In 1948, during President Juan Perón's first term of office, the seven British- and three French-owned railway companies then operating in Argentina, were purchased by the state. These companies, together with those that were already state-owned, where grouped, according to their track gauge and locality, into a total of six state-owned companies which later became divisions of the state-owned holding company Ferrocarriles Argentinos.
President Juan Perón (right) signs the nationalization of the British-owned railways with Ambassador Sir Reginald Leeper, March, 1948.
In the latter half of the 19th century British and French-owned railway companies had played an important role in the economic development of Argentina. Between 1856 and 1914 the nation's railway network grew to become the largest in Latin America. The foreign investment provided by these companies had helped to transform Argentina from a relatively underdeveloped, rural country, with many isolated communities, into one which was becoming an increasingly prosperous agricultural producer and exporter.
The foreign-owned railway companies had developed under the protection of the Argentine's strong property rights of the time.
The rail networks of the various companies generally radiated inland from the major ports of Buenos Aires and Rosario and were primarily designed to speed the export of agricultural products from the provinces to European markets. The lack of interlinking between the many radial lines meant that the integration of the country’s interior was probably slower than it would have been had domestic needs been a priority.
During World War II it had not been possible to import railway equipment or materials which meant that there was an urgent need for track, locomotive and rolling stock renewal by the time nationalisation took place in 1948. Also railways were beginning to face stiff competition from road transport as improvements in the national road network were made.
By the time the railways were nationalised in 1948, during President Perón's first term in office, the growth in economic nationalism in the country had reached a point where, for many Argentines in search of self-determination, the foreign-owned railways had become symbols of the control of the country's economy by foreign powers.
The official transfer of ownership, on 1 March, of some 24,458 km (15,197 mi) of British-owned railways (57% of the total railway network) to the Argentine government took place amidst widespread celebrations including a mass demonstration in its support on Buenos Aires' Plaza Británica, in front of the Retiro railway terminus.
British shareholders were compensated with the rescision of their US$ 500 million debt to the Central Bank of Argentina and US$100 million, cash. The cash figure proved controversial, as it had not previously been reported during the negotiations. Pressed on the issue, President Perón explained that the premium was for "sentimental reasons."[1]
After the nationalisation all the Argentine network was grouped into six railway divisions named after distinguished Argentine presidents and national heroes (such as José de San Martín, Manuel Belgrano, Domingo Sarmiento, Justo José de Urquiza, Bartolomé Mitre and Julio A. Roca) according to their track gauge and locality. Apart from former British and French companies, Argentine ones also became part of "Ferrocarriles Argentinos", the state-owned company specifically created after the nationalisation to manage the entire railway network.
The list of companies taken over by each division was as follows:
(7)Originally an Argentine company, the BAWR had been purchased by British in 1890.
Railway divisions network
After the nationalisation, maps of the six railway divisions managed by state-owned Ferrocarriles Argentinos were as follows:
Belgrano
Mitre
Roca
Sarmiento
San Martín
Urquiza
Aftermath
A 1948 propaganda poster celebrating nationalisation. Caption reads "Perón Fulfils. They are now ours!".
Argentines saw railway nationalisation as a major step towards the economic independence of their country which had for so long been under the influence of foreign capital. Nationalisation of the railways, the central bank, the telephone system and the docks were part of Perón's economic recovery scheme for postwar Argentina and had formed part of the first Five-Year Plan, announced in October 1946. Later in mass rallies he would refer to railway nationalisation as a victory over foreign imperialism. At the time there was little local opposition, although later it became apparent that, far from stimulating the national economy, nationalisation of the railways together with other foreign companies, contributed to the economic crises that Argentina suffered from the 1950s onwards by adding substantially to national budget deficits (which the Central Bank was forced to finance largely by "printing money", leading to inflation). Argentine Railways, in particular, became the most deficit ridden State enterprise among the numerous ones nationalized by Perón, generating a million US dollars in losses daily by the 1960s,[2] and two million by the 1980s.[3]
British Steam on the Pampas by D.S. Purdom - Mechanical Engineering Publications Ltd, London (1977)
British-Owned Railways in Argentina – Their Effect on Economic Nationalism, 1854-1948 by Winthrop R. Wright - Latin American Monograph No. 34, Institute of Latin American Studies, Univ. of Texas Press, London (1974)
References
^A House Divided: Argentina, 1880–1980 by Crawley, Eduardo - London: St. Martin's Press (1985)
^Historical Dictionary of Argentina. Scarecrow Press, 1978.
railway, nationalisation, argentina, 1948, during, president, juan, perón, first, term, office, seven, british, three, french, owned, railway, companies, then, operating, argentina, were, purchased, state, these, companies, together, with, those, that, were, a. In 1948 during President Juan Peron s first term of office the seven British and three French owned railway companies then operating in Argentina were purchased by the state These companies together with those that were already state owned where grouped according to their track gauge and locality into a total of six state owned companies which later became divisions of the state owned holding company Ferrocarriles Argentinos President Juan Peron right signs the nationalization of the British owned railways with Ambassador Sir Reginald Leeper March 1948 Contents 1 Background 2 Details 2 1 Railway divisions network 3 Aftermath 4 See also 5 Bibliography 6 ReferencesBackground EditIn the latter half of the 19th century British and French owned railway companies had played an important role in the economic development of Argentina Between 1856 and 1914 the nation s railway network grew to become the largest in Latin America The foreign investment provided by these companies had helped to transform Argentina from a relatively underdeveloped rural country with many isolated communities into one which was becoming an increasingly prosperous agricultural producer and exporter The foreign owned railway companies had developed under the protection of the Argentine s strong property rights of the time The rail networks of the various companies generally radiated inland from the major ports of Buenos Aires and Rosario and were primarily designed to speed the export of agricultural products from the provinces to European markets The lack of interlinking between the many radial lines meant that the integration of the country s interior was probably slower than it would have been had domestic needs been a priority During World War II it had not been possible to import railway equipment or materials which meant that there was an urgent need for track locomotive and rolling stock renewal by the time nationalisation took place in 1948 Also railways were beginning to face stiff competition from road transport as improvements in the national road network were made By the time the railways were nationalised in 1948 during President Peron s first term in office the growth in economic nationalism in the country had reached a point where for many Argentines in search of self determination the foreign owned railways had become symbols of the control of the country s economy by foreign powers Details EditBetween 1936 and 1939 the once British owned metre gauge Cordoba Central Transandine and Central Chubut had already been nationalised As from 1 March 1948 the remaining British owned railway companies in Argentina also became the property of the government These were the four broad gauge companies BA Great Southern Central Argentine BA amp Pacific and the BA Western the standard gauge companies Entre Rios and Argentine North Eastern and the Buenos Aires Midland Railway the only metre gauge company The official transfer of ownership on 1 March of some 24 458 km 15 197 mi of British owned railways 57 of the total railway network to the Argentine government took place amidst widespread celebrations including a mass demonstration in its support on Buenos Aires Plaza Britanica in front of the Retiro railway terminus British shareholders were compensated with the rescision of their US 500 million debt to the Central Bank of Argentina and US 100 million cash The cash figure proved controversial as it had not previously been reported during the negotiations Pressed on the issue President Peron explained that the premium was for sentimental reasons 1 Later in 1948 the three French owned railway companies were also nationalised the broad gauge Rosario amp Puerto Belgrano and the metre gauge Compania General de Buenos Aires and Provincial de Santa Fe After the nationalisation all the Argentine network was grouped into six railway divisions named after distinguished Argentine presidents and national heroes such as Jose de San Martin Manuel Belgrano Domingo Sarmiento Justo Jose de Urquiza Bartolome Mitre and Julio A Roca according to their track gauge and locality Apart from former British and French companies Argentine ones also became part of Ferrocarriles Argentinos the state owned company specifically created after the nationalisation to manage the entire railway network The list of companies taken over by each division was as follows Ferrocarriles Argentinos Former company Origin Provinces Railway DivisionCentral Northern 1 Argentine La Rioja Catamarca Cordoba Tucuman Formosa Chaco Santiago del Estero Salta Jujuy BelgranoCordoba North Western British CordobaProvincial de Buenos Aires Argentine Buenos AiresProvincial de Santa Fe French Santa Fe Chaco CordobaMidland British Buenos AiresCompania General de Buenos Aires French Buenos Aires Santa FeCordoba Central British Santa Fe Cordoba Santiago del EsteroTransandine Argentine MendozaCentral Argentine 2 British Buenos Aires Santa Fe Cordoba Sgo del Estero Tucuman MitreBuenos Aires Central Argentine Buenos Aires Santa Fe UrquizaEntre Rios 3 British Entre RiosArgentine North Eastern 4 British Entre Rios Corrientes MisionesCorrientes Economic Argentine Corrientes ProvinceGreat Southern 5 British Buenos Aires La Pampa Rio Negro Neuquen RocaPatagonian Argentine Rio Negro Neuquen Chubut Santa CruzCentral Chubut British ChubutRosario and Pto Belgrano French Santa Fe Buenos AiresBA amp Pacific 6 British Buenos Aires Santa Fe Cordoba Mendoza San Luis San MartinAndean Argentine Cordoba Mendoza San Luis San JuanBA Western British 7 Buenos Aires La Pampa Cordoba San Luis Mendoza SarmientoNotes 1 The Central Northern had previously taken over North Argentine Railway in 1909 2 The Central Argentine had previously acquired the BA Northern 1888 BA amp Rosario 1902 and Santa Fe Western 1900 railway companies 3 The Entre Rios Railway had acquired the Central Entre Rios Railway in 1892 4 The Argentine North Eastern had acquired the East Argentine in 1907 5 The BAGSR had acquired Bahia Blanca amp North Western and Buenos Aires amp Ensenada railways before being built by the Argentine state 6 The BAP had previously acquired the Villa Maria amp Rufino 1900 Argentine Great Western Railway 1907 and Andean 1909 railways 7 Originally an Argentine company the BAWR had been purchased by British in 1890 Railway divisions network Edit After the nationalisation maps of the six railway divisions managed by state owned Ferrocarriles Argentinos were as follows Belgrano Mitre Roca Sarmiento San Martin UrquizaAftermath Edit A 1948 propaganda poster celebrating nationalisation Caption reads Peron Fulfils They are now ours Argentines saw railway nationalisation as a major step towards the economic independence of their country which had for so long been under the influence of foreign capital Nationalisation of the railways the central bank the telephone system and the docks were part of Peron s economic recovery scheme for postwar Argentina and had formed part of the first Five Year Plan announced in October 1946 Later in mass rallies he would refer to railway nationalisation as a victory over foreign imperialism At the time there was little local opposition although later it became apparent that far from stimulating the national economy nationalisation of the railways together with other foreign companies contributed to the economic crises that Argentina suffered from the 1950s onwards by adding substantially to national budget deficits which the Central Bank was forced to finance largely by printing money leading to inflation Argentine Railways in particular became the most deficit ridden State enterprise among the numerous ones nationalized by Peron generating a million US dollars in losses daily by the 1960s 2 and two million by the 1980s 3 See also EditFerrocarriles Argentinos Rail transport in Argentina Railway privatisation in ArgentinaBibliography EditBritish Steam on the Pampas by D S Purdom Mechanical Engineering Publications Ltd London 1977 British Owned Railways in Argentina Their Effect on Economic Nationalism 1854 1948 by Winthrop R Wright Latin American Monograph No 34 Institute of Latin American Studies Univ of Texas Press London 1974 References Edit A House Divided Argentina 1880 1980 by Crawley Eduardo London St Martin s Press 1985 Historical Dictionary of Argentina Scarecrow Press 1978 Clarin 12 February 1989 Retrieved from https en wikipedia org w index php title Railway nationalisation in Argentina amp oldid 1125367626, wikipedia, wiki, book, books, library,
