The Republic of Chile was the first of the South American states to initiate the construction of railways. The building of a line from the seaport Caldera to Copiapo was commenced in May, 1850, and was completed on January 2, 1852. This line was constructed and operated by a private company. The first state road, extending from Valparaiso to Santiago, was opened on the 15th of September, 1865. To this road has since been added an extension to Talcahuana, as well as several branch lines. The total amount that has been expended by the Chilean government for the construction of railroads is $43,000,000. The total number of miles of road operated in Chile in 1887 was 1,674, of which 992 were the property of private companies and 682 miles were owned by the state. Two hundred and fifty miles of road have since been constructed, and the construction of 700 additional miles of railroad has been authorized by the government.

The Argentine Republic opened its first road, extending from Buenos Ayres to Belgrano, in December, 1862. Several other lines soon followed, and in 1870 over 600 miles of road had been constructed. This number had increased to 1,440 in 1880 and to 5,100 in 1889. Since then several new lines have been completed, aggregating over 600 miles. Among the principal lines of the Argentine Republic is the transcontinental road which connects the Atlantic with the Pacific Ocean. The whole line is 880 miles long, of which 665 miles are in the Argentine Republic and the remaining 115 miles in Chile. Of the 3,705 miles of road which were in operation at the beginning of the year 1887 the republic owned 1,148, the province of Buenos Ayres 572, the province of Santa Fe 102, and private companies 1,888 miles. The total amount invested in railroads was $154,000,000 in 1887, which yielded an average dividend of 3.9 per cent.

The oldest railroad in Brazil is the Petropolis road. It was built by a private company and opened on December 16, 1856. In 1881 the total number of miles in operation was 2,422, and in 1889 it had increased to 5,766. Furthermore charters had been granted for the additional construction of 2,271 miles of road. Of the lines in operation about 1,200 miles are the property of the state, yielding a revenue of nearly 3 per cent. on the capital invested. The state gives aid, besides, to several private roads. The most important road of Brazil is the state road Dom Pedro I., which connects the three richest provinces of the country, Rio de Janeiro, Minas Gerals and Sao Paolo, with the national capital. It was opened in 1883, and has a total extent of 544 miles.

The principal roads of Uruguay were built between 1865 and 1875. In the latter year the total number of miles in operation in Uruguay was 190, which in 1880 had increased to 230, and in 1889 to 469 miles.

In the remaining political divisions of South America the railroad extended its dominion still more slowly. Paraguay opened as early as 1863 a line 45 miles long from Asuncion to Itangua, and in 1892 her railroad system had increased to 159 miles in extent. British Guiana completed in 1866 a line from Georgetown to New Amsterdam, but not one mile of railroad has been built in that colony since. Of the islands of South America Trinidad is the only one into which the railroad has been introduced. The island has at present 50 miles of road, to 16 in 1878.

Central America has less than 600 miles of railway. The causes which have retarded the development of the railroad system in South America are also operative here. Of the five republics of Central America Costa Rica has the largest number of miles of railroad, viz.: 161. It has three different lines, of which the Limon and Carillo line, seventy miles long, is the most important. This road, which connects with a New York line of steamers at Limon, has greatly furthered the cultivation of bananas in the Santa Clara valley.

Nicaragua completed its first road in 1880 between Corinto and Chinandega, and has at present about 100 miles of railway in operation. The Nicaragua Canal Company is constructing a road from Juan del Norte to Ochoa, a distance of thirty-two miles, to be used in the construction of the canal.

Honduras opened in 1871 its only line, thirty-seven miles long, between Puerto Caballo and San Jago. In recent years an extension of nine miles has been added to it.

San Salvador has, besides a street-car line between the cities of San Salvador and Santa Tecla, only one line of railroad between Acajutla and Armea, which was constructed with public funds and opened for traffic on July 15, 1882.

Guatemala was the last of the Central American States to introduce the railroad. Its first road, seventy-four miles long, and extending from San Jose on the Pacific Ocean to the capital, Guatemala, was built by a San Francisco company and opened on August 20, 1884. The state has at the present time about 100 miles of road, with several short but quite important lines under construction.