EXPENSIVE CONTRACTS.
An interesting glimpse into the inner working of State, and especially Russian, Government railways was afforded in a recent discussion on railway management in Russia, published by the Journal of the German Railroad Union. During this debate it appears that the details were published of the famous contract of the late American Winans with the Government concerning the Nicholas Railroad. By the use of considerable money, Winans succeeded in making a contract, to extend from July 1st, 1866, for eight years, by which the Government was to pay him for oiling cars and small car repairs at an agreed rate per passenger and per ton mile. In addition to this he received a fixed sum of about £15,000 (78,000 dols.) per year for painting and maintaining the interior of the passenger cars; £6,000 for keeping up the shops, and finally £8,000 yearly for renewing what rolling stock might be worn out. The St. Nicholas line
was eventually taken over by the Great Russian Company, which in 1872 succeeded in making the Government annul the contract by paying Winans a penalty of £750,000, which the Great Russian Company paid back with interest within four years. If the contract had been continued it would have cost the company more than one-third of its net earnings, since the saving amounts to nearly £523,000 per annum. Another contract which the Government had made for the same road with a sleeping-car company was settled shortly afterward by the Government taking from the company the few cars it had on hand, and paying £75,000 for them and £10,000 a year for the unexpired seven years of the contract.