Monday, Sep. 17, 1928
A Canadian's Advice
An expert was needed to find out why the National Railways of Mexico have for so long been making so little money. Mexico might have sought her expert in the. U. S. (where most miles of railway are), or in Great Britain (where express trains make longest, fastest non-stop runs), or even in Scandinavia (for Swedes are great railway builders to the minor nations).
Instead the railway doctor who has just prescribed for Mexico was found in Canada. He is Sir Henry Worth Thornton, since 1922 chairman of the Board and president of the Canadian National Railways. Last week the secret of his recent suspiciously informal visit to Mexico with Canadian railway colleagues was finally revealed.
Finance Minister Luis Montes de Oca explained, in a report addressed to the Mexican Congress last week, that Sir Henry was called in consultation, last year, when it became apparent that the problem of the national debt could not be resolved until the national railways had been placed on a sound basis. As a result of Sir Henry's report, said Senor Montes de Oca, "The Ministry of Finance are convinced that rehabilitation of our finances will not be realized if the National Railways are not administered as a private enterprise.
Therefore the Government considers it indispensable to reform our statutes in such a way that railway progress equal to that in other countries may be made in Mexico."
Observers took keen interest in the fact that young, spirited, dynamic Finance Minister Montes de Oca has swallowed with such enthusiasm the Canadian doctor's bulky capsule: denationalization of railways. In Mexico, where advanced social theorizing is typical of even elder politicians, young Minister Montes de Oca might well have aspired to become a benevolent Railway Tsar.
Instead he preached ruthless denationalization to Congress, last week, as the keynote of his whole new fiscal policy. Briefly this consists in postponing repayments to foreign creditors of the State, until drastic economies and efficient denationalization of the railways release funds to swell the National Treasury. Senor Montes de Oca declared that the Mexican internal budget is now safely balanced, and was able to state that Mexico's external creditors are still patient.
Because so much now depends upon reorganization of the railways, Mexicans manifested lively interest last week in their Canadian railway doctor. Sir Henry Worth Thornton, though a Knight, and though president of the Canadian National Railways, was born in the U. S. at Logansport, Ind., 56 years ago. Both his first and second wives were U. S. born. The Pennsylvania Railroad took him on in the Engineering Department (1894), advanced him steadily, and in 1911 handed over to him the General Superintendentship of the Long Island railroad, a post which he had held for three years.
Opportunity beckoned from England, and he sailed to become General Manager of the Great Eastern Railway (1914-22) and Inspector General of Transportation (1919-22) with rank of Major-General.
Soon afterward the mantle of knighthood descended, emphasizing Sir Henry's complete technical severance from his U. S. Fatherland.
Finally since 1922 Canada's Sir Henry Thornton has directed over 39,000 miles of railway in the Dominion. The lines under his care constitute the National (State Owned) Railways and operate in keen competition with the famed and privately owned Canadian Pacific (mileage 16,000). Presumably it is this element of healthy competition which Rail Doctor Sir Henry Thornton would introduce in Mexico.