Seeking Fortune in AmericaGrey, F. W. (Frederick William)
History
Seeking Fortune in America
Grey, F. W. (Frederick William)
Canada -- Description and travel; Mexico -- Description and travel; United States -- Description and travel
One of the things which militate against the growth and prosperity of
the country is the custom of granting concessions for every imaginable
purpose. When these concessions are asked for by people who intend to
invest money in the country and develop a new industry it is bad enough,
but the trouble is that many of these concessions are obtained by
concession hunters who have barely enough money to put up as the
necessary guarantee. These people, hearing of the possibility of some
company starting a new industry here, immediately ask for a concession
covering the industry, put up the few hundreds or thousands necessary to
secure the concession, and then sell out at an enormous profit to the
prospective manufacturer. These holdup methods do not always succeed,
however, as in the following case. The men at the head of our concern
contemplated putting up gas plants in most of the big cities of the
republic to supply light and power and heat, and to consume part of the
immense production of oil from their field—gas here and in California
being now made from oil instead of coal. A lawyer here, hearing of this,
asked for the gas concession for this city, put up the $1500 asked as a
guarantee, and was granted the concession. With this in his pocket he
went to Los Angeles and tried to sell it to our company, who, however,
only laughed at him, told him to go ahead and put up his plant, and that
they would sell him oil when he was ready. In the meantime they had
secured the concession for Mexico City. After this rebuff he tried to
get other people to take up the concession, and only after much expense
and two years’ time succeeded in getting people who would buy his
concession and build the plant which is now in operation in Guadalajara.
Some of these concessions are a robbery of the community at large. One
granted to a dynamite concern gives them the sole right to manufacture
this article, so vital to the mining industry of the country. To protect
them, a duty of $90 per ton was placed on the import of the foreign
dynamite, but the concession states that, if the company cannot
manufacture sufficient to meet the demand, they may import free of duty
the balance necessary. The outcome of this is that the company
manufactures enough to protect their concession and import all they
need, and the entire industry is in their hands. Another concession
granted to a young Mexican of this city was ostensibly for irrigation of
waste lands, and it reads in part as follows: He is allowed to take all
the water he needs from Lake Chapala to irrigate these federal lands
(some 400,000 acres), and is paid by the government $5 for each acre so
irrigated. He is allowed to build hydro-electric works on the canal, and
transmit and sell power wherever he likes; it is estimated that he can
generate 50,000 horse-power on the works he has installed, and was first
a competitor, and later, combined with the light and power company of
the city.
Public-domain text, read in full here on John Shaqi.
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