The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-12-15
RAILROAD NEWS.
Mexican Central Now Turned
Over to Mexican Government.
Details of Merger Have Now
Been Made Public.
ONE GREAT SYSTEM.
All Roads in Republic Aggregat-
ing 10000 Miles in One Control.
Gossip and Matters of Interest
in Railroad Circles.

City of Mexico, Dec 1.-THE de-
tails OF the railway merger, by which
the Mexican government takes control
of all of the important lines in the re-
public, are now known.
BY the terms of the contract the
government secures absolute control of
the Mexican Central. the National, the
International the Interoceanic and the
Hidolgo & Northeastern, all of which
Will be merged into one great railway
system. The government also comes
into control Of the Texas Mexican, a
railroad at Laredo, Texas. which is
owned by the National The mileage
of the system viii. with extensions
which are rapidly nearing completion,
aggregate ten thousand miles. The
Tehuantec National and Vera Cruz &
Pacific, two other railroads controlled
by the government. are to be operated
as Independent companies.
Mexican company of which a ma
jCrity of the stock would be held by
lied with headquarters in Mexico City
The company will issue its securities in
exchange for those outstanding of the
two companies and the new company
will acquire all the physical property
and concessions held by the old COM
pany. 1t IS contemplated to create
board of twenty-one directors, to be
divided into a general board which will
reside in Mexico and local board with
headquarters in New Ork. The board
in Mexico will consist of twelve mem
bers and New York board. The new
company will make a limited issue of
prior liens at 4 Il and mortgage bonds
at per cent. the principal and in
terest of the latter being guaranteed
by the Mexican government In ad-
dition to the bond issue the company
will issue first and second preferred
and common stock. 1t is proposed to
leave an ample reserve in cash and
securities for future development, i'm
provement and extension of the lines
of the company and for the acquisition
of additional rolling stock and motive
power The new company will take
over the holdings of the National Rail-
way of Mexico and the Mexican Inter-
national and Interoceanic railroads
which it will thus control, as they are
at present in the control of the Nation
al 1t is expected by a reduction of
general charges, the elimination of
com petition, the economical routing of
freight and by the increased develop
ment of the properties, the company
will not only be able to meet its fixed
charges but will earn at an early date
dividends on its first and second pre-
ferred stock
The banking houses interested in the
fransact ion are composed of the firms
ten & Co, New York, bankers of the
Mexican Central railway; Speyer & Co.
Of New York. bankers of the National
lines and Kuhne. Loeb & Co of New
YorE. who represent the Mexican Cen
trail Security company, limited, of
London In addition to this. group
some of the largest bankers of Paris.
Berlin. Frankfort and London are in
terested in the banking syndicate. thus
forming a combination of extraordi-
nary strength and international scope.
The National Bank of Mexico will par
ltcipate in the financial operation.
NEGOTIATIONS were first commenced by
Pablo Martinez del Rio in February
with a view of bringing the Mexican