charter period of 80 years, the company may take its choice between a refund of the original cost of construction or a price fixed by the federal court, which tribunal shall also decide all other questions with respect to redemption. In case the Canton in which the proposed railway is to be constructed has already purchased the railway, the federation nevertheless has the right of repurchase along with all other rights and privileges which may have been conferred upon the cantonal authorities.

The charter granted to the railway company organized to construct and operate the secondary road, using electricity as motive power, is essentially like the charter which has just been described, only differing in certain details. The corporate life of this company is limited to 80 years, and the approval of the federal council is necessary for the construction of the line. The width of the track is prescribed, and the period during which construction is to be completed is likewise indicated. The federal council may establish the speed of trains and approve the type of cars to be used. The minimum number of trains in each direction is fixed; and rates are indicated, though without reference to different classes of passengers. As to freight and the transportation of animals, the same classification is adopted, although the rates are somewhat higher. The State reserves similar rights of repurchase, but the price is fixed at 22 times of the net profits from 1935 to the expiration of the charter.

The discussion of general railway legislation in Switzerland will be confined to a few of the more important landmarks, beginning with the constitutional provisions of 1848. Under this constitution the federation reserved the power to undertake public works in its own interests or of a large part of the country at public expense. For this purpose it was empowered to exercise the right of expropriation, and had power to prohibit the erection of any public works which might prejudice military interests.