Holy Roman Empire

Everything is easier said than done, and Franz will not ignore the limitations of productivity.Railway construction technology has gradually matured in this era, but construction efficiency is still not high.

The construction of 38,000 kilometers of railways in 20 years, and the average construction of 1,900 kilometers of railways per year, is undoubtedly challenging in the mid-19th century.

Funding is also a problem. 20 million shields are required to build 1900 kilometers of railways. The average budget is only more than 10,000 shields per kilometer. Under the condition that labor is basically free, construction in the plains may be barely enough.(Only the engineering cost is calculated, no demolition compensation is considered, and geological conditions are not considered.)

In fact, the Austrian Empire is not a plain country, and complex terrain is not rare, which severely restricts railway construction.

These limitations of the natural environment can still be overcome. The big deal is detours. Anyway, the construction of the Austrian railways in this era is impossible to dig tunnels of hundreds of meters or even kilometers.

Encountering special terrain, whether it is a detour, or facing difficulties, this means a substantial increase in cost.

How much will it cost in the end? No one can answer this question. Perhaps after the field exploration is completed, the engineers can give a preliminary budget.

The government's financial revenue is limited, and it is impossible to invest all in railway construction.From Franz ’s point of view, the annual railway construction cost should preferably be reduced to less than 5% of fiscal revenue.

The shortcomings can only be supplemented by private capital. In simple terms, it is to find a way for the nobles to pay for railway construction.

This is the special national condition of Austria. Although the capitalist economy has developed, most of the wealth of the whole society is still in the hands of the nobility.

Of course, the current Austrian central government also holds a lot of wealth. These wealth are mainly represented by land, forests, real estate, and state-owned enterprises. In fact, they have copied the cash from their families. One hundred million rupiah.

Real estate is already in the process of being sold out. The land income is still mainly leased to farmers. By collecting rent and ransom, in the next few decades, the government can provide 150 million rupiah each year.

Not all of this money is owned by the government, and there is compensation for the noble land. Franz is reputable. This money must be given.

Even if it is divided into two decades, or even forty years, they must pay off their money.

There is no way, these nobles are too cooperative, and the Austrian government cannot find an excuse to pay.

In addition to the influence of personal connections, in order not to cause national unrest, the Austrian government now pays 100 million rupiah in compensation each year.

This is determined by the national conditions. The government led by the aristocratic class naturally has to consider the interests of this interest group.Franz still knew what could be done and what could not be done.

Such a large sum of money has entered the pockets of the nobility. If it is not invested, it is obviously a waste.Moreover, sitting in the mountains, the compensation is not permanent, and will no longer be given.

As a good emperor, it is natural for them to think about their future lives.How much risk is involved in investing in other projects, if one is not good, you will lose all your money.

It is much safer to invest in railways, as long as it is open to traffic, aren't all the gold running on it?

At the cabinet meeting, Franz hesitated to ask: "Do you think it is more appropriate to issue a railway bond, or to form a railway company to sell shares, or simply authorize a line for the capitalists to let them build the railway themselves? we?"

Chancellor of the Exchequer Karl said hurriedly: "Your Majesty, the issuance of railway bonds is undesirable. Railway investment is a long-term investment, and there is no return for a few years.

Taking into account the actual situation, many railway lines have been in a state of loss even for more than a decade. For such a long time, huge debts need to be borne by the government, which can easily bring down the finances.

Moreover, if all the railways are in our hands and the government is operating them, the management cost is too high. It is better to leave it to the enterprise management, and we are responsible for collecting taxes."

Is it profitable to invest in railways?

There is no doubt about this.

But the prerequisite is to invest in railways in commercial prosperous areas. The Austrian railway network obviously does not only consider the economy, but also takes into account political and military factors.

Once this railway network was completed, all major cities in Austria were connected, and even the most remote Dalmatian province was planned for a railway.

This means that many sections of the railway are operating at a loss.Of course, Austria ’s land area is not vast, and natural conditions are also superior. There are no too remote areas. As long as the economy develops, the prospects of these railways are considerable.(690,800 square kilometers)

The government is responsible for the construction of the railway, so that the quality can be guaranteed, and the government is responsible for operating the railway.

In terms of cost savings, enterprises definitely do better than government agencies, and private enterprises do better than state-owned enterprises.

There is no way, Austria has a "Labor Protection Law", capitalists try to escape, and try to reduce expenditure as much as possible, but no one in the government dares not to enforce it.

"Your Majesty, the issue of company shares is not a big problem, but according to the Austrian" Securities Law ", it is not possible to list shares before the railway starts construction.

We still need to pay for the upfront funds, or else we will use the land to buy shares, find some social shareholders to invest, and wait for the construction to raise funds before going public?Grand Duke Louis proposed

This is to bear fruit. Although Austria is conservative, it is no secret to invest in railways to make money.I have never heard of anyone who has lost money in several sections of the railway that have been built in China.

In this case, even after the Austrian government made railways a national policy, even the conservative nobles were also tempted.

After all, railways are no better than other industries. The risks are visible. As long as the route chosen is good, are you afraid that you will not make money?

"Yes, but it is necessary to limit the investment ratio. The total amount of capital contributed by all social shareholders must not be less than 45 percent of the railway construction funds." Franz said after thinking about it

Franz does not exclude nobles from participating in making money. He originally wanted to pay for it. The prerequisite is that he must bring out real gold and silver.

The emergence of joint-stock companies has made it difficult for capitalists to enter the market.Franz only needed someone to pay for the railway to be repaired, whoever he paid for it.

The final result of the negotiation was that the government came forward to form five railway operating companies, and these five companies were respectively responsible for the investment and construction of the five railway lines.

There is no doubt that this is just a pilot. If it succeeds, it will continue to be promoted. If it fails, it will be changed.

Investment and construction can give private capital, but the railway design work is still the responsibility of the Ministry of Railways. They must construct according to the drawings and accept the supervision of the Ministry of Railways.

These five railway operating companies only shared part of the railway investment, and most of the selected road sections were easy to build and profitable in a short time.

As the name implies, let everyone who invests first make money, and then bring more people to join the railway construction, speed up the pace of railway construction in Austria, in fact everyone knows.

Franz had no moral cleanliness, and he used the interests of the railway to attract interest groups in exchange for a better promotion of this plan. He naturally would not refuse, and there was also a royal part in it.

Someone is rushing to make a profitable business, and no one asks about losing money.No one wants to do it, it can only be done by the government.

Commercial railways come to be repaired by the people, and the government only holds certain shares in them. Railways for political and military purposes can only be carried by the Ministry of Railways.

Franz is a person who pays attention to eating, so he does not participate in it personally.

It is estimated that no one will believe this statement. The truth is that he has no money in his hands. After all, the mine boss is more profitable than the iron boss, but the Habsburg family has investment.

Anyway, these railway companies will become listed companies, as long as Franz is willing, dig a hole for them, the stock market will be cold as soon as the stock disaster comes, and the rest is to buy and buy.