to-day forms a portion of the Central Argentine Railway, extends from Rosario to Cordoba, 246 miles.

Most of the earlier railway lines carried guaranties of interest by the Government-some as high as 7 per cent per annum. In 1895 these guaranties were relinquished by mutual consent, the Government issuing to the railways 4 per cent rescission bonds in settlement thereof. These bonds are described in the section on Government loans.

In 1907 the Government passed what is known as the Mitre law, whereby railways, in lieu of customs duties and national and provincial taxes until 1947, pay to the Government 3 per cent of the net receipts, based on 60 per cent working expenses. This sum is used wholly to improve and construct roads and bridges to and from stations in the towns and districts served by the respective railways. The Government has the right to alter tariffs if the gross earnings of the railway, with operating expenses at 60 per cent, exceed 17 per cent on the recognized capital for three consecutive years.

The railway lines of Argentina have the right to construct extensions or branch lines, not to exceed 75 kilometers (47 miles) in length, without having to apply to the Government for permission, provided these lines are not within 20 kilometers (12 miles) of any existing railway line belonging to another company. Several of the railways have taken advantage of the right to construct irrigation works adjacent to or near their lines, receiving payment therefor in Government 5 per cent bonds at par.

Owing to the increased cost of operation, the Government, late in 1917, granted permission to the railways to increase their tariffs 22 per cent.

CENTRAL ARGENTINE RAILWAY.

In discussing the important subject of railways it is necessary to give a brief history of the development of several of the most important systems of the Republic, beginning with the lines converging at Buenos Aires. Mention will first be made of the Central Argentine Railway. This is one of the longest and most important of the railways, serving as it does the larger cities and towns of the northern and central sections of Argentina, including Buenos Aires, Rosario, Cordoba, Santa Fe, Tucuman, etc., and crossing some of the best grain and cereal lands in the country. The railway to-day has a mileage of 3,305 and possesses the finest station and terminal in South America. From this, the Retiro Station, the main trunk line extends northward to Tucuman, a distance of 720 miles, running through the Provinces of Buenos Aires, Santa Fe, Santiago del Estero, and Tucuman. A number of divisional lines extend into the Province of Cordoba or act as feeders throughout the Provinces mentioned.

As previously stated, William Wheelwright, of the United States, constructed the Rosario-to-Cordoba section of this railway. He requested the concession at as early a date as 1854 and carried out a survey of the line under the supervision of Allan Campbell, also an American. Mr. Campbell's name is also identified with various early railway projects on the west coast of South America. Owing to the difficulty of obtaining financial aid, it was not until 1863 that the construction of the line was begun. The first section was completed in 1864 and the line to Cordoba in 1870.

From this somewhat modest beginning the system has been extended year by year. In 1903 the Buenos Aires & Rosario Railway was acquired, although the Government did not sanction the acquisition until 1908. This increased the mileage of the railway to 2,400 miles, and since that date another 900 miles has been added. At the outbreak of the war the company was carrying out an elaborate program of extensions. This expansion work has for the moment been curtailed but will doubtless be resumed when peace is established in Europe.

The principal freight traffic consists of cereals, but sugar, timber and firewood, live stock, wool, hides, hay, lime, and numerous other articles are also handled. The passenger traffic is very heavy, especially the suburban traffic. In view of this fact it was decided to electrify the lines adjacent to Buenos Aires for approximately 28 kilometers (17 miles). The system adopted provided for the multiple unit, third rail, and direct current, 800 volts. The company maintains its own power plant. Extensive workshops are maintained at Rosario and Perez, the latter only recently constructed. The Retiro Station at Buenos Aires has a frontage of 160 meters (525 feet) on the Avenida Maipu. The train shed contains 74,000 square meters (796,536 square feet), and 1,937 passenger trains are handled during one week at this terminal. The annual average number of passengers handled at the station exceeds 9,000,000.

There are a total of 409 stations on the railway and the equipment totals 679 locomotives, 787 passenger-train cars, 18,592 freight-train cars, and 836 service cars. Through express passenger service is maintained between Buenos Aires, Rosario, Tucuman, etc., and connections are afforded with the through Government line running to the Bolivian frontier at La Quiaca. The record year's passenger traffic was in 1913, when 21,721,273 passengers were carried-an average of 59,570 per day. About 9,000,000 tons of freight are handled, as well as about 2,000,000 head of cattle and other live stock. The growth of this great system during recent years is illustrated by the following table:

During the years 1911-12 to 1917-18 the gross receipts have been as follows:

The capitalization of the company consists of £28,196,950 consolidated ordinary stock, £811,800 deferred stock, £9,695,715 preference 41 per cent stock, £13,436,764 debenture stock (4 per cent), £113,564 Central debenture stock, £2,017,500 Western annuity, $15,000,000 6 per cent notes (sold in the United States), and £500,000 6 per cent five-year notes, due September, 1922. For several years prior to the outbreak of the war in Europe dividends of 6 per cent were paid on the consolidated ordinary stock. This has been subsequently reduced. The 6 per cent notes sold in the United States are dated February 1, 1917, and due February 1, 1927. They are payable in United States gold and are convertible into consolidated ordinary stock at par. The issue was offered by a syndicate of American bankers at par and interest. In July, 1918, they were quoted at 81.

The gauge of the railway is 5 feet 6 inches, the rails in the main track are of various weights up to 90 pounds, and the ties are of steel and hardwood.

Central Argentine consolidated ordinary stock, listed on the London Stock Exchange, sold as high as 120 in 1906 and above 110 on several occasions between 1910 and 1914. At the closing of the stock exchange July 27, 1914, the price was 92. In January, 1918, the price was 60. The deferred stock sold January, 1918, at 40-a price far below normal. The lack of a market outside of London has been a partial cause of the general decline in the company's securities. The 4 per cent debenture stock sold as high as 109 since 1911; the price January, 1918, was 70 (par £100).

BUENOS AIRES GREAT SOUTHERN RAILWAY.

Equal in importance to any of the railways of Argentina is the Buenos Aires Great Southern Railway (which, like most of the large systems, is British owned), operating approximately 3,792 miles of road, extending from Buenos Aires to the south and southwest through vast areas of rich country fully or partly developed. The railway was first opened for service late in 1865 between Buenos Aires and Chascomus, 114 kilometers (71 miles). At that period the railway owned 5 locomotives, 19 passenger cars, and 124 other cars, and the capitalization was £750,000. To-day the system has grown to a total mileage of 3,793, with 679 locomotives, 739 passenger cars, and more than 16,000 other cars (including baggage cars). The capitalization is £53,838,090.

Upward of 90 per cent of this company's mileage is in the Province of Buenos Aires, the richest Province in the Argentine Republic. The railway reaches such important cities or ports as La Plata, Bahia Blanca, Mar del Plata, Ingeniero White, etc. The freight station, Sola, is the largest in South America, with a capacity for the storage of 230,000 bags of grain and 2,000 tons of other freight. The port of Ingeniero White, near Bahia Blanca, is equipped by the railway with a number of up-to-date electrical elevators for grain. There are seven loading belts on each side of the various elevators, capable of loading 300 tons per belt per hour, or 4,200 tons per elevator. By this method about 6,000 tons of grain can be handled in eight hours. Extensive shops and foundries are owned by the railway, and the line is laid with heavy rail and equipped in a thoroughly modern manner.

63018-18- 4