New-York tribune., 1922-09-05
Publish Terms of Agree
nient Reached Here Be-
tween de La Huerta
and Bankers Committee
$25, 600, 900 After 1927
Plan Now Must Meet APP,
proval of Republics Com
gress and Bondholders

Mexican government and railway Sc
curities in aggregate amount of $685.
$4,000 is taken today in the simul-
taneous publication in this country. in
Mexico and in Europe Of the terms of
the agreement reached last June be-
tween the Mexican Minister of Finance,
Adoifo de La Huerta, and the Interna-
tional Committee of Bankers on Mex
leo, and subsequently approved bv
President Obregon.
Since 1914 these investments have
yielded no interest to their possessors
and where part of the principal should
have been retired through amortiza-
tion lack of moneys prevented
operation of such sinking funds The
plan slgnallzes the attainment of
stage in Mexico's financial and eco
non4ic progress where the administra-
ton, desirous of restoring its credit
standing in the worlds markets, Is
financially equipped TO resume the OBJ
legation of its debt and to start pay
ments on gradually ascending scale.
III the agreement is ratified by the
Mexican Congress and approved by the
bondholders, who will shortly be asked
by the committee to deposit their hold
ings IN assent to the plan, the Mex
lean government will set aside against
current interest not less than $1500O,-
GOO during 1923, increasing the amount
applied to the debt service each year
until in 1928 the amount applied to
debt service will be $25 100000
Part in Cash, Part in Scrip
The $15,000,000 will not be sufficient
to care for all current interest. but
1T will enable the distribution of part
interest to all security holders in cash
and the remainder will be paid in
scrip. Interest in arrears is provided
for by general pooling of overdue
coupons with special depositaries and
by a general reduction over a period
Of forty years, beginning in 1928.
Respecting the railway debt the
Mexican government assumes the re-
sponsibility for all issues previously
not guaranteed and agrees to the car
rlers return to private management
The first board of directors after the
transfer, as nominated by the Mexican
government and accepted by the COM
mittee, includes the following New
York division: Walter T. Rosen, j. J.
Hanruer, Jesse Hirschman, z. G..
HutChins jr., L. F. Loree, E. N. Brown,
Sir William Wiseman, Henry Ruhl-
ender and Carlos Felix.
1he Securities Affected
Following is list of the secpr,s es
covered by the agreement:
"a United States Of Mexico per
cent consolidated external gold loan of
1889, (2) Republic Of Mexico per cent
external gold loan of 1910, (3) United
States of Mexico 6 per cent ten-year
treasury notes of 1913 (series A &c.
o00,0o0), ~ City of Mexico per cent
sterling loan of 1889, (5) Institution
for Encouragement of Irrigation Works
and Development of Agriculture Is.
A.) thirty-five-year Az per cent sink
ing fund gold bonds, due November /,
Ie43 lCaja de Prestamos, etc.); (6)
United States of Mexico a per cent
gold. bonds Of 1904, (7) Republic of
Mexico consolidated 8 per cent internal
debt of 1885, (s) United States of Mex
leo 5 per cent internal redeemable
bonds of 1894, (9) State of Vera Cruz
5 per cent bonds, due April /, 1927;
(10) State of Tamaulipas per cent
bonds, 1902 (frst series).
CID State Of Tamaulipas per cent
bonds, 1906 (second series); (12) State
OF Sinaloa 5 per cent bonds, 1905; (13)
State Of Vera Cruz 5 per cent bonds,
1906; (1G National Railways of Mex
leo guaranteed general mortgage 4 per
cent seventy-year sinking fund redeem
able gold bonds, due October /, 1877;
| (15) Vera Cruz & Pacific Railroad
| Company first mortgage An per cent
| gold bonds, due July /, 1884; (16) Ma
tional Railways of Mexico prior lien
Az per cent ffty-year sinking fund
redeemable gold bonds, due July /, 1857;
/ (17) National Railroad Company of
Mexico prior lien Az per cent gold
tional Railroad Company of Mexico
first consolidated mortgage per cent
| gold bonds, due October /, 1861; (19)
| the Mexican International Railroad
Company zs per cent prior lien ster-
ling bonds, due September /, 1947; (20)
the Mexican international Railroad
| Company first consolidated mortgage
q per cent gold bonds, due September /,
/ 1877.
(21) Pan-American Railroad Com
pany first mortgage s per cent gold
bonds, due January /, 1884; (22) Pan
American Railroad Company general
mortgage 5 per cent gold bonds, due
Januarye1, 1887; (23l Mexican Central
! Railway Company, Ltd, S per cent
priority bonds, due July i, 1899; (24)
Mexican Central Railway Company
Ltd, equipment bonds, assumed by the
National Railways of Mexico, as fol-
/ lows: (a) first series dated April /,
1897; (b) second series dated October
l
II, 1906; (d) series No. 10, dated Jan
uary l, 1907; (e) series No. II, dated
March %, 1907.
| (25) National railways of Mexico
per cent secured gold notes (secured
| by government obligations); (a) ma
tional railways Of Mexico secured gold
notes, series "B"; (b) national rail
| ways of Mexico 6 per cent three
months secured gold notes; (c) ma
| tional railways of Mexico per cent
three-year secured gold notes; (d) ma
tional railways Of Mexico per cent
! secured gold notes, series "C"; (26l
national railways Of Mexico per cent
secured notes (secured By national
/ railways Of Mexico bonds); (a) ma
tional railways Of Mexico two-year 6
per cent secured gold notes, due June
| !, 1915; (b) national railways of
Mexico per cent secured notes, due
July l, 1915; (27) Tehuantepec Ma
tional Railway 5 per cent gold loan,
series "a" due June 80, 1858; (28l
| Tehuantepec National Railway Az per
cent gold loan, series "B,' due June
80, 1858,
Set Aside Oil Export Tax
Following is the official summary of
! the agreement:
THE Mexican government undertakes
to set aside annually toward the paw
meut of ss1ch coupnnc ~ axba nLa,.