REIGN OF ROTHSCHILDS - 3. Part Played by the Rothschilds in the Early History of Railways in Europe: Financing the Industrial Age

The Reign of the House of Rothschild (1830-1871) - by Count Egon Caesar Corti (1928) - HQ Full Book.

Chapter 3: The Part Played by the Rothschilds in the Early History of Railways in Europe: The Rothschilds and Europe’s Railway Revolution.

Welcome to another riveting episode of The Secrets of Power, the podcast that dives deep into the untold stories of influence, wealth, and ambition that shaped the modern world. In this episode, we explore Chapter 3 of Count Egon Caesar Corti’s seminal work, The Reign of the House of Rothschild (1830-1871), titled The Part Played by the Rothschilds in the Early History of Railways in Europe. This chapter unveils the Rothschild family’s pivotal role in revolutionizing transportation and industry during the 19th century, cementing their legacy as financial titans who not only controlled wealth but also shaped the infrastructure of modern Europe.  

The period between 1830 and 1871 was a transformative era, marked by the Industrial Revolution’s rapid expansion and the rise of railways as the arteries of economic progress. While many associate the Rothschilds with banking and high finance, their influence extended far beyond ledgers and loans. In this episode, we uncover how the Rothschilds leveraged their financial acumen, political connections, and strategic foresight to become key players in the development of Europe’s early railway systems. From financing pioneering rail lines to navigating complex political landscapes, their involvement in railways was a masterclass in power and opportunity.  

Setting the Stage: The Dawn of the Railway Age
The 1830s marked the dawn of the railway age, a time when steam-powered locomotives began to replace horse-drawn carriages and canals as the primary means of transport. Railways promised to connect cities, accelerate trade, and transform economies, but they required immense capital, technical expertise, and political support. Enter the Rothschilds, a family whose banking empire spanned London, Paris, Frankfurt, Vienna, and Naples. With their unparalleled access to capital and influence, they were uniquely positioned to shape this new frontier. Count Corti’s account paints a vivid picture of a Europe on the cusp of change. The Rothschilds, led by the five brothers of the second generation—Nathan in London, James in Paris, Salomon in Vienna, Carl in Naples, and Amschel in Frankfurt—recognized the railways as more than just a technological innovation. They saw them as a financial and political opportunity, a chance to consolidate their influence across the continent. This episode delves into how their strategic investments in railways not only fueled industrial progress but also reinforced their dominance in European finance.  

The Rothschilds’ Entry into Railways
The episode begins by exploring the Rothschilds’ initial foray into the railway sector, focusing on their role in financing some of Europe’s earliest rail lines. Corti details how Salomon von Rothschild, based in Vienna, became a driving force behind Austria’s first major railway, the Kaiser Ferdinands Nordbahn (Northern Railway). This project, connecting Vienna to the industrial regions of Bohemia, was a monumental undertaking that required significant capital and political maneuvering. Salomon’s ability to secure funding and navigate the Austrian bureaucracy showcased the Rothschilds’ knack for aligning financial power with state interests. Meanwhile, in France, James de Rothschild emerged as a key figure in the development of the Paris-Orléans railway and other lines. His bank, de Rothschild Frères, provided the necessary loans to fund construction, while his close ties to the French monarchy and political elite ensured favorable concessions. The episode highlights how James’s strategic investments in French railways not only generated substantial profits but also strengthened his influence over the French economy and government.  

Navigating Political and Economic Challenges
One of the most compelling aspects of this chapter is Corti’s depiction of the Rothschilds’ ability to navigate the complex political landscapes of 19th-century Europe. Railways were not just engineering projects; they were deeply political, often requiring government approval, land acquisition, and public support. The Rothschilds’ success in this arena stemmed from their ability to operate as financial diplomats, brokering deals between governments, industrialists, and investors. The episode examines how the Rothschilds balanced competing interests. In Austria, for instance, Salomon faced resistance from conservative aristocrats wary of industrialization, yet he skillfully secured the support of Chancellor Metternich. In France, James navigated the turbulent politics of the July Monarchy, using his wealth to influence policy and secure railway concessions. Corti’s narrative reveals the Rothschilds as master st

Episode Transcript

Speaker 1 (00:00):
Chapter three the part played by the Rothschilds in the
early history of railways in Europe. The first application of
rails and therefore the basis of modern railways, takes us
back to the seventeenth century. At that time, especially in England,
wooden rails were frequently used in mines in order to
bring to the surface more quickly and easily the trucks

(00:21):
that had been loaded with coal, But it was not
until seventeen ninety three that mister Outram, an Englishman, hit
on the idea of substituting iron rails for wood, whereupon
the ways came to be known after the name of
the inventor Outram Ways and later Tramways. It came to
be realized that a horse drawing a load on such

(00:41):
rails was eleven times more effective than on an ordinary road,
and accordingly, as early as the twenties of the nineteenth century,
such ways were built, especially in connection with coal mines,
by means of which heavy loads could be drawn by
horses to the nearest waterway. Since Fulton steamer Claremont had
made her first successful voyage on the River Hudson in

(01:02):
eighteen o seven, the idea of applying the newly discovered
steam engine to the propulsion of ships had been successfully developed,
and George Stevenson, who was originally a smith in a mine,
conceived the idea of using the machine, which had hitherto
been applied only at sea, to the propulsion of trucks
on dry land. He installed in his mind the first
steam trucks. They were of his own manufacture, and then

(01:27):
in eighteen twenty five, with the assistance of several far
seeing capitalists, he built the first railway in the world
on which locomotives were run. This was the railway from
Stockton to Darlington, and its main purpose was to carry
coal from the Durham coalfields. Stevenson had to light against
enormous opposition, against petty private interests, even against contempt and ridicule.

(01:51):
A man called Nicholas Wood, who held a distinguished position
as a railway expert at the time, actually stated, I
should not dream of tell telling everyone that the ridiculous
expectation or rather prophecies of the enthusiastic speculators could possibly
be realized, and that we shall see steam coaches traveling
at a speed of twelve, sixteen, eighteen or twenty miles

(02:13):
an hour. Nobody could do more harm to the prospects
of building or generally improving such coaches than by spreading abroad.
This kind of nonsense, But as early as the September
twenty seventh, eighteen twenty five, when Stephenson's Railway was opened,
a train capable of drawing eighty tons was running at
a speed of ten to fifteen miles an hour. At first,

(02:35):
the means of locomotion on this railway was mixed. Horse
power was used as well the horses being harnessed to
help on a slope. The speed of trains was paralyzed
by the fact that there was a law enforced requiring
that a postilion should ride fifty yards in front of
the locomotive to warn people of the approaching monster. Nevertheless,

(02:55):
unreasoning prejudice was unable to block the advance made by
a man of genius. The achievements of the Stockton Darlington Railway,
considerable for those times, became generally known and led to
no less than eighteen new concessions for railways being granted,
including the railway from Liverpool to Manchester, which was the
next to be constructed. The only locomotives on it were

(03:18):
Stevenson's He had won the prize with his rocket in
the steam coach competition of October eighteen twenty nine at Rainhill.
All doubts were silenced after the opening on the September fifteenth,
eighteen thirty of the Liverpool Manchester Railway, which marked the
commencement of an era of intensive profit and industry for
the two sister cities, and therefore also of success for

(03:40):
the undertaking itself. The enormous developments opened up by the
new discovery were now first generally recognized, and from this
year dates the general extension of railways throughout the world.
Like so many others, Nathan Rothschild had followed Stephenson's experiments
with interest, but also with a good deal of skepticism.

(04:00):
At any rate, he was determined not to venture a
farthing on an undertaking which not only the general public,
but also highly respected and competent men declared to be
a wild cat's scheme. He too was of opinion that
the horse, which could travel anywhere, could never be effectively
supplanted by a machine. He was therefore quite pleased to

(04:21):
see such firms as Glynn, Halifax, Mills and Company, as
well as the inexperienced provincial bankers risking their good money
in such highly speculative ventures. He was acting in exactly
the same way as other big banks such as Bearing
and Ricardo, who also avoided having anything to do with them. When, however,

(04:42):
Stevenson's successes became more and more pronounced, and after the
construction of the first and second railway in England, a
positive railway fever seized the country. Innumerable companies were being
formed for new railway schemes, and Nathan, who had followed
these developments closely, although taking no part in them, came
to the conclusion that this new discovery offered in calculable

(05:03):
opportunities for profit which his house must not be allowed
to miss. In England, it was certainly rather late, as
there were already so many people in the field. But
on the continent, where his brothers lived, the situation was different.
Nowhere on the continent was there a railway carrying steam engines.
There were only here and there a few short sections

(05:24):
of horse tramways. Here was a field for the enormous
resources of his house. If his brothers in Austria, France
and Germany were to take the initiative in the construction
of railways before any others entered the field. This might
result in an enormous increase in the wealth and power
of the firm. Nathan at once communicated these ideas to

(05:45):
his brothers and found that they were immediately prepared to
enter into them. His suggestions made a special impression upon
Solomon Rothschild in Vienna. This was partly due to the
fact that another highly gifted man who might indeed be
called a genius, had called Solomon's attention to the tremendous
possibilities in railway construction on a large scale. This man

(06:07):
was Franz Xavier Repel, professor at the Vienna Polytechnic Institute
and special expert in mining. He had worked for many
years in the Wikowitz iron Works. Wikowitz lies close to
the enormous coal basin between Moravian Astra and Carwin. The
iron works had grown up there because of the convenience
of the neighboring coal fields. As it was impossible to

(06:29):
carry coal for any distance at that time owing to
the inferior and expensive methods of transport, Repel's idea was
to follow England's example and transport the coal by railway
to the Great waterway of the Danube. On looking into
the matter further, he thought it should be practicable also
to carry large consignments of salt from Mukliska and Galicia
on the railway, and for this purpose to build a

(06:51):
railway from Bania southeast of Krakau, right in the northeast
of the Monarchy, via Moravian Ostra and Brunn to Vienna
at this way stints of about sixty miles. Repel found
a wholesale merchant called Samuel Wiederman, who was in close
business relation with Solomon Rothschild. Particularly interested in the idea. Wiederman,

(07:12):
perceiving that Repel's schemes could be realized only with the
help of a great financial power, introduced Repel and Solomon
Rothschild just at the happy moment when Solomon had received
the encouraging reports and suggestions from his brother Nathan in England.
As Repel sketched out his ideas, Solomon got a vision
of enormous sums flowing into his coffers. Through making all

(07:33):
the valuable or as easily available and arranging for their
easy transport and for that of the important raw material
salt to the capital. He took up the scheme with enthusiasm,
and immediately decided to take the first tentative step towards
putting it into effect. At the beginning of eighteen thirty Solomon,
having heard what Repel had to say, sent him and

(07:55):
Leopold Vaughan Wertheimstein to England to find out all they
could about the actual railways. There they were to ascertain
on the spot how they were built and managed, with
a view to applying the experience so gained in building
the projected railway to Galicia. In later years, Solomon Rothschild
expressly emphasized the fact that the principal credit for the
idea of the Nordbond was due to Repel. It is

(08:18):
a satisfaction to me, he wrote to the head of
the Treasury, Count Mitroski, and I feel I am but
doing my duty in taking this opportunity of expressly putting
on record the fact that it was her Frand's repl
professor at the Polytechnic Institute, who, in eighteen twenty nine
first adam rated the wonderful idea of the Galician railway
and discussed it with me, with the result that I

(08:39):
decided to have the necessary preliminary work done for forming
an adequate estimate of the undertaking from a technical, commercial
and financial point of view, in order that if it
should appear to be adequate for the purposes for which
it was intended, I might be in a position immediately
to proceed with the carrying out of this truly national project.

(09:00):
The two delegates devoted particular attention to the Liverpool Manchester Railway,
which had just been finished, and sent a detailed report
upon it to Solomon Rothschild. On this Solomon decided definitely
in favor of the construction of the big railway in Austria,
and went so far as to suggest the idea of
carrying it right through Austria by extending the railway of

(09:20):
Bocknia Vienna to Triesst in the South i e. To
the Adriatic Sea. Solomon Rothschild intended seriously to proceed with
the preparation for the construction of the railway, when the
sudden outbreak of the July Revolution in France upset all
these plans. Solomon himself wrote at a later date in
this connection the political difficulties that arose in eighteen thirty

(09:42):
and the disturbances that followed with their exceedingly depressing effect
upon trade and industry forced me, to my great regret,
to postpone to quieter times more favorable to such undertakings.
The carrying out of this scheme, although it had been
definitely decided upon, this was not unnatural, for during the
period immediately after the revolution the house was fighting for

(10:03):
its very existence, and it took years for Tilings to
settle down again and recover themselves. It was not until
eighteen thirty two that the position of the Rothchilds had
so far improved that jointly with two other firms, they
took over the unsuccessful business of a horse tramway from
the engineer Zola, father of the famous novelist, which operated
between the Danube and the Lake of Cmunden. Meanwhile, a

(10:27):
veritable railway fever had broken out in England. Everybody was
engaging in railway construction, and as soon as Nathan saw
that the position of the House was becoming consolidated again,
he advised his brother to take up the scheme once more.
Solomon thereupon arranged to have the whole route over which
the railway was to be constructed examined by expert engineers

(10:48):
under the direction of Repel, with a view to ascertaining
the best line. The result of these investigations was to
establish the fact that by this means the greatest and
most distant provinces of the Empires to be brought into
closer association with one another and with the capital, and
entirely new combinations having their effect upon industry, commerce, politics,

(11:09):
and strategy would result. On the April fifteenth, eighteen thirty five,
at the suggestion of Metternich, who was in a position
in view of the ineffectiveness of the new Emperor Ferdinand,
to assure the banker in advance that his application would
be granted, Solomon decided to put forward his official application
for permission to construct a railway first from Bocnia to Vienna.

(11:32):
The Emperor Francis had been known to be opposed to
any such venture, and although he had been dead only
six weeks, Solomon hastened to take advantage of the altered circumstances.
His application was particularly cleverly worded. In accordance with his
usual practice. He endeavored to bring out the advantages to
the state, which in this case were indeed notable, and

(11:53):
to keep his own motives and the material considerations in
the background. Most Excellent and most puisent Emperor, most Gracious Emperor,
and Lord the most loyal and humble Bank, whose signature
is subscribed, has for several years been conducting the most
careful investigations with regard to the question of laying down
a railway between Vienna and Bocknia. The result of these

(12:16):
deliberations has been that we have come to the conviction
that the achievement of this great means of communication would
be of benefit to the state and the public wal
no less than to those who join in the undertaking.
And this conviction is shared after careful consideration of the
various local and commercial conditions of the territories and provinces
concerned by other persons who would interest themselves in this

(12:37):
truly great patriotic venture. This mature conclusion having been arrived
at the undersigned, governed by the desire to be in
a high degree useful to the Imperial State of Austria, venture,
most humbly to beg your majesty, that you may be
graciously pleased to grant them a concession to erect this
great railway from Bognia to Vienna, and further, most graciously

(12:59):
to permit that the funds necessary for this great undertaking
may be made available by means of a public company.
And finally, having regard to the great and manifold preparations
that will be necessary, most graciously to fix the period
within which preliminary construction on the railway shall be completed
at three years and the period by which the railway
shall be completed at ten years after Your Majesty's resolution,

(13:22):
This humble application is based so strongly upon the interests
of the commonweal, and it is so clear that trade
and commerce, the revenues of state and of landed properties
will benefit through the increased prosperity that will result from
the intensive association of distant provinces. Finally, the motives which
have led us, after the most exhaustive deliberations, to submit

(13:44):
this proposal to Your Majesty's wise consideration in your loving
care for your country, and to request your most gracious
sanction for it, are so entirely patriotic that the respectful
undersigned feel that they may be permitted to hope that
Your Majesty will graciously accept this our humble petition, whereby
why the opening of your reign will be marked as
one of the most blessed epochs in the history of

(14:05):
our country's industry, and that you will, in your wisdom
and your loving care for your country, be graciously pleased
to approve and sanction it. In deepest devotion to your Majesty,
I beg to sign myself your Majesty's most true and
humble servant, per pros. M. V. Rothschild Leopold Vaughan Wurthheimstein, Vienna,

(14:26):
April fifteenth, eighteen thirty five. This application was sent in
a usual way to the official that the department concerned,
Baron Vaughan Drosdick, with a hint from the Chancery that
Metternich was favorable to its being granted for his observations.
Public opinion at Vienna was against railways. The Vienna newspapers

(14:47):
of the period published opinions by a whole host of
experts showing the madness of such undertakings. They proved that
the human respiratory system could not stand a speed of
fifteen miles an hour. It would therefore be the maddest
recklessness to venture upon such a journey. Nobody who was
in possession of even half his senses would expose himself

(15:08):
to such a risk the first travelers would have to
take their doctors with them. These experts declared that the
travelers would spurt blood from nose, mouth and ears, that
they would be suffocated in passing through a tunnel more
than sixty meters long, and that not merely were the
passengers in danger themselves, but that the spectators might go
mad through the terrific speed of the passing train. Nevertheless,

(15:32):
Joe Stike's opinion was in favor of granting the petition
the construction of a railway. He minuted it to traverse
three provinces from Vienna, as the central point of Austrian commerce,
would be a matter of such very exceptional service to
the state. From the commercial point of view, and through
his considerable personal resources, his vast credit, and his extensive connections,

(15:55):
the banker Rothschild is so exceptionally suited for forming a
public company that their could not be any objection in
a general interest against granting a concession for this new
railway undertaking and permitting the applicant to form a company,
whatever motives malicious critics may allege to have produced this
favorable opinion and the support of the government machinery which

(16:16):
Medinich controlled. It was a noteworthy deed, so warmly to
support a scheme which most experts in public opinion generally condemned,
and which was to be the starting point of a
system that would revolutionize the world. The administrative system functioned
most readily in accordance with the wishes of Medinich and Cholerat.
For the Emperor Ferdinand was nothing but a signing machine,

(16:37):
and in this case these two statesmen were of one mind,
the Archduke Ludwig being as usual more or less a cipher.
His Majesty's consent was obtained under date November eleventh, eighteen
thirty five, granting Baron Vaughan Rothschild the concession to build
the railway from Bocknia to Vienna. The postal service, which
feared the competition of the railway, having quickly had a

(16:59):
cab viot inserted, providing that the State postal department could
claim compensation if its interests were damified by the concession.
Solomon hailed his Majesty's decision with joy and the sincerest
feelings of gratitude. Hail to the Monarch, he wrote, who
has most graciously deigned to take this decision In the
interests of the welfare of his people. However, at the

(17:21):
same time he begged that the reservation in favor of
the post should not be incorporated in the document granting
the concession, as this would produce a struggle of private
interests such as would lead to constant disputes and complaints.
Since if the eye our postal contractors were favored in
this way, innkeepers, stable proprietors, wagoners, smiths, et cetera established

(17:43):
on the line between Vienna and Bocknia would be encouraged
to make similar applications. Solomon suggested that the postal administration
should be indentified by the payment of a lump sum.
This question was also sent to Baron Vaughan Drostick for
his opinion, but on this occasion he was not so
far seeing, for he minuted as follows, Baron Vaughan Rothschild

(18:04):
has not expressed the intention in any of his suggestions
of carrying letter on this railway. This would appear to
be an entirely different kind of business and outside the
actual scope of the undertaking. For this reason, there is
no occasion for entering into negotiations for compensation. In the end,
the postal question was settled by a compromise limiting the

(18:24):
right to carry mails, and the Concession Decree of the
March fourth, eighteen thirty six was drawn up. The most
important provisions were those laying down that even after the
expiration of fifty years, for which period the concession was granted,
the House of Rothschild should continue to be assured of
absolute ownership in the railway, and that the concession should

(18:45):
cease to be effective if one mile of the railway
should not be constructed within two years, and if the
whole railway between Vienna and Botnia should not be completed
within ten years. Thereupon, Repel and Heinrich Saykrowski, one of
the most active collaborators in the railway scheme, were sent
on another visit to England to ascertain what progress had
been made there since the year eighteen thirty. Solomon Rothschild

(19:08):
succeeded in obtaining a year's leave for Repel, who was
indispensable to him from his duties as professor, undertaking to
provide the full salary of a substitute. The next step
was to raise the capital of twelve million golden convention currency,
which was estimated to be required for building the sixty
mile railway. Twelve thousand shares at a thousand florins were issued,

(19:31):
Rothschild retaining eight thousand shares, partly for his own account
and partly for issuing to the numerous applicants who had
come to him direct. Only four thousand shares were offered
for public subscription. Amongst the subscribers were some of the
most important financiers of the day, such as Bidermann, Eskyls,
Gaymuler and Sina Wertheimstein, Repi and sycro Ski, The real

(19:55):
originators of the scheme, also took shares in it. The
floation was a brilliant success, although only four thousand shares
were offered, twenty seven thousand, four hundred ninety were applied for.
Applicants for small amounts had their shares allotted to them
in full, but those who applied for larger amounts only
had a proportion allotted to them. This prodigious success aroused

(20:18):
the envy of the other bankers. Sena had come into
the scheme, but he could not rest until he had
obtained a similar railway concession for himself. Rothschild had secured
the Northern Line. Sena therefore decided to try to obtain
the concession for connecting the capital with the Adriatic. On
the February seventeenth, Baron George Vaughan Sena asked to be

(20:39):
granted an exclusive concession for constructing a railway from Vienna
to rob with a view to continuing such railway to
the Adriatic Sea. Solomon was secretly informed by the Chancellor
that the application had been sent in, and immediately recognized
the mistake he had made in not having asked in
the first instance for the concession for the whole railway
from the north to the Seak coast in the south,

(21:01):
in accordance with Repel's basic scheme. Three days after Sina's
application had been sent in, Solomon sent in a further
petition to the departments concerned and to the Emperor, asking
that the priority for constructing a railway from Brody through
Vienna and Hungary to the Adriatic coast should be reserved
for him. Rothchild explained in his application why the concession

(21:23):
for the whole central railway from the north to the
sea had not been asked for in the first instance,
although it is evident. Rothchild wrote that the realization of
this great scheme would be most profitable for the promoters
and of great benefit to the commonweal. It cannot be
disputed that it appears to be impracticable and inadvisable to
attempt to carry out the whole of this enormous work simultaneously.

(21:46):
It is inadvisable to undertake an undue strain, even in
the achievement of what is useful, And it is only
by the prudent application of sound principles that the good,
the right, and the true is attained. Such was the
view of the first proposer with regard to the matter
under consideration, a view in which your humble servant concurred.
Sena's and Rothschild's applications were now both lying at the

(22:08):
Treasury to be dealt with. It was not as yet
a question of granting the concession, but only of a
provisional statement that such would be favorably considered. The Treasury
fully appreciated the commercial importance of the proposed railway. It
was of the opinion that the preference should be given
to Baron Vaughan Sena, since Rothschild's Nordbond was a venture

(22:29):
of such importance, and one that required so much capital
and it did not seem desirable to expand it. The
Treasury held that there was an advantage in making use
of several independent contractors, as the resulting competition would be
of benefit to the state and the public. Moreover, Baron
Vaughan Drostick minuted Baron S. M. Rothschild, being a partner

(22:52):
in the Frankfurt firm, who has not definitely settled here
as an Austrian wholesale men meant should still strictly speaking
be considered as as a foreigner. And although there was
no objection to granting him a concession for the Northern
Railway in the absence of any application from our own countrymen,
it is not unnaturally a matter of satisfaction to the
government that an Austrian subject of perfectly sound financial standing

(23:14):
should have come forward in connection with a similar important
undertaking in the South. Public opinion would be gravely offended if,
in the case of two similar offers, the preference were
given to the foreign candidate. Another consideration in favor of
Baron Vaughan Sena is the fact that he possesses substantial
property in Hungary, that he is a baron, he is

(23:36):
one of the Hungarian magnates, and that the greater part
of the Southern Railway will be within the Kingdom of Hungary,
so that through his connections, he undoubtedly seems to be
in a much better position to safeguard the interests of
the railway for the important section which lies with Hungary
than is Baron Vaughan Rothschild. The Treasury therefore proposed that
Sena should be informed that they were prepared, if occasion

(23:57):
should arise, to support his application to the Emperor for
a concession, but that Rothschild should be informed that his
application could not be granted since another one had been received.
Rothchild recognized that his original mistake in having failed to
apply for the whole of the Northern and Southern Railway
concession could not be entirely remedied, and he therefore requested

(24:18):
that he should, at any rate be permitted to build
a branch line to Presbourg on the left bank of
the Danube, connecting with his northern railway. Count Mitroski wanted
quickly to get Rothschild's application for the Pressburg Railway past,
but colorad opposed at this time, and finally both Rothschild
and Sena were merely permitted to make such preliminary investigations

(24:38):
on this section, as would be required in connection with
the granting of a concession. There was therefore nothing more
to be done. Rothchild now saw that his work was
provoking envy and malice on all sides. He had been
kept out of the second half of the main scheme,
and he now had to reckon with the fact that
his respected banking colleagues would put every difficulty in the

(24:59):
way of the ca constructing of the Northern Railway, except
in so far as they were personally interested in the venture.
He racked his brains as to the most effective way
of countering this opposition, and hit upon the idea of
associating the name of the Emperor and of the leading
ministers with his great scheme. This would flatter their vanity,
and there would be the further advantage that these important persons,

(25:21):
having become intimately associated with the whole undertaking, would be
morally compelled in the case of any crisis or unforeseen difficulty,
to lend their active assistance unless they were prepared to
see their names associated with a possible failure. His idea
was to give the name of the Emperor to the
undertaking as a whole and also to name the leading
statesmen as patrons. This would have the value of a

(25:44):
kind of insurance policy. No sooner said than done, he
wrote the following clever letter to the Emperor. The most
obedient and loyal, undersigned servant of your Majesty ventures respectfully
to inform your Majesty that the main requirements for successfully
carrying out the great national work, namely the Viennabania Railway,
the construction of which your Majesty has most graciously deigned

(26:07):
to authorize, have been met. The most obedient and loyal,
undersigned servant of your Majesty feels that he may venture,
in all humility, most respectfully, to request your Majesty that
you may be graciously pleased to permit that the Viennabania
Railway shall be allowed to bear the auspicious name of
Kaiser Ferdinand's Nordbond. If a similar means of communication should

(26:28):
come to be established between Vienna and Austrian Italy, the
Great Austrian Monarchy would also possess an Imperial Southern Railway,
that is, one big railway connecting Galicia and Austrian Italy,
as a remarkable monument to your Majesty's glorious government, and
the memory of the benefits which you have conferred would
be handed down to posterity, to your undying fame. Solomon

(26:50):
Rothschild wrote at the same time a letter to Metternich
that was also cunningly worded, Your Highness, Any great industrial enterprise,
being of the nature of an undertaking of national importance, requires,
at its inception and in order to attain to prosperity,
to bear the mark of the approval of high authority.
Such is the case with the proposal to construct the

(27:12):
Great Northern Railway between Vienna and Bocknia, together with its
seven branch railways, all other conditions for its success having
been satisfied. Appreciating this fact, the humble signatory to this
letter has realized the importance in the special interests of
those who have ventured their money in this great undertaking
to take such steps as may be appropriate for inducing

(27:33):
such statesmen as are the bearers of honored names, to
place themselves as patrons at the head of this national undertaking,
which promises to bring the Austrian monarchy as much glory
as it does advantage. The humble signatory to this letter
has ventured, in this connection to consider the names of
his excellency, Count Vaughan Mitrowski, the Head of the Treasury,
and his excellency Count Chlorat, Lord President of the Council,

(27:56):
and humbly begs that your Highness will graciously be pleased
to encourage us by accepting the name of High Protector
of the Viennabotnia Railway, whereby the company would feel themselves
exceptionally honored and success would be doubly assured. Metinic minute
at as follows, It has for a long period been
in accordance with the practice of the Austrian monarchy that
persons of high position should appear as patrons at the

(28:19):
head of organizations or associations formed for benevolent and useful purposes.
The high importance of this undertaking from the industrial, commercial
and economic point of view is beyond dispute. The Chancellor, therefore,
together with Count Colorad and Count Mitroski, feels no hesitation
in accepting the patronage, provided that your Majesty shall be

(28:41):
graciously pleased to express your concurrence. The three statesmen also
sent forward with their approval the petition for the Emperor's name.
It is a well known fact, wrote Count Mitroski on
the petition that the rulers of our Imperial House and
the sovereigns of other countries too, have always given permission
that canals and roads which have appeared to be of

(29:02):
a special importance for their country's welfare should bear their names.
The public itself has taken this view of the undertaking,
as is shown by the fact that within so short
a time, not only was the considerable authorized capital subscribed,
but almost double the amount was applied for. This undertaking
is on a colossal scale such as has never before

(29:23):
been contemplated in Europe, and together with all the developments
that may result from it, will remain as an everlasting
monument to the first years of Your Majesty's reign. Not
only therefore do I see no objection in view of
these considerations, I would express the most emphatic hope that
Your Majesty may most graciously deign to permit that the
Vienna Botnia Railway may henceforward be known as the Kaiser

(29:45):
Ferdinand's Nordbond. Solomon Roth's child's petition was accordingly accepted by
the obedient Emperor Ferdinand on the April ninth, eighteen thirty
and Thereby the project was given a support which in
later years was to prove exceedingly useful. Thus the stage
seemed to be splendidly set for the construction of the Nordbahn.
On the April twenty fifth, eighteen thirty six, the first

(30:09):
general meeting was called, at which Solomon stated that he
would hand over the entire concession, without reserving anything for
himself and his house to the company. Rothschild made it
a condition that he should always have full access to
any information affecting the company's affairs, that he should be
indemnified for the expenses he had incurred amounting to twelve thousand,

(30:29):
six hundred fifty two florins fifty kronen, and that one
hundred free shares should be issued to the most deserving
of those who had collaborated in bringing the scheme into being.
In return, he gave a solemn assurance, as the minutes
of the meeting record, to devote his future efforts to
this great national undertaking with the same zeal that he
had shown for it hitherto. At the second general meeting,

(30:51):
the Articles of Association were submitted and adopted, and a
provisional board of management was appointed which Johann Baron Vaughan
Sena and Daniel Baron Vaughan Eskils were asked to join.
They were anything but friendly to the undertaking and really
joined the board to find out their rival Rothschild's plans.
Stirred up by these men, a powerful opposition came into being.

(31:13):
It soon found support especially amongst the comparatively ignorant public,
and such business men whose private interests were threatened made
use of it for their own ends. The spokesman of
this opposition was Ludwig Baron Vaughan Pereira, a partner in
the bank of Arnstein and Escals. He was secretly supported
by Baron Vaughan Sena and was acting in the interests

(31:34):
of those two banks. He was put up to send
in a memorandum pulling to pieces all the statements, estimates
and proposals of the Provisional Board of Management of the Nordbond.
In this elaborate statement, Pereira was at pains to set
out everything that might tend to show that the scheme
was ill conceived or impracticable. First, he dealt with the

(31:54):
terrible consequences that might result from the least increasing gradient.
Even though wrote barren pererra. One appears to be looking
at a plaine extending as far as the eye can reach,
a plane which at first sight seems to be perfectly flat.
Accurate measurements may easily reveal an upward gradient of more
than one third percent. In such a case, the railway

(32:16):
would become involved in enormous loss, since running over a
slightly rising gradient would cost a great deal more money.
It may be imagined how embarrassing it would be on
this apparently level surface suddenly to discover a somewhat too
steep gradient after the construction had been begun. Such an
unforeseen difficulty, although not allowed for in the calculations, would

(32:38):
have to be dealt with. In order to make the
rail traction possible. A cutting would be necessary, and considerably
unforeseen expenditure would be entailed, especially as one often encounters
rocky patches. Moreover, sandy districts will cause difficulties such as
will produce positive amazement when they come to be dealt
within practice. The greatest possible degree of ten technical perfection

(33:01):
is far from having been achieved in the machine so
far discovered and used. The greatest difficulty is offered by
the construction of the wheels, which so far have not
been made to revolve independently, as in a case of
carriage wheels, but are so constructed as form one piece
with the axle and to revolve together with it. As

(33:21):
the wheels have no individual movement, any crookedness in the
railway is out of the question, and for this reason
only barely perceptible bends are possible in a railway for
steam traction. In the case of the slightest carelessness resulting
in the locomotive approaching a bend too quickly, it will
either jump the rails or tear them or break the wheels,

(33:41):
For something must yield to the force of the speed.
If the railway is to attract galician freight traffic, it
must work cheaper than the horse carriage. Experience, however, teaches
us that under the stress of competition, these people will
lower their freight charges. It is therefore not in pots
possible that they will sustain the competition of the railways,

(34:02):
For it is just in those districts that fodder and
other expenses of carriers are particularly low. Only those railways
can succeed, which depend mainly on passenger traffic. Hitherto railways
have not been able to compete with horse traffic. Moreover,
passengers and freight are only to be carried in the
one direction from Bechina to Vienna, and not in the

(34:24):
reverse direction. For this reason alone, the Boknia railway would
be at a special disadvantage as compared with any other
since in no other case do we find this disparity
between the up and down traffic. In his detailed memorandum,
Pererira endeavored to show that the goods traffic which was
counted upon would not be obtained. In his wild attack

(34:44):
upon the whole undertaking, Baron Perrera did succeed in discovering
objections which actually proved to be well founded. He stated,
for instance, that it would be absurd to build a
single track railway with sidings. He stated that it was
clear on the face of it that a double track
would be needed, and he could show that all railways
which have hitherto been built as single tracks are now

(35:06):
being converted into double tracks. I do not, therefore, as
he see, why we should start with a faulty method
of construction. This objection was put forward by Perreira only
in order to swell the estimate for the cost of construction,
as he wished to show that the estimates were far
too low, on which point he certainly proved in the
end to be perfectly right. But at this point Perrera

(35:28):
overlooked the fact that he had just endeavored to show
that even a single track railway would not obtain enough
passengers and freight to pay. Perreira closed his statement with
the observation that as an expenditure of fourteen million florins
was far from sufficing for the construction of the railway,
it would be impossible to apply lower fares than those
of the postal service, and as moreover, there would not

(35:50):
be a sufficient quantity of goods to pay. The usefulness
of the railway became highly problematic. Rothschild's powerful enemies, who
who also had friends amongst the emperors entourage, saw to
it that the Emperor heard of the difficulties which there
was reason to believe were inherent in the Rothchild repal scheme.
They even succeeded in prevailing upon the weak Emperor to

(36:12):
address an imperial rescript to Metternich which read as follows,
Dear Prince Medernich, you have informed me how far the
preliminary work in the construction of the Beachina Railway, for
which I have granted a concession, and which I have
permitted to be identified with my name, has proceeded since
numerous unfavorable rumors about it are abroad. You will also

(36:33):
report to me whether difficulties have arisen in the further
progress of the work on this railway, and in that case,
what these difficulties are. Ferdinand Count Mitroski thereupon immediately communicated
with Leopold Vaughan Wurteinstein, who was authorized by Solomon to
deal with all questions affecting railways, and asked him to

(36:53):
indicate what the frankness and thoroughness that were due to
his majesty, any possible obstacles or difficulties, as well well
as any means whereby these might be obviated, either by
the efforts of the company that had been formed for
the purpose of constructing the railway, or otherwise by the
help and support of them administration, if this were practicable. Rothschild,

(37:15):
who was embittered and angry at the influences which had
made themselves felt, had in the meantime made a statement
that if the majority of the shareholders should really unexpectedly
come to the conclusion that the railway scheme should not
be carried through, he would defray all the expenses incurred
up to that point from his own resources, so that
all the shareholders would recover their original ten percent deposit

(37:35):
in full. It being of course understood that the concession
for building the Kaiser Ferdinand's Nordbaud, granted to him by
the Emperor and transferred by him to the company, would
cease to be their property and would have to be
reconveyed by the company to himself, who would then have
the free right to dispose of it as he pleased.
Shortly afterwards, Solomon Rothschild left for Paris, whence he informed

(37:58):
Count Mitroski that he had made this statement in order
to reassure the shareholders with regard to their ten per
cent deposit, and that he intended, without hurry or fuss,
to have a new, accurate, technical and commercial investigation made
by the Board of Management in order to prove conclusively
that the objections raised with regard to the usefulness and
practicability of the railway were unfounded. Solomon Rothschild proceeded to

(38:22):
instruct Repel to go through Pereer's memorandum criticizing the scheme,
and to examine it in detail to see how far
it was justified. Repel's counter memorandum answered with biting incisiveness
to points made by his opponent. First of all, he
dealt with the objection that it would be more sensible
to have a double gauge railway. We also appreciate the fact,

(38:42):
wrote Repel, that a double gauge is more convenient than
a single gauge line. But it appears to us to
be pure madness to propose a double line while doubting
the possibility of carrying freight traffic amounting to one and
a half million hundredweight for a single line would be
more than sufficient for such an amount. Robert Stephenson in
London advised us not to construct the second line until

(39:04):
the freight carriage should exceed five million hundredweight per annum.
Reapel's reply proceeded to deal with his opponent's memorandum point
by point, stating, one ought not really to condescend to
reply where it is a matter of the first elements
of the theory of railway construction, but out of a
genuine desire for peace, I commend the following reassuring considerations

(39:25):
to the somewhat hasty novice in technical matters who has
written the memorandum. One, The Nord Bond track between Vienna
and Brunn consists of long and straight sections such as
do not occur in any other European railway. If any
one does not believe this, let him come and see
for himself. Two. The steepest gradient between Vienna and london

(39:46):
Burg is less than one slash one zero zero zero.
If any one does not believe this, let him come
and try for himself. Three. The radii of curvature so
far applied to the Nordbond are of a length of
one thousand, five hundred to one thousand, eight hundred four
point zero zero zero meters. It is obvious therefore that

(40:07):
we are still more cautious than our technical advisers. If
anyone does not believe this, let him come and test
the curves for himself. Four. The critics fear that in
planning the track we might come across unrealized and insurmountable
hills is entirely without foundation. As well as what he
says with regard to rocks, marshes, et cetera. None of

(40:30):
these objections have any basis. In fact, if anybody doubts this,
let him ironic and watch the surveying operations. Five. The
sand which our critic so much fears, is an absolute
gift of the gods to the Nordbond scheme, and we
shall gradually carry it along the whole of the permanent way.
For the top dressing of the track. Six, we have

(40:52):
no intention of using a ground augur because we don't
want to be a laughing stock. Seven. Everyone is agreed
that steam engine have not yet been perfected. We must
therefore content ourselves with what England has so far achieved.
If the technical adviser of the opposition knows anything better,
we shall gratefully accept it. Let him speak with reference

(41:15):
to the offensive doubt expressed lest the gradient at the
Weiskirchen Watershed should not have been ascertained. Although the gradient
is given in the prospectus, I enclose the particulars regarding
the survey of this gradient as being the proper method
of meeting this insult with the contempt it deserves. Ten.
It is to be regretted that it should be possible
to find persons in Austria enjoying the reputation of competent

(41:38):
experts who are prepared to assert that it is necessary
to take a survey of the gradients of the prater,
the march felt, the thagithalland et cetera, before one can
confidently decide that it is possible to lay down a
railway running through these flat, open valleys and plains. Such
a lack of practical imagination deserves no reply. Reapill also

(41:59):
endev to defend the financial estimates and proceeded to deal
with the specific attacks of Baron Pereira, or rather of
the uninformed advisers who are at the back of him.
After a detailed exposition as to the amount of freight
that might confidently be relied upon, Repel observed. Particularly strange
is the remark that hitherto railways have not been able

(42:19):
to compete with carriage by road. This statement would deny
to all railways such as at present exist and flourish
the possibility of continuing to lead a healthy existence. This
statement would deal a final blow to all railways for
all time, making it ridiculous to go on wasting thought
on railways as they all have to compete with road transport.

(42:41):
To those partly foolish and partly malicious enemies of the
groat national work which they are calling in question, I
would say, and may my words follow them to their
hiding places, that there is not, and never has been,
anything great or good or beautiful which stupidity and malice
have not endeavored to defame, and that it would be
the wiser course to acquiesce good temperately, permitting the duly

(43:02):
authorized Board of Management of the Nordbond quietly to proceed
with its work in accordance with the principles of common
sense and of commercial wisdom, applying the results of scientific investigation.
Whereby we cherish the hope that the Kaiser Ferdinand's Nordbond
will succeed in silencing and putting to shame stupid and
malicious tongues. If, however, although I think it unlikely, we

(43:25):
should even then not be left in peace, and if
these mischief makers should still refuse to allow us Austrians
to become somewhat more industrious, more famous, and perhaps happier,
the time will perhaps come to expose these wretched mortals
and attack them mercilessly with all available means of publicity, and,
if necessary, with the most unsparing ridicule. Wertheimstein enclosed this

(43:47):
memorandum with his reply to Count Mitroski's letter asking for
further information to enable him to deal with the Imperial rescript.
In his covering letter, Wertheimstein especially expressed Solomon's appreciation of
his Majesty's rescript as constituting a further proof of his
Majesty's gracious concern for the prosperity of the Kaiser Ferdinand's
nord Bond, and of the fact that he continued to

(44:08):
enjoy his Excellency's confidence with reference to the question. The
letter went on, how far the preliminary work for the
construction of the Kaiser Ferdinand's nord Bond has advanced. This
has been exhaustively dealt with by the provisional Hoarde of
Management in the enclosed statement to which the dutiful undersigned
has nothing to add beyond expressing to your Excellency his

(44:28):
profound regret that, after the preliminary investigations had been so
satisfactorily completed, an undertaking which is certain to be of
inestimable benefit to the Commonwealth, should at the very start
be defamed in a passionate spirit of obvious malice whereby
its speedy progress to a satisfactory conclusion has been retarded.

(44:49):
Our opponents have not left untried any means whereby they
might achieve their obvious intention of shattering confidence in the undertaking,
so that the company might be wound up. Through every
channel of publicity, the undertaking has been represented in the
most unfavorable light, and the most highly colored versions have
been given as to the practical difficulties connected with it,
not to mention the objections that have been put to

(45:11):
government departments, without any of these noisy critics ever having
investigated the painfully collected data himself. They have, in the
most inscrupulous mame or misrepresented the honest intentions of the
first founder of the undertaking, and have accused him of
being a speculator intent only on making a quick profit
on the flotation. Finally, they have accused the truly public

(45:31):
spirited first sponsor of the scheme, Professor Reaple, to whose honesty, disinterestedness,
industry and export knowledge, the writer feels cannot testify too
strongly of the most utter superficiality and wrong headed rashness,
besides attributing unworthy motives to him, As the writings of
our critic Huron Pereira show. The natural consequence of all

(45:55):
these mischievous activities was that the shareholders became nervous and suspicious,
and general dissatisfaction began to be expressed. Whereupon the Hoarde
of Management, as they have themselves dutifully reported to Your Excellency,
decided once again closely to examine the whole scheme before
undertaking the grave responsibility of embarking on the first definite
work of construction. By way of finally refuting the objections

(46:18):
of the opposition party, Wertheimstein called attention to the recommendations
of Repeal and Sycroski, which he enclosed, advising that construction
should not commence unless and until the new Commission Winch
was to be appointed, had pronounced in favor of it.
He concluded by requesting Mitrosky to continue to plead the
cause of the great national undertaking at the steps of

(46:39):
the throne. Such was the heartfelt outburst provoked by the
petty critics and enemies that had appeared on all sides.
Lest public excitement should be increased still further, it was
decided to refrain from publishing the opposition report and the
reply there too, but Solomon, Rothschild and Wertheimstein perceived that
the moment was propitious for obtaining getting further advantages from

(47:01):
the state, and they desired to exploit Mitroski's friendly feelings.
Now that the Emperor's name and his own were associated
with the undertaking, its non completion would have constituted a
personal reverse. The clever move of securing these names was
already producing useful results. Accordingly, leave from the state service

(47:22):
was applied for engineers, including the well known karl Gaia,
application was made for the import of steam engines free
of customs duty, and permission was again asked for extending
the railway to Presburg, which would serve to consolidate the
whole scheme. Then Solomon proceeded to make a definite move
against the opposition, who themselves had seats on the provisional

(47:43):
Board of management of the Nordbahn, by presenting them with
the alternative of either ceasing their opposition or withdrawing from
the association. On the October nineteenth, eighteen thirty six, Solomon
summoned a further general meeting, the third, at which the
shareholders were asked to decide upon the plain issue whether
the construction of the railway should be commenced forthwith, or

(48:04):
whether the company should go into liquidation, in which case
Baron Vaughan Rothschild would simply repossess himself of the concession
which he had transferred to the company, and personally defray
all expenses incurred up to that date, in so far
as they should exceed there amount of fifty seven thousand florins.
The vote resulted in a complete victory for Solomon Rothschild.

(48:26):
Of the eighty three qualified voters, no less than seventy
six voted in favor of building the whole railway. The
opposition on the provisional Board of Management, including Sena, Eskals
and Perreira, abstained from voting. As a result of the vote,
the two former were also forced to resign from the
provisional Board of management. The way had now been cleared

(48:49):
for finally starting with the construction of the railway, but
the rivalry between the two banking firms of Sena and
Rothschild had become still more embittered. Count Mitrowski continued to
give his active support to the undertaking. When the Nordbond
Board requested that they might be lent the Crown Surveyor
Francesconi Baron Vaughan Baldacci said there were a thousand reasons

(49:10):
against it, observing that as the undertaking had been allowed
to bear the name of His Majesty, there was no
reason for granting still further favors. In sending this forward,
Count Mitrosky minuted with some heat, your Majesty has already
demoned straight to the Nordbond, which is privileged to bear
Your Majesty's name, that you are prepared I to grant

(49:31):
this most deserving undertaking your Majesty's special protection, to which
the very fact that it has been graciously permitted from
the very commencement to bear Your Majesty's name gives it
a special claim. The Nord Bond is the first considerable
railway undertaking within the Austrian monarchy constructed with a view
to the application of steam power, and its success, as
being the first example of its kind, is bound to

(49:54):
be a determining factor with regard to the possibility of
other similar railways being constructed. Their requests should therefore be granted.
The case of the Nordbond therefore clearly shows that the
higher authorities in the state, which have so constantly and
particularly of recent years been subjected to abuse. Took a
far more enterprising and far seeing view than so called

(50:15):
public opinion and the press. Had these prevailed, the Great Scheme,
which constituted the first important piece of railway construction on
the continent and introduced an era of quite unexampled progress,
would never have come to fruition. While the construction of
the Nordbond was in full progress, Baron Vaughan Sena received
his concession for constructing the railway to the south towards Glognittz,

(50:38):
as well as on the right bank of the Danube
towards rob which finally disposed of any Rothschild hopes of
getting the construction of the southern portion into their hands. However,
the construction of the Nordbond fully occupied them financially. The
section Viennebrunn was opened in eighteen thirty, the outward journey
being a trip of rejoicing in Triumph. On the return

(51:00):
journey there was a collision, which was the first railway
accident in Austria. Gradually, the government officials became rather more easy.
At first, in order to obtain a ticket, it was
necessary to secure a permit or passenger card from the
police on the previous day. This had to be vice
at deutsch Wagram, the temporary railway terminus, and personally surrendered

(51:23):
to the police after the return journey. On the opening
of the section to brun these restrictions were abolished. The
cost of constructing the railway did very substantially exceed the
estimates which had been made at the time. Pereira was
proved right for the building of the railway as far
as Leipnik, forty two miles, or about two thirds of

(51:43):
the total length alone consumed two million, four hundred thousand,
more than there fourteen million golden originally subscribed, and it
was only the advances made by the House of Rothschild
that enabled the further construction of the railway to proceed.
In the forty Solomon Rothschild repeatedly applied to the government
for support and financial assistance, but he got comparatively little help.

(52:06):
The construction of the railway proceeded slowly and it proved
to be impossible to finish it in the ten years
provided by the concession. The government, however, consented to grant
an extension of a further ten years, and it was
not until eighteen fifty eight that the railway was fully
completed according to plan. After the first difficult years of construction,

(52:27):
profits soon began to be realized. The shares, which in
eighteen forty two were still under par rose in eighteen
forty three to one hundred three, in eighteen forty four
to one hundred and twenty nine, and in eighteen forty
five to two hundred and twenty eight. It became increasingly
evident that capitals sunk in this manner in railway construction

(52:47):
over a period of years would ultimately prove an inexhaustible
source of wealth and prosperity in which the district served
by the railway would share. While the first big steam
railway to be built on the continent had become associated
with the name of Solomon Rothschild, his brother James in
Paris had not been idle. There too. The public and
the press raised the most absurd objections to the idea

(53:10):
of railways. The fire from the engine, several expert articles asserted,
would set forests and crops on fire. The noise of
the trains would make the neighboring country houses and properties uninhabitable,
and drive mad the cattle pasturing in the vicinity of
the railway. There were, however, a few progressive and far

(53:30):
seeing engineers who actively and enthusiastically advocated the idea of
building a passenger railway in France, which country up to
the year eighteen thirty five had not had one. Prominent
amongst them was Emil Perreyer, who was of Portuguese origin,
having left the country on account of the persecution of
the Jews. He belonged to the school of Thought, which

(53:51):
had been founded by the philosopher and first socialist Count
Saint Simon, and had started as a journalist in collaboration
with his brother Isaac. His financial articles had attracted James
Rothschild's attention. Emil Perreyer had enthusiastically taken up the idea
of building a local railway from Paris to Saint Germain.

(54:12):
James Rothschild was favorably disposed to consider a railway proposition
as the result of what his brothers Nathan and Solomon
had told him, and he accordingly lent a sympathetic year
when his coreligionist Emil Perreyer approached him with the suggestion
that he should finance such a project. As Pereer's ideas
were supported by the results of practical experience elsewhere. James

(54:33):
proceeded to negotiate for the local railway. The authorities, however,
refused to take the scheme seriously. Tierre commented, we must
give the Parisians this as a toy, but it will
never carry a passenger or a parcel. Even the famous
French physicist and astronomer Dominic Francois Rago, in addressing the Chamber, declared,

(54:55):
as had previously been stated in Austria, that travelers, in
passing through a to tunnel a few meters long, world
be suffocated. The toy was, however, sanctioned, and the Paris
Saint Germain Railway was opened on the August twenty sixth
eighteen sixty seven. Its success soon proved what a good
idea it was, and the Chambers, which had in eighteen

(55:17):
thirty five rejected a scheme for building a railway by
the state, were made to look foolish. Thus, in Paris two,
the Rothchilds were taking the lead in railway construction. In
the case of the second passenger railway, however, they did
not have things all their own way. The railway in
question was that between Paris and Versailles, and the idea

(55:38):
of this railway occurred simultaneously both to Rothchild and Food.
Emil Perreyer, who was in Rothschild service, built the railway
on the right bank of the Seine, the famous Rivee Troit,
the concession for which was granted in eighteen thirty six,
while it was completed in eighteen thirty nine. Food financed
the railway on the left bank of the Seine. Two

(56:00):
railway companies became bitter rivals, and the rivalry extended to
other fields in which the respective financial powers were engaged. Finally,
James Rothschild succeeded in obtaining the concession for constructing and
developing a northern railway in France, and this gigantic undertaking
made very heavy claims on the financial resources of the
Rothchilds in the forties. On the July twenty first, eighteen

(56:23):
forty five, the opening of the French Northern Railway became possible.
In the middle thirties, Nathan was keenly engaged in railway
construction in Belgium. That far seeing Monarch Leopold of Belgium
had taken a keen interest in railway schemes ever since
he had acceded to the throne. In collaboration with George Stephenson,

(56:44):
he had planned out a railway system radiating from Brussels,
and the Belgian chambers, showing much greater wisdom than the French,
passed the scheme as early as eighteen thirty four. In
this case, the undertaking, which at its very commencement required
one hundred and fifty a million francs capital, was carried
out by the state. A large proportion of this money

(57:05):
was raised through the Rothschilds in eighteen thirty, eighteen thirty
seven and eighteen forty, with the result that the small
state of Belgium secured a lead in railway construction, as
is even now evidenced by the fact that, in proportion
to her area, Belgium has a considerably greater railway mileage
than other states. These first railway undertakings of the Rothchilds

(57:27):
were succeeded in the years that followed by others, which
it would take too long to enumerate. We shall as
he see how later they retrieved the opportunity they had
missed of getting the Southern Railway of Austria into their hands,
as is proved by their attitude to the first railways
in England. It was not prophetic foresight or a love
of progress that led the Rothchilds to embark upon the

(57:48):
first railway ventures on the continent. The preliminary success that
had been achieved in England had proved that substantial profits
might reasonably be realized elsewhere. Yet, although the Rothschilds were
guided in this instance as always by business considerations, they
were indisputably the pioneers on the continent of one of

(58:08):
the most daring and revolutionary discoveries of the human spirit,
which has contributed more, perhaps than any other, to the
cultural progress of our times, and has played the most
important part in promoting understanding between the peoples