ABSTRACT
The railways were one of the most controversial aspects of the nationalist politics developed by successive Spanish governments during the interwar years, the second major cause of the decline of the Rothschilds’ investments in Spain. This had much to do with the semi-public character of the railway companies: when all was said and done, the railway companies were, according to the 1855 act, little more than long-term concessions that were run with the authorization of the State, which retained control over tariffs and decisions on line extensions. Even the General Railway Act of 1877 did not bring about a move away from the public service character of the companies, and indeed reinforced some elements of State control, although it did also serve to reaffirm the rights of the shareholders and bondholders, with special emphasis on foreign capital.
