On the 17th of July 1898 a national fund for the insurance of workmen against illness and old age was founded by law on the principle of optional registration. In addition to an initial endowment by the state, part of the annual income of the fund is furnished in various forms by the state (principally by making over a proportion of the profits of the Post Office Savings Bank), and part by the premiums of the workmen. The minimum annual premium is six lire for an annuity of one lira per day at the age of sixty, and insurance against sickness. The low level of wages in many trades and the jealousies of the “Chambers of Labour” and other working-class organizations impede rapid development.
A law came into operation in February 1908, according to which a weekly day of rest (with few exceptions) was established on Sunday in every case in which it was possible, and otherwise upon some other day of the week.
The French institution of Prudhommes was introduced into Italy in 1893, under the name of Collegi di Probiviri. The institution has not attained great vogue. Most of the colleges deal with matters affecting textile and mechanical industries. Each “college” is founded by royal decree, and consists of a president, with not fewer than ten and not more than twenty members. A conciliation bureau and a jury are elected to deal with disputes concerning wages, hours of work, labour contracts, &c., and have power to settle the disputes, without appeal, whenever the amounts involved do not exceed £8.
Provident institutions have considerably developed in Italy under the forms of savings banks, assurance companies and mutual benefit societies. Besides the Post Office Savings Bank and the ordinary savings banks, many co-operative credit societies and ordinary credit banks Provident Institutions. receive deposits of savings.
The greatest number of savings banks exists in Lombardy; Piedmont and Venetia come next. Campania holds the first place in the south, most of the savings of that region being deposited in the provident institutions of Naples. In Liguria and Sardinia the habit of thrift is less developed. Assurance societies in Italy are subject to the general dispositions of the commercial code regarding commercial companies. Mutual benefit societies have increased rapidly, both because their advantages have been appreciated, and because, until recently, the state had taken no steps directly to insure workmen against illness. The present Italian mutual benefit societies resemble the ancient beneficent corporations, of which in some respects they may be considered a continuation. The societies require government recognition if they wish to enjoy legal rights. The state (law of the 15th of April 1896) imposed this condition in order to determine exactly the aims of the societies, and, while allowing them to give help to their sick, old or feeble members, or aid the families of deceased members, to forbid them to pay old-age pensions, lest they assumed burdens beyond their financial strength. Nevertheless, the majority of societies have not sought recognition, being suspicious of fiscal state intervention.
Co-operation, for the various purposes of credit, distribution, production and labour, has attained great development in Italy. Credit co-operation is represented by a special type of association known as People’s Banks (Banche Popolari). They are not, as a rule, supported by Co-operation. workmen or peasants, but rather by small tradespeople, manufacturers and farmers. They perform a useful function in protecting their clients from the cruel usury which prevails, especially in the south. A recent form of co-operative credit banks are the Casse Rurali or rural banks, on the Raffeisen system, which lend money to peasants and small proprietors out of capital obtained on credit or by gift. These loans are made on personal security, but the members of the bank do not contribute any quota of the capital, though their liability is unlimited in case of loss. They are especially widespread in Lombardy and Venetia.
Distributive co-operation is confined almost entirely to Piedmont, Liguria, Lombardy, Venetia, Emilia and Tuscany, and is practically unknown in Basilicata, the Abruzzi and Sardinia.
Co-operative dairies are numerous. They have, however, much decreased in number since 1889. More numerous are the agricultural and viticultural co-operative societies, which have largely increased in number. They are to be found mainly in the fertile plains of north Italy, where they enjoy considerable success, removing the cause of labour troubles and strikes, and providing for cultivation on a sufficiently large scale. The richest, however, of the co-operative societies, though few in number, are those for the production of electricity, for textile industries and for ceramic and glass manufactures.
Co-operation in general is most widely diffused, in proportion to population, in central Italy; less so in northern Italy, and much less so in the south and the islands. It thus appears that co-operation flourishes most in the districts in which the mezzadria system has been prevalent.
Railways.—The first railway in Italy, a line 16 m. long from Naples to Castellammare, was opened in 1840. By 1881 there were some 5500 m. open, in 1891 some 8000 m., while in 1901 the total length was 9317 m. In July 1905 all the principal lines, which had been constructed by the state, but had been since 1885 let out to three companies (Mediterranean, Adriatic, Sicilian), were taken over by the state; their length amounted in 1901 to 6147 m., and in 1907 to 8422 m. The minor lines (many of them narrow gauge) remain in the hands of private companies. The total length, including the Sardinian railways, was 10,368 m. in 1907. The state, in taking over the railways, did not exercise sufficient care to see that the lines and the rolling stock were kept up to a proper state of efficiency and adequacy for the work they had to perform; while the step itself was taken somewhat hastily. The result was that for the first two years of state administration the service was distinctly bad, and the lack of goods trucks at the ports was especially felt. A capital expenditure of £4,000,000 annually was decided on to bring the lines up to the necessary state of efficiency to be able to cope with the rapidly increasing traffic. It was estimated in 1906 that this would have to be maintained for a period of ten years, with a further total expenditure of £14,000,000 on new lines.
Comparing the state of things in 1901 with that of 1881, for the whole country, we find the passenger and goods traffic almost doubled (except the cattle traffic), the capital expenditure almost doubled, the working expenses per mile almost imperceptibly increased, and the gross receipts per mile slightly lower. The personnel had increased from 70,568 to 108,690. The construction of numerous unremunerative lines, and the free granting of concessions to government and other employees (and also of cheap tickets on special occasions for congresses, &c., in various towns, without strict inquiry into the qualifications of the claimants) will account for the failure to realize a higher profit. The fares (in slow trains, with the addition of 10% for expenses) are: 1st class, 1.85d.; 2nd, 1.3d.; 3rd, 0.725d. per mile. There are, however, considerable reductions for distances over 93 m., on a scale increasing in proportion to the distance.
The taking over of the main lines by the state has of course produced a considerable change in the financial situation of the railways. The state incurred in this connexion a liability of some £20,000,000, of which about £16,000,000 represented the rolling stock. The state has considerably improved the engines and passenger carriages. The capital value of the whole of the lines, rolling stock, &c., for 1908–1909 was calculated approximately at £244,161,400, and the profits at £5,295,019, or 2.2%.
Milan is the most important railway centre in the country, and is followed by Turin, Genoa, Verona, Bologna, Rome, Naples. Lombardy and Piedmont are much better provided with railways in proportion to their area than any other parts of Italy; next come Venetia, Emilia and the immediate environs of Naples.
The northern frontier is crossed by the railway from Turin to Ventimiglia by the Col di Tenda, the Mont Cenis line from Turin to Modane (the tunnel is 7 m. in length), the Simplon line (tunnel 11 m. in length) from Domodossola to Brigue, the St Gotthard from Milan to Chiasso (the tunnel is entirely in Swiss territory), the Brenner from Verona to Trent, the line from Udine to Tarvis and the line from Venice to Triest by the Adriatic coast. Besides these international lines the most important are those from Milan to Turin (via Vercelli and via Alessandria), to Genoa via Tortona, to Bologna via Parma and Modena, to Verona, and the shorter lines to the district of the lakes of Lombardy; from Turin to Genoa via Savona and via Alessandria; from Genoa to Savona and Ventimiglia along the Riviera, and along the south-west coast of Italy, via Sarzana (whence a line runs to Parma) to Pisa (whence lines run to Pistoia and Florence) and Rome; from Verona to Modena, and to Venice via Padua; from Bologna to Padua, to Rimini (and thence along the north-east coast via Ancona, Castellammare Adriatico and Foggia to Brindisi and Otranto), and to Florence and Rome; from Rome to Ancona, to Castellammare Adriatico and to Naples; from Naples to Foggia, via Metaponto (with a junction for Reggio di Calabria), to Brindisi and to Reggio di Calabria. (For the Sicilian and Sardinian lines, see Sicily and Sardinia.) The speed of the trains is not high, nor are the runs without stoppage long as a rule. One of the fastest runs is from Rome to Orte, 52.40 m. in 69 min., or 45.40 m. per hour, but this is a double line with little traffic. The low speed reduces the potentiality of the lines. The insufficiency of rolling stock, and especially of goods wagons, is mainly caused by delays in “handling” traffic consequent on this or other causes, among which may be mentioned the great length of the single lines south of Rome. It is thus a matter of difficulty to provide trucks for a sudden emergency, e.g. the vintage season; and in 1905–1907 complaints were many, while the seaports were continually short of trucks. This led to deficiencies in the supply of coal to the manufacturing centres, and to some diversion elsewhere of shipping.
Steam and Electric Tramways.—Tramways with mechanical traction have developed rapidly. Between 1875, when the first line was opened, and 1901, the length of the lines grew to 1890 m. of steam and 270 m. of electric tramways. These lines exist principally in Lombardy (especially in the province of Milan), in Piedmont,
