Arizona weekly journal-miner., 1903-03-04
IN
 OLD MEXICO
Millions of Dollars Going Into That Country From the United
 States.
Good Advice to Small Investors m This Country From an Author
 tative Source.

low, or Mexico City, Will give some thing of an idea of the millions of dollars of American wealth which is being invested in our sister republic ::
 "'In round figures $500. 900. 900 gold
 is the amount of American capital in- vested in Mexico by 1l17 American companies, firms and individuals.
 This amount practically has all been invested in the past quarter of a cen tury, and about one-half of it has
 been invested within the past five years.
 The impetus given to MeXico's in dustries by this enormous augmenta- tiOn of the nations working capital accounts in no small degree for the great industrial progress of the repub- lie during the past twenty-five years.
 With Mexico buying 5S per cent of all
 her imports from the United States and selling 80 per cent of all her ex
 ports to the United States, and with this enormous investment of American capital in Mexico, the commercial bond between the sister republics is one that can hardly be broken. It is one too, that is constantly growing in strength. The flow of American capital to this republic has apparently only begun. The community of inter- ests is growing daily, and certainly makes for harmony between the two nations.
 More American capital is invested in the railroads of Mexico than in any other single line-about 70 per cent of the total. In this line American capital dominates.
 'The Mexican Central railroad rep resents the largest single American interest in Mexico. The amount Sl5S. 999, 979. 45-given as the capital employed represents what has actually been paid out up to the present time for the construction and equipment of the road
 Next in importance to the rail roads, from the standpoint of Ameri- can capital invested. is the mining industry. Since the time of Cortos, mining has been the principal source of Mexico's wealth. The amount in vested by Americans in mining in Mexico may be stated in round fig ures. at $50, GOO, GOO
 ''This is a comparatively small per centage Of the total amount of capital invested in Mexican mining proper ties. Yet large amount of this $50. 900. 0OO is invested in up to date min ing machinery, which is competently handled, and Mexico's mineral wealth has been greatly increased by this American investment. Mines that were given up years ago, and mines that could not be worked at all on ac count of the low grade of the ores, can now be prOfitabIy worked by the newer methods. for which Mexico is mostly indebted to Americans. The increased output of Mexican mines, as well as the opening up of new min ing districts, is largely due to Ameri cans, both through the improved min ing methods and through the develop ment of the country by railroads built by our capital. Thus, taken on the whole. American capital is a stronger factor in Mexico's principal industry than the amount invested indicates on the surface.
 Agriculture comes after mining in the amount of capital invested, amounting to about S28. GOO. GOO.
 "The first cost of virgin land ill the tropics of Mexico is very small-say, J0 cents to S5 per acre as a liberal average. Development work is expen- sive. and some of the older companies have no doubt spent considerable sums in improving their properties; but in general way, the monthly payment companies have not in vested much in Mexico. however much | the small investors may have paid to the promoters for the privilege of holding stock in their companies. | Legi innate investments in Mexico | may be expected to pay reasonable re a larger percentage of profit than the same amount of money | could earn in the United States-but | promises of 200 to 900 per cent profit | in five or ten years can be set down | as fakes pure and simple.
 Many wealthy Americans and | other foreigners. as we'll as MeXicans. | live in Mexico, and have their money | invested here, being generally well | satisfied with To to h per cent profit. The whole isthmus of Tehuantepec | and possibly the entire tropical sec tion of Mexico could be bought by | capitalists residing in this city, and if there were any sure 200 per cent in | vestments to be made in. that region | they would certainly be taken up by | persons on the ground who are thor oHghly familiar with the conditions | there The speculative bubble will | be pricked one of these days. and the | small investors in the United States will have lot of prettily engraved | shares of stock and some more or less | valuable experience to show for the money they have invested. This does Mexico and Americans no good.
 ''I am in receipt of an average of | ten or more letters each week from persons of small means in the United | States. who desire to invest in tropical | agricultural companies operating or claiming to operate in Mexico. asking | for information and advice concerning | such companies and investments. One | reply covers the whole grOud. That | is. first. that rubber culture in Mexico | is as yet purely in the experimental | stage. and no reliable statistics or in formation can be given concerning its probability of success.
 Promises of dividends by com panies who propose to engage in | the rubber growing business are purely speculative and theoretical. Other American agricultural com panies who propose to raise various tropical products may or may not be successful. Some are successful, but they are comparatively few.
 CT would not advise any one to in vest in any enterprise in Mexico with