Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1885-08-15
MEXICO.
The Government Announces Its Decis.
ion in Regard TO the Subsi-
dies TO Railroads.


/ CRY on MEXICO, Aug. IA The cabinet
after protracted discussion, has decided
on the nature of the reply to be made to the
representatives Of the railway companies
on the question whether the railways
were TO be exempted from the operation
ment has decided that no exception shall
be made in favor of the railroads and that
I the law OF June %, shall be enforced to
( the letter. Subsidies will not be paid
and not one cent from the customs reve-
nues will be appropriated to the railroads
which will thus have to submit to the
eXigencies of the situation, The govern
meut maintains that 1t owes the railroads.
nothing except the small amount of sub
/ sidy which would have accrued to them
I since the PRONUNCIATION of the decree, and
/ this amount together with that falling
I due in future months will be included in
/ the governments floating debt. The
/ government will not even deliver up the
/ subsidy certificates to the railroads,
claiming that the railroads have no right
TO them, and that even If said certificates
were still available for customs duties,
| the government would not be obliged to
D NtllNtI lllOIt liiull tuOuGH W ktGD inc
railroads supplied with the requisite
amount to cover their monthly subsidies
/ The government objected TO the
railroads amusslng II large amount
of certificates and using them as
security for loans, and considers that it
was lcncnt TO the Mexican Central road
before, in permitting that company to
/ issue dcbenturcs with subsidy ccrtih-
Gates as security President Diaz is
! firm in his decision to maintain strictly
| the decree OF June % until it has been
fairly tested and the cabinet Is in accord
with the minister of finance, Dublan,
who originated the decree. The national
bank of Mexico which is the greatest
sufferer rs it was receiving before
the decree 10 per cent of all customs
revenues, complains bitterly of its
treatment, and the government Is equally
bitter against the bank because the latter
does not submit with good grace to what
the government claims is necessity
jacques Kulp, formerly secretary of the
National bank, and now connected with
the Franco-Egyptian bank of Paris, ar
rived to-day from Paris. His mission is
to attempt to arrange matters between
his bank and the government A high
government official said in explanation
of the governments course: ave are
treating the railroads no worse than their
directors have treated the holders OF their
securities. When the Mexican Central
management found they could not pay
interest on their bonds, they funded their
coupons. Now, we find we cannot pay
the subsidy, and we funded IT, 1t is
equally II matter of necessity in both
cases.
1t is matter of common report that
the government is looking to England for
| financial aid, and that on the return of
! Minister st. John to London a now
/ treaty of commerce with Great Britain
will be arranged. The government is very
| favorable to the Investment OF British
capital in the northern tier of states as n
counterpoise to American influence. The
tendency is to favor English interest.