Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-29

Gated to them that he would render
all the assistance possible. He stated
to Mr.. Cabrera that you would be
rendering the Constitutionalist cause
g. great service by organizing and
operating the National Railways of
Mexico in the northern States under
a separate system, first for military
ends, and second, for purposes of
/. ter in great detail. and I consider
that the advice given by Mr.. Pierce
was of great value
Made Advances to Madero.s
Hopkins tells Carranza that when
he went to Mexico City in June, 1911,
after Madero had entered the capital
he spoke to Madero about getting the
Cientificos out of the National Rail
ways directorate. Madero agreed and
spoke to his brother Ernesto about it,
Don Ernesto made excuses. A few of
the directors were changed Abut Luis
Elguero, now q Huerta delegate at
the Niagara Falls mediation confer
ence. was kept on the board and e.
n. Brown was kept as president of
the system. these two men being,
in my opinion, the worst enemies the
new government had" says Hopkins.
Both of these were owners of shares
of the Aguila Oil Company and re-
ceived their orders from Lord Cow
dray." Hopkins says Mr.. Pierce hired
him to make all the trouble he could
at that time for the Cientificos, which
he did. For this job he got $4,000
gold.
Hopkins goes on to tell Carranza:
Il acquainted Mr.. Pierce with the
purport of the mission of Mr. Cabrera
I. Irav, flaa
latter to him. After introducing Mr.,
Cabrera. Mr.. Pierce lost no time and
spoke directly to the point.
He referred to the corruption which
had controlled the National lines for
so many years-to the scandal of the
government and the detriment of the
shareholders-and of his desire to see
the property managed in a decent and
conservative manner.
Huerta's Purposes Exposed.
He said that in his opinion it was
undoubtedly the purpose of Huerta
and the group which now controls
the lines 10 appeal to the tribunals of
the City of Mexico to place the lines
in the hands of a receiver in order
that they might enjoy a more COM
plete control over the property with
out the scrutiny of board of direc-
tors. He added that he had shown
the bankers the great danger that
confronted them, especially so If e.
N Brown We're made receiver, and
urged them to strongly protest
against any such proceeding. The
bankers We're rapidly becoming con-
WINGED that it was the purpose of the
government of Huerta to sacrifice the
roads for personal gain and that they
would look with favor upon any
movement on the part of the .Consti-
tutionalists to conserve the property"
Kuhn, Loeb & CO., Speyer & Co. and
Ladenburg, Thalmann & Co. are the
American banking houses that have
been chiefly concerned in financing
the National Railways of Mexico.
Hopkins goes on to tell Carranza
what PIERCE said:
Therefore if the Constitutionalist
should organize the roads in the
northern States under a separate and
distinct system and operate and re-
pair them as far as possible. estab-
fishing a regular freight tariff and
schedule of trains, he believed that it
would make very strong impression
upon the bondholders. the sharehold-
ers and the public. The lines should
be operated first for military pur-
poses. and when their use was not
necessary for such purposes then they
should be permitted to engage in
transportation of articles of COM
merce and passengers. the profit aris-
ing out of which to be used by the
Constitutionalists in Sustaining their
campaign.
Advised Caution With Ac "nts.
Accounts should be carefully kept,
so that when the war was ended the
national railways might be in posi-
ton to adjust their claims against
the government without any ques-
ton He was particularly emphatic
in his assurance that the interested
banks would certainly view this policy
with favor, and 1t might later on
draw from them a certain support for
the Constitutionulist cause, because
in this way the latter would be able
to prove that it favored a policy of
conservation rather than destruction,
as the Huerta government had so
often charged"
Hopkins told Carranza that Mr..
Pierce offered Cabrera every facility,
but asked him to communicate
through Hopkins as it might not be
prudent for him to call at the Office
of Mr.. Pierce"
But beyond preparing on May 10
for Mr.. Zubaran a memorandum of
WHAT MI. IltTCt NdHleu uoHtf as loib
above. Hopkins got no further with
the negotia tons. CarranZa under
took to remove General Villas di-
rector of railways and put Alberto
PAM in his place, although it does
not appear that this was because
Carranza had reached an agreement
with Pierce and Hopkins. who want
ed PAM in the job. General Villa
resented this move of the first chief
and insisted that Calzado, his own
railway director. be retained. This
was one of the factors in the quarrel
between Carranza and Villa On this
nninf Villa had his WAN.