The railway system of Guatemala under the administration of President Estrada Cabrera is certain to be the most useful means of developing the country. Every encouragement is given to capital to engage in railroad enterprises. The general plan includes both an interoceanic railroad and links in the intercontinental or north and south lines. No measure of President Estrada Cabrera's administration has been of greater importance than his action in securing the completion of the Northern Railway, which will be open for traffic throughout its entire length by the end of 1906. This places the capital and the whole interior of the country in direct communication with Puerto Barrios and insures a very heavy decrease in the cost of freight both for the agricultural exports and for the merchandise and other imports. The line runs from Guatemala City to El Rancho and thence to Puerto Barrios. At various times concessions were given for building the different sections, but circumstances caused many of them to be almost abandoned. In the face of repeated discouragements President Estrada Cabrera took up the subject with resolute spirit and with the sanction of the National Assembly made a contract with a syndicate of which the principals were Sir William C. Van Horne, the celebrated railroad man, who completed the Canadian Pacific Railway in the face of monumental difficulties and who subsequently built the Cuba Central Railway; and Minor C. Keith, of the United Fruit Company, who for a third of a century had been identified with various successful enterprises in Central America. Subsequently the Guatemala Central Railway took a share in the enterprise and also German banking and coffee interests. Under the contract no export duty is to be laid on agricultural exports transported over the railroad except coffee and the Company is given the right to fix its passenger and freight charges on a gold basis. There were many engineering difficulties to be overcome, the chiefest of which was the bridging of the Motagua River. The material for this railway construction was imported principally from the United States, the rails from Maryland and the bridgework across the Motagua and other rivers from Pittsburg.