Perth Amboy evening news., 1904-02-18
FOR PRIVILEGES
Americans Enterprises in Mexico
Are Bled to Death.
Government O%ficiaIs Are Experts NJ
ExtOrting Money-Promlses Made
to Foreigners Never
FULFILLED.

|r Ia AOACA6ACA WIN COnlCluDldUC6 VIII
mencing business of any kind in Mexico
must first procure permission from thu
government In the form of a stamped
document, obtained after much red tape
experience. Failure to obtain this per
mission in the manner prescribed by
law is fraught with dire consequence:
to the delinquent, ignorance of the law
not being accepted as a~plea, says the
Chicago Chronicle.
Furthermore, every blank book which
constitutes the ordinary business office
outfit, ledger, day book, order, sales and
In the government Office. Sales and in
voice books must be stamped on every
leaf. Every bank check drawn must
be stamped in accordance with its face
value. Bills call for stamps to the ex-
tent of three cents for each S.. For
illustration. An invoice made out
by n business house on an
other for $40, 900 must have stamps
pasted thereon to the value of $500, in
payment of which cancellation of the
stamps must be duly executed Failure
to comply with these regulations, If de-
tected, means the infection of heavy
fines.
The revenue thus obtained by the
Mexican government annually is enor-
nous.
The a~nnoyances and at times indigni-
ties which the American must undergo
In the preliminary stages of his bust
ness career in Mexico are intolerable.
The endless round of government m
ployes whose signatures must be OBJ
tanned Is tiresome to a degree. However
insignificant the government repre-
sentative, who at a fixed time must be
seen, one must doff his hat on entering
the portals of the place, just as the foul
smelling and half-naked peon is COM
PEELED to dc, and with whom he cannot
avoid touching shoulders in such institu-
lions, while the atmosphere of arrogant
officialism which is occasionally exhib-
tied makes it a pretty tough PROPOSE
ton for the average American to endure.
The American reader of Mexican in
dustrial literature is informed that con-
cessions Of a liberal character will be
granted by the Mexican government to
all industries and to those who intro
duce new industries the exclusive privi-
lege for a term of years to manufacture.
The applicant for these privileges, how
ever, will find that a very different state
of affairs exists from that which he has
been led to believe. If he have a manu-
featuring process to patent or needs
protection of any kind in the prosecu-
ton of his business warranted by law
the first thing he will probably expe-
rience, unless he engages the services of
a high class and usually expensive law
yer, is that he will be held up for a bride.
Should he refuse to be bled he can be
assured that the vindictiveness of the
Mexican lawyer will be made strikingly
at some subsequent time. He will be
told that no concessions are granted to
promoters Of enterprises who are not
prepared to invest a minimum capital
of 100000, Mexican currency. This
amount icing forthcoming, the sole con-
cessions which will be granted are free
dom from land taxation for a brief term
of years and exemption from the reg
ularly imposed duty on machinery i'm
ported for the enterprise in question.
AS a guarantee of good faith and in
addition to the $1,000 which as a min
imum must be invested, the govern
ment demands a deposit of $4,000 to be
retained in the treasury prior to grant
Ing the concessions specified. There
fore the small manufacturer of modest
capital need expect no privileges or con-
cessions of any kind from the Mexican
government, but in the event of his
finally succeeding in getting his small
plant in operation-many fail in the
effort-he can confidently count upon
being taxed every two months in a sum
regulated by the volume of business his
books show, the minimum mount be-
ing $50.
In the event of the enterprise proving
Improbable the tax is exacted Just the
same, Regularly appointed government
officers inspect the books for the pur-
pose of determining the amount to be
taxed, fines being unfailingly inflicted
If the amount is not paid on the exact
date specified and augmented in alarm
ing proportions for each day of neglect
ed or postponed payment.
The foreigner who, on the strength
Of introducing a new manufacturing in
dustry into the country, and with IDEAS
formulated as a result of perusing Mex-
lean railroad literature, formally applies
to the government for the exclusive
privilege Of manufacturing will be
promptly informed a monopoly or ex-
elusive privilege in any line of industry
in Mexico is against the law, and there
fore will not be permitted.
The principle Of rendering Illegal a
monopoly in any line of business IL a
commendable feature of a government.
but these facts should not be concealed
by railroad and newspaper concerns for
selfish or other purposes. The truth
should be told.