Omaha daily bee., 1906-12-16
MEXICO BUYS CENTRAL ROAD
Minister Limantour Explains Reasons for
Nationaliging Railway Lines
ABSORPTION BY FOREIGNERS WAS FEARED
Government WIN Ultimately Get
Control Of All Roads and
Operate Them in
Harmony.

MEXICO CITY, Dec. 15-There has been
plenty OF discussion in oficial and COM
mercial circles OF the frank speech in which
Minister Of Finance Lmantour last night
explained to congress the governments ac-
tlon in buying the Mexican Central rail-
way Fear Of what he styled the great
railway trusts OF the United states was
the principal reason for the purchase, the
minister declaring that the government
had been practically forced to enter the
railroad field on a gigantic scale He inti-
mated that the merging Of the National
and the Central is but the beginning OF
the plan, although the republic now owns
all the big operating lines in the country.
After delivering his speech he presented
a bill at the request Of President Diaz.
asking that the session OF congress. which
is about to be closed be prolonged that
the situation may be carefully considered.
Minister Limantour said that the COVER
nment was first forced into the railroad
business In 1903, when the National was
purchased, because a merger between that
line and the Central was about to be con-
summated.
Fear American Financiers.
At that time the government declared
that It's attitude in railroad affairs would
be passive, but change was forced by the
attitude of American railway hnanciers.
The minister said:
Gentlemen you are familiar with the as
pect offered by the transportation situa-
tion in the neighboring nation. The prob
lCm there Is only phase OF the trust ques-
ton which may be characterized as
peril Those great corporations are being
extended every day and expansion has been
so pronounce in recent years that II may
be said that the aim of most Of the fnan-
Cial interests controlling the tT9uspOrta-
tion systems II the United States Is to
absorb as many other lines as possible
The United States government alarmed
by the tendency and desirous Of initiating
a reaction against IL, has taken action
which aims at preventing the combining
of those organizations and checking their
continued expansion. Under these Circum-
stances IL was natural that we should en-
deavor to prevent the powerful corpora
tons in question, attacked they are by
all legal means in their own country, as
well as harrassed by the pressure of pub
lie opinion from coming hither and seeking
10 absorb those Mexican railroads which
are not already under the direct control
OF the government.
Arguments for Merger.
The minister summed up his argument as
follows:
Thus, gentlemen, there are three main
arguments for the merger: First, to avoid
friction between the different corporations
when the two are competing lines or
when one of them fears being antagonized
by concert, in which the government
holds the controlling interest; secondly, to
avoid the absorption OF properties not con-
trolled by the government by one Of the
great railway systems of the United
States; third, the prospects OF realizing
economies through consolidation under a
single management.
The speech was frequently applauded
and there seemed an overwhelming senti-
ment Of approval over the sentiment ex-
pressed by Senior Limantour