Anything is easier said than done, and Franz doesn't ignore the limitations of productivity. In this era, the railway construction technology has gradually matured, but the construction efficiency is still not high.
The construction of 38,000 kilometers of railways in 20 years, on average, 1,900 kilometers of railways per year, was undoubtedly challenging in the mid-19th century.
Funding is also a problem. 20 million dongs are needed to build 1,900 kilometers of railways, and the average budget is just over 10,000 dongs per kilometer. Under the circumstance that labor is basically free, construction in the plains may be barely enough. (Only the engineering cost is calculated, the compensation for demolition is not considered, and the geological conditions are not considered.)
In fact, the Austrian Empire is not a plain country, and there are many complex terrains, which seriously restricts railway construction.
The limitations of these natural environments can still be overcome. The big deal is to take a detour. Anyway, in this era of Austrian railway construction, it is impossible to excavate tunnels that are hundreds of meters long, or even several kilometers long.
When encountering special terrain, whether it is taking a detour or facing difficulties, this means a substantial increase in cost.
No one can answer the question of how much it will ultimately cost, and perhaps engineers will be able to give an initial budget after field exploration is complete.
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 railway construction cost should preferably be compressed within 5% of the fiscal revenue.
The insufficient part can only be made up by private capital. Simply put, it is to find a way to get the nobles to pay for the construction of the railway.
This is Austria's special national conditions. Although the capitalist economy has developed, most of the wealth of the whole society is still in the hands of the nobles.
Of course, the current Austrian central government also has a large amount of wealth in its hands. These wealth are mainly manifested in land, mountains and forests, real estate, state-owned enterprises. One hundred million dong.
The real estate has been sold one after another, and the land income is mainly leased to farmers. By collecting rent and ransom, the government can provide 150 million rupiah of income every year in the next few decades.
Not all of this money is owned by the government, and there is compensation paid to the nobles for land. Franz is reputable, and this money must be given.
Even if it is divided into twenty years, or even forty years, they must pay off their money.
There is no way, these nobles are too cooperative, and the Austrian government can't find an excuse to default.
In addition to the influence of personal connections, in order not to cause national turmoil, the Austrian government now has to pay 100 million dong in compensation every year.
This is determined by national conditions. A government dominated by the aristocracy naturally has to consider the interests of this interest group. Franz still knows what can and cannot be done.
Such a large sum of money has entered the pockets of the nobles. If it is not invested, it is obviously a waste. Moreover, the compensation is not permanent, and it will be gone after it is given.
As a good emperor, it is natural to think about their future life for them. No matter how risky it is to invest in other projects, if one is not good, you will lose everything.
Investing in railways is much safer. As long as the train is open, isn't all the gold running on it
At the cabinet meeting, Franz asked hesitantly: "Do you think whether to issue railway bonds, or form a railway company to sell shares, or simply authorize a certain line to the capitalists and let them build the railway themselves, which one is more suitable us?"
Chancellor Carr hurriedly said: "Your Majesty, it is not advisable to issue railway bonds, and railway investment is a long-term investment that will not see any return for several years.
Considering the actual situation, many railway lines have been in a state of loss even for more than ten years. For such a long time, the huge debt has to be borne by the government, which can easily drag down the finances.
Moreover, if all the railways are in our hands and run by the government, the management cost is too high. It is better to leave it to the enterprise management, and we will be responsible for tax collection. "
Is it profitable to invest in railways
There is no doubt about this.
The only prerequisite is to invest in railways in prosperous commercial areas. The Austrian railway network obviously not only considers economics, but also takes into account political and military factors.
Once this railway network is completed, all the big cities in Austria will be connected in series, and even the most remote province of Dalmatia 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 vast, and its natural conditions are excellent. There are no too remote areas. As long as the economy develops, the prospects of these railways are considerable. (698,700 square kilometers)
The government is responsible for the construction of railways, so that the quality can be guaranteed, but it is not enough for the government to be responsible for operating the railways.
In terms of cost saving, enterprises are definitely better than government agencies, and private enterprises are better than state-owned enterprises.
There is no way. Austria has the "Labor Protection Law". The capitalists try their best to escape and cut expenses as much as possible, but 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 go public and offer shares before the construction of the railway.
We still need to advance the funds in the early stage. Otherwise, we will invest in land, find some social shareholders to contribute, and then go public to raise funds after the start of construction? ' suggested Archduke Louis
This is to be divided. Although Austria is conservative, it is not a secret to invest in railways to make money. For the several railways that have been built in China, I have never heard of anyone losing money.
In this case, after the Austrian government made railways a national policy, even the conservative nobles were tempted.
After all, railways are no better than other industries, and the risks are visible. As long as the selected route is good, are you afraid that you will not be able to make money
"Yes, but the proportion of investment must be limited. The total amount contributed by all social shareholders must not be less than 45% of the railway construction funds." Franz thought for a while and said
Franz does not exclude nobles from participating in making money. Originally, he wanted to pay for it. The premise was that he had to come up with real money and silver.
The emergence of joint-stock companies has made it more difficult for capitalists to enter the market. Franz just needs someone to pay to get the railway up and running, he doesn't care who pays.
As a result of the final discussion, 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 just a pilot. If it succeeds, it will continue to be promoted. If it fails, it will be another way to play.
Investment and construction can be given to private capital, but the railway design work is still under the responsibility of the Ministry of Railways. They must build according to the drawings and accept the supervision of the Ministry of Railways.
These five railway operating companies only share a part of the railway investment, and most of the selected sections are easy to construct and profitable in a short time.
The euphemism is to let those who invest first make money, and then drive more people to join the railway construction and speed up the pace of railway construction in Austria. In fact, everyone understands it.
Franz has no morals and cleanliness. He uses the interests of the railway to win over interest groups in exchange for better advancement of this plan. Naturally, he will not refuse, and there is also a part of the royal family.
Some people are rushing to do the profitable business, and no one asks about the losing business. No one wants to do it, so the government can only do it.
Commercial railways are built by the private sector, and the government only has a certain share in it. Railways for political and military purposes can only be built by the Ministry of Railways.
Franz is a person who pays attention to eating, so he did not participate in it himself.
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, he can dig a hole for them, and the stock market crash will be cool, and the rest is to buy, buy, buy.