There are two competing lines which serve the eastern river district adjacent to Uruguay, namely, the Entre Rios and the Argentine North-Eastern. Both have a gauge of 4 feet 8½ inches. The Entre Rios is a short line of only 656 miles, but it is of some importance on account of its ferry service which connects Zarate with Ibicuy on the left bank of the Parana. The railway then runs north to the important town of Parana, which is the headquarters. No dividend has yet been paid on the ordinary stock, and the cumulative preference is somewhat in arrears, for the district is mainly pastoral and that part of the line which was taken over from the Provincial Government in 1891 is badly laid, but when Entre Rios becomes a large grain-producing region the prospects of the Company will improve, and already it does a good trade in supplying Buenos Aires with fruit and vegetables, while the management is economical. Of its traffic some 17 per cent. is live stock, 15 wheat, and 11 linseed. The North-Eastern, which has 510 miles of railway, should be assured of a prosperous future, for Posadas, the northern headquarters, is now connected with Asuncion by the Paraguay Central Railway and will get much benefit from the development of that hitherto secluded country. It is still a pioneer line running through swamps and forests and country which is to a great extent unpopulated, and the goods which it carries consist chiefly of cattle and their products. The swampy nature of the country entails considerable expense in construction, but the Company pays a strict regard to economy, and the capitalisation per mile is only £8,680. Since June 30, 1907, the working expenses have been cut down from 65.10 to 57.17 per cent. Although the prospects of this line are fair they would undoubtedly be better if an amalgamation could be effected with the Entre Rios, for the district does not yet possess sufficient traffic for two competing lines. The scheme has long been under consideration, and as the policy of amalgamation has been carried on so extensively in recent years it may be that it will eventually be accomplished.