The Montgomery advertiser., 1906-12-15
CONTROL OF ROADS
MEXICAN GOVERNMENT PRACTI.
 cALLY OWNS ALL LINES.
Mexicam CentraI, NatlonaI, Tmternation- al. Intetoceanie and HidalgO and N0rahyyebtern are Absorbed im AneRKer4-AneEiean Bank
 CTS Back It.

f,ftv of Mexico. Dee. lt.--The details of the railway merger by which the Mexican Government takes control Of all the irSportant lines in the republic. are now known.
 Government secures absolute control of the Mexican Central, the National. the International, the Interoceanic and the TIfdalgo and Northeastern, all of which will Do merged into one great rail- road system. The Government also comes into control of the Texas-Mexi- can, a railroad at Laredo, Texas, which is owned by the National The mile- age of the system will, with extensions, which are rapidly, nearing completion, aggregate approximately 10000 miles.
 The Tehuantepec National and Vera Cruz and Pacific, two other railroads controlled by the Government will com tinue to be operated as independent companies. fa
 A Mexican company, of which ma iorfty of stock will be held by the Mex ican Government, will be organized, with headquarters in Mexico City. The company will give it's securities in ex- change for the securities outstanding of the two companies and the new company will acquire all the physical property and Government concessions held by the old company.
 IL is contemplated to create board of twenty-one directors to be divided into a general board which win reside in Mexico and local board, with head quarters in New York. The board in Mexico will consist of twelve members and the New York board of nine.
 The new company will make a lim- tied issue of prior lien bonds at 1-2 per cent, and general mortgage bonds at per cent, the principal and in- terest of the latter being guaranteed slaaV Tea uA L. tion to the bond issues the company will issue first and second preferred and common stock.
 It Is proposed to Ieave an ample re- serve in cash and securities for future improvement, development and exten- sion of the lines of the company and for the acquisition of additional roll ing stock and motive power. The new company will take over the holdings of the National Railroad of Mexico, and the Mexican International and Inter oceanic railroads. which 1t will thus control, as they are at present In the control of the National.
 If Is expected that by a reduction of the general charges, the elimination of competition, the economical routing of freight and by the increased devel- opment of the prperties the new com pany will not only be able 10 meet it's fixed charges but will earn at an early date uINluendS on US AISN anu second preferred stock.
 The banking houses interested in the transaction are composed of the firms of Ladenburg, Thalman & Co, and Hall garten & Go. of New York. bankers of the Mexican Central Railroad; Speyer & Co.,, of New York. bankers of the Na tional Lines and Kuhn, Loeb & Co.,. of New York. who represent the Mexican Central Securities Company, Ltd, of London.
 In addition to this group some of the largest bankers of Paris. Berlin, Frank fort and London are interested in the banking syndicate, thus forming a com bination of extraordinary strength and international scope. The National Bank of Mexico will participate in the fnan- cial operations. <r.
 gotiations were first commenced by Pablo Martines del Rio in February. with a view of bringing the Mexican Cenral in touch with the Mexican Gov ernment The project was subsequent ly discussed by Minister Limantour In New York. while enroute to Europe, in May last, and also during MT. Liman- tours stay in Europe.