El Paso daily herald. (El Paso, Tex.) 1881-1901, 1897-11-05

merchants at exorbitant rates. Igno
, capital has done more than anythin
else to ruin the farmers of the wester
states, and, by retarding development
lower the price of labor.
1t is q lamentable fact, perhaps ~
known to the majority of our peopl
that, with certain isOlatad exceptions
every American enterprise, let Il
prospects aud advantages be never s
well proved, is, in Europe, looked upo
with suspicion, our vote-catching pol
tlcians having SO thoroughly destroyer
the confidence of foreign investors /
our individual and national integrity
The time has been when the tern
''American" was throughout the worl
| held to be synonymous with honesty
few Americans doing business abrOa
find it so at the present time-quite tn
| reverse.
Considering the widespread suspicion
| of everything in the way of American
| Investments, it was not surprising tina
the Rio Grande Dam & Irrigation Com
pany signally failed to place it's bonds
but the directors Of the company, being
assured of the unanimous support OF the
intelligent land owners in the valley
and recognizing that unless early steps
were taken to impound the flood waters
of the Rio Grande, the farming interes,
in the valley would, for the most part
speedily fall into desuetude, continued
to persevere in their efforts to carry
out the objects of the company. Find
ing that, in the state of the American
money market, it would be impossib BILE
to place the shares or bonds of the COM
pany at home, and believing that in
vestors abroad would be more likely to
entrust their money to An English COM
pany, managed by an English board of
directors of high rank and standing,
responsible to the shareholders under
English law, the directors decided to
RAJ. raise the capital necessary to carry out
the proposed irrigation works, by leas-
ing to an English company, to be incor-
porated under the laws of England, the
Rio Grande Dam & Irrigation Compa-
ny's (the New Mexican company fran
chise rights, privileges, and under
taking.
Counsel's opinion was taken in Lon
don--Mr. Newton Crane, an American
lawyer of high repute and many years.
experience practicing at the English
bar, an acknowledged authority upon
all matters pertaining to American law
ShN - SSSout q ouNio1dH bao uhO OCSU
legal advice obtainable was taken at Ell
Paso, in New Mexico, and at Washing
ton as to the legality of the New Next
can company's rights, aud the proposed
lease. Upon being satisfied that q lease
giving control only of the American
property could not be con-
,trued by the most violent of the ig-
norant lingo anti-English party, as con-
shutting the owning of real estate, or
Is violation of the alien act, the Eng
IF directors, consisting of gentlemen of
high standing was, with
great difficulty. formed: capital was I'M
and shares and debentures
Of the English company were issued to
The public.
Largely upon the strength of the
nigh rank and representative character
If the board of directors, capital was
and subscribed and in the
course of few weeks after the public
ssue of the English company's pros
oectus, its chairman visited the Rio
irande valley on behalf of his compa-
~, and being again assured that the
New Mexican company's titles were
and his company's lease
egal, made arrangements with the di
'ectors of the New Mexican company
Whereby the English company would
provide the capital to carry out the
irrigation works. In add i
ion to the large sums expended by tn e
New Mexican company on its property,
md in trying to place its bonds
.broad, in endesvoring to overcome the
strong prejudice in Europe against
American investments, in forming and
tie English company,
md in underwriting its capital, large
amount of English capt. al has now been
in carrying out permanent
irrigation works on the Rio Grande.
The directors of the English compa-
ny, being satisfied that their capital
was secured by valuable property.
ind never for a moment considering it
possible that high American officers of
state could be capable of secretly plot
ing to invalidate the valuable rights
by a previous administration,
were prepared to provide the balance
Of the money required to carry out the
W hole of the proposed irrigation works
and the other objects of the New Mexi-
can company.
Encouraged by the promising future
Of this new Anglo-American enter
prise, the extensive publicity given to
the undertaking by the lar. e amount of
illustrated printed matter
issued by the company, and by the ex-
ceptional press support accorded to
what was widely commented upon as
deserving attempt to regain the conf
dence of the British public in Ameri-
can undertakings, English investors
evidenced an inclination to become
less distrustful of American
honesty, the market for American Sc
curities generally improved, and the
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