The natural facilities that the Uruguayan country offers for railways differ considerably from those of the Argentine. In the central provinces of the latter many hundreds of miles may be travelled without any gradient whatever becoming apparent. The absence of streams here, moreover, obviates almost entirely the necessity for bridge building. It has already been explained that the characteristics of the Uruguayan Campo are entirely different. Although it possesses few hills of any really imposing height, its stretches of dead level ground are equally rare. Thus, although the gradients may be gentle and sufficiently easy, they are almost continuous. In some places, moreover, the rise and fall of the line is necessarily accentuated, and even abrupt—at all events, compared with the neighbouring areas.
Although, however, Uruguay may not be quite so favourably situated for railway purposes as regards its levels, it possesses one very important advantage over Argentina. In the central and richest provinces of the latter one of the most serious drawbacks lies in the total absence of any local material with which to ballast the track. For hundreds of miles on all sides no stone—not even the merest pebble—is to be met with, since the land consists of nothing beyond the rich, alluvial soil. Thus, if stone be required for the perfection of the tracks, it is necessary to import it from afar, and the haulage of the material inevitably forms a weighty item in the cost and upkeep of the line. In this respect Uruguay is far more favourably provided for. Stone abounds, not only in certain districts but throughout the country—although, of course, there are many centres where the quality of the material is far superior to that of others. Thus the question of ballast and embankments is solved in a very simple fashion here, and in a land of numerous rivers and streams the construction of stone bridges is made possible.
As regards the present position of Uruguayan railways, it is impossible to over-estimate the importance of the new ramifications that are now spreading through the country. Uruguay contains no mysterious hinterland, it is true. But, although every corner of the Republic is known, the resources of many of its regions have of necessity remained quite untapped for want of the railway communication that was essential for the transport of the produce in whatever shape or form it might emerge from the soil.
I am indebted to Mr. V. Hinde, the secretary of the Midland Uruguay Railway, for the following information concerning the railways of the country:
The construction of railways in Uruguay may be said to have commenced in the year 1866, when a concession was granted for a line from the capital (Montevideo) to Durazno, a distance of 130 miles. The construction of this line was followed by the building of a short line from the city of Salto towards the frontier of Brazil. In 1877 an English company, the present Central Uruguay Railway Co., Ltd., was formed to take over the former and complete the line to the town of Rio Negro, which extension was finished in 1886.
In the meantime the Uruguayan Government had devoted considerable attention to the question of railways, and in the year 1884 a law was passed by the Chambers embodying a definite scheme of railway communication with various parts of the Republic, the executive being authorised to contract for lines as outlined, and to guarantee an income equal to £560 per annum per mile of line for a period of forty years. A result of this enactment was the formation of several companies in England, and railway construction was rapidly proceeded with. By the year 1891, 1,000 miles of line were opened for traffic. In respect of which some 670 miles enjoyed the Government guarantee, equal to 7 per cent. on a capitalisation of £5,000 per kilometre.
At this point, however, further development received a check by the Government finding it necessary to rearrange its obligations. This rearrangement took the form of a reduction of the interest on the External Debt, including railway guarantees, from 7 per cent. to 31⁄2 per cent., the service at this reduced figure being secured on 45 per cent. of the Custom House receipts specially hypothecated. Punctual payment of guarantees at this rate has always been made.
In 1889 the Central Uruguay Western Extension Railway Company was formed to construct a line from San José to the towns of Mercedes, Sauce, and Colonia. This line does not enjoy a Government guarantee, and reverts to the Government in the year 1862.
The railway system of the Republic to-day amounts to some 1,432 miles of line opened for traffic and 78 miles in course of construction.