I recall one night when, at a forgotten siding, the engine drew out to get water, taking a saunter along the train side. It was brilliantly lit with electricity, and the restaurant car, with the usual little red-shaded lamps on the tables, was busy; crowds of passengers were dining, and the usual waiters were scurrying, and there was the usual Continental fare, and champagne and Moselle wines, and the usual mineral waters you get on the Nord express. That gleaming train in central South America was the symbol of what railway enterprise has done in Argentina. There are 20,000 miles of railroads in the Republic. The British showed the way in the initial building, and their lines pass through some of the fattest territory. The French have been tardy followers, but have constructed useful minor lines. The Argentine Government has built State lines through country that was suitable for colonisation, but which did not appeal to the outside investor. These State railways are financially a failure. One reason is that the territory through which they run is not of the best. The principal reason is that they are the prey of the politicians. Constituencies have to be considered, and innumerable jobs found for the hangers-on of political parties. Business conditions are the last to be thought of, and, though the Government has done well in throwing these lines into distant regions needing development, they are not likely to succeed until placed under different control. Not only have the Argentines themselves not started railway companies, but they have no money invested in the foreign companies. One cause is that, though the Government insists on a local board of directors, the real board of directors is abroad, chiefly in London. Another cause is that dividends are limited by law to 7 per cent., and that is not a sufficient return for the Argentine. He does not care to touch investments that do not yield 12 per cent., and when he gets 30 per cent. he thinks that about fair--and the country is so prosperous it can afford it. Although within the last fifteen years millions of British money have poured into Argentina for railway construction, the investor in the old days cast a hesitating eye on South America as a place to sink his capital. In the 'fifties a railway a few miles long was all that Argentina could boast, and ten years later, when 7 per cent. was guaranteed, money was not forthcoming. As an inducement to construct a line between Rosario and Cordoba the absolute ownership of three miles on either side of the line was offered. Even with such an attraction the British investor was shy. Gradually, however, money was forthcoming, and lines were laid. In the 'eighties there came a spurt. It was not till the years following 1900 that money could be had for the asking. Lines cobwebbed the profitable country; distant points were linked up; land which previously had little beyond prairie value bounced up in price.