New-York tribune., 1903-01-05
L. S. MONEY IN MEXICO.
Consul Generals Report Shorcs
4bom $500. 900. 900 INFESTED.

According to a report recently received here from
Andrew D. Barlow. United States Consul General at
| the City of Mexico. Americans making wonder
fuI strides in obtaining control Of of the largest
lines OF business in that country Consul General
| Barlow for instance, has estimated that Americans
control 20 per of the railroads of Mexico
that is they hold 20 per cent of the total securities
outstanding in the railroads. He estimates that
Americans have about $50 100000 In Mexican mines
and adds the comment that the introduction of
American mining machinery is making the business
profitable in of the abandoned mines Of
that rich mineral country. About s2sooo.ooe of
American money is invested In Mexican agriculture
In the City of Mexico alone it is estimated that
1920 500 900 of American money is invested. and the
total amount of American money in the country is
put. in round figures, at s50o0o0.no0.
The Consul General significantly says;
The impetus given to Mexico's industries by this
enormous augmentation of the nations working
Industrial progress which @ It has mace dIrg @ IeT
selling 50 per cent OF all her exports to the United
American capitaI in Mexico the commercial bond
between the sister republics is one that can hardy
Ing in Strength The flow Of American capital into
this republic has apparently Only begun Eacn year
United States. The community of interest IS groW-
ing daily. and certainly makes Tor harmony between
the nations
Mr. Barlow's report. in substance. is as follows:
More American capital is invested in the rail-
roads of Mexico than in any other single line
tat 4
can capital dominates. All Of the important rai-
roads in Mexico Except the International. which
runs betv-een this city and Vera Cruz and was re-
Gently acquired ny the Mexican Government; the
! Mexican Railway. which also runs between this
city and Vera Cruz and is controlled by English
capitaI and the National Tehuantepec Railway
which is being reconstructed bF- s. Pearson Son.
of London, under contract with the Mexican Gov
ernment are owned by American capital
A large amount of American capital has been
invested I'm the railroads of this country within the
last two years the Mexican National Railroad hav-
ing passed from British to American control. ana
the Mexican Central. always American. having &C
CURED short Tires which were not owned oy
American capital Since the construction of the
Mexican Central by Americans. some twenty years
ago United States capital has always been the
strongest factor in Mexican railroads. and at pres
I ent constitutes about 50 per cent Of the total
capital invested in railroads in this country In
this than anything else. American capital
has contributed TO the development Of Mexico Il
can be truthfully said that Mexico owes most Of
her material progress to the building OF rail
roads through her territory American capital has
followed the steel rail and so has other foreign
ca pitaI and native capital as we'll Nothing makes
for the development of country 50 much as rail-
roads. Mexico and the United States are bound
together fguratively and literally by bands of steel
The Mexican Central Railroad represents the
largest single American interest in Mexico The
amount-s15S 999 .979 45-giveu the capital en-
ployed represents what has actually been paid out
up to the present time for the construction and
equipment Of the road. The Mexican National is
the next strongest. with capital invested Of
s107,35O 09J. This entire amount has not actually
been spent the construction and equipment of
the road up II date. but it viii be within the next
year
MINERAL WEALTH INCREASED.
Next in Importance to the railroads from the
standpoint of American capital invested is the min
ing industry. Since the time Of Cortez mining has
been the principal source Of Mexcos wealth. The
amount invested by Americans in mining in Mexico
may be stated, In round figures at 100000.
This Is comparatively small percentage Of the
total amount Of capital invested in Mexican mining
properties Yet large amount of this $So00oo0o is
invested in up to date mining machinery, which is
competentiy handled and Nexico's mineral wealth
has been greatly increased by this American invest
ment. Mines that were given up years ago. and
mines that could not be worked at all account of
the low grade of the ores can now be proftabiy
worked by the newer methods. for which Mexico is
mostly indebted to Americans The increased out
put of Mexican mines, well the opening up of
new mining districts. is largely due TO Americans.
through The developnient of the country by rail
roads built BY our capital Thus taken on the
Mexico's principal industry than the amount in
vested indicates on the surface
Agriculture comes after mining in the amount OF
American capital invested. with s2s,oD00oo- Esti
to make It is certain that many of the so-called
gerated the amounts Of capital acLuay invested oy
them The first cost of virgin land in the tropics of
/ ~
a liberal average. Development work is expensive
and some of the older companies have doubt
spent considerable sums in improving their proper
ties: but In general way the monthly payment
cornpanies have invested much in Mexico, how
ever much the small investors have paid to the
promoters the privilege of holding stock IN their
romnanies Legitimate investments in Mexico may
he expeCted 10 pay reasonable returnS-perhapS a
larger percentage of profit than the same amount OF
ises Of 200 500 per cent profit in five or ten years
can he set down : fakes pure and simple 1he
da vs. and the small investors IN the Cnlteo States
will have lot of pretty engraved shares Of stock
and some more less valuable experience 70 show
for the money they have invested
Rubber culture in Mexico is as Yet purely IN the
exDsriu1entaI stage. and no reliable statistics or
information be given concerning its probability
nj surras@ Promises of dividends by companies
wbo nropose TO engage in the rubber growing nuSi-
ness n re purely speculative and theoretical Other
American agricultural companies VINO propose 70
raise various tropical products NAV or may not pe
successful Some are successful but they are COM
oaratfveIv few It is safe "a advise any person not
to invest any enterprise IN Mexico WlLnout nrst
g5sitf1e rhe country personally and Thoroughly
investigating the proposition ana the local coioi
tions-
OPENINGS FOR AMERICAN CAPITAL
Another erroneous idea which seems TO be quite
common among Americans resident IN the thlted
stetas ts that Mexico is a good place for persons
of yr,,u means to come to engage in sgricult-
-, Or other ptirsuits In most cases II is not.
A. 3, The case OF investments on a small scale IN
entArDrisss in Mexico person should decide 10
CONC here 10 live and engage ia business without
est t,a~senaiIv visiting the country and thor
nIs3 @ ;,,Jeetisating tho local conditions. While
80 ,,.tl ,an b. said favor OF the tropical aEri-
rfittlral companies. there are sreat many lestl
- A,nerfran tai--soTn@ very sEcceS@iuI--anu
tbsre is DOUBTLESS large iisld here Tor conserva-
tive Investments Of American capitEI ~ tniz Ine
Manufacturing Is industry IN which american
capitaI Is only beginning 10 assume importance