New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-03-30
Mexico Buys
Millions R.R.
Equipment
Delivery of Locomotives
Is Expected to Begin
Within the Next Ten
Days
Govt Bonds Rise Sharply
N. Y. Bankers Disclairn
knowledge of Republics
Plan to Rehabilitate Credit

the railroad mileage Of the republic,
has placed approximately 100000
of orders with American companies
for equipment and repair material,
The Tribune learned yesterday. At
the local offices of the purchasing
agent of the National RAILWAYS of
Mexico it was said that ample funds
! to pay cash for these orders are on
deposit with New York banks, and
that In some instances money has al
ready been advanced before delivery.
Victor L. Blanco, general purchas-
ing agent, is now in Mexico, but IS
expected back in New York within a
fortnight. One of his associates said
that an order for forty freight loco
motives had been placed with the
American Locomotive Company, and
that deliveries would start within
ninety days. Moreover, he said that
ten freight locomje ives had been
bought from the Baldwin Locomotive
Works, and that they would be avail
able, within ten days.
Car Shortage Great
The present shortage of freight cars
is placed at $500 and of passenger
cars at 200 by the executives of the
National Railways of Mexico. How
ever, no orders for cars have yet been
placed, because of high prices. Ac-
cord q to information obtained from
/ the .H"ctiasing agent, the Mexican
! oil
trate tor the present on the repair of
old cars IN Mexican shops, and for
this purpose have placed orders in the
United States for 100000 Of lumber
and 100000 of steel products. The
steel orders, which have just: been
placed, have been distributed among
many companies, but the principal
share of the business has gone to the
United States Steel Products Com
ton and the American Steel Foun-
dries Company. The lumber and
steel and other repair material pur-
chased is said to be enough to keep
the Mexican shops busy for three
months. Many of the cars were
dynamited during various episodes Of
the revolution, and rebuilding Of old
cars or purchase Of new is said to be
Indispensable to meet the growing
needs of Mexican industry The
foregoing orders, all OF which have
been placed since the first of Jan
uary, constitute the first important
equipment bought by the National
Railways of Mexico since 1916. The
New York purchasing Office, however,
spends about 100000 month on
normal purchases Of supplies.
a representative of the National Rail-
ways said that the system is now earn
ing in excess Of SS,500,l0O a year He
declared that an elaborate program for
building terminals and stations was
being mapped out, and that work would
, start in September on new terminal
! in Mexico City
The Mexican government guarantees
| the bonds of the National Railways, and
! both the railway and national obliga-
tons have been in default since 1914.
The external obligations of the govern
ment, excluding defaulted interest.
amounted to about $100000,000, of
which, it is estimated, one-third is held
IN the United States. AS result of
the announcement from Mexico City
that the government would resume in
terest payment, there was unusual &C
tivity in Mexican bonds yesterday, and
the IS climbed up to 40, UP II z points
from the last sale. The DIS got as
high as SO.
The market buoyed up as a result of
the following statement from the Mexi-
can EN- bassy at Washington: "Advices
have been received from Mexico City
to the effect that the Treasury Depart
ment of Mexico, in an official statement
dated March 25, 1920, announced that
| Mexico will soon resume payment of
interest on it's external debt, and will
| also carry out the project for the
establishment of the Bank Of the Re-
public"
A member of the international bank
ers' committee, of which j. P. Morgan
is chairman, which was formed year
ago to take up the matter of the
Mexican default, said that it had not
been officially notified of the new
! policy, although legal representative
Of the Mexican government had in
formed him that the government would
resume payment on the debt. Rafaelo
Nieto, former Acting Secretary Of
Finance in Mexico, initiated negotia-
tons with representatives of foreign
/ holders of the Mexican obligations last
year, and it has been known for months
4 that the Mexican government was con-
templating taking steps to rehabilitate
it's credit.
Decries Mexican Policy
An international banker, who played
q CONSPICUOUS part in the marketing Of
Mexican securities, said yesterday: cit
! is a shame that Mexico has not been
paying interest on its debt. 1t is GER