No account of the railways would be complete without a reference to the important Mitre Law, which was introduced some two years ago. Some of the railway concessions were expiring, and several provincial Governments (which are not always as enlightened as the Federal) were believed to be planning increased taxation. Legislation was accordingly introduced to put matters upon a proper footing. Such companies as accept the Law are granted exception from all kinds of taxation and allowed free importation of all materials till 1947. In return the companies must pay a tax of 3 per cent. upon net receipts, which, however, will be applied by the Government in constructing and maintaining bridges and roads which give access to the lines. Certain rights of tariff revision are given to the Government, and no watered capital is recognised. The Law is most valuable to the railways, and the expenditure on roads and bridges will be highly beneficial. The effect will be to limit working expenses, for when the gross earnings for three consecutive years exceed 17 per cent. of the recognised share and debenture capital, the Government has a right to revise the tariffs. The Law has been accepted by all the English companies except the Entre Rios and the Argentine North-Eastern. The above account will show that competition is very severe. This tends to bring down profits, and the cost of labour and coal and materials also makes the working expenses high. The extensions of the broad-gauge companies are, it is estimated, to cost £9,000 per mile for track and stations alone. Another fact which adds to the expenses is the necessity of keeping a very large rolling stock for use during harvest-times. This must, in part, stand idle for the rest of the year, and as a corollary to this the great bulk of the traffic is to the sea, and thus many wagons have to return inland empty. Passenger traffic, again, is light, owing to the sparse population. The Government naturally encourages competition; but its attitude has also a very favourable side, for it puts no obstacles in the way of construction, and does not attempt to bleed the companies. Of this the Mitre Law is an example. On the whole, it may be said that the great ability which has hitherto been shown in railway policy will have to be maintained at the highest point if profits and dividends are to be kept up.