Government Into Rails

In France all the railroads lose money but the Government, which actually operates only Ouest-Etat and Alsace-Lorraine, pays all the losses. In fact, Finance Minister Vincent Auriol announced last week, France's privately controlled railroads-- biggest of which are the Paris-Lyons- Mediterranee, Paris-Orleans, Est, Midi and Nord--have a joint capital of only 8,000,000,000 francs (about $352,000,000) but already owe the State 25,000,000,000 (about $1,100,000,000). Only way to clean up this mess, he said, was for the Government to take over every mile of track in the country and 80% of the railroads' stock, try to put the roads on a paying basis by increasing freight rates 10% to

15%-Shortly after the War all private railroads in France were "co-ordinated." A fund was established into which they were to pay profits, from which they were to extract deficits. The roads never made any profits, so their losses were covered in national budgets. Last week's move to take over the roads was another step along the French path towards nationalization, the Government having already announced it would control arms and munition factories.

Least poverty-stricken of the French railroads is the Chemin de Per du Nord, whose President is white-mustached Edouard de Rothschild. Last week, as his railroad was in danger of being taken out of his hands, he got his second bellyful of state socialism within a year. He was one of the regents of the Bank of France until Premier Blum booted the "200 Families" out of their ancient domination (TIME. July 27 et seq.).

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