Railway Reform in France One of the first steps taken
by M. Chautemps' Government in the course of its economy campaign was to undertake a reform of the French railway system, beginning with an increase in fares and rates which is to bring in 2,500,000,000 francs a year ; this was followed by a revision of the financial system under which they are operated. That system seemed indeed a direct incentive to extravagance and inefficiency, as, apart from one great line worked by the State, the railway system is operated by six railway companies whose working expenses, and interest on loans, are guaranteed by the State. Such an arrangement seems to possess the merits neither of public nor private control ; having entered on the path of reform M. Bonnet, under pressure from the Socialist Ministers in the Cabinet, has not been able to avoid national- isation. At the Council of Ministers held on Tuesday, one of the last before the special powers expire at the end of this month, it was announced that steps were being taken to form a public corporation to take over the railways. Thus the Front Populaire has achieved two important measures of public control, of armaments and of the railways ; and even opponents of nationalisation will admit that, in the case of the railways, the new system can hardly be worse than the last and may be the means of saving the State a heavy annual deficit.
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