20 DECEMBER 1913, Page 1

A dangerous issue has been raised between Austria-Hungary and Servia

as to the future of the Orient Company's railway in the newly acquired Servian territory. During the Balkan War Servia and Bulgaria took over the administration of the lines in the territory in which they were operating, while Greece left the company in control. Since the war ended Bulgaria has restored the powers of the company, but Servia has declared her intention of appropriating the section of the line which runs south of Mitrovitza for two hundred and thirty-seven miles. Servia has also imposed a new goods tariff which Austrians complain paralyses their trade. Servia no doubt desires possession of the line largely for military purposes, and it was with a -view to preventing this that the Austro-Hungarian Foreign Office some time ago procured a further purchase of shares in the company, so that the majority of the shares are in the hands of Austrian, Hungarian, and German subjects. It seems that Servia will not insist on the new tariff, which is in contradiction of the

Convention of 1883, though of course the conditions of 18S3 have been obliterated by the Balkan War. But the question of the ownership of the line in the new Serviau territory remains. Servia his doubled her territory by the war, and is resolved systematically to develop it. She will not easily yield on such a point of pride as the control of the railway within that territory. On the other side stands Austria- II ungary, jealous, suspicious, and grudging, and Germany in this matter is at one with her.