Omaha daily bee., 1885-07-17
MEXICAN FINANCES.

EX.PRRsIDRNT GONZALES PART IN THE PREs-
ENT STATE OF AFFAIRS.
CHICAGO, ILL.,, June 16.-A New York
special to the Tribune says: The Mexican
government is obliged to look in every direc.
ton for funds to meet its immediate necessi
ties, whilethe question of relieving the general
financial difficulties of It's exchequer Is likely to
be one Of years. Among the methods pro.
posed for securing money at once is one which
affects the Tehuantapec railroad project, In
which q large number Of Americans and Eng.
lishmen invested about 81, ,OO0,O The pres
ident of the road was Edward Learned, of
Massachusetts,, George S Coe, president of the
American Exchange National bank, was large
stockholder. They secured a grant and sub
sidy from the M. Xican government for q
road to run from Coatz acoalcas, on the Gulf
cf Mexico, to q point on the Pacific ocean
few miles below La Ventosa. The grant of
land exceeded 100000 acres, and the com
pany expected on an inve. tment of 50, coo, COO
to So 600, 900 to clear not less than $50 900 COD
to $50, 900, 900. Their prospectuses were 80
glowing that President Gonzales, who was
then at the head of the Mexican government,
became jealous of their prospects. Gonzales
entire career was that of royal freebooter,
bent on enrichipg himself at the expense of
the people. 1t is to his Wholesale rob.
berry of the public treasury that Mexico
owes her present embarrassmeuts. BY the
stipulatlons of the grant the railroad company
was to complete certain amount of road in q
given time-forty consecutive milss. They
had more than forty miles completed on time,
but not consecutively, because the Mexican
authorities mad told them repeatedly that this
| would be looked upon in theIspirit rather than
the letter of the grant, Besides, the Mexican
government was behind $40, 900 in its subsidy
| payments, and held $780, coo of cash guarantee
money belonging to the company. Neverthe
less, Gonzales, without moments warning,
declared the grant forfeited The Tehuantepec
railroad company was the only one of three
organizations receiving grant to put shovel
| in the ground. Gonzales avowed his inten-
tion of completing the read himself. The
complications, however, were more than he
and revocation presented under the circum-
stances some ugly international questions.
Besides, the projectors of other Mexican
lines, under similar grants, became uneasy,
and lest they should be treated similarly, re-.
fused to go on with their proposed enter
p!ises. In this dilemma; thinking that the
directors would be unable to act for the
stockholders and that an offer of set
tement would of course be refused,
Gonzales offered the agent of the road
in the City of Mexico $l,600,000 to settle.
The directors were able within four days, in
which time an answer was required, to get
the consent of the stock and bond interests
and took him up. OF this amount $500 00O
has been paid. Another installment of $780,,
900 is past due The Mexican government
has been unable to do anything toward con
tinuing the construction of the road. The
other enterprises have been paralyzsd like
wise President Diaz has great regard for
Americans and Americ, an enterprises. Ir
looking around for means to relieve the
government and replenish the treasury
ne has decided to offer the
Tehuantepec railroad company
renewal of Its grant, to begin just where il
was cut short by Gonzales, on its repayment
to Mexico of the sum of S5OO,00). Telegraml
from the City OF Mexico received here within
day or two announced the departure fol
New York of financial agent intrusted will
instructions and power to negotiate to thi
end. The line of the projected road is abou
165 to ITO miles long, It crosses the noun
tains at only $50 feet above the ocean. Th
projectors " i'll not say what action they pro
pose to take on President Diaz's motion uhti
: his agent arrives here and they learn the full
details,