The sun., 1919-05-05
MEXICAN DEFICIT !
Is CAMOUFLAGED
Given Officially as SS,500,000
for 1918, 1t Should Be
$48,0OO,0O0.
U. s. WATCHES SITUATION
Failure to Account for Several
Items Is Shown by T. W.
Osterheld.

WARRINGTON, May 4.--Financial lez,s-
lat!on which President Caranza Ia,
asked the Mexican Congress to consider
at the extra session now being held. I,
being watched closely by officials here
1t was learned to-day.
This is understood to be due 10 tina
American interests involved and TO the
recent statement by Luis Cabrera, Sec
rotary OF Finance In the Mexican CabI-
net that Mexico would not paw its debts
at present even II It had the money,
preferring to await the results OF the
Paris Peace Conference. to see what
the world In general will do with its
obligations. how many nations will re-
pudiate their debts. and how many will
trim their obligations TO figures com.
patable with their income"
Figures recently received from Mexico
city through official channels give tina
deficit for 1918. as announced by Ca
brcra. as 100000 pesos, or about 81
100000. But an Investigation OF ths
Mexican financial situation by T. w.
Osterheld, specialist and consulting eS
pert in Mexican values for a prominent
Wall Street firm. show that Cabrera 4,
making the report Of the deficit failed
to take into account the following items /:
National external bond interest FOR
J.
000) national internal bond interest
for 1918. unpaid. $500. 900 pesos (s2, 900. :
o00) interest on unpaid national bond
interest, 1,09s.00o pesos (s54s,o00) !;
guaranteed railway bond interest, 20.
100000 pesos (s10.39o,0o J: interest
on unpaid interest on preceding 1000. :
900 pesos Gs515, 00o) and bonds guaran
teed by Government other than railws y
bonds 3,o76.ooo pesos 41.5s7.6oo).
Other figures compiled recently BY
officials from authoritative sources show
that the Mexican Government received
extraordinary revenue during 1918 BY
the sale of stock in the Hawaiian
American Steamship Line, 1000. 900
pesos H3,500.o00) and the abrogation
of the Tehuantepec railway concession.
100000 pesos (s6. 900. 000). which ara
classed as ordinary revenue in Cabrera 1
report.
In addition the National Railways,
which were confiscated by the Carranss
Government, yielded during the year
eight million pesos (s4.000.000.) Pr.
Nate Industrial plants. mines, etc. cor.
fscated and not yet returned TO thu
owners gave another eigh' million pc!
SOS S4.0o0.o0o) to the public treasury
and the Wells-Fargo express compau-
les contributed twelve million pesos
ISo'oVo'OVV), one-ha1 OF the income OIL
the companies
NO reports have been made on IN.
operation or revenue OF the Mexicas
railways. the tramways OF Mexico city
or the Mexican Telephone Company't
| properties since they were confscated
but the official report of Cabrera in
cludes all the amounts received from
the various sources given above as par.
of the normal revenue income Of thu
| Government.
It is said that II the confscated prop
critics had been restored TO their owners
the annual bond interest debts paid an,
| the extraordinary revenue from the ssl,
Of the steamship stock and the abroga
ton OF the railway concession eliminate,
the real deficit for the year would HAY.
been approximately s6,000,o00 pesos, OF
| $4,000 900.