The Madrid, Zaragoza and Alicante railway (MZA) - also known in Spanish as Compañía de los ferrocarriles de Madrid a Zaragoza y a Alicante - was a Spanish railway company founded in 1856 that became one of the most important companies in the railway sector, along with its great rival, the Compañía de los Caminos de Hierro del Norte de España (known simply as "Norte".)
The rivalry between MZA and Norte stemmed from competing financial families at the time, namely the Rothschilds and Pereires. MZA rapidly expanded its railway concessions to encompass key routes in Extremadura, New Castile, Andalusia, and Levante, thereby gaining control of a significant market. MZA also constructed Atocha Station in Madrid, del Carmen Station in Murcia, Campo Sepulcro (later El Portillo Station) in Zaragoza, and Plaza de Armas Station in Seville, which is also recognized as Cordoba Station and presently transformed into a shopping center.
At the turn of the 20th century, MZA reached its operational peak, but soon after, the company was hit by crisis. The Spanish Civil War marked the end for MZA, as the company was condemned when the Spanish State nationalized all broad gauge railways in 1941. As a result, MZA ceased to exist.
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. 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.
Start of operations Soon after its establishment, the company focused entirely on constructing the railway to Zaragoza. However, the preliminary project originally proposed building a Madrid station near Puerta de Recoletos (nowadays Plaza de Colón). Despite this, the company lacked interest in constructing a new station in Madrid. Consequently, the construction of the Aragon line commenced from Atocha station, and it proceeded without significant difficulties. In 1859, the railway had already reached Guadalajara, prompting MZA to establish a stagecoach service between the city and Zaragoza. By 1861, with further construction underway, MZA entered into an agreement with Compañía del Ferrocarril de Zaragoza a Pamplona to operate a Madrid-Paris service via Tudela, Pamplona, and Bayonne, designed to compete directly with Compañía de los Caminos de Hierro del Norte de España, and lasting 54 hours.
From the outset, MZA's leaders aimed to construct new branches to La Mancha, Extremadura, and even Andalusia. The Government developed a construction program and tendered some line contracts in support of this objective. On March 30, 1859, a law was passed to establish a new Andalusian line that would run from Manzanares to Malaga and Granada. The MZA secured a concession for the first two sections of this line on October 20, 1860. The auction at Alcazar de San Juan was scheduled for April 8, 1859. For unclear reasons, Bauer and Jose de Salamanca decided to employ the services of a front man - the wealthy local landowner, Marquis of Villamediana - who successfully obtained the concession against banker Guilhou. Finally, as agreed, the MZA received the concession on April 20. To conclude, on November 8, 1859, José de Salamanca was granted permission to construct a railway between Albacete and Cartagena. The transfer of this project to the MZA was authorized on April 30, 1860, by Royal Decree. Even though the track reached Guadalajara in the spring of 1859, it had to be transferred to a stagecoach service in Alhama de Aragon for a substantial period. The missing link was finally completed in May 1863. The initial years of operation were troublesome, and the initial French directors of the company were determined to enhance performance and turn a profit.
Expansion of network in La Mancha and Andalusia From the outset of the company, there were plans to expand the network to the southern regions in preparation for acquiring key routes to Andalusia and its ports, as well as through La Mancha. In December 1858, shortly after its establishment, the company made its initial acquisition, the Compañía del Ferrocarril de Castillejo a Toledo, owned by the Marquis of Salamanca. However, this annexation only entailed acquiring a small branch line to the historic city of Toledo. The La Mancha and Extremadura lines will follow soon, as well as those of Andalusia, which could commence in the great Madrid-Alicante line, the major Mediterranean line that runs through much of the lands of La Mancha.
Starting from Alcázar de San Juan station as a base, the railway line to Ciudad Real was established. The auction for the railway was announced on April 8, 1859. Initially, the Company planned to participate in the auction but later decided to do so indirectly through its advisors Salamanca and Baüer, who in turn negotiated an agreement with the Marquis of Villamediana. He presented himself at the auction and won by reducing his bid for the State subsidy from 18 to 15 million dollars. The concession was granted to Antonio de Lara, Marquis of Villamediana, who then ceded it to MZA on April 20. Construction began immediately.
Construction on the line progressed smoothly due to the absence of challenging geographic features. The stretches from Alcázar to Manzanares were completed in June 1860, followed by Daimiel on October 1 of that year. Finally, Ciudad Real was reached on March 14, 1861, even as work on the Zaragoza line was yet to be completed.