New-York tribune., 1913-09-10
Huerta'S Envoy Will Try to
Obtain $1,000, 900 to Meet
Interest on Mexican
Railway Bonds.
MUST PAY OR LOSE ROADS
State Department Hears That
Both Factions in Mexico
Purpose to Adopt the
System of Making
Forced Loans.
From The Tribune Bureau


Washington. Sept. 9-Sehor zama-
coma, special envoy of Huerta, is en-
route to Washington and New York to
ascertain how far the Wilson admin
istration will support the de faCto gov
eminent of Mexico in negotiating a
loan TO put the government on a stable
financial basis, and to make a des-
perate effort to raise $5,0O0,0OO in gold
TO pay the interest on the National
Railways bonds, which will be due on
October |.
Secrecy as to the mission Of Senor
Zamacona was lifted to-day, when it
became known that unless the interest
on the National Railways of Mexico
bonds is paid the control Of the merged
railroads will revert to the syndicate,
headed by Speyer K Co. which financed
the bond issue making possible the
merger of the National Railways Of
Mexico in 19O7-'OS.
Governed by Conditions.
1t is known from a reliable source
that Zamacona's programme is not
definitely outlined and that he will be
guided largely by advices from Mexico
City. He is due to reach Washington
tomorrow night from Key West, but
whether he stops here or goes on 10
New York will depend upon develop
ments in the mean time. Eventually
he may be given official recognition by
this government. but at present he is
without official status, except as he ap-
pears as the agen, Of Huerta.
The history Of the merger Of the Ma
tional Railways Of Mexico may he un-
covered in detail as a result Of Senior
Zamacoma's mission. The merger was
handled by Minister Limantour. The
government owned the National Rail-
ways proper which was known as the
Mexican National. the main trunk line
from Mexico City TO Laredo, Tex. and
the Mexican International, running
from Torreon to Durango and from
Torreon 10 Eagle Pass, Tex. with a
spur 10 Monterey from Reato. These
properties were merged with the Mexi-
can Central. owned almost entirely by
American capitalists. most of the stock
being held in Boston and ST. Louis. and
other allied lines of less Importance.
The Mexican Central runs from Mexico
City to FL Paso.
This merger was effected by a bond
issue financed by a syndicate headed
by Speyer & Co. a stipulation Of the
negotiations was that If the Mexican
defaulted in the payment
Ct the interest on the bonds the lines
merged with the National Railways Of
Mexico would revert TO the syndicate
II is this phase Of the merger that
makes it so important that the 5000
900 interest be paid on October l.
Forced Loans in Sight.
Reports continue 10 reach the Depart
ment Of State Of the impending adoption
by both sides in the Mexican struggle Of
system of forced loans. and II is believed
here that there are dangerous possibilities
IN such procedure This method Of rails
ing money has already been tried in some
places ia Mexico. particularly by the
CouStitUtiOnalists in the northern part Of
the country, and Americans from whom
money has been extorted have filed com
plants with the State Department. The
department can afford no relief As the
rcvolutlonists promptly get the money
out OF reach II the scheme of holding
up Americans and other foreigners be-
comes general a serious situation viii
present itself and some definite action
by this government Will be required
There were no real developments in the
Mexican situation to-day The Secretary
OF State left al II o'clock this morning
for Media and Glendolden, Penn. To-mor-
NV he Will be al Crisheld and other
towns on the Eastern Shore Of Mary
land. lie will not be back In Washington
until THURSDAY.
The action OF General Huerta in suooly-
ing Americans ia Vera Cruz with funds
for first class passage TO the United States.
while American consular officers can fur
uish only second or third class, failed to-
day 70 arouse enthusiasm among officials
OF the administration.
As time passes. it is asserted. Huerta s
financial condition will grow worse. until
finally he Will be unable TO pay his troops
who VIII then. in the logical order Oh
things. turn bandits. and in all prooaoiI-
ity reign Of terror viii ensue.
Oficial adyices were received at the
local Offices Of the National Railways OF
Mexico yesterday from Mexico City that
the government had agreed to PROVIDE
whatever money might be necessary 70
meet the companys october ! interest
obligations.
The items covered by this amount are
the interest on the general mortgage
per cent guaranteed bonds Of the National
Railways OF Mexico and the consolidated
per cent bonds OF the National Railroad
Company OF Mexico