In the meantime the Uruguayan Government had devoted considerable attention to the question of railways, and in the year 1884 a law was passed by the Chambers embodying a definite scheme of railway communication with various parts of the Republic, the executive being authorised to contract for lines as outlined, and to guarantee an income equal to £560 per annum per mile of line for a period of forty years. A result of this enactment was the formation of several companies in England, and railway construction was rapidly proceeded with. By the year 1891, 1,000 miles of line were opened for traffic. In respect of which some 670 miles enjoyed the Government guarantee, equal to 7 per cent. on a capitalisation of £5,000 per kilometre. At this point, however, further development received a check by the Government finding it necessary to rearrange its obligations. This rearrangement took the form of a reduction of the interest on the External Debt, including railway guarantees, from 7 per cent. to 3-1/2 per cent., the service at this reduced figure being secured on 45 per cent. of the Custom House receipts specially hypothecated. Punctual payment of guarantees at this rate has always been made. In 1889 the Central Uruguay Western Extension Railway Company was formed to construct a line from San José to the towns of Mercedes, Sauce, and Colonia. This line does not enjoy a Government guarantee, and reverts to the Government in the year 1862. The railway system of the Republic to-day amounts to some 1,432 miles of line opened for traffic and 78 miles in course of construction. The following shows the capital of the respective companies and length of lines: --------------------------------------------+-------+--------------------- |Mileage| Capital. | Open. | £ --------------------------------------------+-------+--------------------- Central Uruguay Railway, including Western | | Extension and North Eastern of Uruguay | | } Worked Railway Co., Ltd. | 482 | 5,403,018 } by Central Uruguay Eastern Extension Co., | | } Central Ltd. | 277 | 2,033,400 } Uruguay Central Uruguay Northern Extension Co., | | } Railway Ltd. | 182 | 1,627,150 } Co. Midland Uruguay Railway Co., Ltd. | 229 | 2,378,462 North Western of Uruguay Railway Co., Ltd. | 111 | 1,435,517 Uruguay Northern Railway Co., Ltd. | 73 | 855,562 Uruguay East Coast Railway | 78 | 309,980 +-------+--------------------- Total |1,432 |14,044,089 --------------------------------------------+-------+---------------------