The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-12-23
Mexican Roads Reported to BE
in Poor Condition.
Properties Destroyed BY War
ring Factions.
EARNINGS HAVE Fallen OFT
No Bonds Can Be Fl0ated I'm
till War Ends.
Other Items of Interest in the
Traffic World.

( A Santa Fee man from the Coast
Lines in Topeka today brings with
him a report Just made public by the
/ National Railways of Mexico. The
| operations in the fiscal year reflect
4 the difficulties of railroading during a
i revolution The company's gross
earnings. which were $S1, .000
! (Mexican) in 1912. declined s4.077 900
! in the last year A surplus of 81, 49,
! coo earned in 1912 was reduced to
| s723.000 last year, and after paying
F! one dividend of per cent on the first
! preferred stock, there remained a de-
! felt of $46s,0O0 at the close of the
| surplus from previous years to $685.
900 (Mexican). or about $4s.500 in
| United States gold coin
| 1T will be recalled that reference
was made last year to the difficulty OF
selling at fair price any of the prior
| lien bonds or guaranteed general
mortgage bonds. and the consequent
necessity of meeting the financial re-
! Quirements by the issuance of short
t term notes." says Luis E1guero, chair
man of the board of directors 1T is
with regret that 1 have to advise that
! this difficulty still exists and in a more
intense form. for while the worlds in
/ vestment markets have improved
slightly, conditions in Mexico have
than they were in the previous year,
making it practically impossible to
sell any of the company's bonds.
| ''At the time OF the sale of SIS. 000,-
900 Omitted States currency one-year
per cent notes, options were granted
i to the companys bankers on the
aforementioned bonds, as well IS on
| the bonds pledged under the two-year
notes, which it was hoped they would
| be able to exercise, and thus provide
! funds more than sufficient to redeem
all the outstanding short-term obliga-
| tons However. shortly thereafter
the political conditions grew gradually
worse. and. notwithstanding special
efforts on the part of the bankers,
they were unable to exercise the op-
| tons.
The board fully appreciates the
| undesirability of issuing short-term
obligations, but unfortunately the
company's position, combined with the
general financial conditions through
out the world, have rendered it impos-
| sible to adopt any other course. With
peace again restored In Mexico, for
the success of the company is entire
ly dependent thereon. and a further
improvement in the investment mar
kets abroad. it is believed that the
bankers will be able to exercise the
options granted to them, thereby en-
| abling the company to avoid resorting
| to any more short-term 1oans.''
The assassination Of Gustavo A. Ma
| dero and the resignation of Manuel
! CrQuidi left vacancies on the board.
| which were filed by Gabriel Mancera
| and Juan E. Cardenas Respecting
recent difficulties the report says:
| LAS is well known. the conditions
which have prevailed throughout the
country have affected principally the
| railway lines. In addition to damage
done to the physical properties, the
| disturbances and interruptions had a
marked effect on the gross earnings,
| while at the same time the constant
reconstruction work made necessary
| to keep the lines in operation in
| creased materially the ordinary oper-
ating expenses"