Evening star., 1901-02-25
Closing Achievement in the Career Of
the Great Mexican,
WILL JOIN OCEAN TO OCEAN
Scheme of the Trans-Isthmian
Railroad Described.
A REM A RK ABLE CONTRACT
Special Correspondence of The Evening Star.

CITY OF MENICO, February 20. 1901.
Notwithstanding his advancing years,
President Daz will probably live to wit
ness the fulilment of one OF his greatest
ambitions-a Mexican trans-isthmian route
practical for the freight and passenger
traffic of the world. Early in his presiden-
tial career General Diaz realized the COM
mercial and strategic value OF a CONNER
cial highway from ocean to ocean which
could be controlled by Mexico. An oppor-
tunty for the construction OF such a high
way existed on the Isthmus OF Tehaunte-
pee, between Coatzacoalcos on the Gulf Of
Mexico and Salina Cruz on the Pacific.
BY free use of the credit of the govern
ment a railroad was constructed across
this 200 miles. more less, dividing the
two oceans. Thirty-eight million dollars
went into the project and road was ac-
tually accomplished. The manner of it's
building and the lack of harbor facilities
at either terminal rendered 1t practically
useless, however, as worlds highway,
and in this innocuous condition it has re-
manned until the present time. 1t has long
been the intention of President Diaz to
properly rebuild this road as soon as
the financial condition of Mexico warrant
ed further expenditure. The amount of
money required was great, however,
that ii has been necessary to call in for
egn assistance to carry the enterprise to
its legitimate end.
HuntinRtOn's Vain Efforts.
For many years the late C. p. Hunting
ton, realizing the threat contained in this
route to Pacific interests. tried to secure
control of the securities Of the Tehaunte-
pee railway and thus suppress 1t in the
interest of his other properties. President
Daz however. firmly resisted Mr.. Hunting
tons plan and has now forever prevented
from, becominQ other than the
property Of the Mexican government by
making a remarkable contract with the
English firm, of which Sir Weetman Pear
son Is the head. Under this contract Pear
son & Son receive from the Mexican gov
ernment $1,000, 900, to be paid in forty
monthly installments Of $125,O each This
contract is really partnership agreement
between the Mexican government and the
English builedrs. In return for the So
GOO 600 to be paid In less than three and
half years Pearson's company undertakes
to so improve the harbor at the eastern
end of the road as to make II perfectly
feasible for commerce at all times and also
to provide an artificial harbor on the Pa
cific end The railroad itself is to be put
in good physical condition ana. IN snor',
the entire plant is to be brought up 10
such a point as to make 1t available as q
trans-isthmian route.
Other Conditions.
The agreement between Pearson q Son
and the Mexican government runs Tor hltS
years. and at the end of that time the gov
ernment becomes the sole owner anu op-
orator of the entire plan. during the iirst
thirty five years the losses in the operation
of the road are to be equally divided eX-
cept that if such losses shall amount 10
81 600 600 Pearson & Son shall have the
ontion Of terminating their agreement with
the Mexican government. For the nrst
thirty y-tive years the government Is TO re-
ceive 621a per cent of the profts. Inc lol-
cont
20 per cent, and the last five years a per
cent The passenger rates for flrst-clasS
traffic are to be cents kilometer, IN Mex.
lean silver. Third-class rates are 10 pc
cents kilometer. The rate for firSt-class
freight is to be cents per ton per kiio-
meter, and 3 cents a ton for sXth-ciass
freight Mexican silver is now worth about
half as much as gold; therefore the rates
on this road will be less than any road on
this continent a kilometer being about
three-fifthS of a mile.
Sir Westman Pearson has an enviable
reputation for carrying through such enter
priSes as he may undertake. 1T Is sald that
this Tehuantepec road is the hrst specula-
ton in which he has ever engaged, ana IN
the past he has required bond for MS
money before undertaking a contract, no
matter how large or how profitable 1t might
promise to be.
Elusive Tropical Ventures.
1t is believed that when Cortez landed in
Mexico, five hundred years ago, this was
the point at which he commenced opera
tons. The towns along the Tehuantepec
railroad are already hundreds Of years old,
and many of them were larger hve CEN
turies ago than they are today. rms region
is distinctly tropical and presents all or the
disadvantages to the making of happy
home for an emigrant from the temperate
zone possible to enumerate Conslderaole
skillful writing has been done setting 1orth
the advantages of investment and residence
,l,;., har
but nearly all of it is purely theory or ro-
nance. Large plantations owned and man
aged exclusively by those whose interests
are to be served by development and profit
rather than by stock subscriptions and
large salaries are money-making insntu-
tions here as elsewhere, but the citizen OF
the United States who has been persuaded
by tempting prospectus to put ms meager
savings into one of these tropical agricul-
tural companies stands very small chance
of ever receiving cent OF interest on mis-
money, and much less of ever receiving the
return of the capital invested.
Allowing that all of those who are selling
land in southern Mexico are honest and
that each and every one Of the propositions
they present is legitimate the small invest
or who puts his hard-earned money into
the company treasury must surely nave
failed to consider what he would do with
forty or a hundred acres, as the case may
be- even provided the company carries out
its promise and brings 1T into bearing
condition for him. The ease with which
Americans have been roped into these trop-
ical scheme is due largely to the hope
which seems to exist in the breast of every
man or woman who annually passes
through a frozen season that some day and
somewhere a place of retirement and ease
may be found where the sun shines with
steady warmth the year round and food is
to be had for the asking.
Steamer Lines Projected.
1t is not in the local development of the
isthmus however, that will come the i'm
portance of the Tehuantepec railroad. There
is already talk of several direct lines of
steamers from American and European
ports to the eastern terminus of the 18TH
mus railway, and there is no question but
that when Pearson & Son are sufficiently
advanced with their contract that they pos
sess sufficient influence to originate new
freight and passenger line which will be
far superior to that Of Panama and will
present tangible competition to the all-rail
transcontinental haul for heavy freight in
the United States. 1t can be made the di-
rect route from western South America to
the United States and Europe, and in go
ing from New York to San Francisco via
the isthmus it is at least six days shorter
than by the Panama railroad. The build
of tha RAG wi 10