New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-11-26
CARRANzA'S EYE
ON U. s. LOAN
necision on Protocol Like
ly To Be Governed ,s, by
Financial Interest
MEXICO NEEDS
HALF A BILLION
Mining Men Willing to
Help First Chief if Tie
Can Aid Them

.sslrs who came here 70 advise
90 commission we're celebrating on
~ ,-obsble outcome of the agreement
.,s,s yesterday BY the representa-
-, q the two governments.
p-..,utlons for the Official depsrt'
~ ,he commission will continue
It'll Monday. when the retinue Of at
-, ui,l take thcir leave. II Genera
-. signs the protocol which is
:, i,s way 20 him. the commission
I'm rseonveno. probably in Washing
-, n the FIRST Chief dissgrees with
80 terms set down the joint commits
-, vii not meet again.
-b. decision rests entirely with Car
-,.,s and. according 70 those who have
w. closely the deliberations,
s..l,-st,ons and other activities OF the
W,viean delegates, Carranza's decision
,,,,. entirely upon the question wheth-
., The agreement can be turned TO the
s,areial advantage OF his government
.betber acceptance Of the terms viii
b. followed by acceptance by the bank
,r.of the United States Of the security
oeercd bv him for a loan TO Mexico
Inns Cabrera. Carranza's Minister o.
Finance and chairman Of the Mexican
vinr OF the joint commission, ap-
,-oaebed the powers in Wall Street on
&. losr subject carly in September,
40, after the commission had con-
,sre5 IN New London, Conn. He pre-
.e-,ef detailed statements Of MeXieo's
tr.ac.al condition to the heads Of two
NJ The largest financial houses in the
country These statements were care
-s,ly considered, and Mr. Cabrera was
.o'd that The only terms upon which
ioar to Mexico would be foated en-
.sle6 Che approval Of any such loan
bv the United States government
Mining Complaints Considered
later in September a committee rep
r,ser+irc the American mining inter
81. in Mexico appealed 20 the commits
SION Tor relief from the taxation leVies
ssereed bv Carranza. They held numer-
ans conferences with the Mexican com
,issior. which gave great consideration
- +beir. cou,p'aints. They asked Tor re-
6.rtfon Of Inc tax on mined ore ana
tuiIIon. reduction Of the property tag
and protection Of their property ana
employees 49,. r..
Csrranza's DEGREES had provided toor
An increase of the tax on mlned go!u
and silver ore from > 30 10 PEE cent
Tor an increase Of the tax on bIlllon
gold and silver) from 20 5 per cent
fopper. lead and tin, free under Inc
regime Of Huerta and his predecessor
was taxed by the First Cnle1 SV 'he
rate OF per cent sd valorem:
Cont scatory" was the wore USED oy
he mining committee IN DESCRIBING
these levies. They meant suspension
Of operation. they told cabrera ous-
pension OF operation also was Pre'ehV
I'd FOR by another Carranza decree pro
v,d.rg that idle plants shall De con-
uscated. r....o
sftor hearing the complaint, told the
r,irinc committee that the de faeto
rovernment would be glad TO reduce
The tax were il not for the TACT tnaI
The revolution-rack country neeceG
cvcrv cent il could get. It's natural
~esources. he pointed out were inc
country's chief asset, and that upon
hem fen the great burden Of financing
no government in abnormal times. lie
sd,nitted that the rate Of taxation was
rigb but declared it could not be
helped.
Plea for Reductions
The American mining men said rev
erue would accrue 10 Mexico II the 'S%
we're reduced, as operation then Woulo
boz resumed on a large scale 70 ta3o
advantage Of the high prices OF metals
Finally. the Mexicans proposed TAX re-
ductions from 10 to z per cent on the
case OF mined gold and silver al. anu
from : 20 z per cent on builloh' ING
Americans agreed.
The Mexlcans then pointed out thH'
protecting the mines was cosby
troops had 10 be paid-equipment hau
10 be bought-and money was scarce
Protection was necessary 10 operation,
the Mexicans submitted, and protec-
ton was impossible without money.
Therefore. operation meant money.
Could the mining committee nelp the
Ae>icars get money!
Upon this question the discussion
turned for many weeks. Finally the
NcXicans proposed the following; Ihey
would reduce the taxes as stated, pro-
tect the properties and repair tne
railroads SO that they would be avail
able for the transportation OF Tore. In
return. the American mining interests
rcpresented by the committee would
ADVANCE $4,000, 900 TO the de tacto
government TO cover the cost OF mill
larry protection and railroad repair.
The tax would be repealed entirely
until the S50,000,000 had been repaid.
The Americans were and sun are
willing 20 accede 70 this plan II thee
stability Of the Carrsnza government
and It's power to control the territory
Ia the region of the mines are estao,
lished. The mining committee waiteo
On, he American Commissioners and
were told that any money al
vance they might make to the CsrrSn-
- government would be without the
approval Of the State Department OF
Of the American Commission.
With conner at 80 cents pound' OF
mare. and other metals proportonste-
liz high, the mining companies are
ANXIOUS 10 open the treasure mouse
of Mexico. and they stand ready 70 nelp
Carranza II they are assured thaI Gar
rama has the power TO help them.
During the two weeks OF the recess
bending the ratification OF the agree
ment bv the First Chief, the financial
agents Of his government IN this couh-
try will renew their negotiations TOT
= loan Of sufficient size TO rehsoilltate
the credit Of the country. The $oo'-
900. 600 asked Of ~ mining companies,
al who know Mexico's financial need
agree, would be but drop IN tne
bucket
Students Of tho country's finances
say $500. 900 900 would be required 20