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THE DEVELOPMENT of the MEXICAN RAILWAY SYSTEM from IT5 EARLY BEGINNINGS DOWN to 1911 . ROBERT W I L L I a M HOWES B. A., Cantab

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THE DEVELOPMENT of the MEXICAN RAILWAY SYSTEM from IT5 EARLY BEGINNINGS DOWN to 1911 . ROBERT W I L L I a M HOWES B. A., Cantab THE DEVELOPMENT OF THE MEXICAN RAILWAY SYSTEM FROM IT5 EARLY BEGINNINGS DOWN TO 1911 "•' by . ROBERT WILLIAM HOWES B. A., Cantab., 1969 A THESIS. SUBMITTED IN PARTIAL FULFILMENT THE REQUIREMENTS FOR THE DEGREE OF MASTER DF'ARTS in the Department of Hispanic and Italian Studies We accept this thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA September,1970 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree tha permission for extensive copying of this thesis for scholarly purposes may be granted by the Head of my Department or by his representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Depa rtment The University of British Columbia Vancouver 8, Canada ii ABSTRACT The purpose of this work is to present a detailed and comprehensive study of the development of the major Mexican railways from their beginnings down to the year 1911. The choice of this subject was conditioned•by the awareness that no such work existed and the hope that such a work, besides its intrinsic interest, would prove a useful basis for a study of the wider implications of the development of railways on Mexico's economic and social life. Such a study is beyond my resources in time, material and experience, and so I have confined myself to describing the concessions, construction and operation of the railways themselves. There is no detailed general history of the Mexican railways available in English. Such works as exist deal with one specific aspect of the railways or give a very superficial outline of the overall development, or else approach the subject purely from the viewpoint of the foreign investor. The amount of material, both primary and secondary, available in Spanish is, of course, much larger, but the only historical work which is both detailed iii and comprehensive is the series of chapters on the rail• ways written by Sr. Francisco Calderon for Daniel Cosio Villegas's monumental "Historia moderna de Mexico". These chapters contain a wealth of information and I here acknowledge the great debt which I owe them in the pre• paration of this thesis. However, Sr. Calderdri deals with all the railways in chronological periods which makes it difficult to follow the development of individual undertakings. Therefore, I have attempted to discuss the railways as entities and, for the purposes of this thesis, I have selected the pio• neering F. C. Mexicano and the four major companies which were consolidated in 1908 to form the basis of the Ferro- carriles Nacionales de Mexico. These represent the main railways built prior to the Revolution. Thus, after a brief introduction to 19th-century Mexico, the first chapter describes the protracted building of the F. C. Mexicano line to Veracruz and its subsequent development. The second chapter relates the battle for the concessions and the construction and operation of the lines to the U. S. border, the F. C. Central, F. C. Nacion• al and F. C. Internacional, whilst the third chapter deals iv with the building of the F. C. Interaceanico line to Veracruz and some of the problems faced by the railways. The fourth chapter describes the formation of the Ferro- carriles Nacionales de Mexico and, finally, the conclusion summarizes and sums up the preceding chapters. There then follow a bibliography and an appendix containing tables and graphs relating to the railways under consideration. Where primary materials have not been available to me, I have relied heavily on Sr. Calderdn's work, as men• tioned above, cross-checking and supplementing it, where possible, from other sources. Every effort has been made to ensure the accuracy of the dates and figures given but the usual reservations regarding Latin American statistics must be made here also; many potentially useful statistics have had to be discarded because one source fails to cor• respond with another (and sometimes they conflict with themselves!) All the railways, being American or British-owned, had titles both in English and Spanish, but for the sake of consistency, only the Spanish names have been used in the text of this work. Similarly, all distances have been given in kilometres (1 km. - 0.62137 or approximately 5/8 V mile) but to avoid excessively complicated exchange cal• culations, bearing in mind the fluctuating exchange rates, I have left money sums in the currencies in which they have come to me. vi TABLE OF CONTENTS Introduction 1 I. Ferrocarril Mexicano: the Mexican Railway 10 (i) Ferrocarril Mexicano: The Building of the Line from Mexico City to Veracruz 13 (ii) Results of the operation of the Ferrocarril Mexicano 54 II. The Northern Trunk Lines -- F. C. Central, F. C. Nacional.and F. C. International BO (i) The Battle for the Concessions 87 (ii) Ferrocarril Central Mexicano: Mex• ican Central~Railway 96 (iii) Compania Constructora Nacional Mexicana: Mexican National Con• struction Company and Ferrocarril Nacional Mexicano: Mexican National Railway 116 (iv) Ferrocarril Internacional Mexicano: Mexican International Railroad 128 III. Competition and Cooperation -- F. C. Interoceariico 138 (i) Ferrocarril Interoceanico de Acapulco, . Morelos, Me'xico, Irolo y Veracruz: Acapulco, Morelos, Mexico City, Ir• olo and. Veracruz Interoceanic Rail- • way. „ .138 (ii) Competition and Cooperation: Problem's, Problems, Problems 152 IV. Consolidation -- Ferrocarriles Nacionales de Me'xico: the National Railways of ;.. Mexico 165 Limantour's Railway•Policy 169 vii Acquisition of Control of the F. C. Interoceanico (1903) 177 Acquisition of Control of the F. C. Nacional ' 179 The Financial Position of the Northern Lines 183 Negotiations with the F. C. Central 186 Formation of the Ferrocarriles Nacionales de Mexico 190 Capital of the Ferrocarriles Nacionales de Mexico 194 Conclusion 209 Conclusion 213 Bibliography 222 Appendix 225 Vlll LIST'OF TABLES I Passenger and freight traffic and receipts of the F. C. Mexicano 226 II Dividend record of the F. C. Mexicano, 1 873- 1910 227 III Passenger and freight traffic and receipts of the F. C. Central 229 IV Passenger . and freight traffic and receipts of the F. C. Nacional 230 V Passenger and freight traffic and receipts of the F. C. Internacional 231 VI Passenger and 'freight -traffic and receipts of the F. C. Interocea'nico 232 VII Dividend record of the F. C. Interocea'nico, 1892-1910 . 233 ix LIST OF GRAPHS 1. Passenger and freight traffic of the F. C. Mexicano 234 2. Passenger, freight and total receipts of the F. C. Mexicano 235 3. Passenger and freight traffic of the F. C. Central 236 4. Passenger, freight and total receipts of the F. C. Central 237 5. Passenger and freight traffic of the F. C. Nacional 238 6. Passenger, freight and total receipts of the F. C. Nacional 239 7.. Passenger and freight traffic of the F. C. Internacional 240 8. Passenger, freight and total receipts of the" F. C-. Internacional 241 9. Passenger and freight traffic of the F. C. Interocea'nico 242 10. Passenger,, freight and total receipts of the F. C.. Interoceanico 243 X LIST OF MAPS 1 . F. C. Mexicano 244 2. F. C. Interocea'nico 244 3. F. C. Central 245 4. F. C. Nacional 246 5. F. C. Internaciohal 247 xi ACKNOWLEDGMENTS I gratefully acknowledge the advice and assistance, in writing this thesis of Sr. Luis Madrazo of the Fer• rocarriles Nacionales de Mexico, Professor H. V. Livermore of the- University of British Columbia, Mr. Kenneth Jackson, also of the University of British Columbia, Miss Doreen Oke and Mrs. R. Clough. 1 INTRODUCTION Legend has it that when the Emperor Charles V asked Herndn Cortes about the general configuration of the Mexican landscape, the Conquistador replied by crumpling a piece of paper. The story sounds apocryphal but its grim appropriateness would be appreciated by all who have ever been concerned with the building and opera• tion of railways in Mexico. For Mexico is an extremely mountainous country in which communications have always presented great difficulties. A large proportion of the population lives on the central meseta which is cut off from the coastal lowlands by altitude and by the twin barriers of the Sierra Madre mountain ranges. In addition to the mountains, vast areas of desert or tropical rain• forest combine to produce a terrain nine-tenths of which are unsuitable for agriculture. In short, Mexico, unlike Argentina, is not a propitious land for the construction of railways. In the 19th century the situation of the country did not favour the operation of railways either. The harsh terrain, together with the maldistribution of land, pro• duced an agricultural economy which depended largely on 2 subsistence farming or a sluggish latifundism with little in the way of commercial or export agriculture to provide a potential traffic for the new method of transport. The mining industry, once the mainstay of the Mexican economy, was in decay owing to the damage caused by the War of Independence and the many later revolutions and to a chronic lack of capital. Mexican manufacturing industry was at a most rudimentary stage whilst transport costs and customs duties so inflated the cost of imported foreign goods that they were the exclusive property of the rich minority. The grinding poverty of the vast majority of the population served to keep all sectors of the economy at a low level. In consequence, the outlook for railways in Mexico could scarcely be described as promising. However, if the difficulties presented by nature and the state of the economy were discouraging, they paled into insignificance in comparison with the ob• stacles created by man.
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