Reminiscences of the King of RoumaniaKremnitz, Mite
History
Reminiscences of the King of Roumania
Kremnitz, Mite
Carol I, King of Romania, 1839-1914; Eastern question (Balkan); Jews -- Romania; Romania -- History -- Charles I, 1866-1914
As the payment for the railways was to be governed by the completed
mileage, the Finance Minister instructed the Roumanian Commissary
in Berlin, Privy Councillor Ambronn, to control his payments by
the certificates of the engineer, countersigned by the chief of the
newly created Technical Bureau. This evoked an immediate protest
from one of the concessionaries, Dr. Strousberg, who threatened to
appeal to the law courts against so unjustifiable a check on the
honesty of the contractors. Councillor Ambronn reported that he felt
unable to refuse payment, although the engineers' certificates were
not countersigned, and further, that the proceeds of the bonds were
deposited, partly in cash, partly in stocks bearing interest, at the
Berlin Kassenverein. This led to a Parliamentary inquiry into the
state of the funds entrusted to Councillor Ambronn, and later on to
a unanimous resolution by the Ministry relieving him of his duties.
Prince Charles, however, was of the opinion that this measure would
only damage the credit of the railways, and declared his willingness
to accept the responsibility for the railway construction which was
thus thrust upon him by the country.
However, a report from the special commissioner, Herr Steege, sent
to Berlin in the autumn of 1870, placed the affair in a different
light, as it was then discovered that the money realised by the sale
of the railway bonds (35,000,000 francs) had been placed in the
Joseph Jacques Bank without the consent of the Roumanian Government.
This incorrect procedure on the part of the Commissary placed the
Prince in a most unpleasant position; for, though he considered it
in no way desirable that the money should be left lying idle, he
had never intended that it should be invested in a private company,
and so exposed to every fluctuation of the market. M. Steege was
therefore appointed to relieve Councillor Ambronn of his duties in
connection with the railway funds.
It seemed that the climax of the railway dispute must have been
reached with December 18, when Strousberg informed the Government
that he was neither able nor willing to pay the coupon due on
January 1, and further maintained that this payment should be made
by the State, though, as a matter of fact, he had paid the July
coupon himself. The interest, it is true, was guaranteed by the
State, but the terms of the concession provided that the interest
should be paid by Strousberg _whilst the line was in course of
construction_.
The entire weight of the blow fell on Prince Charles; the railways
were his pet idea, nay, even his consolation, as a passage in one of
his letters to his father shows. "I have at least done _something_
for my country--I have given it a railway!" But now even that
comfort had been taken away.
Public-domain text, read in full here on John Shaqi.
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