Los Angeles herald., 1908-08-06
SOUNDS WARNING
TO OLD MEXICO
IF FOREIGNERS ARE BARRED
DISASTER FOLLOWS
ANY CHANGE IN MINING LAW
ARRESTS PROGRESS
Secretary of the Chamber of Mines
Reports on Political Scheme to
Crush Backbone of South
ern Republic


Nolan read a report he had prepared
on the proposed amendment to the
Mexican mining laws and submitted
resolutions against such a step. Inc
resolutions and report We're ADOPTED
and accepted and copy of each Tor
warded to the proper officials at the
City of Mexico.
Nolan reused his auditors to action
by the scholarly plea for foreign IN
terest in Mexico and sounded warn
ing to the neighboring republic against
taking step which would be disas-
trous to the progress and welfare OF
Mexico, discouraging foreign capltaI
which had done so much in making
the republic what it is today. Nolan
declares that any legislation arresting
development would curtail the labor
market and seriously cripple all other
industries.
Nolan's report, which is conserva-
tive, accurate and the best argument
yet written against the proposed
amendment, Is as follows:
"Your secretary, to whom was re-
ferred the matter of drafting a memo
rial and resolutions in the matter or
proposed new mining legislation by the
republic of Mexico, affecting foreign
| interests, vested and otherwise, begS
leave to report the following, and in
doing so acknowledges valuable assist
ance from ]. Nelson Nevius, 70. M,
member Of this chamber who has
spent many years in Mexico.
1.-THE mining laws of the Mexican
United States during the past thirty
years-the period of that nation s
transition from a chaotic condition to
it's present exalted position as tram
quill prosperous and powerful nation
have been, and still are, extremely lib
eral to aliens, who are permitted equal
rights and privileges with Mexican citi-
zens in locating, owning and operating
mining claims throughout the repub-
| lie, except in narrow. zone along the
United States boundary, where certain
restrictions are made for good and OBJ
Vious reasons.
Praise for President Diaz
"These concessions were granted as
part of the profound wisdom of the
brilliant administration of President
Diaz in order to induce foreign capital
to enter Mexico and assist in develop
| ing her great mineral resources the
government realizing that the Mexican
people lacked sufficient capital to ac-
complish this themselves.
"Owing to this wise and liberal policy
| toward foreigners and to the confidence
the world soon learned may safely be
reposed in the Mexican government to
protect both life and property, foreign
capital has accepted the invitation to
develop the Mexican mineral industry
and has poured itself into the country
in a constantly increasing volume. BY
the use of this foreign capital the min
ing industry of Mexico has assumed
proportions that are astonishing the
world, yet the development is still in
its infancy.
1.-THE present Importance of this In
dustry is indicated by the following
data which appears in pamphlet is
sued by the industrial agent of the
Mexican Central railway. 1t states
that 4S per cent of the freight trans
ported by that railroad consists of
mine products and mine supplies. The
production of gold and silver in the
| twenty-nine years from 1878 to 1906
was /. 746, SCI, ,206 pesos. In the former
year the production was 5310,S15 pesos,
from which figure it increased to 112,-
014,937 pesos in the latter year.
Prompt Amendment
Recently President Diaz appointed a
committee of five, including Lie. Oil
carlo Molino, secretary of Fomento, to
draft certain amendments to the min
| ing law. This committee incorporated
the following articles in it's draft of
proposed amendments
| "Article 141-No title deed for mining prop
|
properties within the bounds of border states,
/: they do not previously obtain special per-
mission from the executive of the union. This
requirement will also be exacted when the
| announcement is made conjointly by foreign
| ers and Mexicans If the permission is refused
the ground shall be declared free and the
same effects as those consequent on voluntary
abandonment of announcement, as set forth
| in article SO, will follow.
| article 142-The permission mentioned In
| the foregoing article will also be necessary In
order that foreigners may through any other
process come into possession of mining prop
| critics or liens thereon in any of the border
| states or territories
ARTICLE 144-Foreign corporate bodies are in
| capable of denouncing and acquiring hence
| forth by any process, either mining proper
| ties or liens thereon within the territory of
the Mexican republic.
Secretary Molina says that these
articles are precautionary measures for
the purpose of putting all mining COM
panies under government control so
as to exclude or prevent monopolies
and trusts-that their object is not to
exclude foreign capital, and he does
not believe that this enactment would
have that eeffct-but that they would
eliminate the existing possibility of
diplomatic difficulties arising through
the desire of a foreign government to
protect it's citizens abroad.
Articles. Arouse Protest
| ''TheSe articles nave aroused a VlSor-
Gus protest both from prominent Mex
leans and from foreigners having
vested interests in the Mexican mining
| fields, and Secretary Molina has in
vited the fullest discussion Of the pro-
| posed amendments.
Lie. Rodolfo Reyes, one of the COM
mittee appointed by the president to
draft the amendments, differs in opin-
ion from Secretary Molina in believing
that the enactment of these articles
would greatly restrict, If not bar, the
| investment Of foreign capital in Mex
| ico,' and, in a mastery discussion of
| the subject, he points out that their
enactment would be disastrous to the
mining development of the republic;
that they do not constitute the best
method of insuring the diplomatic Sc
curity desired, and that they would en-
tail hardship on existing foreign vested
| interests.
1.-THE Mexican chamber of mines, by
a unanimous vote, decided to. ask the
| government to suppress article 144.
| During the discussion Jose L. Riquena,
president of the Dos Estrellas Mining
company, spoke in part as follows:
'Artice IA prohibits foreign companies from
acquiring by any means title to mines or real
rights in them. II this prohibition should be
| adopted the national mining industry will re-
given to its growth and prosperity Mexico
Is a country Of great natural resources, but
poor in capital. If we need foreign capital We
Will have to leave the management of the
business and the administration of the COM
panies in the countries Of their origin There