The North-Eastern, which has 510 miles of railway, should be assured of a prosperous future, for Posadas, the northern headquarters, is now connected with Asuncion by the Paraguay Central Railway and will get much benefit from the development of that hitherto secluded country. It is still a pioneer line running through swamps and forests and country which is to a great extent unpopulated, and the goods which it carries consist chiefly of cattle and their products. The swampy nature of the country entails considerable expense in construction, but the Company pays a strict regard to economy, and the capitalisation per mile is only £8,680. Since June 30, 1907, the working expenses have been cut down from 65.10 to 57.17 per cent. Although the prospects of this line are fair they would undoubtedly be better if an amalgamation could be effected with the Entre Rios, for the district does not yet possess sufficient traffic for two competing lines. The scheme has long been under consideration, and as the policy of amalgamation has been carried on so extensively in recent years it may be that it will eventually be accomplished.
A small railway of 167 miles, under Argentine management, should here be mentioned. It runs westward from the capital to Rojas, and there is also a very important branch of 27 miles which runs to Zarate and connects with the Entre Rios system by a train ferry. In 1906 this Company took over the Tramway Rural à Vapor from Messrs. Lacroze Bros. The line has a gauge of 4 feet 8½ inches. The Company owns valuable property in Buenos Aires and has a terminal station at the suburb of Chacarita, and it serves a profitable district and is also a link with the Argentine Mesopotamia, but it has been obliged to make heavy outlays upon the permanent way. The line was originally a light railway and therefore in indifferent condition for heavy traffic. The ordinary share capital of the Company, which is exclusively held in Argentina, has been increased to over a million sterling. There were issued also in 1907 £600,000 4½ per cent. First Mortgage Debentures to extend the line from Salto to Rojas. This was subscribed in London. It is a good property.
[Illustration: RAILWAY CARRIAGE, BUENOS AIRES CENTRAL RAILWAY.]