'" -~^i'-y- '■'ii-- ": 3069 ,HrG-7\ yprNRLF 1 B 3 113 17 fl DOCUMENTS DEPT. ^mm- LIBRARY OF THE University of California. s Class y^yf^jif^ -•,<.^. No. 515. Miscellaneous Series. AUSTRIA-HUNGARY. DIPLOMATIC AND CONSULAR REPORTS. 7^ FINANCIAL RESULT OF THE PURCHASE AND WORKING OF THE HUNGARIAN STATE RAILWAYS. ^z. FOREIGN OFFICE. September, 1 899. ^ No. 515 Miscellaneous Series, DIPLOMATIC AND CONSULAR REPORTS. :eia-i-itjngary. REPORT ON THE FINANCIAL RESULT OF THE PUKOIIASE AND WORKING OF THE HUNGARIAN STATE RAILWAYS. REFERENCE TO PREVIOUS REPORT, Miscellaneous Series No. 513. Presfenled to both ITovses of Parliament hy Command of Her Majesty^ SEPTEMBER, 1899. LONDON: PRINTED FOR HER MAJESTY'S STATIONERY OFFICE, BY HARRISON AND SONS, ST, MARTIN'S LANE, PRINTERS IN ORDINARY TO HER MAJESTY. Aiifl to be pin-chased, either directly or through any Bookseller, fvoni EYRE & SPOTTISWUODE, East Harsing Street, Fleet Street, 1*^.0. 32, Abingdon Street, Westminster, S.W. ; or JOHN MENZIES & Co.. 12. Hanover Street, Edinburgh, and gft. West Nile Street, Glasgow ; or HODGES, FIGGIS. & Co., Limited, 104, Grafton Street, Dublin. 1899. [C. 9497—6.] Price One Halfpenny, mEHAt No. 515. Miscellaneous Series. Reference to previous Report, Miscellaneous Series No. 513. liipoii oil Ihc Financial Result of the Purchase and Working of the Hungarian State Raihvays By Mr. Acting Consul-General Brull. (Received at Foreign Office, September 18, 1899.) In consequence of the transfer to the Government of private railways, the Royal Hungarian Treasury incurred the following liabilities : — In 1876, through the transfer of the Hungarian Eastern Rail- way, 607 Idioms, in length, 44,921,700 fi. (Austri;in value) principal debt, and 2,246,085 W. yearly interest liability ; further, 39,988,700 gold gulden principal debt, and 1,999,435 gold gulden interest liability. In 1879, through the transfer of the Waag Valley Railway, 141 kiloms. in lengtb, 6,988,000 li principal debt, and 419,280 tl. yearly interest liability. In 1880, through the transfer of the Theiss Railway, 586 kiloms. in length, 54,597,100 tl. principal debt, and 2,729,856 fl. yearly interest liability. In 1880, through the transfer of the Agram-Carlstadt Railway, 49 kiloms. in length, a yearly payment running over 88 years of 240,000 gold gulden. In 1884, through the transfer of the First Transylvanian Rail- way, 211 kiloms. in length, 34,622,000 fl. principal debt, ;and 1,731,100 fl. yearly interest liability; further, 3,792,200 gold gulden principal debt, and 189,610 gold gulden interest liability. In 1884, through the transfer of the Danube-Drau Railway, 166 kih)ms. in length, 11,510,000 fl. principal debt, and 575,500 il. yearly interest liability ; further, 157,800 gold gulden principal debt, and 7,890 gold gulden yearly interest liabihty. In 1884, through the transfer of the Alfold-Fiumauer Rail- way, 393 kiloms. in length, 38,428,600 fl. principal debt, and 1,921,430 fl. yearly interest liability ; further, 1,059,200 gold gulden principal debt, and 52,960 gold gulden yearly interest liability. In 1889, through the transfer of the Hungarian line of the First Hungarian Galician Railway, 120 kiloms. in length, 17,161,900 fl. principal debt, and 858,095 fl. yearly interest liability ; further, 3,465,100 gold gulden principal debt, and 157,87i gold gulden yearly interest liabihty. In 1889, through the transfer of the Hungarian line of the (^435 j t ■ 4 AUSTKIA-IIUNGAllY. Eastern Eailway, 304 kiloms., 31,517,200 11. principal debt, and 1,575,860 fi. yearly interest liability ; further, 493,500 gold gulden principal debt, and 24,(575 gold gulden yearly interest liability. In 1889, througli the transfer of the Budapest-Flinfkirchner Eailway, 262 kiloms., 17,249,800 H. principal del)t, and 768,492 fl. yearly interest liability. In 1890, through the transfer of the Hungarian North-Eastern Eailway, 580 kiloms. in length, 43,406,300 fl. principal debt, and 2,170.315 fl. yearly interest liability ; further, 24,197,100 gold gulden principal debt, and 1,179,351 gold gulden yearly interest liability. In 1891, through the transfer of the Hungarian line of tlie privileged Austro-Hungarian State Eailway Company, a yearly payment running over 75 years of 9,598,500 fl. In 1891, through the transfer of the Arad-Teraesvar Eailway, 55 kiloms., a yearly payment I'unning over 67 years of 288,745 fl. Hence the Treasury undertook for tlie lines transferred during the above-mentioned vears (in length 5,079 kiloms.) succes- sively 300,402,600 fl. principal debt, 14,996,013 fl. yearly interest liability, 73,153,600 gold gulden })rincipal debt, 3,611,792 gold gulden interest liability ; further yearly })ayments of 240,000, 0,598,500, and 288,745 gold gulden running over 88, 75, and 67 years respectively. One portion of these liabilities was conveited in 1888, the other in 1892. On the occasion of the conversion which took place in 1888 the Government — by payment of 110,448,100 fl. capital, and 5,522,405 fl. yearly interest ; further, 34,835,800 gold gulden capital, and 1,741,790 gold gulden yearly interest liability — took over the sum of 118,357,000 fl. principal debt, and 5,226,065 fl. yearly interest liability ; further, 36,396,400 gold gulden, prin- cipal debt, and 1,637,838 gold gulden yearly interest liability. At the conversion which took place in 1892, the Government — by payment of 122,948,200 fl. principal debt, and 6,147,401 fl. yearly interest lialjility ; further, 16,701,400 gold gulden principal debt, and 844,970 aold gulden yearly interest liability — took over the sum of 134,609,700 fl. principal debt, and 5,384,388 fl. yearly interest liability ; further, 17,892,000 gold gulden priuciixil debt, and 715,680 goLl gulden yearly interest liability. Together with the liabilities not aflected by the conversion, in amount, 36,216,200 fl. principal debt, 1,716,810 fl. yearly interest liability, with 21,359,100 gold gulden principal debt, and 1,011,105 gold gulden yearly interest liability, the liabilities of the Treasury, including those resulting from tlie purchase of railways which has taken place after the conversion, amounted to 289,182,900 fl. principal debt, and 12,327,263 fl. yearly interest liability ; further, 75,647,500 gold gulden principal debt, and 3,364,623 gold gulden vearlv interest liability, and lastly, the yearly discharging- pay- ments of 240,000, 9.598,500, 288,745 gold gulden running respec- tively for 88, 75, and 67 year.-^. AUSTRIA-HUNGARY. It must be observed here, for the completion of the above statement, tliat in the space of time between the transfer and conversion, o0,790,100 and 254,400 gold gulden principal debt were repaid. It is further to be observed, that the larger number of trans- ferred railways, as the Eastern, First Transylvanian, Dannbe- Drau, Alfold-Finmauer, First Hungarian-Galician, Hungarian Western, Hungarian Xorth-Eastern, and Arad-Temesv;ir railways had enjoyed a guarantee of interest on the part of the Govern- ment, which considerably burdened the budget each year. At the time of the transfer the above-mentioned railways owed the Treasury the sums of 161,233,136 il. (Austrian value), and 6,007,434 gold gulden for advances of this interest guarantee : and these sums were at the time of transfer written off. As the management of the transferred railways has Ijeen united with that of the original network of the Royal Hungarian State Railway, and also with that of the new lines built meanwhile, and as no separate account of the receipts and expenditure of the transferred lines has been kept, the financial results connected with the transfer cannot l)e accurately demonstrated. For the sake of clearness, the amounts of receipts and expenditure of the Royal Hungarian State Railway from tlie beginning of the transfer are set down below. In the following statement built since the beuinning of the the length of the local lailways year 1S84, and worked by the Rojal Hungarian State Railway, and the charges made for management and working (which form the receipts of the Royal Hungarian State Railway) are not included : — Austrian Value. Year. Length of Line. Receipts. Expenditure. Kilometers. Gulden. C4iilclen. 1S80 2,645 11.098,440 8,904,370 IbSl ., 2,645 18,562,380 11,736,690 1882 2,966 20,341,530 12,978.800 1SS3 3,058 22,926,490 13,715,460 1884 3,819 27,153,240 18,260,500 1885 4,226 33,067,250 22,519,230 1886 4,339 34,041,050 19,825,870 1887 4,352 35,180,230 19,744,600 1888 4,329 39,486,330 21,130,910 1889 5,132 42,733,680 22,851,790 18i'0 5,853 46.634,460 24,135,060 18131 7,519 51,080,980 29,273,640 1892 7,514 71,822,780 39,331,480 1893 7,570 79,056,200 43,686,900 1894 7,648 82,777,300 45,505,900 1895 7,662 86,576,200 52,757,800 189)3 7,664 91s443,400 55,506,500 1897 7,780 90,398,800 54,520,800 1898 7,787 94/527,550 55,712,060 AUSTRIA-HUNGAKY. Method of Organisatioji and Administration of the Hungarian State Railways. The nianageinent, control, and superintendence of the Hun- garian State Railways are in the liands of the Hungarian Ministry of Commerce, but the lines are really administered hy a board of directors sitting at Budapest, whose yjowers and attributes are regulated by a special ministerial decree. At the head of the board is the president, and the board is divided into six sections, which deal with : — (1) (xeneral administration. (2) Working of the lines. (3) Financial matters. (4) Commercial working. (5) Construction. (6) liolling stock. Each section is presided over by a responsible director, who decides independently of the other directors the matters coming within his province. These six principal sections are again divided into divisions and sub-divisions. JMatters, the decision of whicli does not lie exclusively with the Minister, are usually disposed of ])y meetings of the board held regularly twice a-month, or more often if necessary. At these meetings there are present the directors of the different sections, and the delegate of the Ministry of Commerce and of the Ministry of Finance, and they are presided over by the president-director of the State Eailways. Eesolutions are adopted by the majority of votes. In the event of the votes for and against the resolutions being equal the president-director has a casting A^ote. The working of the whole system is confided to nine officials, who are directly under the orders of the Ijoard of directors, and who ha\e again under their orders a staff for the traffic generally. All the workshops of the system are directly under the board of directors. The duty of working the lines is distributed amongst four sections : — (1) The general administration. (2) The construction and keeping up of the line?:. (3) The commercial management. (4) The traffic management. There is a special division for the accounts and the cashier's department. The powers and attributes of the various sections are clearly defined by a special and detailed ordinance. The workshops, station depots for locomotives, and economic •department are controlled by the regulations of the management. The staff and the expenses of working the lines and keeping tliem up are provided for in the Budget of the Ministry of AUSTRIA-HUNGARY. Commerce, and consequently obtain the sanction of the Legislature. Local lines and lines l)elonging to private companies, but worked by the administration of the State Eailways, are incor- porated in the State system, and administered as if they belonged to the State. The expenses of administration and the statement of receipts are prepared in conjunction with each railway, in accordance with special agreements. In conformity with the majority of these agreements the State retains for the expenses of administration aO per cent, of the receipts of the railway under its management. or THE ViNlVERSiTY OF LONDON : Printed for For Majesty's Stationery Office, By HARRISON AND SONS, Printers in Ordinary to Her Majesty. (1325 9 I 99-H & S 485) NEW SERIES OF MISCELLANEOUS REPORTS. The following Reports from Her Majesty's Representatives abroad, on subjects of general aud commercial interest, have been issued, and may be obtained from the sources indicated on the title-page : — No. Price. 470. Sussia. — Eeport on the Warsaw Wool Fair of 1898 . . . . . . id. 471. Sussia. — Report on the Beetroot Sugar Industry in Russia since its First Introduction in 1800 lid. 472. United States. — Report on the Fire Department of the City of Boston, Massachusetts .. .. .. .. .. .. .. .. lid. 473. China. — Eeport on a Journey from Hong-Kong to Ssu mac .. .. Id. 474. Germany. — Report for the year 1897 on the G-erman Colonies . . . . 2id. 475. China. — Notes of a Journey to Tachienlu . . . . . . . . . . 2id. 476. Central America.— B.e'^ovt on the Legal Status of Foreign Residents in Central America . . . . . . . . . . . • • • 2id. 477. Belgium. — Report on Higher Commercial Education in Belgium . . id. 478. Germany. — Report on Savings Banks in Prussia . . . . . . . Id. 4-79. Germany. — Report on the Trade between Hamburg and Africa. . . . Id. 480. United States. — Report on Agricidture of the State of Maine . . . . Id. 481. United States. — Report on the Cattle Industry of the United States, June, 1896, to June, 1898 2d. 482. Germany. — Report on the Trade between Great Britain and Hamburg in Cotton, Woollen, Linen and Jute Yarns and Tissues .. .. .. id. 483. Germany. — Report on Commercial Education in Germany .. .. 2d. 484. Belgium. — Report on the Metallurgical Industries of the Province of Liege during the year 1897 . . . . . . • . • • ■ • • . Id. 485. Germany. — Report on the Production and Export of Beer at Hamburg. . id. 486. Mexico. — Report on the British Export Trade of Mexico . . . . . . id. 487. Germany. — Report on Local Government and Finance in Prussia . . lid. 488. Italy. — Report on the Motlier-of-Pearl Industry on the Calabrian Coast id. 489. Germany. — Report on British and Westphalian Coal Trade at Hamburg in 1898 id. 490. Germany. — Report on the Development of Commercial, Industrial, Maritime and Traffic Interests in Germany, 1871 to 1898 . . . 3id. 491. Belgium. — Eeport on Commercial Education in Belgium . . . . id. 492. France. — Report on the French Fisheries on the Great Bank of New- foundland and off Iceland . . . . . . . . . . . Id. 493. Brazil. — -Report on the Colonies, Commerce and Financial Situation of the States of Parana and Santa Catharina, with some Notes on the Railway System and Finances of Rio Grande do Sul . . . . . . 4id. 494. Brazil. — Report on a Journey to the Diamond Fields of Minas Geraes and Remarks on the Province of Minas Geraes . . . . . . . . 2d. 495. Denmark. — Report on Commercial Education in Denmark . . . . Id. 496. Switzerland. — Report on Commercial Education in Switzerland .. 2d. 497. Germany. — Report on Brown Coal Mining in the Rhineland . . . . Id. 498. Netherlands. — Eeport on Commercial Education in tlie Netherlands . . id. 499. Italy. — Suggestions for Development of British Trade with Italy .. lid. .^00. Austria- Hungary. — Eeport on Commercial Education in Austria . . lid. 501. France. — Report on Commercial Education in France .. .. .. 2id. 502. Japan. — Report on Commercial Education in Japan .. .. .. Id. 503. Italy. — Report on Commercial Education in Italy .. .. Id. 504. United States. — Report on Commercial Education in the United States 3d. 505. France. — Report on Agricultural Education in France . . . . . . 2id. 506. Italy. — Report on the Turin Exhibition of 1898 . . . . . . . . id. 507. United States.— Report on Coal Mining in the State of Illinois for the Year 1898 Id. 508. Sioeden. — Report on Commercial Education in Sweden and Norway . . Id. 509. Stvitzerland. — Report on British Trade with Switzerland . . . . 2d. 510. Brazil. — Report on Matters of Commercial Intelligence relating to Brazil . . . . . . . . . . . . . . . . 2d. 511. Brazil. — Precis of an Article on the Cotton Spinning and Weaving Industries in Brazil.. .. .. .. .. .. .. .. id. 512. Brazil. — Report on Coffee Production in Brazil and Consumption in the United States . • . . . . . . . . . . . . . . id. 513. Austria-Hungary. — Eeport on Hungarian Zone Tariff Eailways . . Id. 514. Me.rico. — Eeport on the Mexican Tobacco Trade , . . . . . . . id. - '-^mTY O'? 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