The Liberal party in Mexico, who have recently come into power, believe that the development of the immense mineral and agricultural resources of the country can only be accomplished by the construction of railroads. Accordingly, having but little public land to grant for this purpose, the Government pays subsidies,[1] with the object of encouraging both natives and foreigners to build railways. These subventions, as they are called, vary from $6,500 to $9,500 per kilometre, and are supposed to amount to about one third of the cost of the roads. They now reach a total of about $7,000,000 annually.
A subsidy of $560,000 a year is given to the Mexican Railway, which is the only completed line in the Republic. It must not be assumed, however, that these subventions are paid in money. Revenue bonds are issued without interest, and an amount, varying from 4 to 6 per cent of the customs duties, is set aside for their redemption.
The American trunk-lines extend from the Rio Grande to the City of Mexico. A branch of one of them, i. e., the Mexican Central Railroad, is being built across the country from the Gulf to the Pacific Ocean. Another branch, that of the Mexican National Railway, is already finished for nearly one half of the distance between the capital and Manzanillo, the terminus of this division. This company has lately consolidated all its concessions under the law of January 11, 1883.
The Morelos Railway is expected to be continued to Acapulco, and the Tehuantepec Railroad will soon reach the Pacific coast. (See Sections VIII and IX.)
Hence, it will be seen that in the course of a few years three lines of railway will connect the capital with the United States, and four roads will traverse the Republic
- ↑ The total amount of railroad subsidies granted by the Mexican Government is given in round numbers at $90,000,000.
