The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-08-11
A BIG RAILWAY CONTRACT.
Mexico Enters Into an Agreement
With London Firm.

tract between the Mexican Government and
a London firms. Pearson & Son. The
main features of the contract are furnished
by Mr. McCreery Secretary of the Lega-
tion at Mexico, in a report to the State De-
partment. The agreement relates to the
Tehuantepec Railroad and the parts OF
CoatzacoaIeos and Salina Cruz.
This trans-continental railroad, says the
secretary, crossing the Isthmus of Tehuan-
tepec, promises TO become a most imRof-
tant means of transportation when theoim-
provements on the line are made and the
port works completed. The features of the
contract follow; the values being expressed
in Mexican money:
The company, as the representative of
the Government, shall within three and
half years improve the railroad by making
durable bridges and cuIverts, correcting
the curves and grades, ballasting the track,
building houses, providing rolling stock.
etc; and shall administer in partnership
with the Government the railway and the
ports of Coatzacoalcos and Salina Cruz. Al
least two trains shall run weekly from each
of the terminal stations, the journey for
passengers not TO exceed fourteen hours.
The company shall have the earnings OF
the railroad and ports, except the part that
belongs 10 the Government. The latte will
also pay s., 000, coo in monthly instal:nenLs
of S3G0,0GG the first in three months after
PRONUNCIATION of contract The company
shall exercise the rights and fulfill the OBJ
legations contained in contracts in forcc at
the time ii enters into possession.
! THE executive may appoint inspectors,
and the Department of Communications
and Public Works is to examine plans or
the works. Monthly accounts are 10 pc
rendered
The capital of the company is 5000
000: the losses are to be divisible half ami
half between the Government AID the com
pany. and the profits are to be divided. The
capital is furnished in equal shares by beth
parties The contract is to last fifty Ears
after the termination of the work in
case. however. the operation OF the rail-
way or ports is attended with loss Of
81 coo, GOO. the company can resciId tie
contract, notifying the Government six
months in advance. The company miy
connect the railway with any other road,
/ or acquire an interest in other roads or
in navigation companies, or own or chartec
vessels. and may extend The road aloES
the docks. 1t may also import free OF
custom duties and all imposts, for the ex-
elusive use of the railroad. fixed material
for the track, rolling stock, telegraph
material, miscellaneous machinery and ar
| ticles: also for the ports, floating mate
rial, as we'll as provisions for the crews
| and passengers OF craft or plant operated
by the company In regard 10 other ma
teriaI for the railway and port serv c $
the Government shall make the conpah Y
| an allowance OF $50 per annum for every
kilometre of railroad IN operation, unless
there is q paralysis Of traffic on any part
OF the line. when the allowance will lie
suspended with respect to that portion
THE company IS granted free from ali
Df Gf
I and water, of stone. etc, on lands belong
ing TO the Federation. IL may have con-
/ demned private property that is necessary
for the construction or maintenance of the
railway or ports. It may also make sur
veys and studies on private property
The maximum rates for traffic are to
be: Passenger first class, 4 cents second
class. , cents. third class, , cents; mer-
chandise per metric ton. from cents for
sixth class 10 cents for first class. Rates
! on domestic merchandise shall be differen-
tial and on decreasing scale. The distri-
button of merchandise among ethe six
! classes shall be effected, in concert with
/. the Department of Communications and
Public Works. every three years Cereals
| shall always be counted in the third class;
rails and the like shall enjoy a. rebate of
80 per cent from the third cIsE=s:sgIe, the
charge for coal will be I IL cents per ton
per kiloaaetre if in carload lots and des-
tined for consumption in Mexico. The Gov
eminent shall have a rebate for the trans
portation OF troops, immigrants. etc Mail
is 10 be carried free rs
Rates for kilograms shall be. for every
ten words sent 100 kilometres. Is cents.
At the ports of Coatzacoaleos and Salina
Cruz. the ships and passengers will have
to pay port captaincy dues. piIotage dues.
and sanitary dues equal TO half OF the low
est rate at Veracruz or Tampico; also E
loading due of % cents per ton OF meTchan-
! disc, unless this is transferred 10 another
ship. Merchandise imported for local traf-
tic does not enjoy the franchises enumer-
ated
The vessels belonging to the maritime
services shall enjoy % per cent reduc-
ton in sanitary and pilOtage dues and 80
per cent in other dues in other ports of the
| Republic. No consular invoices are requir-
ed for merchandise transported over the
railway TO be reshiBpeu. Merchandise VIII
be examined al its final destination. No
passports will be required Of persons IN
transit.
If, when the contract is ended there
are improvements or material therefor. the
value of the same is to be represented by
the bends issud, and shall be paid for BY
the Government, so that the bonds may be
redeemed and the floating debt paid unless
the Government shall decide TO take upon
bonds and debt. From the other securities
belonging 10 the company, the Government
and the company shall be paid for the cap
ital invested and The surplus divided.
III it is necessary to enlarge the rail-
way or ports the company can borrow
money, offering as security the proceeds of
the works This lien shall have priority
next after the mortgage on the railway
constituted as security for S13 139 800 in >
per cent bonds, or in lieu thereof, the larg-
er sum 10 be agreed upon, not to exceed
s21, 1893, 259.
The Government may avail itself OF
the ships of the company, in case of war
on payment of a monthly remuneration.
For the use of each port the company
may collect a tax, the maximum of which
will be 81 per ton of merchandise or so
cents for transshipped merchandise The
company may organize a navigation COM
pany distinct from that exploiting the
railway. to carry on maritime service in
the Pacific; the same may take charge of
the service in the Gulf of Mexico or the
Atlantic
ITO guarantee the fulfillment of its OBJ
legations, the company shall deposit with
in a month from the date of contract in
the National Bank, $4,000 in 5 per cent
bonds, or $200.000 in per cent bonds. The
Government binds itself not TO grant dur
ing the nariod of this contract any conces-
sion for the operation or railways or ports
within so kilometres of these works, with
out detTiment to rights acquired by prior
concessions. It will not authorize railway
lines. which now have the right to connect
with the Tehuantepec Railway, 10 make
special transit rates from the Gulf of
Mexico over this railway
Letting Things Alone