The Wahpeton times. [volume] (Wahpeton, Richland County, Dakota [N.D.]) 1879-1919, 1916-07-20
MUCH AMERICAN
MONEY IN MEXICO
Vast Wealth Invested in Mines.
Oil Fields and Rubber
Plantations.
TOTAL over BILLION DOLLARS
investors In Railroad Securities Hard
Hit by Conditions in Recent Years
millions in Bonds FIoated in
New York.

New York.-The question as to the
tOtal amount of American and foreign
investments in Mexico has been much
discussed in Wall street since the sit
uatiOn on the border reached criti-
cal stage. Estimates run from 81 ,O0O,-
100000 to $1,50O,OOO,OO0, and most
banking houses with Mexican connec-
tons are agreed that the lower figure
was altogether too conservative.
For many years, in fact since the
Mexican war, American capital has
poured into northern Mexico because
of the enormous mineral resources Of
the states of Sonora, Chihuahua,
COahuila and NuevO Leon.
the sections around Tampico, where
the great oil wells are situated, and
great sums have been invested in the
rubber plantations of Tampiche and
Yucatan.
Public Utilities Investments.
American capital has also gone into
public utilities in large amounts, and
American bankers and their clients
have very large investments in the
Mexican National railways and their
subsidiaries.
The national railways of Mexico
alone have stock issue of $3.50, 100000
and bonds aggregating 1896. 0O0,0 900.
The Mexican government owns So per
cent Of the outstanding capital stock
and substantial amount of the
bonds, and the remainder is owned in
the United States, Great Britain and
France. The preponderant interest,
however, In the minority stock is held
abroad. 1t is said that about 20 per
cent only is held in this country. This
Is also true Of the bonds.
French investors have been the
hardest hit by the financial difficulties
of the Mexican railways resulting
from the series of revolutions that has
taken place in the last four years.
Cash dividends and interest have been
suspended for several years altogeth-
er, although some Of the obligations
AASS OCCA pau IA
It is impossible to enumerate all
the mining properties in the northern
part Of Mexico which represent Amer
lean investments. The Greene Cana
nea is one Of the largest of these. It
has total capitalization Of $6O,OOO,-
GOO, practically all of which is owned
in the United States.
The American Smelling and REIN
ing company has enormous invest
ments in mining and refining plants
throughout Mexico. 1t has principal
refineries at Monterey, Aguascalientes
and Chihuahua. These three refineries
alone have an annual metal capacity
of over 1,6O0,OOO tons. The invest
ments of the company south of the
Rio Grande probably represent total
Of no less than $25,OOO,OOO.
Mexican Petroleum Investments.
Phelps, Dodge & Co. also have very
large investments, although majority
of their properties are north of the
border. The Mexican Petroleum COM
pany, whose plants are entirely south
Of the Rio Granle and principally in
the TampicO district, has total CAPT.
talization of $72,OOO.OOO, which con.
sists of S4S,OOO,OU0 in preferred stock,
$l2,OOO,UO in cOmmon stock and $12,-
100000 in bonds. The company is con-
trOlled in the United States, although
large interest is held in Great Brit.
ain.
The Southern Pacific railway owns
the Southern Pacific railway of Next
co, which represents an investment
of $75.OOO!OOO. Since the revolution it
has suffered enormous losses in in
come from this property.
Lord Cowtiray and the Penrson-Far-
quhar syndicate have placed most of
the English investment in Mexico and
they consist almost wholly of oil prop
critics and public utilities.
Shortly after the Huerta regime was
1naugurated there was aoated in New
York by a group of Wall street bank
ers $25OGO,OOO of Mexican bonds,
which are said to have been sold at
an enormous discount.
Yhe statement has been made in
financial circles. on what is believed
to he good authority. that Huerta sub
sequent!y issued $75.O00.OOO more of
the bonds which he later sold here
through his agents ut Is per cent on
the face value. The proceeds, it is
said, We're distributed for political
uses in Mexico.