TABLE III

CASES APPEALED FROM THE RAILWAY AND CANAL COMMISSION, 1889-19041

66 overruled. sustained.

Black & Sons v. Cal. Ry., N. B. Ry., & G. & S. W. Ry.

Application for details of plaintiffs'

profits to use in suit

Differences between parties
Differences between parties

Plaintiff.

Ownership of a siding

Defendant

Rebate on sidings' charge

1 The official report of cases for 1904 is not yet available.

2 In part.

THE

XXVIII

RAILWAY REGULATION IN FRANCE1

HE railway policy of France is based on the view that railways should be exploited, not by the State, but by strong independent companies under strict government control. National purchase has again and again been considered, but has always been rejected. When last it was proposed in the French Parliament that the State should buy out four of the large railway companies, one hundred Chambers of Commerce voted against, and one only for, the proposal. While the companies are encouraged to earn large profits,2 they are never allowed to compete with one another, or to invade one another's territory, and their arrangements for sharing traffic or earnings constantly receive official sanction. The State has refrained from dictating their tariffs, and confined itself to exercising a veto over those which they propose. Under the Railway Conventions of 1883, as under those of 1859, the government has no power either to fix or to alter rates. The proposal of a rate must emanate from one of the companies, but before taking effect it has to be approved by the Minister of Public Works.

The official machinery by which this control over rates is exercised consists of three parts: a salaried corps of expert officials for gathering information; a large nonsalaried committee made up of high officials, members of the legislature, and representatives of the business community, to give advice

1 From the Quarterly Journal of Economics, Vol. XX, 1906, pp. 279–286. Further details are given in translations from Colson's "Abrégé de la Législation des Chemins de Fer, etc.," in Hearings before the Senate (Elkins) Committee on Interstate Commerce, 1905, Vol. V, Appendix, pp. 265-297.

2 M. Pelletan, in his report of May 12, 1889, pointed out that French railway shares paid from 10 to 24 per cent of their original cost; since then there have been some increases in dividends.

based on that information; and, lastly, the Minister who acts on that advice.

The permanent officials who investigate and report on all questions concerning rates number 68, and cost the State 400,000 francs a year; that is, 10 francs for each kilometer of railway at present in operation. Of this amount 258,500 francs. represent the salaries of the chief experts, 32 in number.2 At their head, receiving 20,200 francs a year, is the Director of Commercial Supervision (Directeur du Contrôle Commercial), who studies the tariffs and commercial workings of all the French companies. Under his orders are the General Supervisors of Commercial Exploitation (Contrôleurs Généraux de l'Exploitation Commerciale), each of whom has similar duties in respect to a single railway, receives 11,400 francs a year, and is assisted in his work by one Principal Inspector and several Special Inspectors. To each railway is assigned one Principal Inspector (Inspecteur Principal) of Commercial Exploitation, receiving 8000 francs a year, and from three to five Special Inspectors (Inspecteurs Particuliers), each of whom receives from 6500 to 5500 francs a year. These inspectors are all under the orders of the General Supervisor in charge of that particular railway.

There is at the Ministry of Public Works a bureau of Railway Direction, one of the divisions of which investigates tariffs and charges, and the head of which is known as the Director of Railways (Directeur des Chemins de Fer). This high official acts as counselor to the Minister on all points connected with railway administration.

But the Minister's chief adviser is the Consultative Committee of Railways (Comité Consultatif des Chemins de Fer) over which he presides, and which examines questions of rates as well as all others affecting the relations between the railway companies and the State. The organization of this Committee has been several times changed. In its present form, which

1 The 40,000 kilometers "of general interest" are alone to be counted, since tariffs of local lines are, as a rule, passed upon by the prefects of the several departments.

2 M. Sibille's Report on Budget of 1905 (Ch. des Députés, No. 1962), pp. 148, 183.

dates from 1898, it has 100 unpaid members, 10 ex officio and 90 appointed for two years by the President of the Republic. The present membership consists of 36 government officials. (6 ex officio), 34 members of the legislature (4 ex officio), and 30 men holding no political office. A combination is thus secured of administrative, legislative, and general opinion.

Among the officials are the Director General of Customs, a brigadier general on the general staff, the Directors of Forests, of Agriculture, of Commerce, and of Labor, the Director of Roads, Navigation and Mines, the Director of Commercial Supervision, the Director of Railways, and five other members of the Council of State. Among these last is M. Picard, well known as the author of the two principal works on French railways, who, as vice chairman, presides over the Committee in the absence of the Minister; while M. Colson, another member, is almost equally well known for his book, Transports et Tarifs, and for the articles on Transportation which he contributes to the Revue Politique et Parlementaire. Both these officials have heretofore filled the post of Director of Railways.

Among the Deputies MM. Baudin, Barthou, Bourrat, and Sibille, and among the Senators M. Waddington, are specially conversant with railway problems, the first two being ex-Ministers of Public Works, and the three others having written elaborate reports on various railway questions.

In the general group we find twelve presidents or members of Chambers of Commerce (Paris, Lille, Hâvre, Lyons, Bordeaux, and Marseilles being among the cities represented), six presidents or members of national Agricultural Societies, two workingmen, the Governor of the Bank of France, seven business men or civil engineers, two of whom represent internal navigation, one judge, and one representative of the International Railway Congress. This last member, M. Griolet, is also vice chairman of the Railway du Nord, and is the only railway official belonging to the Consultative Committee.1

1 For further particulars, see J. de la Ruelle, Contrôle des Chemins de Fer (Paris, 1903), p. 218, and for the names of present members, see Annuaire du Min. des Travaux Publics, 1905, p. 34.

General meetings of the Committee are seldom held, most of its business being transacted by its "permanent section," a subcommittee of 40 members (4 er officio, 36 annually chosen by the Minister), which meets at least once a week. This "section" comprises twelve Senators and Deputies, six representatives of commerce, industry, and agriculture, three civil engineers, two workingmen, and the member of the Railway Congress, besides sixteen of the government officials. Matters of importance may be referred to the whole Consultative Committee by the Minister, or by the Vice President either on his own initiative or upon the request of five members of the "section."

When a company wishes to introduce a new rate or to change an old one, the regular procedure is the following. The text of the proposed rate must be posted up or otherwise advertised in the company's stations, and sent to the Minister of Public Works, to the Director of Commercial Supervision, to the Prefects of departments, and to the Chambers of Commerce of districts affected by the rate. The Chambers of Commerce and the Prefects are expected to forward to the Minister in writing any protests or comments which they may wish to make.

The proposal is then carefully examined by the General Supervisor of Commercial Exploitation in charge of the railway proposing the rate, whose duty it is to report thereon. In this task he is assisted by the Principal Inspector and the several Special Inspectors of the railway in question. These officials are instructed personally to inform themselves as to the needs of trade and the views and wishes of business men. Having done so, they prepare a written report, which must embody "a thorough discussion of the prices proposed, and a comparison. between them and other tariffs in force on the French railways at the various shipping points with which this traffic competes."1 The report is submitted to the Director of Commercial Supervision, who transmits it with or without revision to the Minister of Public Works. As soon as these documents reach the Minister he lays them before the Consultative Committee. If this Committee makes a favorable report, the Minister approves the

1 Ministerial Circular of July 16, 1880.