Bisbee daily review., 1910-09-04

fsts in the good faith of the govern ment and the security of their in. Ivestments.
 ! Under the terms of the merger, arrangements have been made by | which the bonds will be redeemed before the expiration of the conces- sion. through sinking fund. But
 the value of the stock expires with the concession, when in any case
 the stock would be almost worthless. !, According to the Mexican Journal of Commerce. the foreign capital invest ed in Mexican railroads up to the end of 1903 was s767,151,S4S, Mexican cur. rency. Although at present this must
 be divided nearly by half, owing to the depreciation fin silver. much of the money was expended when silver vas s1.29. Of that large total so per cent. is assumed to have been contributed by the United States. Since that date the Southern Pacific of Mexico has embarked on it's vast scheme of railroad construction. which is estimated will cost $70.0O0, 900 in gold.
 The South American Journal, pub 'ished in London, states that the in- vetments of British capital have reached e13s.247 ,ss1,~ or, say. ses0.. 000.00o. of which, however, about one half is in government bonds. Mexi- can railroads owned by British con- panies have issued EiT,3os, 900 Of se- curities, and on railroads owned and controlled by the Mexican government over f37,000. 900 have been expended. Of British and Canadian capital, there is said to have been invested in street railroads. power plants, ranch es, and other industrial enterprises,
 f14.510.741. and it is proposed to in- vest not less than e10000. 900 in Chi huahua lumber and railroad schemes. The advantages of the freest inter- change of capital between countries in return for national products, and for providing means for industrial de velopment, are generally admitted
 and most communities, if they have neither the money nor the skill to
 utilize their resources, rejoice if for
 eigners enter and aid them. provided
 the foreigners, in so doing, obey the
 law. But there are national suscepti
 bilities as well as statutory laws
 which must be observed is foreign
 money and foreign skill and influence
 are to be welcomed in d foreign coun
 try. If we compare the conditions
 of industrial life in the United States and in Mexico we will recognize striking differences which may re
 quire special treatment.
 The investment of foreign capital in national companies under the man, agement of natives and employing na, tive labor can be regarded only as
 beneficial to the country receiving it. Nor need it give rise to jealousy.
 Enormous amounts of money are sought for and transmitted from En-
 gland. France and Germany, to be employed in building railroads and , in conducting industrial enterprises ] in the United States. But with few exceptions the management is ex- clusiyely in American hands, and the law forbids the importation of contract labor In Mexico the conditions are the reverse Until recently the rail
 roads were owned by foreign corpora ltions-their boards were composed of
 foreigners and the best paid posts
 both in the administrative and the op-
 erating departments were filled by | oreigners. Under such circumstances Tiff from DO other coasideration-it
 was a wise measure of Senor Liman-
 tour to acquire the North and South trunk roads and to control most of the other principal highways of traf' lie In a prospectus of the Nation
 al Railways of Mexico" NIT. Bennett,
 the vice-president, says that "the
 company now owns by direct owner lship the properties formerly known
 as the Mexican Central railroad com
 pany, Ltd, National railroad company
 of Mexico, and Hidalgo and North
 Eastern railroad company, Ltd; and Icontrols through stock ownership the ixs1~;oo. v,<o~o,tirno1 -a=I-oad ,or, Ipany, the Interoceanic railway of Mex
 leo (Acapulco to Vera Crux), Ltd, the lTexas-Mexican railway company, and the total mileage is 69S7 miles,"
 The action of the federal admins tration and the national congress, IT II iforestalling the acquisition of the
 railroads by the country in advancs of the termination of their franchises is in response to a pronounced na tional movement which is not anti ! foreign, but pro patria. The gov ernment does not wish to arrest tbs flow of foreign capital into the coun Itry, but desires to secure Mexican co
 operation In the development not onl, of the means of transportation bu of the nations natural resources There is DO reason why Mexica, ! mining companies. for instance-no foreign companies, with protocolize' . dummy Mexican corporation, but ae . tual Mexican companies. with Mex : Inc boorda-chould mt fr lime h