Nanking, Feb. 2.
It is learned that new railway law defining the status of Goverment railways as well as the conditions, under which private interests or local Governments may construct or operate railway lines has been drafted by the Ministry of Railways for submission'to the Legislat Yuan. railways affecting the communications of the country jor constructed for general transortation purposes must be State Enterprises; while lines which are not constructed for general transportation purposes or whose use is Jeonfined to only one locality may operated by private individuals in accordance with the regulations Jxoverning private-owned railways lor regulations governing railways built for spatial purposes. in one particul for Municipality, the local Governments concerned may raise for the construction of railway lines In conformity with the regulations wwerning the construction of railvs by local governments, Private interests may, subject to the approval of the National Government, undertake the construction and operation of projected Government fines, on which construction work is not started at the prescribed late.
Foreign capital may be borrowed for the construction of Government lines. The terms of such loans must, however, be based on the principle of equality and reciprocity and te in no Way derogatory to the national sovereignty.
Unless specially authorized by the ational, Government, no person be allowed to construct, extend purchase any railway line within the limits of China's territorial Jurisdiction.
No local government, unless authorized by the National Government, shall be allowed to negotiate and contract foreign loans for the building of railways or grant to any foreigner the special privileges referred to in the preceding para-
The power of admis Government lines re Ministry of Railways; lines operat ernment lines accordance with the Government regulations governing military tranportation and such other regula-may be jointly decided upon hereafter by the Ministries of War and Raihrays.
Whether in time of peace or during war, private-owned railways Imay be used for military transportation purposes in accordance with regulations to be formulated by the Ministry.
Public loans floated for the purpose of building railways shall not be diverted to other uses. Earnings lor profits of Government railways must, after being devoted to the expansion and improvement of the railway, be applied, in priority for the repayment of the railway's debts.
The Government may, within a specified period and in accordance prescribed legal procedure, deprivate raibvay lines. During. such period, the lines concerned shall not be amalgamated with other lines. The Government may also take over railway lines operated by local Govfggnments by the same procedure
Text read from the printed page and cleaned; old type leaves the occasional error.