In France railroad agitation commenced in 1832. A few short lines were opened, as those from Paris to St. Germain and to Versailles; but, owing to the conservatism of French capitalists, but little more was done until the state took the matter in hand. Thiers proposed a scheme by which the state was to furnish about half the cost while private companies were to build the lines and operate them. The Western Railroad, the first line of any great extent, was opened in 1837 between Paris and Rouen, and the Eastern Railroad was opened two years later. There were in 1859 six large companies operating their lines with profit, but, to induce them to build additional lines that were needed, the state guaranteed the interest on the capital required to make their improvements. In 1884 there were about 17,000 miles of railroad in operation. To bring about the construction of another 7,000 miles of road, and to thus complete the railroad system of the country, the government now guaranteed each company a dividend equal to the average of recent years, but not to exceed seven per cent. It is doubtful whether this system of monopoly has in all respects been favorable to the encouragement of enterprise in the railroad circles of France. In granting charters the state has, however, reserved valuable rights which at a future period it will have an opportunity to assert for the public benefit. The railroad companies have generally a lease for ninety-nine years, and their lines become the property of the state after the expiration of that period. To extinguish the bonded debt and stock, a sinking fund has been created, from which a certain portion of the shares and outstanding bonds is annually paid off and canceled. The government requires of the companies the free carriage of the mails and the transportation of military and other employes at very low rates. Besides this the state levies upon the traffic of the railroads a duty of ten per cent. of their gross earnings from passengers and from all goods carried by fast trains. These facts are usually overlooked by our railroad men when they indulge in making comparisons between the railroad rates of this country and those of France. The French Republic had 13,400 miles of road in 1875, and 22,600 in 1890. When all of the proposed lines are completed, the total mileage of that country will be over 25,000.