As I have already stated most of the roads built in Mexico have obtained large subsidies from the government, and that fact has contributed very materially to their present prosperous financial condition, as they have used the proceeds of the subsidy, not only to build the roads, but in some cases to pay the interest on their bonds. On the whole Mexican roads are very prosperous, and the following statements taken from the official reports of the principal roads shows their trade and earnings are increasing considerably.

The Mexican roads like the Mexican Government have been very much crippled by their obligation to pay in gold the interest on their bonds and dividends on their shares, and as they collect their freights

in silver, they have to buy gold at current prices to pay their gold obligations, and the depreciation of silver causes them a very great loss, but notwithstanding that serious drawback, the increase in their business and earnings has been such as to place them in a position to meet their gold obligations.

I give below a statement of the traffic and receipts of the three principal railways in Mexico, namely: the Mexican Central, Mexican National, and Mexican International, which I have obtained directly from the respective companies. I also give similar statements from the other roads, which I have taken from statements published by the Anuario Estadistico de la Republica Mexicana of 1895.

Mexican Central. The Mexican Central is the largest road so far built in Mexico. The whole of the main line was opened for traffic in 1884, and all figures for traffic previous to July 1, 1884, were thrown into Construction Accounts. The annexed statement of freights and earnings of this road begins therefore in 1885, and shows a decided increase every year. I also append a statement of the traffic and earnings of this road and its branch from Tula to Pachuca, from 1881 to 1895, taken from the Anuario Estadistico de la Republica Mexicana of 1895, which has been compiled from data furnished by the company to the Mexican Government. (See first table on page 197.)

EARNINGS OF THE MEXICAN CENTRAL RAILWAY FROM 1885 TO 1896.

Mexican National.-The Mexican National obtained its first concession from the Mexican Government in 1877, but it was amended from time to time thereafter, until all the amended grants were grouped in the concession approved July 5, 1886, under which the road is now operated. The old companies did not print any reports, and there is no data running back further than the time when the bondholders took possession of the property at the foreclosure sale, which occurred in the City of Mexico on May 23, 1887. I give a statement of the traffic

and earnings of the road from 1873 to 1895, taken from the Anuario Estadistico de la Republica Mexicana in 1895, which was compiled with data furnished to the Mexican Government by the company.

CENTRAL RAILWAY AND BRANCHES, INCLUDING EARNINGS DURING PERIOD OF CONSTRUCTION.

STATEMENT OF EARNINGS AND EXPENSES OF THE MEXICAN NATIONAL RAILWAY, FROM 1889 TO 1896 INCLUSIVE.
ROAD OPENED FOR THROUGH TRAFFIC IN NOVEMBER, 1888.

MEXICAN CURRENCY.

EARNINGS FROM

1889.

1890.

1891.

1892.

1893.

1894.

1895.

1896.

$3,660,124 24 $3,754,966 36 $4,206,422 74 $4,756,029 94 $4,224,804 11 $4,329,078 65 $4,513,205 91 $5,299,025 77

Net Earnings

2,993,431 54 2,927,961 89 3,047,401 56 3,055,416 55 666,692 70 827,004 47 1,159,021 18 1,700,613 39