Government Operated

Britain unloaded her largest single overseas investment last week and Argentina became owner of her own railroad system.

Soon after the Crimean War, Britain shipped to Argentina a holdful of war surplus: one locomotive, several coaches, and six miles of track originally ordered for the siege of Sevastopol. Argentines promptly called the locomotive La Portena, proudly watched it chuff out of Buenos Aires in August 1857. In the years that followed, the six miles of track grew to 27,000--over half of it broad Russian gauge (5 ft. 6 in.) like La, Portena's. Because Britain kept her finger in the succulent Argentine railway pie, British investors eventually owned 74% of Argentina's trackage.

At first, profits were enormous (up to 25% on some roads). But watered stock, low rates (fixed by the Government) and truck competition cut into dividends; for years the British owners have been dickering to sell out. Last week's ceremony in the Salon Blanco of the Casa Rosada (Government House), where Economic Czar Miguel Miranda and British Ambassador Sir Reginald Leeper (for the British shareholders) signed the bill of sale, finally ended the negotiations.

The price, $600 million, seemed to suit everyone. For the British, it was $100 million more than the reported 1941 haggling figure. It also meant that Britain had liquidated her $500 million debt (in blocked sterling) to Argentina and got about $100 million spot cash.

President Juan Peron, driving toward his national-socialized state, fairly beamed too. From now on Argentina's railways will be Government-operated.

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