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This study examines the railroad policy of the Diaz Government in Mexico and the process of the Diaz government power consolidation. For Diaz and his supporters, the railroads constituted the key to the nation's future. Diaz argued that construction of railroads in Mexico would serve three main purposes. First, railroads would allow the nation to develop its rich natural resources, Secondly the railroads would stimulate Mexico's internal commerce, industry. Finally railroads would "cement Mexican Unity" by allowing the control governments to consolidate its political and economic power over the nation. The construction of an extensive railroad network expanded to almost 21,000 by 1910. All but six of the state capitals and five of the principal seaports were connected by rail with the national capital. But since the railroads favored those with capital and power, they exacerbated the economic inequalities in Mexican society. Under Diaz, foreigners were assured of definite and generous returns ; they also the enjoyed tax exemptions and were given protection in the courts.