TRANSACTIONS OF SECTION F. 555 
That the company would never be able to repay the sums which had been advanced 
to guarantee the interest. On December 31, 1905, the indebtedness of the 
Western line amounted, in moneys due to the State, to 302,569,000 francs, and in 
interest to 117,300,000 francs, in all a total of 419,880,000 francs ; but the Western 
Railroad possessed rolling-stock estimated at 351 millions. Subjecting it to a 
reduction of 30 per cent., the price to be paid would therefore have been 245 
million francs. That difference of 174 millions was the great argument put for- 
ward by the redemptionists to hasten the purchase. 
How could redemption protect those interests ? 
The guarantee of interest to shareholders amounted annually to 11,550,000 
francs, and was to come to an end in 1935; it was prorogated till 1951, and 
afterwards until 1956, reduced to 6,300,000 francs. The remaining sums due by 
the company were written down as being 7,122,000 francs, and not 174 millions. 
The results of the management by the State were increased expenditure : the 
deficiency of the Western Railroad was, in 1908, 28,522,000 francs; that of the 
State, in 1912, was 83,675,000 francs; the increase of working expenses amounts 
to 72,304,000 francs, out of which the staff draws 52,296,000 francs. According 
to M. Pierre Baudin’s report to the Senate, on a total of 67,967 persons employed, 
36,816, or 54 per cent., were told off on sick leave, and it was necessary to in- 
crease the workers by 7,440 units. While working expenses from 1908 to 1912 
have increased by 72,304,000 francs, the gross receipts have risen from 217,645,000 
to 244,335,000 francs, the increase only representing 26,689,000 francs. 
The effect on State credit : the Minister of Finances issued this year four per 
cent. bonds. At once the three per cent. fell to 93.65, and afterwards to 91.95. 
The redemption of the West of France Railroad was a complete failure. 
