ART. 34. The Hanse cities, Bremen and Hamburg, together with a part of their own or of the surrounding territory suitable for such purpose, shall remain free ports outside of the common customs frontier, until they request admission within such frontier.

ART. 35. The Empire shall have the exclusive power to legislate concerning everything relating to the customs; concerning the taxation of salt and tobacco produced in the federal territory, and of domestic brandy and beer, and of sugar and syrup prepared from beets or other domestic products; concerning the mutual protection against fraud with reference to all taxes upon articles of consumption levied in the several states of the Empire; as well as concerning the measures which may be required in the territory, outside the customs boundaries, for the security of the common customs frontier.

In Bavaria, Württemberg, and Baden, the matter of taxing domestic brandy and beer is reserved to the legislation of the states. The states of the Confederation shall, however, endeavor to bring about uniform legislation regarding the taxation of these articles also.

ART. 36. The administration and collection of customs duties and of the taxes on articles of consumption (Art. 35) shall be left to each state of the Confederation within its own territory, so far as these functions have heretofore been exercised by each state.

The Emperor shall superintend the observance of legal methods by means of imperial officers whom he shall appoint, after consulting the committee of the Bundesrat on customs duties and taxes, to act in co-operation with the customs or tax officials and with the directive boards of the several states.

Reports made by these officers concerning defects in the administration of the joint legislation (Art. 35) shall be submitted to the Bundesrat for action.

ART. 37. In taking action upon the rules and regulations for the execution of the joint legislation (Art. 35), the vote

of the praesidium shall decide when it is cast in favor of maintaining the existing rule or regulation.

ART. 38. The revenues from customs and from the other taxes designated in Art. 35, so far as the latter are subject to imperial legislation, shall go to the treasury of the Empire.

Such revenues shall consist of the total receipts from the customs and excise taxes, after deducting therefrom:

1) Tax rebates and reductions in conformity with existing laws or general administrative regulations.

2) Reimbursements for taxes improperly collected.

3) The costs of collection and of administration, viz. :

a) In case of the customs, the costs which are required for the protection and collection of customs on the frontiers and in the frontier districts.

b) For the salt tax, the costs which are incurred for the salaries of the officers charged with the collection and control of this tax at the salt works.

c) For the taxes on beet sugar and on tobacco, the compensation which is to be allowed, according to the existing rules of the Bundesrat, to the several state governments for the cost of administering these taxes.

d) Fifteen per cent. of the total receipts from other taxes. The territories situated outside of the common customsfrontier shall contribute to the expenses of the Empire by payment of a lump sum.

Bavaria, Württemberg, and Baden shall not share in the revenues which go into the treasury of the Empire, from duties on brandy and beer, nor in the corresponding portion of the aforesaid payments in lump sum.

[The provision of Art. 38, paragraph 2, number 3 d) of the imperial constitution is repealed, in so far as it relates to the tax on breweries. The compensation to be allowed to the states for the expense of collecting and administering the tax on breweries shall be fixed by the Bundesrat.o]

Added by amendment of June 3, 1906.

ART. 39. The quarterly summaries made by the revenue officers of the federal states at the end of each quarter, and the final statement, made at the end of the year, after the closing of the accounts, of the receipts which have become due in the course of the quarter, or during the fiscal year, from customs and from taxes on consumption which, according to Art. 38, belong to the treasury of the Empire, shall be arranged by the administrative officers of the various states, after a preliminary audit, into general summaries, in which each tax shall be separately entered. These summaries shall be transmitted to the Committee of Accounts of the Bundesrat.

The latter, upon the basis of these summaries, shall fix provisionally every three months the amounts due to the imperial treasury from the treasury of each state, and it shall inform the Bundesrat and the states of the amounts so fixed; furthermore, it shall submit to the Bundesrat annually the final statement of these amounts with its remarks. The Bundesrat shall take action upon the determination of such

amounts.

ART. 40. The terms of the Customs Union Treaty of July 8, 1867, shall remain in force, so far as they have not been altered by the provisions of this constitution, and so long as they are not altered in the manner designated in Arts. 7 or 78.

VII. RAILWAYS

ART. 41. Railways, which are considered necessary for the defense of Germany, or in the interest of general commerce, may, by force of imperial law, be constructed at the expense of the Empire, even against the opposition of the members of the Union through whose territory the railroads run, without prejudice, however, to the sovereign rights of the states; or private persons may be granted the right to construct railways, and receive the right of eminent domain.

Every existing railway is bound to permit new railroad lines to be connected with it, at the expense of the latter.

All laws which grant existing railway undertakings the right to prevent the building of parallel or competitive lines are hereby repealed throughout the Empire, without prejudice to rights already acquired. Such rights of prevention shall not be granted in future concessions.

ART.. 42. The governments of the federal states bind themselves, in the interest of general commerce, to manage the German railways as one system, and for this purpose to have all new lines constructed and equipped according to a uniform plan.

ART. 43. Accordingly, as soon as possible, uniform arrangements as to operation shall be made, and especially shall uniform regulations be adopted for the police of railways. The Empire shall take care that the various railway administrations keep the roads at all times in such condition as is necessary for public security and furnish them with such equipment as the needs of traffic may require.

ART. 44. Railway administrations are bound to run as many passenger trains of suitable speed as may be required for through traffic, and for the establishment of harmony between time tables; also to make provision for such freight trains as may be necessary for the transport of goods, and to organize a system of through forwarding both in passenger and freight traffic, permitting rolling stock to go from one road to another for the usual remuneration.

ART. 45. The Empire shall have control of the tariff of charges. It shall especially exert itself to the end:

1) That uniform regulations as to operation be introduced as soon as possible on all German railway lines.

2) That the tariff be reduced and made uniform as far as possible, and particularly that in the long-distance transportation of coal, coke, wood, ores, stone, salt, pig iron, manure, and similar articles, a tariff be introduced suitably modified in the interests of agriculture and industry; and that the one-pfennig tariff be introduced as soon as practicable.

ART. 46. In case of public distress, especially in case of an extraordinary rise in the price of provisions, it shall be the duty of the railroads to adopt temporarily a low special tariff suited to the circumstances, to be fixed by the Emperor on motion of the competent committee of the Bundesrat, for the transport of grain, flour, legumes, and potatoes. This tariff shall, however, not be lower than the lowest existing rate for raw produce on the said line.

The foregoing provisions, and those of Arts. 42 to 45, shall not apply to Bavaria.

The imperial government, however, shall have the power, with respect to Bavaria also, to establish by means of legislation uniform standards for the construction and equipment of railways which may be of importance for the defense of the country.

ART. 47. The managers of all railways shall be required to obey, without hesitation, requisitions made by the authorities of the Empire for the use of their roads for the defense of Germany. In particular shall troops and all materials of war be forwarded at uniformly reduced rates.

VIII. POST AND TELEGRAPH

ART. 48. The postal and telegraph systems shall be organized and managed on a uniform plan, as state institutions throughout the German Empire.

The legislation of the Empire in regard to postal and telegraph affairs, provided for in Art. 4, shall not extend to those matters the control of which is left to governmental ordinance or administrative regulation, according to the principles which have prevailed in the administration of post and telegraph by the North German Confederation.

ART. 49. The receipts from post and telegraph throughout the Empire shall belong to a common fund. The expense shall be paid from the general receipts. The surplus shall go into the imperial treasury (Section XII).