State Aid 



to survey the ground. Their report is submitted 

 to the Government, and if it approves, the matter 

 is put in hand. Up to the end of 1908, applica- 

 tions for 3,859 miles of line were made, and only 

 240 miles refused, so that practically, in that 

 fortunate country, any district can obtain a line 

 if it so desires. 



The State takes one-half of the shares, the local 

 Commune takes about one-third or a quarter, 

 leaving the remainder to be subscribed privately. 

 As the system is advancing by leaps and bounds, 

 the provision of so much capital would embarrass 

 the authorities, so that they pay for their shares 

 by annual instalments over ninety years — a sum 

 covering both principal and interest. They 

 guarantee a dividend of 3-J per cent, so that the 

 National Society has no difficulty in borrowing 

 what may be requisite. Each railway thus obtains 

 its capital as cheaply as the Government can 

 borrow, whilst the latter is not burdened with 

 debt nor the responsibility that would come 

 from complete nationalization. All that the 

 State or Provincial Councils have to do is to pay 

 or receive the difference between the 3£ per cent 

 and the profits of the line, yearly, and at the end 

 of ninety years the railway is practically the 

 property of the country. The National Society 

 never works the railways, but rents them to 



l 5S 



