El Paso herald. (El Paso, Tex.) 1901-1931, 1913-12-15
Interest Centers In OH
Great Pearson Concession in Mexico
Comes Into Limelight In Mex
lean Situation; Huerta
Holds Fast.
frederic j. Hnskin--

ASHINGTON, D. c., Dec. 15.-An
w international explosion was mar
/ rowIy averted when oil came to
! the surface Of the Mexican situation.
/ We have seen how the situation ad-
vanced from bad to worse until pres
I ident Huerta announced that a general
/ election for president. vice president
I and new congress would be held Oct
26. But no mention has yet been made
1 of the fact that the most acute inter-
I national interest centered around the
great oil fields of Mexico which were
/ being successfully developed by lor9
Cowdray head OF the British HIm OI
| S. Pearson and Son.
This aggressive and tremendously
wealthy English business man, as sir
| Weetman Pearson, built the East RIVER
tunnel at New York, and under an ar
rangement with the Mexican govern
ment constructed the Tehauntepec rail-
way from Salina Cruz on the Pacific TO
CoatzacoalcOs on the Caribbean He is
a Liberal in British politics, having sat
as a member of parliament, and quite
recently lord Murray, formerly the
master of Elibank and Liberal whip IN
the house of commons became part
ner in Pearson and company.
Rise of Oil Power.
- Gaining vast influence with the old
Diaz government lord Cowdray sought
and obtained a concession for the
Aguila Oil company, in the oil fields OF
Chiapas, TabascO, Campeche, Veracruz
and in the Vale district OF TamauI
pas; also additional rights covering the
lakes and 4agoOns Of Veracruz-
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 tie practi-
eability of oil fuel and the British gov
eminent was realizing that in all the
empire there was scarcely enough OIL
Gree from the political control OF other
natiOns) to supply the fuel needs Of the
royal navy in time Of war
Nadero Suspicious of Concession.
President Madero looked with sus-
piciOn upon the concession granted 10
the Pearson interests and lord CoWdray
was justly apprehensive OF the attitude
of MaderO toward the concession
granted by the Diaz government The
MaderiStas attributed to lord COWdray
a large share of the responsibility for
the constant cientifico plotting against
the BIaderO government.
During. the election campaign of 1911,
general Madero wrote a letter stating
that foreign capital would be subjected
to no persecution in the event of his
election. Immediately he took office
he directed Jose NascOncelOs, an emil
nent lawyer, to investigate the AGu1Ia
concession and the result was a report
attacking its validity on the score OF
cOnstitutiOnality. the approval Of the
concession by congress nOtWIthStand-
ing. President MaderO insisted that his
prediction statement could not be con-
strued to protect illegal concession
aries, but that, on the contrary, he
frankly declared his purpose to oppose
the formation of all kinds OF mOnop-
olies and combinations in restraint OF
competition Although ne placed the
AGuilaa concession held by the Pearson
interests in this category, it was never
actually cancelled and the exploitation
OF the fields was continued
Hints Of the part played in Mexican
politics by the oil interests became
more and more frequent as the election
approached and it was even reported
that president Huerta proposed TO ma
tOnallze the oil resources OF Mexico
and propose their leasing to certain
I foreign interests.
Huerta ImprisOns Deputies
Suddenly, Oct. II. 1913, president
Huerta arrested and imprisoned 81
members OF the house of deputies on
charge of sedition, the details of which
never became clearly known in the
United States He proclaimed himself
dictator. On the same day sir Lionel
Garden, who had been appointed Brit
ish minister TO Mexico and had arrived
at the capital some time before, pre-
scented his credentials. This was a dis
agreeable surprise to the WaShinEtOn
dent Huerta was on his last legs. Sir
Lionel Gardens attitude during many
years service in Latin American coun-
tries caused Washington to regard him
as antiAmerican- For him to extend
British recognition to Huerta by pre-
senting his credentials at the dramatic
moment constitutional government was
again upset was severe blow to the
American policy The Wilson admins
tratiOn felt that Huerta's lease of life
as president had thus been gratuitously
extended.
President Wilson promptly notified
must come to the imprisoned deputies
and on Oct. Il, convinced that Huerta
merely sought to prolOng his own au-
thority, served notice that the United
states would recognize the result Of no
election held under the prevailing con-
ditions.
International situation Acute.
The international phase of the situa-
tion became acute. Germany and France
started Warships for the Mexican coast.
Huerta announced that the elections
would be held Notwithstanding the
American objections, but pI resident VIII
son took care to make known his views
on the situation before the polling day
arrived. Government stained by blood
cannot endure" he said at SWSrthmOre,
Penn, Oct %. Two days later at Mo-
bile, Alabama, president Wilson, with
out mentioning Mexico enuuciated a
corollary Of the Monroe doctrine which
promises TO mark its most distinctive
and significant development since the
Venezuelan boundary dispute during
the Cleveland administration.
speaks Of Concessions.
Subsequent developments indicated
that the president had the British oil
interests in mind when he said;
states that are obliged, because
their territory does not lie within the
main field OF modern enterprise and
action, to grant concessions are in this
condition, that~fOreign interests are apt
to dominate affairs; a condition Of at
fairs always dangerous and apt to be-
come intolerable.
What those states are going to see,
therefore, is an emancipation from the
subordinatiOn, which has been inevita-
bic, to foreign enterprise and an as
sertiOn of the splendid character which,
in spite Of these difficulties, they have
again and again been able to demon
strate.'
They have had harder bargains
driven with them in the matter of loans
than any other people in the world.
Interest has been eXacted of them that
was not exacted of anybody else be-
cause the risk was said to be greater;
and then securities were taken that de-
stroyed the risk-an admirable ar
rangement for those who were forcing
the termsi
No TERRITORIAL CououeSf