On the Pacific slope the leading railway system is the Guatemala Central. It was built by C. P. Huntington and is one of the best railroads anywhere south of the Rio Grande. Though of narrow gauge the roadbed was laid for standard gauge, and this change can be made at any time. Unlike most foreign railways the Guatemala Central maintains the American system of checking baggage. Its main line and branches cover the coffee-raising districts of the Pacific coast section of Guatemala. The Occidental Railroad has about 50 miles of track and the Ocos line 20 miles. Both of these are on the Pacific slope.
Comprehensive Railway Policy.
It is worth knowing that while the interoceanic line approaches completion Guatemala is making decided progress in the links of the Pan-American or intercontinental north and south trunk line. From a junction with the Northern a branch will run south to Zacapa and ultimately will be extended into Salvador. Towards the north there is only a section of 30 miles to be completed in order to prolong the Guatemalan system to Ayutla on the border of Mexico and this will be done as soon as the extension of the Mexican lines to the boundary are completed. These extensions are to be finished within two years, so it may reasonably be said that by the end of 1907, if not sooner, a through railway journey will be possible from San Francisco, Chicago, or New York to the capital of Guatemala. The importance of this railway building was shown by Senator Stephen B. Elkins, the chairman of the Senate Committee on Interstate Commerce, in a speech made at the dinner given the Pan-American Railway Committee by the Hon. H. G. Davis. In his speech Senator Elkins said that the freight on coffee, which now approximates $20 per ton or $1,000 on a carload of 50 tons, would be cheapened till it came down to $250 per carload, or $5 per ton.
MONUMENT TO COLUMBUS.
The railroad laws of Guatemala are thus explained in my official report as Commissioner of the Pan-American Railway:
"The railways of Guatemala are regulated by the provisions of the Commercial Code and by the general railway law known as Decree No. 566, dated February 1, 1898. By the terms of this decree persons or companies seeking franchises are required to submit the plans to the Department of Fomento; when indorsed by that Department the sanction of the Council of State is sought, and finally the approval of the National Legislature. All contracts celebrated by the executive power have to be approved by the National Legislature. The contracts may be with designated individuals, with persons acting for others, or for companies that are to be formed.
"Concessions can be granted with subsidy or without it, guaranteeing or not the capital which may be invested, with an interest proportionate to the product. The Government shall include in the estimates the share of pecuniary responsibilities required for fulfilling the obligation contracted.
"The State may exempt the enterprise from the payment of every class of contributions, from the use of stamped paper and fiscal dues, for the time which it may consider just or opportune, but in every instance the exemptions shall be specified in the contract.