Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1901-04-29
DREAM OF MEXICO
1T MAY BE REALIZED IN THE
TEHUANTEPEC RAILROAD
DlAZ'S GREATEST AMBITION
Its Importance to the Worlds Com
merce and to the Nicaraguan
CanaI-Huntngto BaffIed by the
Mexican President.

Notwithstanding his advancing
years, President Diaz will probably
live to witness the fulflment of one
of his greatest ambitions-a Mexican
transisthmian route practical for the
freight and passenger traffic of the
world. Early in his presidential career
General Diaz realized the. commercial
and strategic value of commercial
highway from ocean to ocean which
could be controlled by Mexico. An
opportunity for the construction of
such a highway existed on the 18TH
mus of Tehauntepec, between Coatza-
coalcos, on the gulf of Mexico, and
Selma Cruz, on the Pacific.
By free use of the credit of the gov
eminent railroad was constructed
across this 200 miles. more or less,
dividing the two oceans. Thirty-eight
million dollars went into the project,
and road was actually accomplished.
The manner of it's building and the
lack Of harbor facilities at either ter
minal rendered it practically useless,
however, as a worlds highway, and in
this innocuous condition it has re-
manned until the present time. It
has long been the intention of Presi-
dent Diaz to properly rebuild this
road as soon as the financial condi-
ton of Mexico warranted further ex-
penditure. The amount of money re-
CURED was so great, however, that it
has been necessary to call in foreign
assistance to carry the enterprise to
it's legitimate end.
For many years the late G. p.
Huntington, realizing the threat con-
tanned in this route to Pacific inter
ests, tried to secure control of the Sc
curities Of the Tehuantepec railway,
and thus suppress it in the interest of
his other securities. President Diaz,
however, firmly resisted Mr.. Hunting
tons plan, and has now forever pre-
vented the road from becoming other
than the property of the Mexican gov
eminent by making a remarkable con-
tract with the English firm of which
Sir Weetman Pearson is the head.
Under this contract Pearson & Son
received from the Mexican government
$5,000,O00, to be paid in forty monthly
instruments Of $125,00O each This
contract is really partnership agree
ment between the Mexican govern
ment and the English builders. In re-
turn for the $5,000,000 to be paid in
less than three and half years.
&c -
so improve the harbor at the eastern
end of the road as to make it perfect
ly feasible for commerce at all times,
and also to provide an article harbor
on the Pacific end. The railroad itself
is to be put in good physical condi-
tion, and, in short, the entire plant is
to be brought up to such point as to
make it available as transisthmian
route. The agreement between Pear
son & Son and the Mexican govern
ment runs for fifty years, and at the
end of that time the government be-
comes the sole owner and operator Of
the entire plant During the first
thirty-five years the losses in the oper-
alton of the road are to be equally
divided except that if such losses
shall amount to $4,000,0O0 Pearson &
Son shall have the option of terminal
ing their agreement with the Mexican
government
For the first thirty-five years the
government is to receive 621a per
cent. of the profits; the following five
years Sc per cent, the next five years
70 per cent, and the last five years "a
per cent. The passenger rates for first
class traffic are to be 4 cents kilO-
meter in Mexican silver; third-class
rates are to be 2 cents kilometer.
The rate for frst-class freight is to
be 8 cents per ton per kilometer and 3
cents a ton for sixth-class 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-1fths of a mile.
Sir Weetman Pearson has an
enviable reputation for carrying
through such enterprises as he may
undertake. 1t is said that this Tehuan
tepec road is the first speculation in
which he has ever engaged, and that
in the past he has required bond for
his money before undertaking a con-
tract, no matter how large or how
profitable it might promise to be. 1t
is his firm which has done more than
$20,000,000 worth of work for the
Mexican government in the harbor of
Vera Cruz. He is familiar with the Te-
line. for he has also done
work for the Mexican
government in the harbor at Coatzae
where a shifting sand bar has
baff1ed commerce for many years.
1t is believed that when Cortez
landed in Mexico, five hundred years
ago, this was the point at which he
commenced operations. The towns
along the Tehuantepec railroad are
already hundreds Of years old, and
many of them were larger five cen
turtles ago than they are today. This
region is distinctly tropical, and pre-.
re oil IF ho -