may make rules regulating proceedings before the commissioners and enabling them to carry into effect the provisions of the law, and he may also prescribe fees to be charged for proceedings before the commissioners. Special reports on each case are to be submitted by the commission to the governor-general.

Acting through the commission, the governor-general exercises supervisory powers in the construction and maintenance of railways. The latter may, by notification in the official paper, invest, absolutely or subject to conditions, any local government with any of the powers or functions of the governor-general in council, under the law, with respect to any railway; and he may also by that, or a like notification, declare what local government shall, for the purposes of the exercise of powers or functions so conferred, be deemed to be the local government in respect to the railway.

The sanction of the governor-general is necessary before the opening of a railway, and follows an inspection of the road with respect to rolling stock, track, in regard to width, weight of rails, strength of bridges, etc., adequacy of equipment, and a satisfactory showing that the railway can be opened to the public without danger.

* *

Joint traffic arrangements are specially provided for as follows: "Any railway company * may from time to time make with the governor-general in council, and carry into effect, or, with the sanction of the governor-general in council, make with any other railway administration, and carry into effect, any agreement with respect to any of the following purposes, namely: (a) The working, use, management, and maintenance of any railway;

"(b) The supply of rolling stock and machinery necessary for any of the purposes mentioned in clause (a) and of officers and servants for the conduct of the traffic of the railway;

"(c) The payments to be made and the conditions to be performed with respect to such working, use, management, and maintenance;

"(d) The interchange, accommodation, and conveyance of traffic being on, coming from, or intended for the respective railways of the contracting parties, and the fixing, collecting, apportionment, and appropriation of the revenues arising from that traffic;

"(e) Generally the giving effect to any such provisions or stipulations with respect to any of the purposes herein before in this section mentioned as the contracting parties may think fit and mutually agree on:

"Provided that the agreement shall not affect any of the rates which the railway administrations parties thereto are, from time to time, respectively authorized to demand and receive from any person, and that every person shall, notwithstanding the agreement, be entitled to the use and benefit of the railways of any railway administrations parties to the agreement, on the same terms and conditions, and on payment of the same rates as he would be if the agreement had not been entered into."

The law calls for periodical reports from railway companies and establishes maximum loads for freight cars. Established rates must be posted where they are easily accessible to shippers, and in case of disputes over terminal charges the governor-general may direct the commissioners to make a decision. Discriminations and preferences are prohibited under the law. The granting of passes is made unlawful. In addition, the law grants the necessary police powers, and includes other provisions relating to safety in traffic and the fixing of responsibility in case of accidents.

New South Wales. -The railways of New South Wales, like those of other Australian States, are owned chiefly by the government, although private railways still exist, and charters for the same are from time to time granted in the different States. To illustrate the nature of the private charters granted there, the chief points of such a charter granted by the parliament of New South Wales in 1893 will here be outlined.

In the first place, it may be noted that the title of the act itself contains as full a description of the proposed route as is found in most of the better charters granted in American States. A detailed description of the route is appended to the charter as a part of the act. This will be reproduced in Appendix I to this report, to which reference is here made. Quite in harmony with long-established custom in England and English colonies, the charter opens with a preamble, which is likewise reproduced in the appendix. The earlier sections of the charter authorized a certain person to construct three railway extensions. The gauge is made to conform with that of government railways; crossings, gates, fences, and drains are provided for, and the general technical features of the undertaking brought into harmony with the plans upon which government railways are constructed. In this, as in other matters, the railway commissioners have advisory powers. The charter establishes maximum rates for passengers and freights, and

The

further provides that these maximum rates may, if necessary, be increased with the approval of the railway commissioners. A large part of the charter is taken up with matters relating to the exercise of the right of eminent domain. appointment of arbitrators is provided for, and these in turn appoint an umpire, who has final decision upon matters in which the arbitrators disagree. The manner in which the valuation of property shall be ascertained and apportionment of the costs of arbitration are described. On the whole, these provisions are essentially similar to those found in the better charters of American States. An important right is reserved to the State by giving railway commissoners “running powers" over this private railway; provided, however, that the exercise of this privilege shall never seriously interfere with the ordinary traffic upon the railway nor deprive the public of the use of such railway. The incorporator is empowered to make the necessary rules and by-laws governing the times of the arrival and departure of trains, the loading or unloading of cars, preventing the smoking of tobacco and the commission of any other inconvenient and disagreeable thing connected with railway traffic, to issue proper tickets and prescribe rules for the use of the same-in short, the incorporator is given full power to manage the railway, subject to the approval of governmental authorities. Another right reserved by the State is that of purchase. At any time, on giving due notice, the incorporator may be required to sell his railway property to the government upon payment of a fair valuation of the same, including compensation for compulsory sale not exceeding 10 per cent. In case of differences as to the value of the railway property, a method of arbitration is provided for in accordance with the public works act of 1888. All private railways are, as has been before indicated, subject to the railway commissioners.

The railway commissioners are organized under the government railways and tramways act of 1888. This act opens with definitions covering such terms as "commissioners," "governor," "justices," "magistrates" and "minister," "prescribed railway vessel," and so on. As a whole, the act deals with the manage ment rather than with the construction of railways, an attempt being made in the legislation of New South Wales to separate the latter from the former. The railway commission is composed of 3 persons appointed by the governor. The commissioners are empowered to appoint the necessary assistants. All government railways are placed absolutely into the hands of the commission. The ownership of railways and tramways, piers and wharves, lands, telegraph posts and lines, and all other things constituting a part of the railway system are vested in fee simple in the commission. All railway property is exempted from taxation. There is nothing extraordinary in the duties assigned to the commissioners, these embracing all things necessary for the successful operation of the railway system. They are enjoined from giving preferences to persons, corporations, or industrial sections, and in no case can special rates be quoted to one person or interest which is not at the same time open to all others. The reasonable facilities" clause of the English act of 1854 is in substance inserted. The commissioners have power to issue passes to members of the legislative council, the legislative assembly, officers of parliament, persons of distinction visiting the colony or officially engaged in some public duty, and to certain former officeholders enumerated in a schedule appended to the act, and including cabinet officers, justices, executives, presidents of councils, and speakers of assemblies.

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While the commissioners are concerned primarily with the management of railways, they must be consulted with respect to the regulation and construction; and before the second reading in the legislative assembly of any bill authorizing the construction of new lines of railway the commissioners shall transmit to the minister a statement showing their estimate of the traffic on each proposed new line and any other returns likely to be derived from such new line. This estimate of the commissioners must be placed before the assembly by the minister before the bill can be read a second time. Ample provision is made for disputes arising out of bills of lading and rates charged for freight traffic. Quarterly reports must be made by the commissioners to the minister and annual reports to the parliament.

The telegraph lines of the State are under the control of the commissioners. All the Australian States have been remarkably free from railway accidents; nevertheless this commission has ample power to investigate such accidents as may occur and order whatever improvements may be possible and necessary to avoid their recurrence in the future. Thirty-two different subjects are enumerated in the law regarding which the commissioners may make rules and by-laws. It is unnecessary to enumerate these different topics; suffice it to say that they cover all phases of railway traffic and do not differ from similar regulations on other roads.

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.