The Montgomery advertiser., 1906-12-16
AMERICA IS FEARED
uExICAN POLITICIAN EXPLAINS
 THE GREAT MERGER
DeeIarem that If Diaz Government Had Not Assumed Control of Lines, They would Be Absorbed
 By Trust.

Mexico City, Dec. 16.-Minister Of Finance Limantour. in a speech re- markable for it's straightforwardness presented to Congress last night the reasons which prompted the Govern- ment to consummate the great rali- road merger by which the repupnc comes into possession of the two great trunk lines of the country, together with thousahds or miles of subsidinary lines.
 With the control of the National and Central, together with dependent lines the Mexican Government practically owns the big operating lines of tue country. The most remarkable state-' ment in the minister's speech was that to the effect that the Government was forced to go into the railroad business on a large scale because of fear of what he styled the great railroad trusts in the United States.
 He said that if this defensive action had not been taken by Mexico, some of, the great railway systems of the United States would enter the republic and swallow the transportation facili- ties of the country This he charac- terized as peril which was now alarming the people of the great Northern Republic. In his speech there occurred an important focecast. which indicated that the merger was only the beginning of great plan and he declared that the Mexican Govern ment had decided to vigorously enter the railroad field.
 After delivering his speech. he pre- sented a bill at the request of President Diazs the speaker said, asking that the session of Congress which is about to close be prolonged that the whole situ- ation might be carefully considered by the Deputies and the Senators. Dur ing the address, Minister Limantour. said that the Government was at first forced to go into the railroad business in .-fs0t, when the National was pur- chased because of the fact that a merger between that line and the Gen. tral was then about to be consum- mated.
 At that time the Government declared that its attitude in railroad affa9 would from thenceforth be passive, but the circumstances mentioned, he said, had been forced by the so-called rail way trust of the United States. The Minister said:
 Phase of Trust Question.
 "Gentlemen, you are familiar with the aspect offered by the tTahsporta- tion question in tine nation; the prob lem there is only phase of the trust question which may be characterized as a peril. Those great corporations are being extended every day. and many of them cover considerable areas of territory. The tendency to expan- sion has been so pronounced in recent years that 1t may be sad that the aim of most of financial interests, eontroll- Ing the great transportation systems of the United States is to absorb as many other lines as possible.
 The Unfeed States Government alarmed by the tendency and desirous of initiating a reaction against it, has as you well know. taken action which aims at combining those organizations and checking their continued eXpan- sion. UndeE these circumstances it was natural that we on our side should en- aeavor to prevent the powerful corpor- ations in question Attacked as they are eeing by all legal means in their own country, as well as harrassed- by the pressure of public opinion from coming hitherto and seeking to absorb those Mexican railroads which are not al- ready under the direct control of the Government"
 The Minister summed up his argument as follows
 Avoid Absorption.
 Thus, gentlemen, there are three main arguments for the incorporation of the two great systems of the Ma tional and Central. First. to avoid friction between the different corpora- tions when the two are competing lines. pr when one of them fears being an- tagonized by a concert in which the Government holds controlling interest
 secondly, to avoid the absorption of nroperties not controlled by the. Gov krnment bv one of the great railway pystems of the United States.
 'aThirdly, the prospect of realizing considerable economies through the Consolidation of all the great railways under a single management
 The speech throughout It's delivery vas frequently applauded. There ,eerned to be an overwhelming sent nent in favor of the ideas advanced py senor Llmantour.