No. 455.
Mr. Foster to Mr. Fish.

No. 74.]

Sir: In my dispatch No. 61 advised you of the ratification of a contract by the Mexican minister of public works, with Mr. Edward Lee Plumb, as the representative of the International Railroad Company of Texas, for the construction of an extensive system of railroad-lines in Mexico. This contract was sent to Congress at the opening of the present session. Two other and similar propositions were submitted to Congress, one by the Mine Contract Company, of Pennsylvania, and the other by an organization entitled “the Mexican Railroad Company, Limited.” The three propositions were recently referred to the President, with instructions to make a new contract with one of these companies, or with a combination of them. On the 21st instant the President decided the matter in favor of the Mexican company, thus rejecting the propositions of both of the American companies. Congress has decided upon a constitutional amendment, creating a senate or upper branch of the national legislature; and it is now engaged in discussing its powers and duties. The amendment will probably be submitted to the States before the adjournment. The authority of the federal government continues to be recognized throughout the republic. But an insurrection against [Page 719] the State government has been in progress in Sonora, which it is claimed is nearly suppressed. Similar armed opposition to the State governments exists in Coahuila and Yucatan. Since my last dispatch in reference to current events, the line of telegraph has been completed to the port of Acapulco, on the Pacific coast.

The municipal exposition of this city, which had much the character of a national exhibition of manufactures and arts, has just terminated, and was attended with notable success as the first effort of that kind.

I am, &c.,