The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-08-17
GILL S. PEYTON
TALKS IN MEXICO
Former Salt Lake Mining Man
Says Southern Republic Is
Driving Capital Away.

That millions of dollars of capital,
which had been intended for investment
IN Mexican mining enterprises. had al
ready been turned to other countries by
the adverse influence OF the present ag-
itation regarding article IA of thc pro-
posed new mining laws Of Mexico. is
the opinion of Gill S. Peyton of Phila-
delphia, and formerly of Salt Lake,
heavy shareholder in the CincO Estrel-
las Mining company in the state of Ia
catecas, who has just returned from
trip to the United States and is stop
ping at the Hotel Porter, says the Mex
lean Herald. Mr.. Peyton is accompan-
led by NJ. l.. Smead, also heavy stock
holder In the Cinco Estrelas. and will
spend several days in the city before
going TO the mines.
Discussing the proposed changes in
the mining laws, Mr.. Peyton said:
'I had the adverse effects which the
proposed changes are causing brought
very forcibly to my attention while in
the United States. The papers in that
country desiring TO keep all the capital
possible at home are making great cap
ital out of the agitation now going on
in Mexico regarding the revision of the
mining laws, and are making an heroic
effort To see that capitalists all over
the world are fully Informed as TO the
changes proposed.
Investors Are Worried.
"A great number of business men,
who have money invested in Mexico
in mines and industrial enterprises.
came TO me while in the United States
with clippings from various papers in
imical to foreign investments or 10 for
eigners and many inquiries were made
both by people who are now interested
and who are being solicited to become
interested in various Mexican enter
prises, as to whether in view of the
sentiment back of the agitation, con-
sidered investment of capital in Mex
ico safe.
Men who are contemplating invest
ment in the state of Zacatecas and who
contemplated putting in expensive I'M
provements at many of the mines or
that state have become alarmed and
are declining 10 further consider in
vestment in any form in Mexico until
the measures now under considera-
ton shall be definitely settled. If the
proposed mining law is passed without
modification, II will be the means of
checking the development of Mexico,
particularly / have in mind, Zacatecas,
where my company now has something
over 5000. 900 invested at the present
time. for the next twenty years to
come.
Capital is being attracted at the
present time In large amounts 10 South
America. to Brazil and TO the Argentine
republic. and the western part of the
United States is also taking large
amounts of American capital, and any
country which desires foreign capital
for investment must offer inducements
10 that capital. for capital naturally.
all other considerations being equal,
prefers TO ind investment at home to
seeking for it abroad, and ii is only
where. as has been the case in Mexico
I'm the past, the inducements for prof
liable investment are great that II is
attracted to those particular sections.
Bad Time for New Law.
1T is. in my opinion. an unpropitious
time 10 seek to alter the conditions
surrounding the investment of capital
in an industry which means so much
for the development and progress of
this country. as the development of the
vast mineral resources of the republic
means to the national prosperity and
progress Financial conditions are I'M
settled everywhere Investment CAPT
tai is scarce all over the world and
many promising propositions are going
begging for funds to properly finance
ducements are held out TO those with
idle money to invest. so that to assail
capital either directly or Indirectly by
adverse or impeding legislation in Mex
leo cannot fail to work inestimable
hurt to the country at a time when
capital is badly needed TO bring out the
wonderful natural resources of the
country, and al a time when those re-
sources and the advantages afforded
capital hitherto were just beginning TO
become known to the investment world
Mines are not found. they are built,
and to build them requires immense
capital and answering confidence and
patience Expensive machinery and
modern plants are but the beginning
of a mine, and the men who supply
this money are not going to put it up
for investment in a country where there
Is the slightest doubt of its security, or
where they apprehend any hostile feel
ing as 10 the investment"
Mr.. Peyton will spend several days
here and then will visit the mines for
an extended stay.
Senior Luis Martinez de Castro. SEN
ator from the Mexican state of Sinaloa,