The Railroad Question Part 2

Nor did many of the European governments favor the new system of transportation. Some openly opposed it as revolutionary and productive of infinitely more evil than good. The Austrian court and statesmen especially looked upon the new contrivance with undisguised distrust; and from their point of view this distrust was perhaps well founded. The rapid movement of the iron horse seemed to savor of dangerous radicalism, not to say revolution. When the Emperor finally, in 1836, concluded to sign a railroad charter, he based his action upon the dubious ground that "the thing cannot maintain itself, anyhow." It may be said that the history of the railroad is a conspicuous ill.u.s.tration of human short-sightedness. The Prussian Postmaster-General Von Nagler opposed the construction of a railroad between Berlin and Potsdam upon the ground that the pa.s.senger business between those two cities was not sufficient to keep even the stage-coach always full. It never occurred to the Postmaster-General, as it does not occur to many railroad men of to-day, that new and cheaper means of transportation increase the traffic. Even so wise a statesman as Thiers said when railroad construction was first agitated in France: "I do not see how railroads can compete with our stage-coaches." M. Thiers also opposed for years the building of a railroad between Paris and Versailles, declaring that on account of a railroad not one pa.s.senger more would make the journey between these two places.

But railroads came whether monarchical governments liked them or not.

The success of the Liverpool and Manchester Railroad stimulated railroad building in England to a marvelous extent. Between 1830 and 1843 no less than seventy-one different companies were organized, representing about 2,100 miles. During the next four years 637 more roads, with an authorized length of 9,400 miles, were chartered. The construction of each new road required a special act of Parliament. These early roads averaged only fifteen to thirty miles in length. The compet.i.tion which ensued soon led to the consolidation of roads, which continued until now the 14,000 miles of railway in England and Wales are practically owned by only a dozen companies. The total number of miles of railroad in Great Britain and Ireland is at present over 20,000.

The news of the opening of the first steam railway in England spread through Europe comparatively slowly. There were in those days but few newspapers printed on the continent, and these were read very sparingly.

Railroad discussions were confined to merchants and manufacturers. Even after the success of the railroad was a.s.sured in England, a large number of people would not believe that, except between the largest cities, railroads on the continent could ever be profitable. But few railroads have ever been built which with honest, efficient and economical management would not pay a fair rate of interest on actual cost of construction. But in spite of this we have to this day a large number of otherwise well-informed people who question the financial success of every new railroad that is proposed.

In those days it occurred only to the most sagacious minds that with increased facilities commerce would expand. The missionaries of railroad enterprise found it therefore a difficult matter to interest capital in their projects. Railroad committees were in time formed in all cities of any importance, but, with capital cowardly, as usual, and governments distrustful, their task was often a thankless one. Railroad projects matured very slowly, and, when matured, were often wrecked by jealous and short-sighted governments. After the formation of a company five and even ten years would often pa.s.s away before a charter could be secured and the work of construction commenced. It is true, there were some laudable exceptions to this rule. Thus the governments of France and Belgium led the people in railroad construction; but upon the whole it can be said that the railroad forced itself by its intrinsic merit upon monarchical governments. It soon became evident even to the most stupid of autocratic ministries that it was a choice between the new mode of transportation and national atrophy.

The first German line was built between the cities of Nuremberg and Furth in 1835. It was only about four miles long, but the success of the experiment gave an impetus to railroad building in other parts of Germany. The Leipzig and Dresden line followed in 1837, and the Berlin-Potsdam and Brunswick-Wolfenb.u.t.tel lines in 1838. At the end of 1840 Germany had 360 miles of railroad. In that year Frederick William IV. succeeded to the throne of Prussia and inaugurated a new and exceedingly liberal railroad policy in his realm. In 1843 the Prussian government concluded to guarantee certain railroad companies a dividend of 3-1/2 per cent. on the capital actually invested. The state also secured considerable influence in the administration of the roads as well as in the right to a.s.sume the management of the various lines under certain conditions. The governments of the states of Southern Germany now commenced to build state roads, and their example was, chiefly for strategic reasons, soon imitated by Prussia. The system has since grown to over 26,000 miles, and no less than eighty-seven per cent. of the mileage is under state control. In all the states and provinces of the empire, except Bavaria, the rates for transportation of pa.s.sengers and freight on all lines are controlled absolutely by the government.

In Austria, as has already been indicated, the building of railways was greatly discouraged by the government until 1836. In that year the Emperor rather reluctantly granted Baron Rothschild a charter for a railway from Vienna into the province of Galicia. Another charter was granted to a Baron Sina for a line from Vienna to Raab and Gloggnitz.

The policy then adopted in Austria guaranteed to each railroad company a monopoly in its own district during the period for which the charter was granted. Soon after the state also commenced building lines, but the growth of the Austrian system was slow until after the war of 1866. An era of railroad speculation was then inaugurated, which ended with the crisis of 1873. The total length of the railroads of Austria-Hungary was 10,790 miles in 1875. At present that monarchy has nearly 16,400 miles of railway, 8,600 of which are owned by private companies.

It has been the policy of Austria to reduce rates, and several roads, especially those built in mountainous districts, have a certain revenue guaranteed to them by the government.

The zone system recently adopted in Hungary reduced both the pa.s.senger and freight rates of the government roads at least one-third, and this reduction has, contrary to expectation, greatly increased their net revenues.

In France railroad agitation commenced in 1832. A few short lines were opened, as those from Paris to St. Germain and to Versailles; but, owing to the conservatism of French capitalists, but little more was done until the state took the matter in hand. Thiers proposed a scheme by which the state was to furnish about half the cost while private companies were to build the lines and operate them. The Western Railroad, the first line of any great extent, was opened in 1837 between Paris and Rouen, and the Eastern Railroad was opened two years later.

There were in 1859 six large companies operating their lines with profit, but, to induce them to build additional lines that were needed, the state guaranteed the interest on the capital required to make their improvements. In 1884 there were about 17,000 miles of railroad in operation. To bring about the construction of another 7,000 miles of road, and to thus complete the railroad system of the country, the government now guaranteed each company a dividend equal to the average of recent years, but not to exceed seven per cent. It is doubtful whether this system of monopoly has in all respects been favorable to the encouragement of enterprise in the railroad circles of France. In granting charters the state has, however, reserved valuable rights which at a future period it will have an opportunity to a.s.sert for the public benefit. The railroad companies have generally a lease for ninety-nine years, and their lines become the property of the state after the expiration of that period. To extinguish the bonded debt and stock, a sinking fund has been created, from which a certain portion of the shares and outstanding bonds is annually paid off and canceled. The government requires of the companies the free carriage of the mails and the transportation of military and other employes at very low rates.

Besides this the state levies upon the traffic of the railroads a duty of ten per cent. of their gross earnings from pa.s.sengers and from all goods carried by fast trains. These facts are usually overlooked by our railroad men when they indulge in making comparisons between the railroad rates of this country and those of France. The French Republic had 13,400 miles of road in 1875, and 22,600 in 1890. When all of the proposed lines are completed, the total mileage of that country will be over 25,000.

Belgium has the best-developed track system on the continent. The state commenced the construction of railroads as early as 1834, and the first line (Brussels Malines) was opened May 5th, 1835. Four great state lines were constructed in different directions, and between these lines private roads were permitted to be built. Between 1850 and 1870 the private lines increased from 200 to 1,400 miles, and compet.i.tion between them and the state lines became so active as to reduce rates to the lowest possible point. In 1870 the government decided to buy a large number of competing lines. In 1874 it had acquired more than half, and at present, with a few exceptions, they are all owned and controlled by the state. The exceptions to this are a few short lines that were built in the early days of railroad construction. The total mileage is now 3,210. Rates have, however, not been increased since this consolidation, and they are still lower than any other country in Europe. The transportation of mails is free, and troops, military materials and prison vans are carried at reduced rates.

Railroads were originally built in Switzerland merely for the accommodation of tourists and the local traffic. The first line, between Zurich and Aarau, was completed in 1847, but general railroad enterprise did not develop until after 1860. The St. Gothard route was then projected, which opened a direct through line between Italy and Germany. The roads are all owned by private companies, but are under strict government control. Great publicity of their affairs is required.

The total mileage of Switzerland was 2,043 in 1891.

In Italy railroad enterprises have received attention since 1853. The first roads were those of Lombardy, being commenced while that province was still under Austrian rule. The treaties of Zurich in 1859 and of Vienna in 1866 delivered these roads and the Venetian lines to the kingdom of Italy. Between 1860 and 1870 the systematic construction of a railroad net was commenced which connected the various lines with each other and with Rome. Nearly all the railroads of Italy fell into the hands of the government, but in 1885 they were leased for a term of sixty years to three companies, terminable at the end of twenty or forty years by either party upon two years' notice. Under the lease the state received two per cent. of the gross receipts. The tariffs are fixed by the state, are uniform and can be reduced by the state. A Council of Tariffs, composed of delegates for the government, for agriculture, commerce and industry, and for the railroad companies, all elected by their own boards, has been inst.i.tuted to study the wants and best interests of the country. The total number of miles of railroad in Italy was 8,110 in 1889.

The first road in Spain was opened in 1848 between Barcelona and Mataro.

The government greatly encouraged railroad construction by subsidies, and during the decade following 1855 the development of the railway system of the country was rapid. More than thirty companies have been formed, which have built about twenty main lines, aggregating 6,200 miles.

In Portugal very little railroad building was done previous to 1863, when a little over three hundred miles of road was constructed. The government owns nearly half of the roads of the country, the remaining lines being the property of private companies. The total number of miles operated in the kingdom in 1889 was 1,280. The service and the financial condition of the roads of Portugal are far from being satisfactory.

In Denmark the first railroad was built on the island of Seeland in 1847. Previous to 1880 the larger part of the roads of the kingdom was owned by private companies. Since then several of the most important private roads have been purchased by the state, which in 1889 owned 963 miles, while only 251 miles remained in private control. Only about thirty miles more have since been constructed. The roads are well managed, but their net earnings are less than two per cent. of the capital invested.

On the Scandinavian Peninsula the railroad system has developed rather slowly. Norway built the first line from Christiana to Eidsvold in 1854, and Sweden commenced railroad building two years later. The narrow-gauge system is fully developed here. While in Norway the greater part of the lines is owned by the state, the roads of Sweden are chiefly in the hands of private companies which on an average control but little more than twenty-five miles each. The total mileage of Sweden is 5,970, and that of Norway 970.

The first line of railroad in the Russian Empire was constructed from St. Petersburg, sixteen miles, to Tsarskoji-Sielo, in 1842. The St.

Petersburg and Moscow line was opened in 1851. Railroad building then stagnated until after the Crimean War, when a large number of lines were constructed at once. The roads were surveyed by the government, but constructed and operated by private companies.

State aid was, however, freely given. During the past ten years the Russian government has directed its attention to the development of the railroad system in its Asiatic possessions. A railway between the Black and Caspian seas was completed in 1883, and the Siberian railroad is extended as fast as the financial condition of the empire permits. There are now about 20,000 miles of road in the Russian Empire operated by private companies. The construction of a large number of the Russian railways was dictated by military rather than commercial considerations.

Maximum rates are specified in charter, and every change of rates must be approved by the Minister of Finance.

In the Balkan Peninsula railroad facilities are still ill provided for.

A few lines have been built, but these are, as a rule, badly managed.

Trains are slow, and rates often so high as to be prohibitory. Roumania has undoubtedly the best railroad system of any of the Balkan states, the government controlling 1,000 miles of road. Greece is also making some progress and has at the present time 610 miles of railway. There is reason to believe that through communication will soon be established in these countries on a larger scale.

The introduction of the railway into Asia has been, except in the Russian and English possessions, a very difficult task. The conservatism or ignorance of the governments and the superst.i.tion of the people combined to throw numberless obstacles before those who proposed to pave the way for the iron horse. British India opened her first railway for public traffic between Bombay and Tannah on November 18, 1852. In 1855 she had 841 miles of road, which increased to 6,515 miles in 1875 and to 15,828 miles in 1889, of which 8,423 miles were owned and operated by the state. The total cost of these roads was $880,000,000.

In Asiatic Turkey the first line was opened between Smyrna and Trianda on the 24th day of December, 1860. This line was in 1866 extended to Aiden, and in 1882 to Sarakio. There are at present five lines with a total extent of 446 miles, all owned by English companies. New lines, covering in all 3,952 miles, have recently been projected.

The first line in Persia, only seven miles long, and extending from Teheran to Schah-Abdal-Azzim, was opened on the 25th day of June, 1888.

Another line, from the Caspian Sea to Amol, is now in process of construction. A line was opened last September between Joppa and Jerusalem. It is 53 miles in length.

j.a.pan may be said to be already thoroughly familiar with the European system. The first and princ.i.p.al line was opened on the island of Napon, between Tokio and Yokohama, on the 14th of October, 1872. Two other short lines followed in 1874 and 1876, when the total extent of the j.a.panese roads was about 135 miles. In 1883 the construction of the Grand Trunk Railroad, from Tokio to Kioto, was commenced, which line has been in operation for the past five years. Other lines, aggregating over 400 miles, will soon be opened for traffic. The total extent of road in operation in 1888 was 580 miles, 310 of which were controlled by the state, and the remainder by private companies. In 1890 the total number of miles exceeded 900. The total average cost per mile was $58,000.

No nation has probably opposed the introduction of the railway as stubbornly as the Chinese. The first railroad, scarcely seven miles long, was built by an English company near Kaiping to facilitate the transportation of coal from the mines in that vicinity. In 1886 a Chinese company purchased this line and has since extended it to Tientsin, making its present length about eighty-four miles. The Chinese government has recently authorized the further extension of this line to Yangchou, a place but a few miles distant from Pekin.

Of the Asiatic islands Java has the largest and oldest railroad system.

On the 10th of August, 1867, the first line was opened between Samarang and Tangveng. Other coast lines have since been constructed, but communication is still sadly neglected in the interior. In 1889 there were operated on the island nearly 800 miles of road, the greater part being the property of private companies.

A road was opened upon the island of Ceylon between Colombo and Kandy in 1867, to which several branch lines and extensions have since been added. The total system comprises at present about 180 miles.

Short lines have also been built in Burmah (1889); in the Malay Peninsula (1885), in Sumatra (1876), and in Cochin China (1885). A line from Bangkok to Bianghsen, in Siam, is being projected at the present time.

In Africa, if we except its northern coast, the construction of railroads has only kept pace with the slow development of the resources of that continent. Its European colonies are still but thinly inhabited, and their industrial and commercial life still resembles much that of the American colonies of the seventeenth century. There can be little doubt, however, that with the increasing immigration the growing demand for better transportation facilities will speedily be met by European capital.

The first railroad upon African soil was built by the Egyptian government from Alexandria to Cairo, and from there through the desert to Suez. A part of this line, 130 miles long, was opened to traffic in 1856, and the remaining ninety miles the year following. Nothing further was done until after Ismail Pasha ascended the throne, in 1863. The railroad system of Lower Egypt, between Alexandria in the west, Cairo in the south, and Ismaila in the east, was then greatly extended and the service materially improved.

After the opening of the Suez Ca.n.a.l the line through the desert to Suez was abandoned. The railroad system of Egypt comprises at present about 1,250 miles, all of which belongs to the government except two short lines which are private property.

The beginning of the railroad system of Algiers dates back to 1860, when the French government gave a charter to the Companie des Chemins de Fer Algerians, authorizing it to build a number of lines connecting the princ.i.p.al cities of the province with the Mediterranean. The line from Algiers to Blidah, thirty-two miles long, was opened on September 8, 1862. Further construction was then delayed until 1863, when the charter of the original company was transferred to the Paris, Lyons and Mediterranean Railroad Company. The original plans were then in the main carried out, until the disturbances caused by the Franco-Prussian war again put an end to railroad enterprises. In 1874 three new companies were chartered and railroad building was resumed. In 1888 the Algerian railroad system comprised 1,350 miles.

The first road in Tunis was built in 1872 from the city of Tunis to Bardo and Gouletta by English capitalists. It was, in 1880, sold to an Italian company to which the Italian government for political reasons had seen fit to guarantee certain dividends. Other small lines have since been constructed, and more important ones have been prospected.

The number of miles at present in operation is 153.

The French colony on the Senegal River has a number of short lines, of which the first was opened in July, 1883. These lines aggregate at present about 200 miles. It is now contemplated to extend this system to the upper Niger. This would necessitate the construction of 240 additional miles of road.

The Cape Colony has the largest mileage of any of the European colonies in Africa, the absence of navigable rivers rendering railroads here more necessary than elsewhere. The first line was opened on the 13th of February, 1862. It then extended from Cape Town to Earste River, but was extended to Wellington the following year. The number of miles of road in operation in 1875 was 906, and in 1891 it had increased to 2,067. All the roads of the colony, excepting a line of 93 miles belonging to the Cape Copper Mining Company, are operated by the colonial government.

Their net revenue in 1886 was 2.84 per cent. of the capital actually invested.

Port Natal built her first railroad in 1860. It was only two miles long and extended from the city of Durban to its harbor. Since then several inland lines, aggregating over four hundred miles, have been constructed at a cost of twenty-two million dollars. The roads are operated by the colonial government and yielded in 1891 a net revenue of 4.4 per cent.

on the capital expended.

Short lines have also been built on Mauritius and Reunion, and there is now every indication that Portuguese Africa and the Congo State will be provided with railroad facilities in the near future.

The introduction of railroads into Australia dates back to the sixth decade of the present century. The total number of miles of road reported in 1889 by the several colonies was 8,883. If we estimate the population of the continent at 3,000,000 for that year it will be seen that Australia has more miles of road per capita than any other grand division of the globe, save North America.

New South Wales, the mother colony of the Australian continent, opened its first road on September 26, 1855, between Sydney and Paramalta. This road was built by a private company, but was soon after its completion purchased by the colonial government, and was in 1869 extended to Goulbourn. In 1875 the colony had only 436 miles of road in operation.

The mountains, however, which separated the wide plains of the interior from the coast had been surmounted, and the government commenced to push the construction of new roads with great vigor. At the end of the year 1886 New South Wales had no less than 1,888 miles of road in operation, for which the colony had expended $113,000,000. The net revenue during that year was 2.9 per cent. on the capital invested. The total number of miles of railroad in this colony was 2,247 in 1889.

Victoria, the smallest of the colonies, has made by far the greatest progress in railroad building. The first road in the colony, and, in fact, the first road upon the Australian continent, was built in 1854 between the city of Melbourne and its port, a distance of two and one-half miles. Within the next five years four other lines were constructed, connecting Melbourne with Williamstown, St. Kilda, Brighton and Echuca, respectively. In 1870 there were in the colony 275 miles of railroad, which had increased to 1,198 miles in 1880, and to 2,283 miles in 1889. Several of the roads were originally owned by private companies, but all of them were in time acquired by the colonial government, the last one in 1878. The total capital invested in 1887 was $125,000,000, which yielded a net revenue of $5,800,000. All lines are under the control of a board so const.i.tuted as to be entirely removed from political influence.

In South Australia a short line was built in 1856 from the city of Adelaide to Port Adelaide. Another line was constructed in 1857 from Adelaide to Salisbury, which three years later was extended to Kapunda.

The colony had then forty miles of road. The increase during the next decade was only ninety-three miles. Since then the development has been much more rapid, the whole system of railroads comprising 1,752 miles in 1889. All the roads save a few suburban lines are owned and operated by the colony. Their total cost is not far from $60,000,000, and their net annual revenue is about two and one-half per cent. of the capital invested.

The colony of Queensland has only a system of narrow-gauge roads, with the construction of which it commenced in 1865. Up to September, 1887, the colonial government had constructed 1,641 miles of road at a total cost of $47,700,000. The total number of miles has since been increased to 2,058. The net revenue of the roads was a little over one million dollars in 1886.