The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-26
GOVERNMENT HAS BIG
CLAIMS TO SETTLE


D~.s.sss Enterprtses and Rsii-
reads Seek Inae.aity.
A large Der cent. Of the Revolutionary
claims to be mad against the nen,
constituted government OF MEXICO VIII
hs bssed upon the losses suffered ~
different business enterprises on thls
score. Another and ever greater per-
csntase Of the claims for indemnify
Vim b made BY the railway
IN" express companies and others which
haze been taken over oy tne 49,
~iutionsry administrations on tne seoIo
Of military necesssties OF TOT JIM y ~.
thorities.
The different railway companies vnoss
~.snerties have been taken over anu
oosrated by the evolutionary autnoii-
ties will base their claims against tno
recognized government upon the !sn*ey
lava of Mexico. These specify tha' III
cases Of domestic or foreign wa. ~
over by the authorities and that. II no
ether basis Of settlement satisfactory
N All p~arties In reached the
ara 70 recsiye an indemnisattou Tor tne
v.. ~ their properties based upon the
svsraue earnings for the Ave years prior
TO their being taken over. plus i' ps'
cent. OF those same earnings. a..
ThiQ ln0enlOtL htIDu ~
u.e Of the railway properties and docs
nj include claims made by the compa-
NE. for damage or destruction OF the't
Unss or rolling stock or for running Oh
military trains prior 10 the taking oSer
the ~nroperty. these constituting separate
causes for indemnity. The Mexican
iav does not make II quite clear whesner
the earnings specified In calculating the
amount Of indemnity are to DE net ..
gross earnings. but assuming NAT ne.
earnings are meant, which 10 the most
on,,n,istic construction for the Mexican
Government, the amount OF damages "
be paid will be enormous.
Nationals BiII Bixgest.
. OF all these railway claims which VIII
- made the most important 10 maj OF
the National Railways Of Mexico, the
majority of whose bonds are held IN
Europe and the United States. The
pnoperties OF this company were taken
over for operation BY the Constitution
alists on August -. 1914, thus making
Il something less than a year ana a nan
that the revolutionary forces have mad
these properties In their possession. The
ne, earnings Of the National Railways
Tor the years preceding their takins
over were approximately as follows
i~sOs-lsO9. 100000 pesos lsos-lslo'
$500 900; l%9lO-l9ll, 2.550,000 1911
1912. 2,4SO.O00; lsl2-lsl3. 10000
lsl3-l9t&. loss.
The settlement Of the claims OF the
National Railways OF Mexico VIII pre-
sent various complications owing to spe
cial circumstances entering mo he
case. one of these h that the Year,
Immediately preceding the taking over OF
the properties by the Cons;itutionalist
were no, normal years. the earnings be
ing diminished notably TOWARD theii
close and serving as q barometer OF ths
spread OF disorder throughout the coun'
Try.
Another complicating feature is thu
rate of exchange. The figures given a
earnings represent pesos with the rat
Of exchange for the American dollar a
two for one, During the fiscal year o.
lsi3-l9l4. when q loss was registered
the value OF the peso diminished Il
three to one. should the Government
propose to settle claims on his basil
in the present Mexican money. whicl
In worth about fifteen TO one as meas
ursd by the dollar. foreign stock ant
sondhoiders hardly could be made 10 se'
the equity OF the arrangement
Still another feature Is that after tn
break between villa and Carranza tn
former kept and stili controls a portion
Of the lines Of the National Railways Il
In north OF the republic. AS the Mex
lean law relating to indemnities to b
paid to the railway companies relate
only to the taking over Of their lines b,
the Government. liability for Villas TAX
ing over a portion OF them. he beini
declared an outlaw. probably will serv
- another ground for contention.
Inability to Pay honda.
Other matters which will enter int
consideration are the Mexican Govern
ment's ownership OF a slight controll!n
interest In the shares of the Nations
Railways and It's ability or inability I
satisfy the bondholders as to the pay
ment Of their interests. they being III
real owners Of the railways with powe
70 foreciose on the stockholders II ur
satisfied In this regard.
In any event, the lain arising froI
the Governments use OF the lines Of III
National Railways will be small in cor
parison with the material losses whic
the railway company has suffere
through the blowing UP and destructiO
Of It's trains and bridges, tearing up
it's lines. wear and tea OF rolling stool
damage to stations. shops and the Xix
The following figures were given o,
officially by the Constitutionalists r.
Gently and serve to throw some ligi
upon the condition OF the rolling stoc
Of the National Railways at the close
June, 1914. and at the present time:
On June 80. 1914, the company ha
1900 broad gauge cars. 3.267 mario
gauge cars and 76c locomotives. A sho
time ago the number Of broad gSui
caN IN the possession Of the authorlti,
holding the properties was 3,775.
which l50 were In the repair shop
This represents a shrinkage Of l1,s.
broad gauge cars. apart from the dan
ages to the $50 mentioned.
The number Of narrow gauge cars r
Gently stated to be In tho possession
the authorities was l.925. Of which Il
were In the shops for repairs, The 10
of narrow gauge cars. therefore. accor
ing to these figures IL 1.342. apart fro
those damaged. The recent figures she
that the authorities hold 40 locomotiv
in serviceable condition and rave 100
the repair shops. This shows a loss
272 locomotives. apart from those dar
aged.
Such rolling material as is in Che han,
Of villa in the north at the present tin
must be discounted from the hgur
given showing losses. but the Constit
~tionalist authorities say that he h
very few cars n engines now In b
possession.
Villas HoldinEs Small.
The fact Ia the Constitutionalis fore
are universally reported to be W,
within the State of chihuahua In tn,
northern advance against villa and
0N controls a small portion Of I