This charter had courteously made the governor of the state ex-officio head of the Reguladora. Promptly, and without more authority, General Alvarado took charge of the organization. His first act was to force upon the unhappy hacendados, through the authority of their own instrument, a corporation which took their own business utterly out of their own hands and forced them to the acceptance of official dictation without dissent or question. To the end of organizing his Reguladora in line with modern thought and to thorough efficiency for his own ends, he invited in from Mexico City the one set of brains in the Carranza administration, those of Luis Cabrera, and called in the motley company of self-styled “socialists” who had been drawn to Yucatan by the lurid tales of revolutionary propagandists who had predicted the inevitable uprising of the oppressed proletariat when opportunity should be given them. This cabinet laid out the Reguladora plan, and two American bankers of New Orleans, Saul Wechsler and Lynn H. Dinkins, organized a syndicate which agreed to finance the cornering of the henequen market up to $10,000,000. There was no socialism in this phase of the plan, for the bankers were to receive a commission of $4 per bale on all henequen marketed, plus the current banking rate of interest for all moneys needed, the loans to be fully secured by mortgages against hemp in storage or in transit. So far all was well, but here Alvarado met his first difficulty. The henequen growers were not socialistically inclined, nor were they as trusting of his good faith, or so well secured as the American bankers, nor had they so much to gain or so little to lose as the “socialist” advisers of the governor. Many of them refused to be bound by the new rules of the Reguladora, which included, amongst others, a provision that no hemp should be sold to any agent or interest save the Reguladora. But Alvarado’s government called on the hacendados to subscribe to his rules for the Reguladora, and to those who refused it threatened (and gave evidence of the fullness of its intentions to carry out its threats) to fire the fields and throw the offending hacendados and their families into the flames. It organized the Red Guard of Yucatan (called the “Leagues of Resistance”), and spread terrorism throughout the peninsula. It drove out the tiny group of foreigners who for twenty-five years had been engaged in “exploiting” the unfortunate Yucatan proletariat by keeping the capitalistic hacendados from getting too much money out of American farmers. Along with them went hundreds of the hacendados and their families, and also priests and nuns, while the simple Indians who could not take steamers for foreign ports emigrated quietly back into the forests of interior Yucatan.