Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1885-08-15
N EXICO.
The Government and the Railroads
Prospect of New Commercial Al.
lance With England.

CRY OF MEXICO, Aug. a.
The Mexican cabinet, after a protracted
discussion, has decided onlthe nature of the
reply to be made to the representatives of the
railroad companies on the question as to
whether the railroads are to be exempted
from the operation of the decree of June 22d
taking away the subsidies. The government
has decided that no exception shall be made
in favor of the railroads, and that the law of
June 22d shall be enforced to the letter. The
subsidies will not be paid, and not one cent
Of the customs revenue will be appropriated
to the railroads, which will have to submit to
the exigences Of the situation. The govern
ment maintains that it owes the railroads
nothing except a small amount of subsidy
which have accrued to them since the publi-
cation OF the decree, and this amount
and that falling due in future
months, will be included in the governments
floating debt.
The government will not even deliver up
subsidy certificates to the railroads, claiming
that the roads have no right TO them, and
that, even if the certificates would still be
receivable for customs duties, the govern
ment would not be obliged to deliver up more
than enough to keep the railroads supplied
with the amount required to cover their
monthly subsidies. The government objects
| to the railroads amassing a large amount Of
certificates and using them as security for
loans, and considers that ii was lenent to the
Central road before, in permitting the com
pany to issue debentures with subsidy Ger
tificates as security.
President Diaz il firm in his decision 10
maintain strictly his decree of June 22d until
| it has been fairly tried, and the cabinet is 10
accord with Minister of Finance Dublain,
who originated the decree. The national
bank, which is the greatest sufferer, as it was
receiving before the decree 10 per cent Of
customs revenue. 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 a necessity.
Jaques Rulp, formerly secretary of the
national bank, and now connected with the
Franco-Egyp,ian bank Of Paris arrived yes
,erday from Paris. His mission is to ar
range matters between the bank and the gov
eminent. high government official said in
explanation of the governments course,
"We are treating the railroads no worse than
their directors have treated the holders Of
fheir. securities. When the Central manage
ment found they could not pay interest on
the bonds they funded their coupons. Now
We found We cannot pay the subsidy, and we
funded it. 1t is equally a matter of necessity
in both cases.
II is q matter Of common report that the
government is looking to England for inan-
cial aid, and that, On the return of Minister
ST. John, a new trade treaty with Great Brit
ain will be made. The government 10 very
favorably inclined to the advent of British
capitol in the northern tier Of States - .
counter poise 10 American influence, and the
| tendency 10 to favor English interests.