ÎIAILWAY COMPANY OF SONORA.
M
CONTRACT
ENTERED INTO BETWEEN
The Executive of the ßepuhlic of Mexico
AND
DAYID BOYLE BLAIR,
DECEMBER 11, 1874.
New-York ;
NATHAN LANE, PRINTER, 69 WALL AND 91 BEAVER STS.
1875.
Ministerio-vä Foioento, Colonización» Indnstria
y Comercio. . / ,
c/(. (iC /¿rí ypj ¿Ú ^ - ^ /"'//
Sección 2* ,
£1 ciudadano presidente se ha servido dirigirm* el
decreto que sigue:
'■^PORFIRIO DIAZy j)residente constitucional de 'os
Estados- Unidos Mexicanos, á sus habitantes, sabd:
"Que en uso de la facultad concedida al ejecutivo m
el párrafo 2?, fracción 3" art. 33 de la ley de 17 de li¬
nio de 1875, he tenido á bien deci^tar lo siguiente:
"Artículo único. Se traspasa á los Sres. Sebastian
Camacho, en representación de D. Roberto R. Simony
á D. David Fergusson, la concesión otorgada en 17 ce
Junio de 1875 para construir un ferrocarril y su cor¬
respondiente telégrafo en el Estado de Sonora, cuja
concesión fué declarada caduca en 12 del actual.
"Por tanto, mando se imprima, publique, circule y
se le dé el debido cumplimiento.
"Dado en el Palacio Nacional de México, á 19 de
Junio de 1877.—Porfirio Diaz.—Al C. Vicente Riva
Palacio, ministro de fomento, colonización, industria y
comercio."
Y lo comunico á vd. para los fínes consiguientes.
Libertad en la Constitución. México, Junio 19 de
1877«*—"ÄftTÄ Pß^ÄCio,—""O. «. • • ■
dicho invento, en los términos de la citai ,)sicion,
con fundamento do la cual y del 'art, 32 -iff la Consti¬
tución de la República," A vd. suplico se sirva acordar
el privilegio de ley por el mayor término de ella, en
lo que recibiré gracia y justicia.
Libertad en la Constitución. México, Junio 19 de
Ï877.—Juan Forestic (padre).—^üna rúbrica.
Es copia. México, Junio 23 de 1877.—G. Mancera,
ofcial mayor. «
j^cretaria de Estado y del despacho do Guerra
I y Marina.
Seooion de marina* . ,
!
CAPITANIA DEL PUERTO DE VERACRUZ.
Ál C. Ministro de guerra y marina da parte el capi-
ID de Puerto, del movimiento marítimo habido el día
i la fecha, en la forma siguiente;
ENTRADA.
Pailebot nacional "Carmela," capitán, P. G-. Maury,
Campeche con 3 dias de navegación; efectos del
is, consignado á C. A. Mastinez y compañía; tripula-
(
To the Citizen Président of the Kepublic :
• I, David Botde Blair, British subject, respectfully present
myself before you, showing that the Legislature of the State of
Sonora sanctioned, on the 2d of July, 1872, in favor of Mr.
James Eldredge, a concession, for constructing and working a
railway from Guaymas to the frontier on the north of the
Bepublic, in the territory of Arizona, suhventioning this con¬
cern with a portion of waste lands, and granting it other
advantages mentioned in the same decree. This concession
has been acquired by several persons whom I represent.
Moreover, understanding that granted, as it has been by the
legislative power of a State, it could not he binding on the
Federal Powers until they shall have invested it duly with
their sanction, I have recourse to your high authority, Mr.
President, that yDu may condescend benevolently to receive
the project of concession which I subjoin to this petition, and
that under the shape of a contract entered into by the Execu¬
tive Power and myself, you may bring it before the Congress
of the Union for its approval.
Almost all the clauses are taken from the one just agreed
upon for the construction of the railway from Mexico to Leon,
it having been my desire, in making it so, to follow the prac¬
tice established by the Executive and legislative powers of
the federation in these matters. As a subvention for the
railway, I have Adopted the same quantity of waste lands
which the Legislature of Sonora fixed in its decree of 2d of
July, 1872.
It is superfiuous to explain the advantages which the State
of Sonora will derive from the realization of this work, as none
of them will have escaped the acute penetration and intelli¬
gence of the First Magistrate of the Bepublic. And I con-
6
elude begging you would graciously accept the project which
I respectfully present to you, that as a contract between the
Executive Power and myself, it may be submitted to.the
necessary approval of the general Congress.
Mexico, December 11, 1874.
Signed, David Boyle Blaik.
Mexican Kepdblic, Department op Public Works, )
Colonization, Industry, and Commerce, Mexico. (
The third section remits the contract agreed upon be¬
tween the Minister of Public Works, as representative of the
Executive of the Union, and David Boyle Blair, Esq., for the
construction and working of a railway from Guaymas to the
frontier of the north.
During the actual period of the sessions of the Congress,
there have been presented to the government three different
projects for the construction of a railway in the State of
Sonora ; two of them could not be accepted, because they re¬
quired that the amount of the subvention they asked for
sliould be paid by a part of dues on importation of goods
through the maritime custom-houses, and it is not prudent to
burden these any further, as they are already appointed to
cover other subventions. For this reason, the preference was
given to the proposals made by David Boyle Blair, Esq., who
asks for a subvention in waste lands.
Before coming to a determination on this affair, the govern¬
ment has given it mature consideration ; it has thus become
convinced, that, whereas the State of Sonora has every right
to aspire to its own advancement and development, it is not
expedient to deprive it of that which can most efficiently
bring about this object, namely, the construction of railways in
its territories.
To wish the State of Sonora to wait for the enjoyment of
the advantages arising therefrom, tilbthe railways which start
from the centre of the Eepublic reach that distant frontier,
would be to deprive it indefinitely of the advancement to
which it must aspire in order to develop profitably its rich
resources. With these considerations in view, the Executive
7
has stipulated with David Boyle Blair, Esq., that the railway
shall start from the port of Guayraas, shall pass through
Hermosillo, and shall terminate at some convenient point of
the frontier, which is the boundary of the territory of Arizona.
The company is likewise authorized to construct branch lines
which shall connect the main line with TJres and the River
Taqui.
The construction of the line shall commence a year after
the date of the concession, and shall he concluded within five
years and a half.
It has been agreed to grant five thousand six hundred and
thirty-two and a half hectares of waste lands for each kilo¬
metre of railroad constructed ; that is, the same superficial
extent agreed upon for the same purpose by the Legislature of
Sonora, in its decree of July 2d, 1872.
The survey and fixing the boundaries of the waste lands
shall be at the expense of the company, and within the period
of nine years, and it has been stipulated that it only has a
right to receive one half of all the waste lands that exist in the
State of Sonora, the other half remaining at the disposal of
the general government.
As the projected railway for Sonora bears the character of
an international line, those conditions have been imposed on
the company, that have been exacted in similar cases in the
concessions decreed by the Congress.
In order to insure the fulfillment of the obligations con- '
tracted by the undertaking, the promoters shall give a
security -to the extent of fifty thousand dollars, within four
months, which shall be reckoned from the date of this con¬
cession.
I have the honor to inform you of this, by agreement with
the President of the Republic, inclosing the said contract,
that you may be so good as to submit it to the knowledge of
the Congress.
Independence and Liberty. Mexico, 14th December, 1874.
Signed, Blas Balcaecel.
To the Citizen Deputies, Secretaries of ike Congress of the
• Union.
Mexican Kepublic, Department op Public Works, j
Colonization, and Commerce, Mexico. s
Contract between the Minister of Public) Works as repre¬
senting the Executive of the Union, and David Boyle
Blair, Esq., for the Construction and Working of a
Kailway from Guaymas to the Frontier of the North.
CHAPTER I.
construction of the railroad.
Article 1. David Boyle-Blair, Esq., of Irvine Ayrshire, in
Scotland, and the limited company he shall organize in Europe
or in the United States, are autliorized to construct and work
a line of railway and its respective telegraph from the port of
Guaymas to the north frontier of the State of Sonora, border-
ing upon the United States at the territory of Arizona.
The said line shall follow the direction which, according to
the surveys of the company, approved by the Department of
Public Works, may appear to be the most desirable to place
the port of Guaymas in commtmication with the city of Hermo-
sillo, and continuing toward the north, it will reach thepoint^of
the frontier already mentioned ; the company having power,
if it should suit it, to connect the main line by i^ans of re¬
spective branch lines with the city of Ures and tfee-WA^p-^aiqai,
and being allowed also,^ to unite it with some railway of the
United States, -
Art. 2. The said company is hereby authorized to(^immedi-
ately commence the necessary surveys, which shall be atjits own
expense, in order to determine the locationmf the lines of rail¬
road designated in the present law.
Before commencing the work of construction on thq, differ¬
ent sections of the line, there shall be remitted to the Depart-
9
ment of Public Works, for its approval, a copy of the maps
of survey and of the plans of the location of the road.
The surveys of the whole line shall be" made in sections of
one hundred kilometres each, and that of the first hundred
kilometres shall .be concluded, and the respective plans sub¬
mitted to the Department of Public Works,* for its approval,
within twelve months, and that of the followinglwithin e^^-
teöi months, reckoned from the date of this law.
Art. 3. When the plans shall ¡have been presented to the
Department of Public Works, it shall decide respecting them
within one month for those corresponding to the first section,
and within two months for those corresponding to the other
sections.
An engineer appointed by the Executive, and paid by the
company, may accompany each of the principal surveying,
parties of said company, notice being given by the latter to
the Government two months before the time of commencing
the survey of the first section,^and] forty days before those of
the others ; but the said surveys shall not be delayed nor con¬
sidered incomplete by reason of the absence of the engineers
to be appointed by the Executive.
Art. 4. The work of construction of the railway shall com¬
mence within test months, reckoned from the date of the ap¬
proval of the plans of the first section of one hundred kilo¬
metres mentioned in the previous article, by the Department
of Public Works, and within eighteen months of the same
date there must be concluded at least fifty kilometres, starting
from the city of Guaymas, and in each of the following years
there shall be constructed at least a hundred kilometres, or in
every two years two hundred kilometres till the completion of
the main line of railway to which this law refers.
Art. 5. The main line of said railway^ to which this law re¬
fers must be concluded within the period of five years and a
half, reckoned from the date of this law.
Art. 6. In case the company should complete the said^rail-
road in a period of one year less than^the stipulated term of
10
live and a half years, the Government will pay to the com¬
pany, in the character of donation and as a premium, the sum
of forty thousand dollars; if th^road be completed in two
years less than the stipulated time, the premium shall he
eighty thousand dollars for each of the two years mentioned.
Art. 6œ. The railway of the said company shall be of single
or double track, of 145 metres in width (four feet eight and
one half English inches) ; it shall be of a solid construction,
and shall be provided with a sufficient quantity of rolling
stock for the prompt and effective working of the road.
Warehouses and stations shall be established at all the places
that may be required by the public interest and the business of
the company, in the judgment of its engineers.
CHAPTER II.
bases of the company.
Akt. 7. The possession and exercise of all the rights and
concessions which are conferred by the present law, as also
the compliance with all the obligations imposed by it, will
pertain to the Sonora Railway Company, limited.
Art. 8. The aforesaid company shall be considered as
Mexican in all that relates to the present concession ; and all
persons who may take part in the same, whether as share¬
holders, employés, or in whatever other character, shall be
considered as Mexicans in all that relates to the said énter-
prise within the territory of the Republic ; they can not allege
rights as foreigners with respect to interest or affairs relating
to the enterprise, nor can they have,^even when alleging de¬
nial of justice,! other rights nor other means of making them
valid in whatever may concern the said enterprise, than those
which the laws of the Republic concede to Mexicans, nor can /
they employ other proceedings than those established before i
the Mexican tribunals.
Art. 9. The statutes of the said company and the bases of
11
its organization shall be submitted to the Department of Public
Works for its approbation, within the term of sine months
from the date'of this law.
Art. 10. The company shall have its principal residence in
the city of Guaymas, without detriment to those it may have
in other places abroad where it may hold interest, and it shall
appoint in this capital a representative fully authorized and
empowered to treat with the federal government and other
autliorities of the Republic, witli» reference to all aifairs rela¬
tive to the obligations which are imposed upon it by this law,
and whatever in the future may be executed or agreed upon
with relation to the same.
Art. 11. Whenever any doubt or question shall arise with
respect to the interpretation of or compliance with the stipu¬
lations of the present contract, it shall be decided by the'
competent tribunals of the Republic, and in conformity with
■the^laws of the same.
Art. 12. The ^ial capital of the company shall be fixed
by the company by agreement with the Executive, after the
plans and sections have been made, and the respective
estimates have been formed in view of them, and on no ac¬
count shall it be increased without the authorization of the
Executive. The capital shall be divided into shares of a
hundred dollars each, which shall be considered as personal
proiperty, which may be transferred and disposed of freely in
accordance with the laws and with the rights and immunities
granted in this concession.
Art. 13. The railway and branch lines to which this Irw
refers, and the lands and other property legally acquired by.;
the company by virtue of cessiou or purchase, the edifices,
warehouses, stations, machinery, utensils, materials, and all
other objects which constitute the railroad and telegraph line,
as also its branches and appurtenances, shall be considered as
the property of the company, with the right of making use
of the same upon the same terms and under the same condi¬
tions as whatever other property, but subject to the provisions
12
of the laws actually in force, or that in the future *inay be
decreed with regard to railroads ; without it being understood
by this that the conditions of this contract can be altered.
Even in the case that, from the causes which hereinafter are
specified, the present concession should become void, the
company shall enjoy the full control, possession, and use of
all the property, and of the portions of railroad and telegraph
line that it may have constructed, and will preserve unaltera¬
ble its right to the payment by the government, in the form
prescribed in Arts. 18 and 19, of the subvention that may he
due to it for the kilometres that may have been constructed,
there remaining in force, with regard to the portion or portions
of railroad and telegraph line that the company may have,
the obligations which with reference to all of the line are
established by this law.
Art. 14. The company shall have the right to connect the
railway it is about to construct with any other railway that
may exist in the Republic ; it shall likewise be empowered to
work and keep its railway in connection or conjunction with
any other railway enterprise by agreement with it, and under
the conditions it may deem most convenient.
CHAPTER III.
concessions and prohibitions.
Art. 15. The Sonora Railway Company, limited, and any
other which may succeed it in future, either on the whole line
or section thereof, shall at no time be able to alienate or
hypothecate the concessions of the present law, the railroad,
the telegraph, and the property annexed thereto, nor the
shares it may emit, to any foreign government or State, nor
admit the same in any case as partner in the enterprise ; and
any stipulation made in violation of this precept shall be null
and of no effect. '
Art. 16. Neither can the said company transfer or alienate
the concessions of this law either on the whole line or sections
13
thereof to any company or private individual without the
previous permission of the federal executive, and any transfer
or alienation 'made without this requisite shall be also null
apd without effect.
Aet. 17. The company nevertheless is hereby authorized
freely to emit shares, bonds, and obligations, and to dispose of
the same, as also to hypothecate the railroad and its appurte¬
nances, with the right of operating the same, and the tele¬
graph line, in whole or in part, as the construction of the
same may progress, to secure the payment of said bonds and
obligations and interest thereupon, with the condition that the
mortgage shall be made in favor of individuals or of private
associations.
The mortgages that may be made by said company shall be
registered in the office of public records of the city of Guay-
mas, and this registry shall be held as sufficient proof of their
validity and legal execution in all that relates to all of the
lines of the railroad of the company and its branches, and lo¬
cal registry in the States of places where it may pass shall
not be necessary.
Aet. 18. To assist the construction of the railwa;g branch
lines and telegraph, the Federal Government pledges itself to
give the Sonora Railway Company, limited, five thousand six
hundred and thirty-three hectares of waste lands for each kilo¬
metre of railway that shall be constructed ; but this subven¬
tion shall not exceed the half of all the waste lands that
exist in the State.
The détermination of the position of each section of five
thousand six hundred and thirty-three hectares shall take place
according as the demarcation of the waste lands shall be
concluded ; in such a manner that the sections which belong to
the concern shall always alternate witli others of equal di¬
mensions, which shall remain under the control of the Repub¬
lic. The survey of the said waste lands shall be commenced
at once by^the^OTgineers appointed by the company, accom¬
panied by ajo.iitfpwéer appointed by the Department of Pub¬
lic Works. These surveys may be made during the construe-
14
tion of tlie railway and its aforementioned branches, and for
three years and a half after these have been completed.
The company shall have no right to claim the lands which
shall not have been so surveyed and marked out within the
above-named periods, under the rights of subvention, accord¬
ing to this law, unless that, by reason of some litigation which
might arise on account of the demarcation or survey of the
waste lands, or from some fortuitous circumstances, or
fuerza mayor, impeding the operations referred to, these
can not be concluded within the time mentioned ; in which
case, the subventioned company shall maintain its right to re¬
ceive the amount of waste lands referrái to in tliis law, even
although they be surveyed and marked out after the periods
of time mentioned in this articled
According as portions of the railway of five kilometres each
are constructed, there shall be handed over to the company
the sections of waste lands due according to this article, with¬
out being obliged to pay conveyancing fees or any other tax
for this acquisition ; and it shall reserve them as perpetual
property and possession, so as to be able to dispose of the said
lands as of any other private property, and with the securi¬
ties which the laws grant to all owners of property; the
company being bound by no other restriction but that of not
being able to sell those lands, or any part of them, to any
foreigner, which lie within a distance of twentyfleagues from
the frontier of the Republic bordering on the United States
of the north ; and that the other portions of the waste lands
granted to the company in all the State of Sonora can not be
sold to native or naturalized citizens of the bordering nation
on the north of this Republic, except with the previous authori¬
zation of the Federal Government; these restrictions being
based on the 2d Article of the Law of the 1st of February,
1856, and the 2d Article of that of 20th of July, 1863.
Those lands shall be eonsidered as waste lands, for the
purposes of this law, which do not belong to the inhabited
districts of the State of Sonora as lawful common lands, or
which are not private property, acquired in accordance-with
existing laws, and the survey of them must be made in such a
manner as to respect the rights of towns and individuals
15'
granted by law. The Federal Government binds itself from
now to suspend and not to make the sale of any waste lands
in the State of Sonora until it shall have handed over to the
subventioned company all the lands to which it may be en¬
titled by virtue of this contract.
Aet. 19. When the survey and plans of the lands which
the company shall select are made, the sections for the
Government which shall correspond with those selected shall
be numbered, which operation shall be proceeded with by the
company with the approval of the Government ; and the sec¬
tions assigned to the Government, and which shall remain
under the full control of the Republic, must alternate with
those belonging to the company.
Akt. 20. For the construction and operation of the lines of
railroad andi^telegraph authorized by this law, there is hereby
conceded to the company the right of way for the width of
seventy metres (229 feet) in all the extent of the line.
The lands belonging to the Government, which may be
occupied. by the line for the width established, and which
may be necessary for stations, warehouses, and other edifices,
water-tanks and other indispensable accessories of the road
and its appurtenances, shall be delivered to the company with¬
out any compensation and in perpetual property.
In the same manner, the company can take from the public
lands materials of all kinds that may be necessary for the
construction, operation, and repair of the road and its appur¬
tenances.
The company can take, in conformity with the laws of ex¬
propriation for purposes of public utility, the lands and ma¬
terials for construction belonging to private individuals, and
thosej that may not be national property, necessary for the
establishment and repair of the railroad and its appurte¬
nances, stations, and other accessoriès ; and until these laws
shall be issued by the Congress of the Union, the company
shall be subject to the following provisions :
I. In case of disagreement between the company and the
owner of the lands and of materials for construction which
16
are 'private property, the Department of Public "Works is
hereby authorized to decree, at the petition of the company,
the expropriation of the private property the occupation of
which shall be necessary.
Such property shall be taken upon previous indemnification
being made, which shall be determined by two experts, ap¬
pointed one by each party, who, before commencing to act,
shall select a third to decide in case of disagreement. If the
experts should not agree in the selection of a third, the latter
shall be appointed by the Department of Public Works.
II. If the occupant or owner of the property shall be un¬
known or doubtful, whether by reason of litigation or other
motive, or shall refuse to appoint an appraiser, either under
judicial process, or apart from the same, the Executive shall
authorize the occupation of the said property upon the pre¬
vious deposit by the company of the sum which in each case
shall be determined by an expert appointed by the Executive ;
subject to the condition of making good, when the occupant
or owner shall be decided, such further value as in the ap¬
praisement by experts may be ordered in conformity with the
preceding rule, or of withdrawing the excess of the deposit if
the award shall be for a less sum.
III. The experts, in making their appraisal, shall take into
consideration the amount of taxes paid by the property, the
expropriatiqn of which is treated of, and the injuries or bene¬
fits which may result therefrom to the proprietor.
Art. 21. All mines of metals, as also those of coal and
salt, marble, and other workable mineral deposits, which may
be encountered in the works and excavations which may be
made on the line of the road and its branches, shall be the
property of the company, without prejudice to third parties,
with the condition that the same shall be denounced and
worked subject in all respects to'the mining ordinances.
Art. 22. Materials for construction, whether of native or
foreign production or derivation, effects, and whatever may be
necessary for the construction and use of the lines of railroad
and telegraph authorized by this law ; as also the rails, sleep-
17
ers, spikes, locomotives, carriages, trains, and their accessories ;
tools and instruments of labor; machinery for the work¬
shops ; iron, bridges, houses for stations, offices and ware¬
houses, coal, working animals, their harness and gearing ;
carts and wagons, telegraphic wire and apparatus, and all
other materials necessary for the construction, operation, and
repair of the railroad and telegraph line, shall be free for the
term of Mtpen years, counted from the date of this law, from
all import or Custom-house duties whatever, previous notice
being given to the Department of Public Works, and from
excise duties," contributions, road taxes, or imposts decreed up
to the present time, or that may hereafter be decreed, by
whatever authority of the Kepublic, and whatever may be
the class, denomination,''or'object of the said imposts.
In the use of these exemptions there shall be observed the
regulations that may be issued by the Departments of Treasury
and of Public Works.
The road itself, and its natural and indispensable appurte¬
nances, as also the capital employed in its construction and
operation, and the shares of the company, shall be exempt
during the term of fifty years, counted from the date of this
law, from the payment of all contributions or imposts now
established, or that may be established in the future, as well
as from the payment for sealed paper and stamps, in all the
operations which should give rise to them for the company.
Art. 23. Upon the definitive location by the company,
with the approval of the Department of Public Works, of
the direction of the line, the pointy on the frontier of the
north at which the railway is to terminate, the company is
hereby authorized to make, at the point of termination, the
improvements which may be necessary for the security and
facility of the traffic ; and it has power to establish ware¬
houses and stations, as well as a mole and dock, at the port of
Guaymas, the plans of which it shall present to the Depart¬
ment of Public Works for its approval, exacting a moderate
remuneration for the use of it, which remuneration shall be
determined with the approval of the Department of Public
Works. The company shall have powers to acquire and
18
possess the necessary land at each of the extremities of the
line,^for the purpose of establishing warehouses, depots, work¬
shops', and other works necessary to facilitate the construction
and operation of the railroad at ,this point of the north fron¬
tier ; and it shall be made suitable for national and foreign
commerce, in the event of its not being already so beforehand.
Aet. 24. The directors, engineers, employes, and the sub¬
ordinates of the offices and stations of the railroad, as also the
laborers that rnay be employed upon it, shall he exempt from
all kinds of military service, and from judicial services,
during the time they may be employed upon the road, except
in case of foreign war.
The company shall have the right to organize the interior
service of its lines and its guard, which latter shall enjoy the
same consideration as the guards of the national revenue.
The company shall immediately discharge from its service
any of its employes who may enter into or protect contraband
traffic, or commit any crime, and shall aid the authorities in
their apprehension.
It is also obliged to comply on its part with the regulations
that may be issued by the Department of Treasury for the
prevention of contraband traffic and for the observance of the
fiscal laws.
Art. 25. The Federal Government and the Government
of the State of Sonora shall extend to the company all the
aid and protection that may depend upon their authority,
without prejudice to third parties, and the same shall be ex¬
tended by the local authorities, without the necessity of supe¬
rior order or requisition.
Art. 26. All persons stealing rails, or damaging or inter¬
fering with the road in any manner, may be arrested by the
company's guard and delivered to the competent judge, in
order that they may he punished, according to the gravity of
their offense.
Art. 27. The company shall be responsible for the pay¬
ment of the wages of the laborers, the cost of materials, and
19
all the expenses incurred in the construction of the road, even
when the work may be executed by contractors or sub-con¬
tractors, for the said work is executed by the latter in behalf
of the company.
Akt. 28. The ships which, during the construction of the
line, and for five years after, shall arrive at Gnaymas, bring¬
ing coal, rails, materials for construction, and other effects, for
purposes of constructing, working, and repairing the railway
and telegraph, shall be free, for the period mentioned, from
paying tonnage, light-house anchorage, and other port dues,
and they shall only pay pilotage when they shall ask for it.
If they bring other merchandise, they shall not enjoy these
exemptions, in the part corresponding with the goods which
are not of the class and for the purposes above indicated.
Akt. 29. The obligations contracted by the company,
with regard to the periods of time stipulated in this law, shall
be suspended in all fortuitous cases or of fuerza mayor, which
may impende the fulfillment of the sai8 obligations ; such sus¬
pension shall continue only for the time of the continuance of
the impediment, it being the obligation of the Company to
present to the Executive, within the term of four months after
the commencement of the impediment, information and proof
that such fortuitous case or of fuerza mayor, of the character
mentioned, has occurred.
From the sole fact of not presenting the information and
proof within the time stipulated, the company shall he
debarred from at any time thereafter alleging the occurrence
of such fortuitous case or of fuerza mayor.
The company shall also present to the Executive informa¬
tion and proof that the work has been resumed immediately
that the impediment has ceased, or at least within two months
thereafter ; which said information and proof shall be pre¬
sented within four months following the two referred to.
There shall be allowed to the company only the time that
the impediment may have continued, or, at the most, two
months more.
There shall be allowed to the company the time that the
20
Executive may employ in the examination and approval of
the plans referred to in Article 2 of this law, if this timeshall
be more than the one month or two months specified in said
article.
Art. 30. The Mexican Government shall not exact any
fee for the simple transit of passengers, correspondence, and
merchandise from one extremity of the line to the other, from
Guaymas to the northern frontier, and vice versa, for the
period of fifty years, reckoned from the date of the comple-
fion of this line ; and all goods and merchandise destined only
to traverse the road, and not for consumption in the country,
shall be free from all custoni-house and port dues, as well as
from contributions and taxes of all sorts, during the period
mentioned.
The Treasury Department shall arrange the formalities to
be observed in loading and unloading goods and merchandise
at either extremity of the line, and during its conveyance by
the railway, in order to prevent any fraud or abuse which
might be committed during its transit through Mexican terri¬
tory. But these formâlities or precautions shall be such as
shall not tend to delay or hinder the punctual and rapid dis¬
patch of the trains, and conveyance of goods, luggage, and
passengers.
Besides the price, according to its rates, the company shall
exact an increase of fifty cents for each passenger, and for
each ton of merchandise, of simple through passage across the
country, and the company shall collect this increase on the
Government's account, at no expense to said Government,
the liquidation of this account, and payment of what may
be due to the Government, being made every six months.
Art. 31. Besides the other obligations expressed in this
law, the company shall be bound by the following :
I. It shall not transport any foreign armed force, without the
express permission of the Federal Government.
II. It shall not transport effects belonging to .a belligerent
power, or declared contraband of war by the laws of the Mex¬
ican Kepublic, without the express authorization of the Fe¬
deral Government,
21
III. Within fonr months fi-ora the date of this law, the com-
pany shall give a bond, satisfactory to the Executive, to the
amount of fifty thousand dollars, this requisite being indispen¬
sable for the existence and validity of the concessions made in
this law ; and the said sum shall be forfeited by the company
in case of its not constructing the main line from Guaymasto^
the frontier of the north, in the periods expressed in Articles
4: and 5 of this law.
Aet. 32. The concessions granted by this lay^ shall be for¬
feited from any of the following causes :
I. From failure to comply with the obligations specified in
the clauses of the preceding article.
II. For not constructing the first 50 kilometres, the sec¬
tions of 200 kilometres, and not completing all of the road
within the time stipulated in Arts. 4 and 5.
III. For alienating or transferring this concession, or the
rights derived from it, to any foreign government or state, or
by admitting the same as partner in the enterprise.
In whichever of the cases so specified, the company shall
forfeit the concessions granted by this law, of which the Go¬
vernment can then dispose at its pleasure ; but the said com¬
pany shall retain the ownership of the edifices which it may
have constructed, of the part of the railroad and telegraph
which it may have completed^^and of the materials, machin¬
ery, and other objects employed in its operation,(and of the
(waste lands due to it^ for the kilometres of road it may have
constructed.
Aet. 38. The company shall present to the Department of
Public Works an annual report, which shall be made under
affirmation that it is true, and shall show the financial situa¬
tion of the company ; the amount of money received and ex¬
pended ; the amount and character of its debts, and the vari¬
ous kinds of the same, as also what may be due to the com¬
pany ; the total amount of shares issued ; the names and resi¬
dences of the directors and chief employés of the company ;
the number of kilometres of road constructed and in operation
each year ; a description of the sections of the road surveyed
22
and in process of construction ; the-amount received from pas¬
sengers and for freight respectively ; the expenses of the road
in operation and its accessories ; tlie number of passengers
carried and the amount of freight transported, specifying the
classes of the same.
CHAPTER IV.
rates.
Aet. 34. The sections of railroad, as the same .may be com¬
pleted by the company, shall be immediately examined by an
engineer appointed by the Executive, and the latter, upon
hearing the report of the engineer, will authorize or not the
opening of the section for business.
In case of not authorizing the opening, the Executive shall
publish the report of the engineer who may have intervened,
and the causes of the dissent.
Immediately upon placing in public use the sections of the
road, the company shall fix the tariff of prices that are to be
charged for the transportation of passengers, merchandise, and
other freight, which shall not exceed the following rates :
For the freight of each ton of twenty quintals, of 45.38 kilo¬
grams each, of merchandise :
First class, 10 cents per kilometre.
Second " 7 " " "
Third " 5 " " " '
For the transportation of passengers : -
First class, 7 cents per kilometre. -
Second" 4 " " « •
The company' shall not be obliged to receive less than
twenty-five cents for any quantity of freight, nor less than ten
cents for passage for any distance.
Aet. 35. The company shall have the right to establish its
tariff of freight and passage, with reference to the dilficulties
23
and expenses of operating the diiferent portions of the line,
without the necessity of observing a proportion to the number
of kilometres of the entire line, with the condition that the
freight and passage shall not exceed in any kilometre the max¬
imum prescribed in this article
Aet. 36. Special tariifs~may he established, which shall be
submitted to the approbation of the Executive, for such ob-
•jects or effects as can not properly be subjected to Weight or
measure, and shall have to pay a higher rate of freight than
that fixed in Art. 34.
Aet. 37. In case of modification by the company of its ta¬
riff containing rates less than the maxin>um prescribed in this
contract, or less than the maximum that may be established
after a year, in conformity with Art. 38, the said alteration
shall not commence to take effect in case of raising the rates
of freight on merchandise within the maximum, until after
four months' notice to the public, nor within two months, in
case of lowering the rates.
Aet. 38. One year after the completion of all of the line'
and its having been placed in operation, the company, in ac¬
cord with the Executive, shall modify the tariff of freight and
passage ; but without preventing that the dividends to the
shareholders shall be at least ten per cent per annum. ^
The distribution of effects in the three classes of the freight
tariff shall be made in accord with the Government every two
years, counted from the completion of the road, should not
the law prescribe for this purpose in the future longer periods.
From the commencement of the operation of the road to
Hermisello, and successively that qf the subsequent sections,
cereals of national production shall be included always in the
third class.
^ Kails and materials destined for the construction and ope- '
'ration of railroads in the country shall also always be included
■in the third class.
Aet. 39. The government shall have the privilege, in the
transportation of troops, trains, munitions, equipage, provisions
24
horses, mules, and whatever other object or eifeet destined
to the military service that may be proceeding from one point
to another on the lines of the company, as also in the passage
of officers of the army and Fed^l employes traveling on
public service, a reduction of per cent upon the
prices charged according to the general tariff; but to avoid
abuses, which in this respect might be committed, it is hereby
stipulate^ that in each instance of the dispatch of troops or the
transportation of trains, munitions or effects, and of passage,
there shall be given by the government, or by the superior
functionaries authorized for this purpose by the government,
a special order for the directors of the line.
Akt. 40. For the term of fifteen years, counted from the
publication of this law, the company will perform gratis on
its lines of railroad, as the same may be placed in operation,
the transportation of correspondence, printed matter, and em¬
ployes dispatched by the Post-office department in the service
of the same ; but this service shall be in such manner that
there shall not be caused on that account any variation in the
regulations and orders of the company with regard to hours
of departure and stoppages at the points which it may think
proper to determine.
After the said fifteen years, the mail service upon the lines of
the company will be a matter of contract.
provisional Article.
This contract shall f)e submitted to the Congress of the Union,
and if it shall not meet with its approval, it shall be of no
avail and shall have no value. The Executive shall, however,
from this date, suspend the sale of waste lands in the State of
Sonora, except of those which may already have been lawfully
denounced by individuals, until Congress shall decide on the
above contract what it may consider right.
Mexico, eleventh December, one thousand eight hundred and
,seventy-four.
[Signed.] Blas Balcaecel.
David Boyle Blair.