New-York tribune., 1906-12-14
MEXICAN ROADS Plan.
Scheme TnUolres Consolidation and
Control by the Government.

Mexico City, Dec 13.-During the last four months
reports have been current that negotiations were
under way by which the government was TO get
control of the Mexican Central Railway through
rhe readjustment OF the finances of that corpora
tion.s 1t is true that negotiations Of this nature
have been in progress for time, and ii may be
added that they have been broken or three occa-
sions because of the refusal of the Mexican gov
srnTnent 10 enter into the deal except certain
well defined lines THE Mexican Herald" authori-
tatively announces that the completed operation is
much larger and more comprehensive than the
mere readjustment OF the finances Of the Mexican
Central Railway in such form 10 give the Mex
scan government control OF the property, and that
Mexican Central and the national lines Of Mexico,
which. II the deal goes through. will become the
property Of a single new company, which will be
Mexican have its headquarters in Mexico and in
Int IosioriII f Shares which r. Is said viii he
IN the neighborhood OF S25, co) gold.
.-d5Tding 10 The scheme tbe Niexiea1 soyernroent
will guarantee the interest and sinking fund on
the second mortgage only. The net earnings OF the
Mexican Central and the Mexican National at the
present time sufficient TO meet the liability.
a syndicate, Including Speyer & Co, Kuhn. Loeb
& Co. Ladenburg, Thalman & Co Hallgarten &
Co OF ~ New & York and @ banking houses Of Of Lon Lond@Gn on
70 the holders Of the present securities of the
expected that the deal will be completed to-rnor-
row Inc new company VII m nave It's main board
board in New York City OF the latter # is stated
that Il Clay Pierce will be chairman
The outline given Of the projected merger of the
Mexican Central Railway Company and the Ma
tional Railroad Company of Mexico is substan-
tally accurate it learned here yesterday. AS
the Mexican Congress which, it IS understood,
must ratify the plan before ii become effective,
is 10 adjourn to-day, it is believed that the deal
which has been IN negotiation for about nine
months viii be closed at The bonds of the
National Railroad Of Mexico. il Is understood, will
not be disturbed. and VIII continue to be a first
lien on the property covered by the mortgage under
ers OF the National i was also learned are TO
receive the same proporti0nate amount Of stock in
the new consolidated company will be allotted
10 the majority interest. the government Of Mexico
The majority Of the board of directors of the new
company are 10 be MeXicans. as the majority
of the present National companys directors but
substantial representation viii be given the mi
nority interests.
The Mexican government has owned since June
National Railroad Company Of Mexico a propor-
ton which - now 10 be increased TO an actual
majority. The capital stock of the Mexican Cen
tal IS Sos.494,5Vl. A Iesdj justment of this COM
Iany finances has long been expected. 1t has
S5o.o'4J't consolidated mortgage bonds maturing in
jury lslI, ana has also a large floating In
1910 VIII mature upward of S3GG10O1O of collateral
trust notes issued in 1905 lie used principaIy fn
IefQndlng the $ZsvtlgJ collateral trust issues ma
turing IN 1897 and 1865. $500
Nothing could be learned yesterday about the
new company.