CHARTER OF THE JAPAN RAILWAY COMPANY

ARTICLE 1. The Japanese Railway Company (Nippon Tetsudō Kaisha) is licensed to make a railway and work its traffic between Tokio and Awomori, passing on its way or route through or by the towns of Takasaki, Maibashi, Shirakawa, Sendai, and Morioka. ARTICLE 2. Government lands which may lie on the chosen line of the new railway, or which may be required for the construction of stations, stores, goods depots, shall be rented to the company. Buildings belonging to the Government when required for the same purposes either to be demolished or used shall be sold or rented to the company at the price according to the convenience of the Government. ARTICLE 3. Private lands and buildings required for the same purposes as stated in Article 2 will be bought up by the Government according to the “Rules of buying Private Grounds for Public Use,” and then sold to the company. ARTICLE 4. All the land belonging to the railway shall be free of any national tax. ARTICLE 5. During the construction of each section eight per cent. interest shall be paid by the Government on the paid-up shares of the company, commencing one month after payment. And after the construction of each or any section on [sic] is completed and the traffic commenced, but when its net profit falls short of eight per cent. per annum on the capital expended, the Government shall guarantee to make it up to eight per cent. during ten years for each section between Tokio and Sendai, and during fifteen years for each section between Sendai and Awomori. ARTICLE 6. The net profit shall be the balance obtained from the whole income of the company after deducting the working expenses. (The distinction of capital and working expenses shall be made according to the existing rules of Public Works Department.) ARTICLE 7. Widths of the formation level, weight of rails, the construction of rolling stock, the designs and constructions of bridges and viaducts, site and building or construction of station arrangements, shall be all decided and carried out after minute and correct plans, drawings, etc., together with specifications, are sent into the Minister of Public Works Department, and his approval and sanction are obtained: when required by the minister due modification of their design or construction shall be made. ARTICLE 8. According to the wish of the company the whole work of the railway construction between Tokio and Maibashi shall be undertaken by the Board of Railways, Public Works Department, the general arrangement as regards the position of the line, and mode of proceeding with the works, being negotiated between the Board of Railways and the company, and approved by the Minister of Public Works Department. ARTICLE 9. The Minister of Public Works Department shall have the power to order the company to adopt and use, or improve upon, anything relating to railways (whether it refers to an invention or not) when the minister thinks it useful for the safety and convenience of the public. ARTICLE 10. The engineering works of the whole line mentioned in the Article 1 shall be commenced within six months after this charter is given, and shall be completed in seven years. ARTICLE 11. Although the whole line may not be finished, those parts which are completed may be opened for traffic after getting the sanction of the Minister of Public Works Department. ARTICLE 12. [The] Government shall appoint, firstly, railway inspectors whose duties shall be to see all the works carried out according to the plans, drawings, and specifications as approved by the Minister of Public Works Department; to make the company have all their plant and machinery they use in the construction in good order and safe: and also to make the company follow the laws and regulations, as regards general engineering works, traffic management, etc., and the clauses in the charter. Secondly, financial inspectors, whose duty it shall be to inspect the thorough account of the company. (This inspectorship shall cease to exist after the expiration of the guaranteed term mentioned in the Article 5). ARTICLE 13. If the company does not obey the commands of the railway inspectors, or in case the company does not execute the works as required by the inspectors, or without any proper reason neglect to execute it within specified time, or when executed differently from the way specified by the inspector, the Government shall take up the work and proceed with it at the expense of the company. ARTICLE 14. When the diversions (either permanent or temporary) of roads, bridges, viaducts, drains, or canals, are necessary for the construction of the railway, the company must, before proceeding with the works of deviation, get the permission of the Local Government Board, and the expenses are to be paid by the company. But as regards the private or public lands and buildings required for the works the Articles 2 and 3 are applicable. ARTICLE 15. For the purpose of keeping the line of the railway safe, ample precautions shall be taken by the company, building perfect banks or fences, and keeping guards or watch-men along the railway. ARTICLE 16. Fares of passengers, goods, and luggage, speed of journey, and number and times of starting trains shall be fixed after obtaining the approval from the Minister of Public Works Department. ARTICLE 17. Within the first third of every month the company must send in to the Minister of Public Works Department, the preceding monthly detailed account relating to the amount of traffic of goods and passengers. The company must also forward a yearly report within two months after the lapse of each year. ARTICLE 18. Within the boundaries of the railway, the Government shall have the power to construct telegraphs along the line, and the company shall be allowed, without charge, to use a portion of each post for putting up their own railway telegraph. ARTICLE 19. In railway stations, or within the railway boundaries, the company, when requested, must lend, without charge, a part of the buildings or ground for the use of the Government telegraph, or the Post-Office Department. ARTICLE 20. Post letters and postal employés shall be carried free of charge on the line. Under special pressure of business and by the order of the Postmaster-General, the company shall dispatch, free of charge, carriages (not more than two) along with ordinary trains. But if more than two carriages be required, half of the fixed fares shall be paid. ARTICLE 21. Government officials related to the railway shall be allowed to travel free of charge on the line. (But it shall be limited only to those who have “Free pass” given them, as may be arranged between the company and the Government offices by which they belong.) ARTICLE 22. Military men (Army and Navy), and their belongings, and policemen and officials, traveling on public duty, shall be allowed to travel for half fare. (But it shall be limited only to those who have Government certificates of public business). ARTICLE 23. The company shall transport free of charge, prison vans and guard officers along with ordinary trains when ordered by the Government. These vans shall be constructed at the Government expense and left in charge of the company. ARTICLE 24. In times of extraordinary events, wars, &c., it shall be the duty of the company to let the Government use the railway freely. ARTICLE 25. In time of bad harvest, when the prices of corn are unusually high, the Government shall have the power of ordering certain kind of corn for certain days to be transported at half fare. ARTICLE 26. The company shall not be able to object, in future, to the Government licensing others to make branch lines, or lines across the railway, or to make roads, drains, or canals in its neighbourhood. ARTICLE 27. The duration of this charter contract shall be 99 years after January 1, 1882. But after 50 years the Government shall have the power of buying up at any time the whole railway and its belongings as stated in the Article 30. ARTICLE 28. In the case of the Article 27 (or buying up), the price to be paid by the Government shall be the whole amount of shares issued by the company for the capital expenditure. ARTICLE 29. In the last five years of the term, if the company neglect general maintenance and repairs, the Government shall have the power to demand the company to make all the repairs, and to restore the whole works to completeness, so as to have everything in good order at the time of delivery. In case the company neglect any of the repairs or maintenance pointed out by the Government, or when they are executed differently from the ways as specified by the Government, the Government shall make them good, and the expenses shall be paid fro the income of the company. ARTICLE 30. In the case of Article 27, railway stores, goods, depots, stations, land belonging to them, and beside [sic] every other building, machinery and plant belonging to the railway and necessary for working the railway shall be delivered up together with the railway. ARTICLE 31. In the event of the company breaking or acting against any of the articles in this contract, and “the agreements on the formation of the company,” or in case the company neglects to obey the articles, thereby obstructing the public benefits of railways, the Government shall appoint, for the time being, a special committee consisting of shareholders or otherwise, to take charge of the affairs of the company; or, regardless of the term in this contract, the Government may put the whole railway, the buildings, the machinery and plant belonging to the railway and necessary for its working, to public sale, and let other people succeed the company, and take charge of the works of construction and traffic. In this case the company shall be responsible for the loss or gain [that] thereby may be incurred. ARTICLE 32. In working according to the articles or clauses of this contract, and the agreement on the formation of the company, if there arises any dispute or difference of opinion between the Government officials and the company, the Minister of Public Works Department shall be the arbitrator.