Arizona republican., 1919-04-01
U.S.GOvERNNENT JAP DEAL
 IN MEXICO LAND
Investigation of Reports Is Ordered By Department Land Owned By Amer ican Company - Firm Makes Statement On Pre- vious Proposed Transac- tions
Republican A. p. Leased Wirel -


 WASHINGTON. March S1. The American embassy at Mexico City was instructed today to make inquiries con corning the report that the Mexican government has granted agricultural concessions to Japanese in Lower Cali fornia and to report the facts as quickly as possible.
 The land, upwards of a million acres below the California border, Was granted by the then president DiaZ to the California Mexican Land company of Los Angeles, of which General Har- rison Grey Otis of Los Angeles. was the leading figure. It was desert land with nothing growing on it but sage brush, cactus and chapparal. The soil however, was rich, in places 50 feet deep, formed by deposits for genera tions by the. Colorado river. It pro duced nothing for Mexico and the ex- pense of putting water on the land was so great that no one in Mexico would undertake it. The American company spent more than $1,000,0 900 in irrigation work before the tract was productive. One of the requirements of the con- cession was that the land should be irrigated. Another was that it should be settled with farmers and ranchers Both these requirements are said to have been met by the American com pany.
 When Diaz was deposed and the rev oiutionary period began, the American settlers were driven from the land by revolutionists. Livestock was stolen and several settlers killed. For two years the land was uncared for and then the company found that Japanese settlers were willing to take up farms. The Japanese were protected by tie MeNcarls. Short term leases are said . 10 have been granted to Japanese farmers, but the American owners re- fused to sell any Of the land to the japanese or to grant long term leases.
 Not New Idea
 Acting Secretary of State Phillips said today that the Los Angeles com pany proposed about two years ago to grant d Japanese corporation long term leases on a large portion if not all. of 1 the tract. At that time the con1pany still was unable to maintain American settlers there, but when the state de- | partment objected to the pronosed i 10 the proposed leases. the company dropped its negotiations with the 1 Japanese.
 i Nhen Senator Phelan of California. i recently informed the department that | negotiations had been resumed. the company attention was directed fo the American governments attitude. l MT. Chandler, who is also principal owner Of the Los Angeles Times. is sued statement as follows: | American Company's Statement
 So far as the alleged pendine saIa or California Mexico Land and Cattla company's property in Lower Califor- ma to a Japanese syndicate is con- cerned, the owners of the land are ad heflng to the declaration made by them to the secretary of state in Feb tuary 1917, in connection with the proposed lease of a comparatiyelv sniau section of the company's hold lngs to Japanese tenants. The fol- 1 towing Is an extract from a letter written by me, as president of the company and concurred in by the stockholders of that company. dated fepruary 2S, 1917, to the department
 Of state at Washington:
 While my company is anxious to secure these reliable tenants amnlv financed, to help develop our pronertv
 In Mexico. we are first of all Ameri- can citizens and do not wish to make any move which could in any way prejudice question which always an pears to be a subject for agitation
 between the two countries. We will
 not, under the circumstances. consider
 hiakihS any lease of this kind to Jap
 ahese' where colonization is probable,
 until we are first authoritative1v in
 formed that such arrangement will ha
 agreeable to the government of our
 own country. We believe that mosS
 Of the Japanese labor for this enter prise will come from the Pacific coast states and thus relieve to some extent lhe pressure of this class of people now Tn the United States and will be
 an advantage rather than a disad
 vantage.
 During these ticklish times. we. as
 large land owners in Mexico. are de-
 termlned to use scrupulous caA in
 haVing this matter thoroughly thresh- , ed out in advance
 Bought Land Outriqht T desire to call attention to an er- TOT in the statement made by the
 Mexican assistant secretary of fomen-
 to; General Amado Aguirre, as re-
 ported In the Associated Press dis 2 patches dated March 18th, to the ef- ! feet that the California Mexico Lland
 and Cattle company's titles came q through a concession from the former
 Mexican government. Neither the Cal f lfornia- Mexico Land and Cattle com
 pany nor its grantors ever asked for or received any concessions for any Q portion of the lands held by our com
 pany from the government of Mexico. f The lands our company owns and s controls were acquired by direct pur-
 chase for cash at the full price asked from the Mexican government and no U concessions of any kind were ever . asked for or received in connection ' with the purchase Of our property. Il The reference by the Mexican official
 to special concessions made in con- u nection with the sale of these lands. , must refer to lands adjoining ours which were secured by an American
 syndicate headed by J. P Morgan at
 about the time our lands were pur-
 chased from the Mexican government II Their titles were secured by conces- f. sion which provides for special coloni- if zation purposes. Pastor Ruix, secre- tary of the Mexican fomento, visited , Lower California year ago and a n representative of our company offered
 to convey to Mexican colonists at any | reasonable price which could be mu- e tually agreed upon. such acreage as
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