The Providence news. (Providence [R.I.]) 1891-1906, 1897-03-26
BUSINESS CODE.
Capital Gives Only Right
to Trade in Mexico.
False PretenSeS Are Punished
by Imprisonment.
Europe Furnishes about Every
thing but Mining Machinery.

. OF the information gained during my
late tour of Mexico, probably that result
ing from an investigation of the CONNER
cial code of that Republic Is OF greatest
interest TO the business men and manufac-
turers Of this country, writes w. j. Shaw.
1t is very apparent that the main pur-
pose of the commercial code of Mexico Is
to raise revenue. Its direct secondary
effect is to give to the officials OF the
government such an intimate knowledge
of the business of every individual as to
| render it practically impossible to carry
on business upon capital OF wind as In
the United States The man or firm be-
ginning business must pay anywhere from
50 to $500-determined by the capital IN
vested-for patent The code designates
what books he must keep, and these must
be legalized by stamps and the Govern
ment's printed seal on every page. These
are his sale books, bills receivable and in
ventory. All forms of taxes are called by
the charitable name of contributions.
Every merchant is provided with thick
sheet of paper to hang upon the wall OF
his office 1t is in due form for the pur-
| pose, and the merchant must fasten upon
| it a one dollar stamp every two months.
| escaped my memory. The stamp duties
on all foreign receipts is lilo of per
| cent, and on all domestic receipts,
leases, notes. etc, is 6-l0 OF l
| per cent. Those who keep board
ers are required to pay IL per cent.
| on their receipts which they can never
| dodge, since every boarder is bound, on
demand, to show his receipt for board,
| duly stamped 1t must be understood,
| however, that real estate pays no taxes,
| the idea being to make rents low for the
| people Boarders are assumed to be able
| to pay taxes which they would escape II
| the IL per cent were not levied upon them
through the proprietor of the boarding
! house. A merchant for the privilege OF
selling lard must pay $50 a month,
and other hog products 800 per month.
| Every form OF product entering the city
| for sale must pay tax.
| The law of Mexico holds purchaser and
seller TO very strict accountability. The
| man who orders goods for which he Is
4 not prepared To pay Is liable to immediate
arrest and imprisonment, and the man
| who sells on false representation Is in the
| same boat In fact any element OF fraud
| or false pretense are subjects to arrest
| find on circulating among that class OF
| business men who most need our man
/ ufactured products that, as a rule, they
are wealthy and independent with set
/ notions, Il result of the manner OF doing
\
| born custom. They will not, as q rule,
deal directly with a foreign house. They
| demand that the parties with whom they
| deal shall be under the jurisdiction of
Mexican law, just as they are, From
| him they want to buy, and with him they
want to make their settlement Accus-
| toned to pay by and by as rule they
| resent the demand for Immediate pay
| ment as reflection upon tht ir integrity,
| or, ii assured to the contrary, reply
"Oh senior, fear you represent a weak
| company, and do not desire To be guar
anteed by weak company, that what l
| pay for is what it has been agreed 70
deliver" If you talk of drafts with bills
of lading some of them will not listen to
it, 81 give you my order, senor, i am
bound by it to pay when ! promise;
| Every body knows me, senior. Why should
| give you security?" / find they are men
| who can draw their checks any day foi
$50, 600 or even Sl00 600 who talk in this
way, and they are mostly this class ol
men who buy our machinery.
There is Government inspection Of the
books of every man doing business OF any
kind at short intervals, and he Is not per
| mitted to continue business unless he Ii
financially sound. Before beginning /,
business of any kind the party must pro
| cure n patent and declare the amount anC
character of his capital, subject TO i'm
urisonment for false representation, and
n is thereafter required To keep correc
inventory of all his assets open TO ihspec
ton always The fact is business mar
N Mexico dare not order what he Is no
prepared to pay for. When a man Is com
PEELED to say, II cant pay" and IL appear
that his order is specific, Ii means tw'
wears in prison. 1t Is the same for maj
who receives money for what he does no
or cannot deliver, Again, the stamp act
in connection with the Government in
| spection of all receipts which requir
stamps, renders direct trade with foreigl
concern impossible. For example Gin
! cinnati concern cannot in Cincinnati
| make receipt for money received that /
| any good in the court here, and the concerl
| holding such receipt here must hide IL
The receipt must be given and stampe
here by the concerns representative indi
yiduaily and his signature must cross th
stamp. In word, tho business must b
, done, including collection and settlement
by the resident agent individually. Ther
may he some ready 20 say, but we nav
lost money in Mexico" i would ask i
reply il that has ever happened when th
collection of their claims has been in
trusted To their agent resident In Mcxic
and acting indiyiduallyP Their answe
, will probably be, No. After full examinf
tion, | am OF the opinion that if done i
the manner indicated, Mexico Is the safes
country perhaps in the world in which {
do business.
The Country's Opal Mines.
From Guadalaiara 10 Quarctcro, vi
1rapuato, the strawberry town, the roa
! runs through succession of hacienda
highly cultivated in corn and swarmin
with cattle Both the excellence of th
crops and numbers of small lakes indica'
that the country Is plentfully watereo
| Tho lakes would make the country pal