El Paso herald. (El Paso, Tex.) 1901-1931, 1912-06-08
MEXICAN RAILWAYS
FOREIGN OWNED.
Ell Impartial Warns Rebels
That They Are Hurt
ing Themselves.

Some of the rebels and their SYM
pathizers seem to thitk that when they
destroy property OF the National rail-
ways OF Mexico they are IN some way
inJuring the federal government The
following article translated from a re-
cent issue OF impartial puts a differ
Cnt light on the matter and viii be read
with interest by Americans and Mex
leans alike, since il explains exactly
the relations between the National
railways and the Mexican government
IL is clear that TO destroy the railroad
property only increases the national
debt, to be borne by all the people.
Says Imparcial-
During the course of the present
disturbed conditions caused by OrOzc0
in the north and Zapata in the south,
various papers have at times mentioned
the destruction of railway property by
these leaders and their followers
1t seems to be the general opinion
of revolutionary leaders, as indeed OF
many people in Mexico, that the federal
government is not only in control OF
the National railways of Mexico, but
owns them outright While the gov
eminent has control by virtue OF hold
ing a majority of the stock, il should
not be overlooked that there are out
standing at this time about SZ5O,OOO,OuO
gold of bonds to guarantee which the
property Of the railway companies has
been mOrtgaged. The leaders men
toned are apparently of the opinion
that in destroying the property of the
National railways they are destroying
that OF the government, and therefore
inJuring the latter
Nothing could be further from the
truth than this, and If justice Is done
the railways, the federal government
viii have to pay the railway corpora
ton for every dollar of damage done
b ythese revolutionary leaders and their
followers Therefore in destroying such
property, these revOlutioniets are sim
ply laying up for the nation debt
which it must pay later, and to which
all citizens of Mexico will nave TO con-
tribute according to their position in
while it is true that the federal gov
eminent has voting control through
owning majority OF the stock of the
National railways of Mexico, II is quite
evident that the real owners of the
property are the bOndhOlders in this
case, as indeed they are in all corpora
tons having issues Of bonds and stocks
The bonds of the National railways Of
Mexico are in practically all cases held
Dy parties who are not only foreign
ers, but who live abroad the issues be-
ing placed through banking groups in
the United States and the capitals of
Europe, and purchased by the citizens
OF those countries.
1t may also be pointed out that
while the federal government, as stated
above, owns a majority of the stock OF
the National railways of Mexico, IN ad-
dltiOn TO the bonds above mentioned.
40 percent of the total issue OF stock
outstanding at this time Is also owned
by foreigners residing abroad and who,
as our readers are aware, paid cash
therefor.
THE revolutionary leaders have an
nOunced that in their operations
against the government they intend to
protect the lives and property of for
eigners. In the case of the National
railways of Mexico they are certainly
not doing this. and il would assuredIv
seem to be to the interests of every
one that they be Informed that the
railway property is just as much that
critics financed abroad but operating in
this republic
In all Instances the destruction of