The Richmond palladium. (Richmond, Ind.) 1906-1907, 1906-12-16
Hexic0'S Gigantic Railroad
Merger is Explained by the
Minister of Finance.
3 ETAILS ARE MADE PUBLIC
n UTHscHILD INFLUENCE APPAR-
ENT IN THE SYNDICATE INTER
~NESTED IN THE TRANSACTION
DEAL NEGOTIATED.
PUBLISHERS Prs-s.l

Mexico City. Dec. 15..In remark
Of Finance Limantour explained the
reasons for the gigantic railroad mer-
ger just contaminated by which the
National and Central lines become the
property of the republic. He declared
that If this step had not been taken
the great railroad lines of the United
States would have stepped in and alb
sorbed all the property not controlled
by this government. This, he explain
ed, would saddle onto the Mexican
people one OF the great trust evils suf-
fered by citizens Of the United States
in further summarizing, the situation
he gave as the two other chief reasons
for the governments action the facts
that the present merger will avoid
friction between the Mexican Central
and the National lines when the Cen
trail might fear being antagonized by
the National lines, in which the gov
eminent had the controlling interest,
and the prospect of realizing consider
able economies through the consolida-
tion of the great railroads under sin
gle management. He maintained that
the government did not contemplate
The merger and was forced to do so by
the aggressive attitude assumed by
certain great railway systems In the
United States.
The details of the merger by which
the Mexican government takes control
OF all the important lines in the re-
public are now known. BY the terms
of the contract the government Sc
cures absolute control of the Mexican
Central the National, the Information
al. the Interoceanic and the Hidalf,o
& Northeastern. all of which will be
merged into one great railroad sys-
tenn. The government also comes into
control of the Texas-Mexican, rail-
road at Laredo, Tex, which is owned
by the National The mileage of the
system will. with extensions, which
are rapidly nearing completion, aggre-
gate approximately 5000 miles. The
Tehuantepec National and Vera Cruz
e. Pacific, two other railroads con
trolled by the government, will con-
tinue to be operated as independent
companies.
The banking houses interested in
the transaction are composed of the
firms of Ladenburg, Thalmann & Co.
and HaIgarten & Co. of New York,
bankers Of the Mexican Central rail-
road; Speyer & Co. OF New York.
who are bankers of the National lines,
and Kuhn, Loeb & Co. of New York,
who represent the Mexican Central
- toI Of
In addition to this group some of the
largest bankers of Paris, Berlin.
Frankfort and London are interested
in the banking syndicate, thus form
inx q combination of extraordinary
strength and international scope. The
National Bank of Mexico will partici-
pate lin the financial operations.
Negotiations were commenced by
Pablo Martinez Del Rio in February,
wiYh view of bringing the Mexican
Central in touch with the Mexican
government. The project was subse-
euently discussed by Minister Imam
tour in New York while en- route to
Europe last May, and also during Min
lister Limantour's stay in Europe. The
negotiations on a more definite form
became active while Mr.. Lmantour
was in New York on his return trip
from Europe. They were finally
brought to an issue in the last few
GAYS during the visit of Eben Rich |
ards. president OF the Mexican Central |
and personal representative of Henry
Clay Pierce and Walter t. Rosen OF
the arm of Ladenburg. Thalmann
Co, representing the foreign bankers.