ian 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 passenger
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 assert 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
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