The New York herald., 1921-12-27
CHANGES IN MEXICO
FOR FAT CONTRACTS
Many Public Works, Such as
Road Building, Offer Good
Opportunities.
INFLUENCE rs PAID FOR
Careful Survey of Situation
Shows Trouble in Collect
ing Debts.

Special Dispatch TO THE s.rw YoxK HERALD.
MEXICO CRY. Mex, Dec. 26.-Great
numbers of American contractors, par
ticularly road building contractors, are
coming to Mexico. Like the bankers
who have been coming here In throngs,
the contractors see an important new
field OF opportunity and activity, but
like the bankers they have come face
to face with the problem of payment.
This has resulted in condition of
great uncertainty.
Some important concerns which came
here in expectation of doing great things
have announced that they would reti q
from the field, and have almost irnme-
diatcly afterward announced that they
would remain and go ahead with under
takings which they had been tempted
to forsake because of the uncertainty
as to payment.
1t Is a matter of common notoriety
that small officials when intrusted with
the letting of a contract for building o.
other work exact from the contractors
percentage of the contract, and this
has caused whispers concerning the
greater undertakings. which would Of
Ter strJng temptation to the venal be-
cause OF the unlimited opportunities for
graft in the expenditure of many mil
lions.
A banker discussing an official who
possesses great business ability re-
marked to another official: 1T is
strange that man of his kind would
be content with 1000 pesos a month"
But" said the other man. 'fhe makes
much more than 1000 pesos a month"
How can a salaried man do that?"
asked the banker.
He gets large commissions when he
makes purchases" replied the other.
He seemed to think, according to the
banker, that the collection of ''commis-
sions" was perfectly honorable and reg
ular in a public official.
Some One Shares Profits.
The larger contractors who are en-
deavoring to enter this field keep their
methods safely to themselves but some
of the smaller contractors admit that
II they make any headway, they must
have the aid Of some one in close touch
with power, who shares in the profits.
This Is by no means a new condition
ir the contracting business. Investiga-
tions from time to time in the last
twenty years In New York have dis
closed similar system. But In Mexico
tiic Pioodoie pElzcS, WueH lHlS country Is
In position to pay for the great under
takings calling for attention, are much
greater than even the prizes in an opu-
lent metropolis such as New York.
The work to be done in Mexico is of
OF every escription-highway and rail-
road building. harbor improvements, ir-
rigation works and construction in
many other lines.
Roadbuilding is receiving particular
attention at present because highway
improvements are pressingly needed in
all parts Of the country. Many contrac-
tors who have been engaged in this line
Of work in the United States have come
here in expectation of n fever of road
building similar to that across the bor-
der during several years. Large con-
Germs which have In the past devoJA
their energies to other lines of con-
struction have also turned to road build
ing because of the immense possibilities
in this country. which has been de-
ecribed as almost virgin field for the
road contractor"
Mexico wants better roats and con-
struction would even now be going on
at a tremendous rate but for the
rroblem of payment.
Some COmpaufes Accent Bonds