_Midland Uruguay Railway._--This Company's line passes through an entirely pastoral district, and its traffic is principally derived from the carriage of cattle, wool, and general merchandise. An important extension is now practically completed to Fray Bentos, the headquarters of Liebig's Extract of Meat Company. The River Uruguay at this point is navigable for large ocean steamers, and a pier has been erected to accommodate these, which will put the railway system of the north of the Republic in a more favourable position to handle the various products of cattle-killing establishments, both in Uruguay and on the Brazilian side of the frontier of Rio Grande do Sul, an industry of increasing importance. ------------------------------------------------------------- Year. | Gross Receipts. | Expenses. | Profit. | Dividend. | -------------------------------------------------------------| 1905-6 | 60,533 | 50,304 | 10,229 | | 1906-7 | 75,887 | 60,833 | 15,054 | | 1907-8 | 72,172 | 67,153 | 5,019 | | 1908-9 | 81,503 | 71,114 | 10,389 | | 1909-10 | 88,165 | 67,479 | 20,686 | | ------------------------------------------------------------- At the present time a considerable tonnage is transported by river from Salto for shipment from Buenos Aires. It is possible, therefore, that the extension of the Midland Company to Fray Bentos will play an important part in the development of its line and those of the companies north of Salto, and Fray Bentos should very shortly become the second port of the Republic. The receipts in Uruguay of the Midland Company have shown some expansion of late years, having increased from £55,000 in the year ending June 30, 1904, to £88,165 in 1909-10 (see opposite page). _The North-Western of Uruguay Railway and Uruguay Northern Railway._--The remarks with regard to the nature of the country and the traffic of the Midland apply also to these lines. At the terminus of the North-Western Line at the River Cuareim arrangements exist for the interchange of traffic with the Brazil Great Southern Railway, and the respective Governments have sanctioned a project for the construction of an international bridge to connect the lines at this point. It is probable that this bridge will be constructed within the next few years, as the interchange of traffic due to the extension of the Brazil Great Southern Railway to San Borju is likely to be considerably enhanced. The excellent tramways with which Montevideo is served are administered by three companies, local, British, and German. The local enterprise is considerably the smallest of the three, the extent of its lines not exceeding twelve miles. The concern, moreover, is dependent solely upon horse traction, with its attendant disadvantages.