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Ferrocarriles Nacionales De Mexico - Mexican 6% Gold Bond

Inv# FB6168   Bond
Ferrocarriles Nacionales De Mexico - Mexican 6% Gold Bond
Country: Mexico
Years: 1914

$2 6% Gold Bond printed by American Bank Note Co., New York, Litho.

Ferrocarriles Nacionales de México (better known as N de M and especially in its final years as FNM) was Mexico's state owned railroad company from 1938 to 1998, and prior to 1938 (dating from the regime of Porfirio Díaz), a major railroad controlled by the government that linked Mexico City to the major cities of Ciudad Juárez, Nuevo Laredo and Matamoros on the U.S. border. The first trains to Nuevo Laredo from Mexico City began operating in 1903.

The beginnings of rail transport in Mexico date back to the concessions granted by Maximilian I of Mexico, mostly to foreign companies, and continued by Benito Juárez.

In 1898, José Yves Limantour proposed a system of concessions of the railway companies on the future lines to be built from 1900. That same year the Secretariat of the Treasury promulgated the first General Railway Law. This law established a system whereby concessions would be granted to companies to lay railway lines only when they satisfied the economic needs of the country and linked the interior of the Republic with its most important commercial ports.

The original N de M company was created in 1903 during the tenure of Porfirio Díaz, and it was through said company that most of the Mexican railway network was developed. In fact, before the Porfiriato, only the Mexico City–Veracruz segment was in operation, since Gen. Díaz's greatest interest was to develop the country industrially, he had a special affinity for the railroad.

Pursuant to an agreement signed on February 29, 1908, N de M absorbed the Mexican Central Railroad (Ferrocarril Central Mexicano, first section from Mexico City to León, Guanajuato, opened in 1882) in 1909, thus acquiring a second border gateway at Ciudad Juárez (adjacent to El Paso, Texas). This gave the Mexican federal government a 58% stake in N de M. The N de M was fully nationalized by President Lázaro Cárdenas del Río in 1938, and privatized in 1994–1998 by Presidents Carlos Salinas de Gortari and Ernesto Zedillo. N de M operated most railway trackage through the central and northeastern regions of the republic. The Ferrocarril del Pacífico (or Pacific Railroad) and the Ferrocarril Chihuahua al Pacífico operated railroads in the northwest.

In 1995, the Mexican government announced that FNM would be privatized and divided into four main systems. As part of the restructuring for privatization, FNM suspended passenger rail service in 1997, and the new arrangements applied from 1998; by then FNM ceased to be the administrator of most of its major railway routes. The companies were Kansas City Southern de Mexico, Ferromex, Ferrosur, and (owned jointly by the three companies) Ferrocarril y Terminal del Valle de México or Ferrovalle which operates railroads and terminals in and around Mexico City.

It was not until June 4, 2001, during Vicente Fox's presidency that FNM as an organization was officially extinguished, as confirmed by a publication in Mexican Official's Gazette. FNM will continue to exist legally as a state-owned shell entity (as Ferrocariles Nacionales de México en Liquidación) until the conclusion of the liquidation process.

As of 2022, FNM en Liquidación still owns some lines (23% of which are shortline railroads) where concessions cannot be granted or are considered to be of importance for the national economy, such as the Trans-Istmico, which goes from Salina Cruz, Oaxaca to Coatzacoalcos, Veracruz, although their direct operations are contracted to private companies. Since 2012, FNM en Liquidación as well as its associated liquidation process and settlement of existing liabilities has been headed by an undersecretariat of the Secretariat of Communications and Transportation (SCT).

During the days of steam locomotives, N de M was best known for operating Niágara class locomotives, which took their name from the New York Central Railroad locomotives of the same wheel configuration. It was also the home of several 3 ft (914 mm) narrow gauge systems that used steam, both nationally and regionally. N de M was one of the few railroads outside the US to purchase new diesel locomotives from Baldwin Locomotive Works: the only three "Baldwin E-units" ever built ("0660 1000/2 DE"), the DR-12-8-1500/2 "Centipede" and the AS-616. Two of the three 0660 1000/2 DE locomotives had been on major railroads in the United States on a demonstration tour in 1945. N de M bought them and ordered a third in 1946. All three consistently broke down and were retired soon after their factory warranties expired. They do not appear on the 1950 N de M locomotive roster, and sat for years in the scrapyard at San Luis Potosí. Notes in the FNM archives in Puebla, Mexico describe how one of these locomotives had a wheel disintegrate at high speed, and also how the Centipede locomotives were delivered in 1948 with parts missing.

In Acámbaro, Guanajuato, N de M operated one of the few facilities in Latin America that was capable of constructing and doing complete rebuilds of steam locomotives, thus with rare exceptions (as with the Niagaras), most of N de M steam motive power was purchased used and rebuilt there. Portions of the facility and a preserved 2-8-0 steam locomotive remain as part of Acambaro's municipal railway museum.

Named trains usually bore names related to the destination, for example, El Purépecha referred to the Purépecha peoples of western Michoacán.

The Águila Azteca/Texas Eagle service was in conjunction with the Missouri Pacific railroad. Later with Amtrak, connections could be made in Laredo with Amtrak's Inter-American. Besides connections in Ciudad Juarez and Nuevo Laredo, there were connections to trains in the United States in Guadalajara, Piedras Negras and Matamoros. To the south there were connections to Guatemala in Ciudad Hidalgo.

Other passenger service was provided between Mexico City and: Cuernavaca, Morelos; Tampico, Tamaulipas; and Guanajuato, Guanajuato

Buenavista railway station in Mexico City served as the terminal and after 2005, it was renovated and serves as the southern end of the electric Tren Suburbano line. Photos of Buenavista often prominently feature a pyramid-like tower, the Torre Insignia. The building housed the headquarters of Banobras, but currently is unoccupied and it has been renovated. A preserved Niagara steam locomotive and GE boxcab can be viewed at the Museum of Electricity at Chapultepec, Mexico City. Many more preserved Mexican steam, diesel and electric locomotives can be viewed at the FNM museum in Puebla, Mexico.

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Condition: Excellent

A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.

Item ordered may not be exact piece shown. All original and authentic.