56 



AUSTRO-HUNGARIAN MONARCHY. 



they had hitherta observed. In accordance 

 with these views, Prince Auersperg, in the 

 latter part of September, declared in the Aus- 

 trian Reichsrath, in answer to a number of in- 

 terpellations, that the Government had decided 

 to continue in its policy of complete neutrality. 

 It could not tell, however, at the present mo- 

 ment, what policy it would pursue in case 

 Servia should participate in the war. A simi- 

 lar but more extended declaration was made 

 by M. Tisza in the Hungarian Diet at about 

 the same time. (See HUNGARY.) 



In the beginning of September, General 

 Mollinary, the military commander of Croatia 

 and of the remaining portion of the military 

 frontier district, was, at his own request, re- 

 lieved from his post, and General Baron Franz 



OPERA HOUSE, VIENNA. 



Philippovitch, commander of the military dis- 

 trict of Moravia, was appointed his successor. 

 While the portion of the military frontier dis- 

 trict which extended along the Lower Danube 

 and Transylvania had been incorporated with 

 Hungary, the western portion of it, along the 

 Save and thence to Dalmatia, is still in a state 

 of transition from military to civil administra- 

 tion. Certain branches of the public service 

 the customs, excise, posts, telegraphs, and, to a 

 certain point, the means of communication 

 had already been taken by the Hungarian 

 Government; but the internal administrative 

 service proper is still in the hands of the mili- 

 tary commander of Croatia, who by degrees is 

 to substitute a regular civil administration, 

 and, when this is done, the remaining portion 

 of the military frontier district is to be incor- 

 porated with Croatia. Such a double rule is 

 apt te-give rise to differences, and a certain 

 amount of^friction must needs be experienced 

 in such a complicated machinery. In this case, 

 the chief point of difference was the tracing 

 of the railroads which are to be constructed in 



the military frontier district. These lines are 

 to be built with the proceeds of the sales of 

 33,000 Hungarian acres of prime old oak forests 

 of great value, which form part of the state 

 domain. General Mollinary, considering him- 

 self the guardian of the interests of the mili- 

 tary frontier district, proposed to carry the 

 tracing exclusively through its territory, quite 

 irrespective of the direction of the rest of the 

 railway ; while the Hungarian Government, 

 having in view the general interests of Hun- 

 gary and Croatia, made a tracing by which all 

 these interests were to have been harmonized. 

 Gen. Mollinary handed in his resignation, 

 which was finally accepted. 



With the commercial and customs treaty 

 of 1867 between Austria and Hungary, an ar- 

 rangement about the 



i_- "~j--^ quota to he paid by 



each side toward com- 

 mon expenses for the 

 navy, army, and for- 

 eign affairs, was like- 

 wise concluded for 10 

 years. This had, there- 

 fore, to be renewed in 

 1877. Each legislature 

 elected a deputation of 

 15 members to exam- 

 ine the bill prepared 

 by the two ministries, 

 which left the propor- 

 tion of the contribu- 

 tions unchanged. The 

 two deputations met on 

 May 29th ; the Austrian 

 elected for its president 

 Count Wrbna, and the 

 Hungarian M. Szlavy. 

 The two deputations 

 could not come to an 

 agreement, the Hun- 

 garians demanding that their contributions 

 should in future be 29 per cent., instead of 

 30 per cent., as heretofore, while the Aus- 

 trians insisted on 31 per cent, as the Hun- 

 garian share of the contribution. In July 

 they adjourned until the fall, without having 

 arrived at a definite result. 



The delegations met on December 5th, and 

 were received by the Emperor on the 7th. 

 The respective presidents addressed the Em- 

 peror, offering him their homage, and express- 

 ing the satisfaction they felt at the main- 

 tenance of peace in the monarchy, and the 

 hope that the endeavors of the Government 

 would also succeed in preserving it in the 

 future. In reply, the Emperor expressed his 

 satisfaction at the loyal homage offered. He 

 said that, in view of the complicated state of 

 Europe, it had been his wish to summon the 

 delegations sooner, but that even now they 

 would scarcely be in a condition to finish at 

 once the task assigned them ; though he ex- 

 pected, from their oft-proved zeal and readi- 

 ness, that they would find the means to pro- 



