Then comes this small, innocent-looking clause: the land round the borders of Lake Chapala, between the present high-water mark and whatever point he succeeds in lowering the lake to, is given to him. Just imagine a strip from 10 to 50, possibly 100, feet wide round the border of a lake that has about 130 miles, more or less, of border! Besides, he cut every landholder off from a water-front. One wealthy _hacendado_, realising what it meant to his ranch, paid him $500,000 not to touch his borders. A German company offered him $2,500,000 in cash for the bare concession. Foreigners, as a rule, are fairly welcome in this country, as they bring in money and start new industries. The upper class and the labourers appreciate this, but the middle class and the skilled mechanics do not, as the latter are crowded out. The Mexican railroad men some time ago agitated for a law which would practically prohibit Americans working at this business, as at that time there were very few Mexicans holding responsible positions on the railroads of the country—few indeed got to be engineers or conductors. When they could not get their law passed they started anti-foreign agitations all over the country, and were backed by all who were “agin the government,” till finally, five years ago last September, the word went round that all foreigners would either be killed or run out of the country. Notices were posted in this and other towns (and immediately torn down by the police) warning us what was to happen if we did not leave, and things began to look serious. Of course few of us looked for any general rising, but for isolated attacks on individuals. Lots of people found it necessary to leave for the States on business (?), and I think most that remained went armed. However, the government was not idle. On the 14th September they ordered all the saloons to be closed and stay closed till the 17th. On the 15th they started making arrests of persons known to be disaffected, and some five hundred from this city and about seven hundred from surrounding towns found themselves in the penitentiary that night. On the nights of the 15th and 16th (the great national holiday) soldiers in small squads patrolled the city till morning, and any one who even shouted “_Abajo los Gringoes_” (down with the foreigners) was immediately carried off to the Quartel. It was the quietest 16th of September we have had since I have been in the country; on the 17th the prisoners were all released, and the crisis was over, without a single case of assault in the entire republic. This is the way Diaz handled revolutionary talk. Now, since Madero’s successful revolution, all this is changed, and the country is trying to become a real democracy, and may succeed unless some other Diaz arises. The railroads have been taken over by the government, they buying a controlling interest, and Americans are gradually being eliminated and Mexicans pushed to the front as fast as they can find