NATIONALIZATION OF SWISS RAILWAYS. 613 



operation; of approving contracts involving more than five liimdred 

 thousand francs; of ratifying the appointments of chiefs of service, 

 and the fixing of their compensation within the limits of the law and 

 the budget; of the determination of the general conditions on which 

 persons employed shall be engaged; and of examining propositions 

 relative to the construction of new lines and the modifications that 

 may be needed in legislation respecting the federal railroads. It 

 further had the naming of a permanent commission charged with 

 the preliminary examination of affairs — of six members — of which 

 its own president was the chairman. 



The general direction was composed of from five to seven mem- 

 bers to be named by the federal council, sitting at Berne, holding 

 office for six years, and having its president and vice-president chosen 

 by the federal council. To it, subordinate to the federal authori- 

 ties and the administrative council, was given the work of manage- 

 ment, the preparation of the annual budget, the establishment of the 

 accounts, the making of the report of management, the preparation 

 of the business to be submitted to the administrative council, the 

 carrying out of the directions of that body, the preparation of 

 regulations, tariffs, and time schedules; the control of the receipts 

 from working and the material; with the making of agreements sub- 

 ject to the ratification of the administrative council, and the appoint- 

 ment of functionaries who are directly responsible to it. 



The federal system was divided into five arrondissements, local- 

 ized at Lausanne, Basle, Lucerne, Zurich, and St. Galle; with at 

 the head of each arrondissement an arrondissement directory of three 

 members appointed by the federal council, each administering the 

 arrondissement of which it is in charge. These directories were each 

 supplemented by an arrondissement council of four members ap- 

 pointed by the federal council and from eleven to sixteen members 

 by the cantons constituting the council. The creation of these sup- 

 plementary councils was a concession to the federalists, but more 

 apparent than real, for the functions conferred upon them were 

 extremely modest, and consisted in giving their opinion on questions 

 relating to the railroad service, approving of the annual budgets and 

 accounts prepared for submission to the general directory, deter- 

 mining upon all credits not exceeding one hundred thousand francs 

 not provided for in the annual budget, approving the reports of the 

 arrondissement directories, and the right conferred upon each of 

 them to appoint one member of the administrative council. 



The organization of the future federal railroads, therefore, not- 

 withstanding the apparent concessions to the cantons, was strongly 

 centralized. All important decisions were placed under the control 

 of the general direction and the arrondissement directions, the mem- 



