The Washington times., 1916-01-27
BUYING FOREIGN RAILWAYS

When, some time ago, a great in
ternational investment corporation
was organized by powerful groups Of
American fnanciers, it was an
nounced that the object was to go
out and buy interests in big cor
porate properties in other countries,
especially the other Americas; be-
cause, it was explained, the one sure
way to break into the markets was
to control the great buying factors
in those countries.
To own the railways, say of Ar
gentina, means to sell them their
rails, cars, locomotives, equipment; ;
to lend them their money, get the
benefit of land grants that will in
future as in the past be given to en-
courage more construction. 1t means
to establish close affiliation with in
dustries served by these railways; in
short, it means to substitute United
States capital and domination for
the capital and domination of Eu-
rope in that country.
Argentina has about one-third the
area of continental United States,
but only about 10000 miles of rail
road. That is, it is about one
fourth as we'll provided with rail
roads as is this country. There is
very certain to be great railroad ex-
pansion there for several decades to
come. The present railway system
of Argentina is estimated to repre-
sent capitalization of about
$1,000, 100000, or perhaps one-fif-
teenth that of the railroads of the
United States.
Seemingly the actual business of
buying into these properties has
been making headway, for some
mysterious gold shipments from this
country to Buenos Aires, which were
not at all understood here, are ex-
planned from London. 1t is stated
that Americans have been buying
Argentine railroad stocks, and that
the gold goes to help pay for them
| The possibility of American domi.
nance through railroad ownership is
suggested by this development. Sup,
posing that one-half the capitaliza
ton of Argentine railways is rep
resented by bonds, there remains, il
order to dominate them, merely the
necessity to secure control of the
share capital; a little more than 6
quarter-billion of dollars would be
enough to do this. Compared with
the huge investments in our owl
railways, it is apparent that thi:
would be a very small investment
Or, if it be kept in mind that nearly
half the railroad mileage of tn,
world is in the United States, it will
suggest that, with our own primary
investment in this kind of propert,
pretty well completed, the possibil
ity of expansion into a field tha
Americans know better than an,
other people, are almost unlimited.
There is no country that can com
pete with our own in building rail
roads; particularly, in building then
for the purpose of opening up new
regions and securing development
South American growth and expan
sion would be magnificently prompt
ed if United States capital and man
agerial capacity should come int,
control, or even influential afiliatiol
with the transportation service o
that continent. Americans have in
deed had vastly more to do with tn
upbuilding of Latin-American trans
port systems than is Ierally real
lied; but they have Grated chief,
with European capital, which ha
compelled them to make their prop
critics tributary to Europe when buy
ing supplies. The beginnings of
United States buying campaign il
Argentina point to a new part 70
this nation to play there. Good in
dustrial and railroad shares in Sout
America are on the bargain couH
ter, because their holders, whethe
} there or in Europe, need the golC
! The United States is the one resel
} voir of gold holdings powerfl
enough to undertake such vast opel
| ations at this time. Our money sys
tenn, from being ABOUT the worst
. the world a few years ago, is no
/ so good that dollars are at more {
: less premium in nearly every coul
; try on earth. In other words, wit