Bisbee daily review., 1907-08-21
MEXICO TESTING OWNERSHIP OF
 ROADS
Interesting Experiment InvoIv- ing Nearly Half a Billion, Gold, Now Going on in the Sister Republic.

MEXICO CITY, Mexico, Aug. 20.- The Mexican plan of government own ership of railroads promises to at tract much attention and investiga. tion on the part of the theorists in the United States who believe a simi. lar policy is practical on the part of the federal government of that coun, try. Of the trial of the new plan in Mexico it is too early to arrive at any definite conclusion as to its success
 The original government merger was composed of the National, the In ternational and the Interoceanic rail, roads. The Mexican Central. the lat est acquisition, becomes q part of Bhe general consolidation. which has talk, en the title of the National Railways of Mexico
 The new company is composed of minority shareholders in the National lines of Mexico and the NeAic2n Cen tral, with the Mexican government holding a controlling interest. The capital, $23O,0OO, 900 gold, may be re duced at any time, but no readjust- ment can be effected of a nature to impair the government holding of a majority of the stock, without the consent of the president of the Tepub- lie, given with congressional authori- Zation. The liabilities of the new company wll include bond issues to the amount of s417,000,OOO gold, the government guaranteeing principal and interest.
 The question now is whether the o'ernment's interest is to be passive or active. Minister of Finance Jose Ives Limantour states that tine gJvcrl- ment will leave the operation of the roads to the directorate and the exec utive officers, but extensions, ;m- pTOvements and additional equipment will require government approval
 It is believed that the government will build such extensions as may Je justified. The lines projected by the Mexican Central before it WIS sold to the government are going forward with no indication of interruption. In addition, the government has adopted plans for broadgauging the Inter- oceanic between Mexico City and Vera Cruz, but doubt is expressed as to whether the government will be able to fulfill its far-reaehing plans with the degree of dispatch that would have been shown had the roads remained in the hands of private in terests.
 Minister Limantour is emphatic in his statement that politics will not be permitted to enter into the policy or management of the merger system. His hand directed the deal from start to finish. The utmost faith is had in Minister Limantour's statement, and no complications from that cource are expected during the ad- ministration of President Diaz but here arises the old question: After DiaZ. what?"
 MT. Limantour has repeatedly stat ed that the prime object in acquiring a controlling interest in the several roads was that the government might be in position to prevent great aggre- gations of capital from dominating the country in any one particular line of business, and in looking after the service afforded shippers it will keep a watchful eye upon the so-called trusts in their attitude toward inde- pendent interests. With its control of the principal lines of transportation the government has no fear of the domination of any industrial in Mex ico.
 The merger system of railroads is not to be operated with the view of making large profits. although an ef- fort will be made to protect the hold ings of the minority shareholders in the consolidated property. The wei fare of the general public is to be con sideTed above all things else.
 Important reforms are to be inaug- urated in the routing and handling of shipments. By buildings a few con meeting links, reductions in mileage can Ea obtained between many points and time saved. It is also expected that under the new merger policy, much relief will be obtained in the matter of car service and if there has been any secret relating it will now cease.
 Some doubt has been expressed as to the effect of government owner ship upon the building of independent lines. MT. LimantoUr recently stated that the government would continue to encourage the building of independ- ent lines, and that the prospects for future railroad construction in Mexico were never brighter, but it is consid- cred unlikely that the government will grant concessions for new lines that seek to encroach upon the ter ritory already occupied by the merger system.