The Sun.
London, England, 1864-10-26 00:00:00

STATE OF MEXICO,

(Front the Times' Correspondent.)
MEXICO, Sept. 10.
As it is generally believed that a company has
been formed in England for constructing a railroad
from Vera Cruz to Mexico, a short synopsis of the
decree conferring the privilege upon Mr Escandon
may not be out of place. The decree was given by
Juarez and bears date the sth of April, 1861. By
it an exclusive privilege is granted to Antonio
Escandon to make a railroad from Vera Cruz to any
port on the Pacific coast—the line as far as pace
ticable to pass through the most important agricula
tural and mineral districts, and when it does not
touch the principal towns branches to be made to
connect them ; the right of establishing branch lines
within a radius of 25 leagues on either side of the
main line, such branches to be first approved by
Government. All public lands required for the line,
stations, &c., to be given free and in perpetuity, those
belonging to municipalities to be valued and paid for
in shares, and those belonging to individuals to be
valued and paid for in cash. Materials used in the
construction, carriages, engines, &c., to be free of
all duties for 30 years, and immunity from all rates
and taxes during 50 years. Exportation duty free
of specie to the amount in value of the materials im-
ported. The directors, employes, and workmen to
be exempt from all military and municipal duties,
All mines discovered in the construction of the line
to be the property of the railroad and worked ac.
cording to the mineria laws. The company to fix
its own tariff of charges and rates, both for goods
and passengers, without any interference on the
part of Government. M. Escandon to be at liberty
to mortgage the line with the consent of the Mexie
can Government, or to form any company in Eu-
rope or America in any number of shares. Confirs
natation of nit, !purchase of the line San Inan far
be in working order within the space of five years,
and the works begun at Vera Cruz also to be cone
tinued under a penalty of 300,000 dols. The route
to be followed by the line from Mexico to Vera
Cruz having been approved, the continuation to the
Pacific to be afterwards fixed. To assist these works
the Government creates a new consolidated fund of
8,000,000 dols., represented by bonds to be called
"bonds for the construction of the railroad from
Vera Cruz to Mexico," such bonds to carry interest
at the rate of 5 per cent., and the capital to be paid
off in 25 years. To meet this interest and amorti-
zation, 560,000 dole. is to be set aside annually, the
Supreme Government solemnly promising that the
payment of the 5 per cent. and amortization, shall
be regularly made without any suspension or reduce
tion, and irrespective of any alteration in the na-
tional debt. To render this stipulation the more
secure and effective the Government appropriates
for this purpose 20 per cent. of the maritime Cus-
tom-houses set aside for " mejoras materiales" (pub-
lic works), and if this should not prove sufficient
the residue to be taken from the public revenue;
further, to secure the accomplishment of the above,
the said 20 per cent, is to be represented by paper
issued by the Minister of Fomento, and no ima
porter is to be allowed to make payment of this
20 per cent., so set aside for public works, expect
in this paper. The Minister of Fomento to hand
over to the company such an amount of this paper
as they may require, and the company always to
have in the ports and the city of Mexico sufficient
for the public use. The directors of the Custom-
houses to remit by each post to the Minister of
Fomento the paper presented to them in payment
of the duties, and the Minister to settle with the
company every six months the amount of intee
rest and amortisation on the 8,000,000 dols., any
surplus received by the company to be paid in
cash. Antonia Escandon to commence the con-
struction of the line from Mexico to Puebla within
two months at latest, to maintain during eight
months in each year not less than 400 workmen,
and during the rains sufficient to keep the works in
repair. The line between Mexico and Puebla com-
pleted, the manner and time in which the other
sections are to be executed to be fixed by mutual
consent between the Government and the company.
The above obligations not to be binding on the com-
pany if prevented working by force, or if the funds
assigned for the payment of the interest and amorti-
sation on the 8,000,000 dols. is not regularly paid.
The Government to consider itself in no respect a
partner as regards the 20 per cent, but renounces
any such right, having assigned the same for the
payment of the 8,000,000 dols., and for no other
object. The privilege to be forfeited—first, by
assignment or mortgage to any foreign Government ;
secondly, by mortgaging the enterprise to an indi-
vidual or corporation without the consent of
Government; and, thirdly, by not complying with
the obligations for commencing workings, &c., this
not to prohibit the emission and sale of shares to a
foreign company. Further, to foment and expedite
the construction of the line, the Government agree
to become subscribers to the undertaking, paying
for their shares by a further allo`ment, for five
years, of 15 per cent on the Custom-houses.
The decree also contains a clause ceding to Ans
tonio Escandon half the waste lands in the State of
Sonora, but this has since been given up.
The effect of this decree is to confer upon Mr
Escandon in perpetuity the exclusive right of con-
structing a railroad from Vera Cruz through Mexico
to any port on the Pacific, giving him a bonus of
eight millions of dollars for so doing, and enabling
him to fix for ever and ever both for goods and pas-
sengers, such rates and charges as he may think fit.
Of course such a concession, with a settled state of
things, would be of very great value, but I have
yet to learn that it has received the sanction of the
Imperial Government.
The Emperor, at last dates, was still at Trapuato,
a small town about ton leagues from Guanaxuato,
where he had been detained nearly a fortnight, have
ing suffered from a very severe attack of cold and
sore throat, common to those who travel during the
rains in this country. He has been everywhere re-
ceived with the greatest enthusiasm. Whether he
will extend his journey as far as Guadalajara ap-
pears to me more than doubtful, as his presence is
much required in the capital to keep the different
commissioners up to their work. Mexicans talk a
great deal, but do very little. Their maxim is never
to do today what can by possibility be put off to
tomorrow, and I much fear that, unless the Finance
Commission accelerates its pace very considerably,
the Emperor upon his return will find himself
under the painful necessity of forming his own
Budget, leaving any valuable dicta they may emit to
form the basis for legislation a year or two hence.
The last acccunts from the interior inform us that
Monterey had been occupied by the forces under
General Castagny without a shot being fired. The
place was found strongly fortified with upwards of
50 pieces of heavy artillery in position. Juarez is
believed to have started in the direction of Chihua-
hua, although some maintain that he is wending his
way towards the River Brave del Nort, with the
view of getting as quickly as possible to New Or-
leans or the United States.
Doblado, who is now safe and sound in New York,
has offered to make his submission upon the follow-
ing terms :—To be secured in the possession of all
his property, a perfect oblivion for all past offences,
and a French escort to be sent to any part he may
name to convey him safely to the capital. Moderate,
certainly, for a man who has fought it out to the
last ! The Emperor has very properly replied that
M. Doblado is free to avail himself of the general
amnesty granted to all political offenders by his pro-
clamation of the 6th of June; but that his property
must remain subjected to the laws of the country.
The amount of church and charity property pos-
Eteeed by this disinterested patriot is enormous, and
it would be vain to attempt a revision under the law
of Juarez as against others if such a man was
allowed to retain his ill-gotten we, lih.
The Pev a isia,
journal published in Vera Cruz,
states " that of late many emigrants have landed
in that port,
and, not finding employment, have
te.embadt(d by the following packet." If people
suppose that the sceptre in
the hands of Maxi-
milian is to have the power of a magician's wand,
and by one wave rtslore peace and prosperity to a
country convulsed by 40 years of revolution, they
will rind themselves grievously mistaken. much
has to be done before Me x7eo cell be said to be in
a fit state for the reception of emigrants, and

it is therefore that I would caution my own
countrymen at least from emtarking in an
enterprise whieh can only end in failure and
disappointment. When the Government has as-
certained the waste lands it has at its disposal,
when agents have been appointed at the diffee
rent ports, when provision has been made for
colonists on their landing, and means of transport
organised, then will be the time for emigrants to
flock towards this country; but then, and not till
then, can I advise Europeans to cast in their lot
with Mexico.

rHE SUN, LONDON, WEDNESDAY EVENING, OCTOBER 26, 1864