Albuquerque citizen., 1907-08-17
OWNERSHIP OF
ROADS IN old
MEXICO
Government Is Making Test
of Federal Control
in Earnest.

Mexico, Cltys Mex, aug - ne
Mexican plan of government owner
ship of railroads promises to attract
much attention and investigation on
the part of theorists in the United
States who believe a similar policy
is practical on the part of the FEEDER
al Government of that country. or
the trial of the new plan in Mexico
II is too early to arrive at any defin-
lite conclusion as to its success.
The original government merger
was composed of the National the
International and the lnteroceanic
railroads The Mexican central, the
latest acquisition, becomes a part or
the general consolidation, which has
taken the title of the National Rail-
ways of Mexico.
The new company is composed of
minority shareholders in the Nation
al lines of Mexico and the Mexican
Central, with the Mexican govern
ment holding a controlling interest.
The capital $230,000,000 gold, may
be reduced at any time, but no re-
adjustment Can be affected OF ma
ture to impair the government
holding CT a majority Of the stock,
without the consent of the president
of the republic given, with congress
ional authorization. The Liabilities OF
the new company Will inclnde BOND
issues to tho amount of S41IOOO,OOO
gold, the government guaranteeing
REiitlJal anu
Passive or Active?
The question now is whether the
governments interest is to be pass
i've or active. Minister of Finance
Jose Ives Limantous states that the
government will leave the operation
of the roads to the directorate and
the executive officers, but extensions,
improvements and additional equip
ment will require government ap-
prevail
1t is believed that the government
will build such extensions as may be
justified. The lines projected by the
Mexican Central before ii was sold
to the government are going forward
with no indication of interruption. In
addition, the government has adopt
ed plans for broad-gauging the In
teroceanic between Mexico City and
Vera Cruz, but doubt is expressed as
to whether the government Will be
able to fulfill it's far-reaching plans
with the degree of dispatch that
would have been shown had the
roads remained in the hands OF priv
ate Interests.
Minister Limantour is emphatic in
his statement that politics will not
be permitted to enter into the policy
or management of the merger sys-
tenn. His hand directed the deal
from start to finish. The utmost faith
statement, and no complications
from that source are expected dur
ing the administration of President
Diaz, but here arises the old ques-
tion: after Diaz, what2'
To Prevent Great Fortunes
Mr.. LAmantour has repeatedly
stated that the prime object in ac-
quiring a controlling interest in the
several railroads was that the gov
ant oh hA nnGiffnn
vent great aggregations of capital
from dominating the country in any
one particular line of business, and in
looking after the service afforded
shippers 1t will keep a watchful eye
on the so-called trusts in their atti-
tude toward independent interests.
With the control of the principal
lines of transportation the govern
ment has no fear of the domina-
tion of any individual trust in Mex
leo.
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
tngs of the minority shareholders In
the consolidated property. The wei
fare of the general public is to be
considered above all things else.
Important Reforms
Important reforms are TO be inau'
III the anu idlhilit
of shipments. By building a few
connecting links. reduction in mile
age can be obtained between man!
points, and time saved. 1t is also ex
pected under the new merger policy
much relief will be obtained in thu
matter of car service, and If Their
has been any secret rebating 1t will
now cease.
There is very little opposition OF
the part of the business men to gov
eminent ownership of railroads
interests believe they will al
be treated alike; that the servic
will be improved and better satlsfac
ton given than when the roads wer'
operated as separate independen
properties. This has been the cas-
with the National lines since the
were taken over by the government
Some doubt has been expressed a
TO the effect OF government owner
ship upon the building of independ
ent lines, and that the prospects 70
future railroad construction In Mex
leo were never brighter, but II is con
sidered unlikely that the governmen
will grant concessions for new line