Imperial Valley press., 1913-12-20
Mexico-Articie No. 6
(Ry Frederic !. Haskin)

wealthy EngllSn business HAL DIS OH
Weetman Pearson built the East Riv-
er tunnel at New York, and under an
arrangement with the Mexican gov
ernment constructed the Tlehaunte-
pee railway from Salina Cruz on the
Pacific to Coatzacoalcos on the Car
ibbean. He is Liberal in British
politics, having sat as member OF
parliament, and quite recently Lord
Murray, formerly the master of Eli
bank and Liberal whip in the house
of commons, became partner in
Pearson & Co.
Gaining vast influence with the old
Diaz government, Lord Cowdray
sought and obtained a concession for
the Aguila Oil Company, in the fields
of Chiapas, Tazasco, Campeche, Vera
Cruz, in the Vale district of Tamaul-
ipas. Also additional rights covering
the lakes and lagoons of Vera Cruz.
Much Capital Invested
Vast sums of money were expended
before the largest wells began to yield,
but the concessions had been proved
enormously valuable by the time that
naval science demonstrated the prac-
ticability of oil fuel and the British
government was realizing that in all
the empire there was scarcely enough
oil (free from the political control OF
other nations) to supply the fuel
needs of the royal navy in time of
war
President Madero looked with sus-
picion upon the concession granted to
the Pearson interests and Lord Cow
dray was justly apprehensive of the
attitude of Madero toward the conces-
sion granted by the Diaz government.
The Maderistas attributed to Lord
Cowdray a large share of the respon-
sibility for the constant cientifico plot
ting against the Madero government.
During the election campaign of
1911, General Madero wrote letter
stating that foreign capital would be
subjected to no persecution in the
event of his election. Immediately
he took office he directed Jose Vas
concelos, an aminent lawyer, to inves
tigate the Aguila concession and the
result was report attacking its va
idity on the score of constitution
ality, the approval of the concession
by congress Notwithstanding. Presi-
dent Madero insisted that his preelec-
ton statement could not be construed
to protect illegal concessionaires, but
that on the contrary he had frankly
declared his purpose to oppose the
formation of all kinds of monopolies
and combinations in restraint of CONS
petition. Although he placed the
Aguila concession held by the Pearson
interests in this category, it was never
actually cancelled and the exploita-
tion of the fields was continued.
Hints of the part played in Mexi
can politics by the oil interests be-
came more and more frequent as the
election approached and it was even
reported that President Huerta pro-
posed to nationalize the oil resources
of Mexico and propose their leasing to
certain foreign interests.
Huerta BECOMES Dictator
Suddenly, on October IL, 1913, Pres
ident Huerta arrested and impris-
oned "a members of the house of dep
uties on charges of sedition, the de-
tails of which never became clearly
known in the United States. He pro-
claimed himself dictator On the
same day Sir Lionel Garden, who had
been appointed British minister to
Mexico, and had arrived at the capital
some time before, presented his Gre
dentials. This was disagreeable sur
prise to the Washington government,
which had felt that President Huerta
was on his last legs. Sir Lionel
Gardens attitude during many years
service in Latin American countries
caused Washington to regard him as
anti-American. For him to extend
British recognition to Huerta by pre-
senting his credentials at the dramat-
ic moment constitutional government
was again upset was severe blow
to the American policy. The Wilson
administration felt, that Huerta's lease
of life as president had thus been
gratuitously extended.
President Wilson promptly notified
the Huerta government that no harm
must come TO the imprisoned deputies
and on October Ia, convinced that
Huerta merely sought to prolong his
own authority, served notice that the
United States would recognize the re-
suit Of no election held under the pre-
vailing conditions.
The international phase of the stu