Central Company.—By far the most important system is that of the Central Company, including leased and worked lines. The lines of this system extend from the capital to the frontier of Brazil at Rivera, with branches to the city of Mercedes in the west, and the towns of Melo, Treinta y Tres, and Minas on the Eastern and North-Eastern Extension. The railway from the capital passes through a well-populated agricultural district for a radius of about thirty miles; this radius is gradually extending, stimulated by the increasing importance of Montevideo and the gradual breaking up of lands in the fertile regions of the western and eastern extensions.
The extension now finished to Melo opens up another district suitable to the cultivation of cereals, from which considerable traffic is being derived.
An extremely important matter in connection with the future development of these lines, and, in fact, all the railway interests of the Republic, is to be found in the completion of the port works at Montevideo. Until the port works were taken in hand the embarkation of cargo at this principal outlet of the Republic had been greatly hampered by natural difficulties, and consequently heavy charges in connection with the lighterage from the railway wharf to the ocean steamers. The deepening of the inner port and the construction of extensive wharfs and piers at which ocean steamers can berth will doubtless lead to an increase in traffic, not only from Uruguay but the neighbouring State of Rio Grande do Sul.
An important connection with the railway system of Rio Grande do Sul is made at the terminus of the Central Uruguay Northern Extension Railway at Rivera, and by the completion of a connecting link between the Sao Paulo Rio Grande Railway System and the lines of the Cie Auxiliare de Chemins de Fer au Bresil, a Company which controls practically the whole railway system of the State of Rio Grande do Sul (now almost completed), direct railway communication will be established between Montevideo and Rio de Janeiro.
The following table shows the result of working of the Central Uruguay Main Line, exclusive of extensions, which, as far as expansion in receipts is concerned, may be regarded as indicative of those lines:
| Year. | Receipts. | Expenses. | Profit. | Dividend. |
| Per Cent. | ||||
| 1904-5 | 414,228 | 190,165 | 223,572 | 41⁄2 |
| 1905-6 | 442,083 | 212,465 | 229,618 | 5 |
| 1906-7 | 493,682 | 244,922 | 248,760 | 5 |
| 1907-8 | 508,044 | 272,104 | 235,940 | 41⁄2 |
| 1908-9 | 557,122 | 287,505 | 269,617 | 41⁄2 |
| 1909-10 | 577,489 | 287,959 | 289,530 | 5 |
The increase in gross receipts is perhaps not quite so marked as in the case of neighbouring lines in the Argentine Republic, and a reason for this is to be found in the fact that, favoured by magnificent grazing camps, cattle raising is still the principal industry of Uruguay. Agricultural development, although more marked of recent years, has been slow, but an increase in this is probably due to efforts which are being made by the Government to promote colonisation and the extension of lines in the Eastern provinces.
Midland Uruguay Railway.—This Company's line passes through an entirely pastoral district, and its traffic is principally derived from the carriage of cattle, wool, and general merchandise. An important extension is now practically completed to Fray Bentos, the headquarters of Liebig's Extract of Meat Company. The River Uruguay at this point is navigable for large ocean steamers, and a pier has been erected to accommodate these, which will put the railway system of the north of the Republic in a more favourable position to handle the various products of cattle-killing establishments, both in Uruguay and on the Brazilian side of the frontier of Rio Grande do Sul, an industry of increasing importance.