Morning journal and courier., 1881-06-30
Thursday Morning. June 30. 1881.
RAILROADS IN MEXICO.

Since the month of August, 1S77 the Mex ican government has made grants aggregat- ing something like $90, ,OoO, 900 to forty-two railroad companies. Of this amount nearly $72, ,OOO, 600 is promised to live companies and will be called for. On the strength of these concessions and rosy outlook people in the United States who have money to in- vest are and will be asked to put it into Mex ican railroads. Many will undoubtedly re- spond to the invitation, and some of them will perhaps get fair return for their in- vestment But it is plain that it behooves capitalists to be very careful in betting upon the future prosperity of Mexican railroads Some of them will probably succeed, but more will only serve to destroy good capital.
 Those who are thinking about investing in railroads in Mexico want to look at both sides of the matter, and especially the unfa- vorable side This side is. vigorously and gloomily set forth by Mazatlan correspond ent of the New York Eoe'aszag Post. He says the Mexicans do not want railroads and that they would not use them if they had them. s'That between Vera Cruz and Mexico, where there is more business than in any other part of the country, does not pay, and certainly those that are contemplated to run from al- l most nowhere to places that are scarcely any where, over perpendicular elevations will not be more profitable. No judgment can be formed from the success of railroads in the United States, where indeed it is not always assured. But they have rnison opetre. With vigorous and constantly increasing population, vast tracts of land devoted to the cultivation of grain, mines, profitable or unproftable, developed from day to day, and always needing supplies, and added to all this the great consideration of economizing time and of competition with other districts, railroads are not problems but necessities. Here, among an inert and stationary people, with land cultivated solely for the purpose of bare subsistence mining freight transport ed by jackass power in preference to any other, and no notion whatever of the value of time or even knowledge of what other sec- tlons produce, railroads are not necessities but problems and problems that will not be solved in our day and generation
 It is further asserted that the railroad is not suitable institution for Mexico, and that the Mexican government knows this while It IS so apparently anxious to encour- age it. ''The American railroad kings know it as well, while they are parading subsidies and carrying about General Grant as a figure head for the purpose of selling their bonds and stock at home. In short the Mexican government has sold itself and it's country to these spectators. and they in turn have ar ranged to make the American people pay the cost By and by, and that before long time, tke subsidies will cease, and the rail roads will find their termini at some obscure places in the mountains unless perchance they may reach some mines in which these capitalists are interested. Then the whole blame will be laid on the Mexican govern. ment, which by that time in due course of revolutions will be another one, repudiating and not even attempting to readjust' the debt. The injured stockholders, who will have nobody to blame but themselves for their stupidity, will appeal to their own gov ernment for redress, and perhaps lobby in- huence at Washington may provoke a war with Mexico Then if any money is obtained it will be safely slowed away in the box that contains the cash for the French claims and the remainder of the Alabama award''
 Even if all this is not to be believed it will do to think about. The promise of prosper ity and stable government for Mexico is bright just now, and so are the promises made in behalf of the proposed railroads But there is danger that there will be more revolution there and that the grants may become worthless. In any event, some of the companies are sure to disappoint their stockholders