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In the meantime, Dagny had another problem to deal with: the San Sebastian Line into [[Mexico]]. James Taggart had opened that line after Francisco d'Anconia had driven a mine into the [[Sierra Madre]] range. Dagny knew full well that Mexico, which now called itself the ''People's State'' of Mexico, would soon [[nationalization|nationalize]] the mine and the railroad line. In anticipation of that, she started moving as much rolling stock and as many locomotives out of Mexico as she could. She cut service to one passenger train a day (pulled by a [[wood]]-burning [[steam]] [[locomotive]], not a modern [[Diesel]]-electric locomotive) and one freight train every other day. Jim found out about these service cuts on one of his Washington political trips, and tried to order Dagny to rescind the cuts, but she refused.
 
In the meantime, Dagny had another problem to deal with: the San Sebastian Line into [[Mexico]]. James Taggart had opened that line after Francisco d'Anconia had driven a mine into the [[Sierra Madre]] range. Dagny knew full well that Mexico, which now called itself the ''People's State'' of Mexico, would soon [[nationalization|nationalize]] the mine and the railroad line. In anticipation of that, she started moving as much rolling stock and as many locomotives out of Mexico as she could. She cut service to one passenger train a day (pulled by a [[wood]]-burning [[steam]] [[locomotive]], not a modern [[Diesel]]-electric locomotive) and one freight train every other day. Jim found out about these service cuts on one of his Washington political trips, and tried to order Dagny to rescind the cuts, but she refused.
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Not long afterward, the People's State of Mexico did indeed nationalize the mines and the line. James Taggart's response was to take personal credit for the service cuts and the withdrawal of locomotives and rolling stock, and to call for the resignations of the two officials who represented the TTRR in Mexico, this although whether they could have done anything to stop the [[nationalization]] was debatable at best.
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Not long afterward, the People's State of Mexico did indeed nationalize the mines and the line. James Taggart's response was to take personal credit for the service cuts and the withdrawal of locomotives and rolling stock, and to call for the resignations of the economist who had written the report recommending the San Sebastian Line, and the TTRR's representative in Mexico, this although whether either man could have done anything to stop the [[nationalization]] was debatable at best.
    
Though the nationalization did not surprise Dagny in the least, the next revelation did: that the San Sebastian Mines were worthless. Francisco d'Anconia had in effect driven his mines into a mountain that yielded nothing of value. Dagny went to see Francisco at the Wayne-Falkland Hotel in [[New York City]], where he had a permanent hotel suite. Francisco refused to explain his seemingly negligent action, and instead talked airily of how surprised and embarrassed the Mexican authorities must have been when they discovered the truth. He then left her with this clue:{{cquote|Contradictions do not exist. Whenever you find yourself faced with an apparent contradiction, check your premises. You will find that one of them is wrong.}}
 
Though the nationalization did not surprise Dagny in the least, the next revelation did: that the San Sebastian Mines were worthless. Francisco d'Anconia had in effect driven his mines into a mountain that yielded nothing of value. Dagny went to see Francisco at the Wayne-Falkland Hotel in [[New York City]], where he had a permanent hotel suite. Francisco refused to explain his seemingly negligent action, and instead talked airily of how surprised and embarrassed the Mexican authorities must have been when they discovered the truth. He then left her with this clue:{{cquote|Contradictions do not exist. Whenever you find yourself faced with an apparent contradiction, check your premises. You will find that one of them is wrong.}}
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