The government of Argentina has been extremely liberal in its railroad policy. It has recognized the fact that there is no better way to develop its resources than by spreading the parallel bands of steel all over the republic. Perhaps nowhere in the world were there fewer difficulties or fewer perplexing engineering problems than here, for there was no grading and it was only necessary to take off the surface soil and dig ditches to carry off the water. A number of the concessions originally contained a government guarantee of six or seven per cent. on the investment, but most of these have since been altered as the receipts generally paid ample returns, and in consideration of release from the contractual obligation the government granted some other privileges. Many of the charters also granted an exclusive territory of about twenty miles on each side of the right of way. The principle of consolidation has been going on in Argentina the same as in the United States. The large lines have been taking up the smaller ones until now three companies own one-half of the total mileage, and these three companies are very evenly matched. The original charters of the many lines differed greatly in their terms. They are now all being rapidly brought under a law passed in 1907, which is exceedingly liberal. Under this law the companies pay no import duties on construction materials and articles used in operating the lines, and are exempt from all taxes until 1947. During that period, however, they contribute three per cent. of their net receipts towards the construction and maintenance of the bridges and roads of the departments traversed by their tracks, particularly those roads leading to the stations. Furthermore they must convey free of charge the mails and men in charge of them. Government materials and articles for the construction of public works, war materials and stores, troops, government employees on public service, immigrants sent up country by the central immigration office, and employees of the provincial police shall be conveyed at one-half of the regular rates.