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

The construction of 38,000 kilometers of railways in 20 years, and on average, 1,900 kilometers of railways are built every year, which is undoubtedly challenging in this era.

Funding is also a problem. 20 million gusts of railways are required to build 1,900 kilometers, with an average budget of only more than 10,000 gusts per kilometer. When labor is basically free, construction in the plains may be barely enough. (Only calculate the project fee, no consideration of demolition compensation, no consideration of geological conditions.)

In fact, the Austrian Empire was not a plain country, and there were many complex terrain, which seriously restricted railway construction.

These natural environment limitations can be overcome. At worst, it is a detour. In this era, it is impossible to dig tunnels that are several kilometers long or even dozens of kilometers long in Austrian railway construction.

When encountering special terrain, whether it is a detour or a challenge, this means a significant increase in costs.

No one can answer the question of how much it will cost in the end. Perhaps after the field exploration is completed, the engineers can provide 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 railway construction cost should be reduced to less than 5% of the fiscal revenue.

The only thing that is insufficient is to rely on private capital to make up for it. Simply put, it is to find a way to get the nobles to pay for the construction of railways.

This is Austria's special national condition. 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, which is mainly manifested in land, forests, real estate, and state-owned enterprises. In fact, the cash obtained from the house search was almost spent at this time, with only less than 100 million rupiahs left.

Real estate has been sold one after another, and the land income is mainly rented to farmers. By collecting rent and redemption, the government can provide 150 million rupiahs in annual income in the next few decades.

This money is not all owned by the government, and there are also compensation for land payments to the nobles. Franz is reputable and this money must be given.

Even if it is divided into twenty years or even forty years, their money must be paid off.

There is no way, these nobles cooperate too much, and the Austrian government cannot find an excuse to pay back the debt.

With the influence of personal connections, in order not to cause national turmoil, the Austrian government now has to pay 100 million rupees of compensation every year.

This is determined by the national conditions. The government dominated by the aristocratic class naturally needs to consider the interests of this interest group. Franz still knows what can be done and what cannot be done.

Such a large sum of money has entered the aristocrat's pockets. If you don't take it out for investment, it is obviously a waste. Moreover, the compensation is not permanent, and it will be gone after giving it.

As a good emperor, we naturally have to consider their future life for them. How risky is to invest in other projects, if you are not good, you will lose all your money.

It is much safer to invest in railways. As long as you open the train, aren’t all gold running?

At the cabinet meeting, Franz asked hesitantly: "Would you think it is better for us to issue railway bonds, or to form a railway company to sell shares, or simply authorize capitalists to build a certain line and let them build a railway by themselves?"

The Chancellor of the Finance Minister Carl hurriedly said: "Your Majesty, issuing railway bonds is not advisable. Railway investment is a long-term investment and there will be no return within several years.

Considering the actual situation, many railway lines have even been in a loss state for more than ten years. For such a long time, huge debts need to be borne by the government, which can easily drag down the finances.

Besides, if we hold all so many railways in our hands and operate them by the government, the management cost is too high. It is better to leave it to the enterprise management, and we are responsible for collecting taxes."

Do you make money by investing in railways?

This is undoubtedly.

However, the prerequisite is to invest in railways in prosperous commercial areas. The Austrian railway network obviously does not only consider 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, and even the most remote province of Dalmatia has been planned for a railway.

This means that many sections of railway operation will lose money. Of course, Austria's land area is not vast, and its natural conditions are also superior. There are not too remote areas. As long as the economy develops, the prospects of these railways are considerable. (698,700 square kilometers)

It is possible that the government is responsible for building railways, so that the quality can be guaranteed. It is impossible to let the government be responsible for operating railways.

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

There is no way. Austria has a Labor Protection Act. Capitalists try their best to avoid it and reduce spending 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 the Austrian Securities Act, it is impossible to list and raise shares before the railway is started.

We still need to advance the funds in the early stage, otherwise we will invest in the land and find some social shareholders to invest, and then go public to raise funds after the construction starts?" Luis suggested

This is about to divide the fruit. Although Austria is conservative, it is no secret to make money by investing in railways. I have never heard of anyone losing money in several sections of railways that have been built in China.

In this case, after the Austrian government regarded railways as national policy, even the conservative nobles were moved.

After all, railways are not as good as other industries, and risks are visible. As long as the route you choose is good, are you still afraid that you will not be able to make money?

"Yes, but the investment ratio must be restricted. The total amount of capital contribution of all social shareholders shall not be less than 45% of the railway construction funds." Franz thought for a while and said

Franz does not reject the nobles' participation in making money. He originally wanted to pay for it, but the prerequisite was that he had to pay real money. If he wanted to make money in nothing, it would not work.

Joint-stock companies appeared, and it was difficult for capitalists to enter. Franz just needed someone to pay for the railway, but he didn't care who paid for it.

The final result of the discussion was that the government came forward to establish five railway operating companies, which were responsible for the investment and construction of five railway lines.

There is no doubt that this is just a pilot. If it succeeds, it will continue to promote it. If it fails, it will change the way of playing.

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

These five railway operating companies only share part of the railway investment, and most of the selected sections are easy to build and can make profits in a short period of time.

In fact, everyone knows that they should make money by investing first, and then lead more people to join the railway construction and accelerate the pace of railway construction in Austria.

Franz has no moral cleanliness and 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 business that makes money, but no one asks about the business that loses money. If no one wants to do it, the government can only do it.

When commercial railways are built by the people, the government only holds a certain share in them. The Ministry of Railways can only take the railways for political and military purposes.

Franz is a person who pays attention to eating behavior, so he did not participate in it himself.

No one would believe this statement. The truth is that there is no money in hand. After all, the mine boss is more profitable than the Iron Boss, but the Habsburg family has investments.

Anyway, these railway companies will become listed companies and dig a hole for them. Once the stock market crash comes, it will be in a state of chaos, and they can still buy it.
Chapter completed!