The story
Founded by José de Salamanca, 1st Count of los Llanos on Dec 31, 1856.1
Basic chronology
On December 31, 1856, the Compañía de los Ferrocarriles de Madrid a Zaragoza y Alicante was founded by José de Salamanca Mayol, the representatives of the Rothschilds in Spain, etc.
On May 16, 1863, the Madrid to Zaragoza Railway, which started in 1858, was finished, concluding the construction of rail lines during that era.
On April 25, 1865, the Albacete to Murcia and Cartagena railway line was inaugurated, marking the second railway line in the Spanish Levant.
On October 5, 1875, the Cordoba-Seville Railway was acquired, allowing for domination of the Guadalquivir valley and control over one of Spain's most important lines. This acquisition fulfilled one of the company's aspirations since the 1860s.
On April 8, 1880, the Madrid-Ciudad Real-Badajoz Railway annexation introduced a new railway track to Ciudad Real and provided a connection to Extremadura and a route to Portugal.
On January 16, 1885, the Mérida-Seville Railway was opened, signaling the conclusion of the expansion in the Extremadura region and connecting it with the Andalusian lines that had already been under control for some time.
On December 8, 1892, the renovation of Atocha Station was completed, making it the main station of MZA and one of the most important in the country.
On January 1, 1898, the merger of MZA and TBF became effective, as per the agreement signed several years earlier. The Madrid-Zaragoza-Alicante Company expanded its network in Catalonia and acquired significant railway traffic. The company's growth period ended with this merger.
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In 1925, the Catalan Network was definitively integrated into the MZA structure.
In 1929, MZA inaugurated the Barcelona Terminus Station, its last major project before experiencing decline.
On August 3, 1936, the Republican government nationalized the railway network it controlled during the Spanish Civil War. Consequently, the MZA was absorbed by the Red Nacional de Ferrocarriles in the area loyal to the Second Republic. Directors and managers who escaped to the rebel zone attempted to regain their previous power, but the military ultimately managed all aspects of the railway. Much of MZA's material and infrastructure were severely damaged and destroyed during the war.
On July 1, 1941, the MZA Company ceased to exist, and its entire network, facilities, and rolling stock were incorporated into the newly established RENFE.
Background
The company's origins can be traced back to the Madrid-Alicante railway concession, which originally belonged to the Compañía de Camino de Hierro de María Cristina, a company in which the Crown was involved, although at the time it was only an idea. Construction of this railway was in three stages, beginning with the inauguration of the Madrid-Aranjuez line in 1851 and its subsequent extension to Almansa and later to Alicante. José de Salamanca Mayol, who would become a prominent Spanish businessman in the 19th century, was involved in this construction project. With control over the completed line in 1856, the Marquis of Salamanca connected with wealthy French businessmen already invested in the railway industry in Spain.
The Rothschilds and others foresaw the creation of the Sociedad Española Mercantil e Industrial, which had Daniel Weisweiller and Ignacio Bauer as representatives, both of whom would play key roles in the future company. On the opposite side were the Duke of Morny and several French administrators of the Chemin de Fer du Grand Central. In the mid-1850s, Spain had few railway lines, despite significant projects in the previous decade aimed at linking all provincial capitals in the country. In 1845, the Spanish ambassador in London recommended and certain banks supported the proposition of a railway line connecting Madrid, Zaragoza, Pamplona, and Barcelona. A businessman took the initial measures for the State to grant it.
The ambitious Madrid-Zaragoza link project was abandoned prematurely due to various reasons. Despite this setback, the project did not fade away. The State declared the line of general interest and made its construction a priority starting from 1851. In 1855, more favorable conditions were offered under the law to encourage potential concessionaires. On February 24, 1856, the Madrid-Zaragoza railway concession was auctioned to the mentioned companies. The concession marked the potential start of a major route from Madrid to the border through the Pyrenees. The Madrid-Zaragoza line and numerous concessions in France enabled the creation of a vast international network. José de Salamanca, owner of Madrid-Aranjuez Railway, recognized a promising business opportunity and contacted the Rothschilds to propose merging their partially-operational Mediterranean line with a joint concession. However, José Campo was also interested in the business. The concession for the line was awarded on February 24, 1856, with five proposals on the table:
Sociedad Española Mercantil e Industrial (Rothschild)
Sociedad de Crédito Mobiliario Español (Péreire brothers)
José de Salamanca
José Campo y Mateu
Chemin de Fer du Grand Central Group
The award was won by the latter group, which in its proposal asked for fewer subsidies from the State. In fact, it gained an advantage after the Rothschilds' agreement with the Marquis of Salamanca. The new company was formed by the Duke of Morny, owner of the Chemin de Fer du Grand Central; Weisweller and Baüer, representatives of the Rotschilds; and José de Salamanca, who contributed the Alicante line. The understanding that resulted between some of the bidders led to the birth of the new company in just a few months.
Establishment
When the Madrid-Zaragoza railway was auctioned, it also sparked the idea of forming a new railway company to combine that line with the Madrid-Alicante line, which was under the ownership of the Marquis of Salamanca. Several names were proposed, including Compañía de los Ferrocarriles de los Pyrenees a Zaragoza y el Mediterráneo. However, the final choice was "Compañía de los Ferrocarriles de Madrid a Zaragoza y a Alicante" (Madrid, Zaragoza and Alicante railway, MZA), which was officially established on December 31, 1856, with a capital of 456 million reales divided into 240,000 shares.
The company's Board of Directors assembled on January 16, 1857. During this meeting, Alejandro Mon was elected president, and José de Salamanca became the vice-president. A central management committee was also formed in Paris. At that point, the company had established the Atocha station in Madrid, and the Madrid to Almansa line was operational, while the section to Alicante was under construction.
Operations (1865-1875)
These years were marked by crisis rather than good results. This period coincided with the economic downturn at the end of Isabella II's reign, as well as her widespread disapproval among many sectors of Spanish society. The Glorious Revolution erupted in 1868, leading to the Six-year Democracy. Following the rebels' success in Alcolea, the queen was forced into exile, and a temporary government was established. The next five years experienced the rule of Amadeo I, the declaration of the First Republic, the onset of the cantonal rebellion, and persistent political instability. In 1875, the Bourbons regained the monarchy under Alfonso XII. This tumultuous political climate affected the company's financial records and future. In 1865, the company experienced severe financial difficulties. These struggles were compounded by a fierce dispute with the Compañía del Norte. However, the greatest threat to the company's survival came in 1868 with an economic crisis. Despite these challenges, Cipriano Segundo Montesino, the first Spaniard to hold this position, assumed management of the company in the following year. Through his leadership, he successfully revived and ultimately saved the company by addressing the root of the problem.
After one year in office, he made some changes to train operations and reduced expenses while increasing operating profits. He also reached an agreement with Norte for traffic distribution and other matters. In 1871, he replaced the old iron rails with steel rails resulting in dividends for shareholders in 1873. The MZA had a network spanning 1428 km and was poised for expansion, not through new construction, but by acquiring and incorporating existing lines facing economic hardship.
Operations (1875-1895)
In addition to the annexations and the expansion of the railways, the MZA carried out a policy adapted to the situation of the country. During this period, known as the Restoration, there was a significant economic upturn, with strong commercial activity and, above all, strong industrial expansion. This situation required the railways to adapt the existing rolling stock of the companies and to improve the network and facilities. In 1876, the company purchased 400 new wagons, which eventually increased to 1000 units. In the same period, MZA underwent modernization which included the commissioning of the first express between Madrid and Seville in 1878. The following year, another express began operating between Madrid, Lleida, and Barcelona. Wagons-Lits equipment was put into service on the Andalusia express on April 16, 1883, and a successful braking system test was conducted on the same express on May 8, 1886.
The railway construction from Aranjuez to Cuenca began in 1884. The line had already been designated for construction by state concession prior to 1880 and was acquired by MZA from the previous construction company. With MZA, the construction was fast and the circulation of trains was ready on September 5, 1885. The line's operation was subpar because it ended in Cuenca rather than continuing to Utiel, which already had a railway, and directly on to Valencia. Despite requests from provincial figures, MZA disregarded them and continued in this manner until well into the 20th century. MZA also planned to construct another rail link with the North, which would begin at Ariza (on the Madrid-Zaragoza railway) and extend to Valladolid, passing through Aranda de Duero.
Conceived as a strategic railway line according to government plans, it became operational on January 1, 1895, marking the end of MZA's railway construction. In contrast, MZA undertook improvements to renovate the Atocha station around 1880. The aim was to transform the small and antiquated building, which was inadequate to meet the needs of the time. In 1889, the company initiated the extension of Madrid-Atocha station after the City Council of Madrid completed works in the area, which until then had been abandoned. The canopy that exists today, with multiple platforms reflecting the volume of trains moving at that time, was finished in 1892.
Operations (1898-1936)
By the turn of the century, MZA had undergone considerable transformation. It had expanded from 287 kilometers of track and 37 locomotives in 1856 to 3679 kilometers of track, 392 locomotives, 9,000 cars and wagons, and almost 11,000 employees by 1900. At the start of the 20th century, MZA and MTM (La Maquinista Terrestre y Marítima) had a strong economic relationship. MTM was frequently placing orders with MZA for materials, making them a regular client. This caught the attention of Madrid-Alicante, who considered buying shares in MTM to gain a percentage of the company and secure better prices for future orders.
The integration of the Catalan Network progressed as the century progressed, and this became more evident when the Traction Service was governed entirely from Madrid from 1908 onwards. In 1925, the two entities were definitively united. A gradual modernization of the network and facilities began, in accordance with the new situation in the new century. On the one hand, the construction of double track began on some sections of the MZA network: it already existed between Barcelona and Molins de Rey with the TBF, while in 1900 a second track was added to the section between Barcelona and Mataró. The experience was repeated in the central region, specifically in the Madrid-Getafe section, in 1913. The following year, the double track extended till Alcázar de San Juan. The network modernization also covered other areas such as marshalling yards and freight stations, which were independent of the large passenger stations' traffic. Among these, the Barcelona-Morrot station, which opened in 1917, and located next to the port of Barcelona, was remarkable. It was equipped with advanced technology for processing and storing goods.
MZA was not exempt and, like other companies, needed to adjust prices to the current situation. As a result, many pending reforms, as well as the modernization of facilities and rolling stock, were delayed or cancelled. This led to a critical situation. The company was able to survive for a few more years, until the start of Primo de Rivera's dictatorship in 1924, when the Railway Statute was introduced. This statute established state aid and subsidies for various railway companies to enhance their outdated and obsolete network and rolling stock. MZA utilized this aid to enhance its network and complete various construction works, including the Barcelona terminus station which was finished in 1929. Other stations from this time period that are notable include Portbou, which was also inaugurated in 1929, and Aranjuez, which was built between 1922 and 1929. The company experienced its best results in its history during the 1920s, thanks to state aid and the company's modernization plan. The company rapidly recovered and grew during this time, but it ended in 1930–1931. Following the Crash of 1929 and the refusal of new Republican governments to recognize the validity of the Railway Statute of 1924, the company's accounts declined along with the overall economic crisis. The question of state aid had reached the point where the state maintained the railways but had no say in their management.
The issue of salaries was under control during the dictatorship, but the new Republic legislation caused an increase in low wages. This complicated the company's survival further. The economic results of 1935 were catastrophic, and the company soon realized that this situation could not be sustained. The nationalization of railways was a consistent topic of discussion, but political instability within the republican governments hindered any effective actions. As a result, the MZA Company persisted with its complex existence.
Chronology of constructed lines
First sections to start operating
From Wikipedia’s article on Madrid, Zaragoza and Alicante railway, shared under CC BY-SA 4.0.3