Chapter 141: Fruit

Everything is easier said than done, and Franz does 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 the past 20 years and the average annual construction of 1900 kilometers of railways is undoubtedly challenging in the middle of the 19th century.
Funding is also a problem. For 20 million dongs to build 1,900 kilometers of railway, the average budget is only over 10,000 dongs per kilometer. Under the condition that labor is basically free, construction in the plains may be barely enough. (Only engineering costs are calculated, demolition compensation is not considered, and geological conditions are not considered.)
In fact, the Austrian Empire was not a plain country, and the complex terrain was not a small number, which seriously restricted the railway construction.
These natural environment restrictions can still be overcome. The big problem is to bypass the road. Anyway, during the construction of the Austrian railway in this era, it was impossible to excavate tunnels of several hundred meters long or even several kilometers long.
When encountering special terrain, whether it is a detour or a challenge, this means a significant increase in cost.
How much it will cost in the end, no one can answer this question. Perhaps after the field exploration is completed, engineers can give a preliminary budget.
The government's fiscal revenue is limited, and it is impossible to invest all of it in railway construction. In Franz's view, the annual cost of railway construction is best reduced to less than five percent of fiscal revenue.
The shortcomings are only made up by private capital. In simple terms, it is to find ways to let the aristocracy pay for the railway.
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, which is mainly represented by land, forests, real estate, and state-owned enterprises. In fact, the cash obtained from copying homes has been spent at this time, and only less than 100 million shields.
Real estate has been released in succession, and the land revenue is mainly leased to farmers. By collecting rents and redemption payments, the government can provide 150 million dongs per year in income in the next few decades.
Not all of this money belongs to the government, and there is a land compensation payment to the nobles. Franz is reputable, and this money must be given.
Even if it is divided into 20 years or even 40 years, their money must be paid off.
There was no way, these nobles were too cooperative, and the Austrian government could not find an excuse to lie.
Coupled with the influence of relationships, in order not to cause national turmoil, the Austrian government now pays 100 million dong for compensation.
This is determined by national conditions. A government led by aristocrats naturally considers 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 nobles. If you do not invest it, it is obviously a waste. In addition, if you sit back and eat, the compensation will not be permanent.
As a good emperor, it is natural to consider their future life for them. Investing in other projects is too risky.
Investing in railways is much safer. As long as it is open to traffic, isn't it all gold?
At the cabinet meeting, Franz hesitated to ask: "Do you think it is more appropriate to issue railway bonds, or to set up a railway company to sell shares, or simply authorize a certain line to the capitalists and let them build the railway themselves? we?"
Finance Minister Carl hurriedly said, "Your Majesty, it is not advisable to issue railway bonds. Railway investment is a long-term investment, and no return will be seen for several 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 have to be borne by the government, and it is easy to bring down finances.
Moreover, if we hold so many railways in our hands and run them by the government, this management cost is too high. It is better to leave it to the enterprise to manage the tax collection. "
Make money by investing in railways?
There is no doubt about this.
It is only a prerequisite to invest in railways in bustling commercial areas. The Austrian railway network obviously does not only consider the economy, but also takes into account political and military factors.
Once the railway network is completed, all the big cities in Austria will be connected, and even the most remote Dalmatian province will have a railway planned.
This means that railway operations on many sections are at a loss. Of course, Austria's land area is not huge, 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. (690,700 square kilometers)
The government can be responsible for the construction of the railway. This can ensure the quality, and it will not be possible for the government to run 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 their best to avoid it and reduce expenditures as much as possible, but absolutely no one in the government dares not to implement it.
"Your Majesty, it is not a big problem to issue company shares, but according to Austria's" Securities Law ", it is not possible to list and raise shares before the railway is started.
Upfront funds still need to be advanced by us, otherwise we will use land to invest in shares, look for some social shareholders to invest, and wait for capital to go public after listing? Archduke Louis suggested
This is to be fruitful. Although Austria is conservative, it is not a secret to invest in railways to make money. I have not heard of anyone who has lost money on the several railways that have been built in China.
In this case, after the Austrian government made railways a national policy, even conservative nobles were tempted.
After all, railways are no better than other industries. The risks are visible. As long as the route you choose is good, are you afraid that you will not make money?
"Yes, but there must be restrictions on the proportion of investment. The total amount of capital contribution of all social shareholders must not be less than 45 percent of the funds for railway construction." Franz thought about it
Franz does not exclude the aristocracy from participating in making money. He originally wanted to pay for it. The prerequisite is that he must bring out real gold and silver. If he wants an empty glove, the wolf will not do it.
The emergence of joint-stock companies makes it difficult for capitalists to enter the market. Franz just needed someone to pay for the railway, and he didn't care who paid for it.
The final result of the discussion was that the government came forward to set up five railway operating companies, and these five companies were responsible for the investment and construction of the five railway lines.
There is no doubt that this is only a pilot. If it succeeds, continue to promote it. If it fails, use a different game.
Investment and construction can give private capital, but the railway design work is still under the responsibility of the Ministry of Railways. They must follow the plans and accept the supervision of the Ministry of Railways.
These five railway operating companies only share part of the railway investment, and most of the selected road sections are easy to construct and can be profitable in a short time.
Its name is so beautiful that everyone who invests first can make money and then bring more people into the railway construction to speed up the pace of railway construction in Austria. In fact, everyone knows.
Franz has no moral cleanliness. He uses the interests of the railway to draw interest groups in exchange for a better advancement of this plan. Naturally, he will not refuse, and there is no part of the royal family.
Someone is rushing to make a profitable business, and no one is asking about losing money. No one wants to do it, it can only be done by the government.
Commercial railways come to repair by the people. The government only has a certain share in it, and the railways for political and military purposes can only be boarded by the Ministry of Railways.
Franz is a person who pays attention to food, so he did not participate in it himself.
It is estimated that no one will believe it. The truth is that he has no money in his hands. After all, the mine owner makes more money than the iron boss, but the Habsburg family has investment.
Anyway, these railway companies will become listed companies. As long as Franz is willing to dig a pit for them, the stock disaster will be cold as soon as the disaster occurs, and the rest will be bought and bought.
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