The sun., 1913-12-31
SPIES REPORT ON HALE.
They Tell Hu~rta why Nisaion to
CarransW Failed.

Special Cable Despatch 10 TIVE SrS.
MExIco CITY. Dec. 30.--The Government
received tonight reports sent by spies
acting for Gen. Huerta In the State OF
Sonora These reports contain details OF
the conference held between Gen. Carranza
and William Bayard Hale. President Will
sons special investigator.
The spies say that the negotiations
failed because Hale demanded that Car
ranxa eliminate himself as a Presidential
possibility.
DR.. Hale, they say. asked Gen. Car
ranza whether his motive In leading the
revolt was to procure peace or to eratify
personal ambition. Carranzs replied that
he desired only to restore peace where-
upon Hale demanded that the Constitu-
tionalist leader eliminate himself In view
Of the fact that the United states de-
mands the same OF Gen. Hucrta. This
request greatly angered Gen. Carranza.
who proceeded at once to demand that
Dr. Hale produce his credentials.
Since the failure of the Hale mission
the United States, according to Huerta 3
spies, has become more vigilant In the
prevention of the expectation of arms and
munitions of war from the United States
to Mexico
N00utR Leave tue HeUelS.
Huerta's spies also report that a great
number of laqui Indians. discontentcd
over the treatment they had received in
the ranks of the rebels, have obtained
leaves OF absence on the pretence that
they wished to spend the holidays in their
homes. and II is not probable that they
will go back.
The rebels have plenty Of rifles and
cartridges and Il few cannon. but for
t,.... B,.xs ttttt
ton. They nave little money at
their disposal. with the exception of state
bank notes, with which they are unable
to buy the necessities of life across the
border.
In the report received by the Govern
ment it is said that one OF the greatest
abuses committed by the northern rebels
10 the establ. .shment of bureau of
administration Of absentees' goods" The
function OF this bureau Is to seize and
confiscate the property Of all absente.s.
Rebels have again appeared ON the line
between Aguascalientes and San Luis
Potosi All train service between this
city and Tampico has been stopped.
Prominent bankers here declare that d
loan OF $4,O0o,0O0 has been advanced to
the Banco dc Londres Mexico by the
Pearson syndicate through tue firm of
Lazard Freres of London. Paris and New
York. The deal was arranged by Hugo
Sherer. Jr.. through the intermediary of
Guillcrmo Brocknan.
The state bank of Mexico has reduced
its capital from $l.500.O00 to s750.o0o.
This was done to cover "A deficit in the
balance sheet following the movement
started by the Banco Central.
President kuerta issued decree to-day
increa sing the national budget by ?,25O-
900 pesos, for the purpose of paying the
interest due on January ] on the bonds
Of the National Railways of Mexico.
Reports OF IA split in Huerta's Cabinet
are apparently well founded. 1t is con-
sidered certain that both Moheno, the
Foreign Minister and I.ozanc. the Min
lister of Communications. will leave the
Cabinet. /, Is not believed that this will
occur until after January l.
Rebels Don't Fear Attack.
W. Martin, an American, arrived here
to-day from Durango via Sombrerete and
Fresnillo. In the adjoining state Of Zaca-
tecas. Martin said there are only 400
or 500 rebels in Durango. the rest OF the
Carrancfsta forces having left for Tor
reon.
He added that the Durango rebels do
not fear an attack on the part of the
Government troops at Torreon. AS tbs
Federal forces in the latter city are
hemmed in and have not even left the
trains to occupy the city
Mr.. Martin, who brought $50 mules from
Durango met Gov Salce, of the State of
Durango, at Sombrerete and was Informed
he would have TO pay a tax OF two pesos
for each mule He told the Governor
he could not do so. as he had no money
with him.
The Governor saying he would be
stopped further on If he could not sho"
receipt for the tax, gave him receipt
for 200 pesos on his promise to pay over
that sum on his return.
All the rebels in the State OF Durango
according TO Mr. Martins story, were or
dered TO concentrate at the city of Du'
range on Christmas Day, The rebel COM
mander at Durango interpreted TINS order
to mean that a general attack on Tor
reon is about to be made. Gen. VIA
is believed To be in a position to muster
1900 men there with artillery.
Mr.. Martin says the Spaniards made
themselves Objectionable to the rebels b,
helping the Federals in Torreon Man,
OF them fired OH the nsurrectos.
Gen, Natra. commander OF tho insur
gent forces in the State OF Durango. wen
north on December 90 TO have n con
ference with Cen Villa and Chihuahus
regarding future plans.
XIII Only LOOters.
The rebels in the State Of Durang'
are not now L!.ling anybody except per
sons caught IN the act OF lOotlnR. Suci
persons are tried by court-martial an'
shot sixteen looters were put to deatl
near Fresnillo last week. The rebels a
Fresnillo number 1000 well armed men
and they could easily muster 1000 II the!
could only obtain arms and ammunition
The city of Zacatecas was surrounded
on Saturday by $500 rebels, who burned
the bridge at Palmira, south Of the formel
place.
Forced contributions are being exactet
by the insurrectos wherever they go
At the Hacienda Troncosa the rebel com
mander demanded that Senor Garcia, th'
owner, contribute 5000 pesos to the rebe
cause When he refused the commando
ordered his men to seize 10000 sheep an'
500 cattle. which they drove away will
them.
The Secretary OF the Interior announce
to-day that all the coal mines in the Stat
of Coahuila, which Is the great coal reSo
of Mexico, have been reopened. Train
are now running between Nueyo Lared
and Sabinas.
A big shipper of Zacatecas made ship
Fnent Of goods to-day and presented II
payment bank notes from that State
which the railway accepted under pro
test. The matter was referred to tn
headquarters here of the railroad com
pany. whose officers replied that the note