File No. 812.77/108.
The American Ambassador to
the Secretary of State
.
American Embassy,
Mexico
,
January 16, 1912
.
Sir: I have the honor to transmit herewith
copies in duplicate as follows:
- First. Instructions to Mr. Dearing to interview President
Brown relative to the question of the Mexicanization of the
National Railways.1
- Second. Mr. Dearing’s report of the interview.
- Third. Letter from the Chairman of the General Board of
Adjustment for the Order of Railway Conductors of the National
Railways of Mexico.
My reasons for securing this interview are that the increasing
probability of an antiforeign and anti-American policy in the personnel
of the Mexican National Railways makes it important that the Department
should be well informed in the premises.
In the event that the Mexicanization of the National Railways is
persistently and thoroughly carried out by the Mexican Government the
deterioration of these great properties must almost inevitably follow.
This has been the experience wherever the policy of entirely eliminating
foreign and American employees has been carried out effectually. In the
event that this policy should be carried out, resulting in a
depreciation of the values of the properties, it may be anticipated that
American and foreign bondholders would immediately become dissatisfied
and that an agitation would be started for the purpose of securing our
intervention and possibly that of other powers in the matter.
I have [etc.]
[Inclosure 1.—Memorandum.—Extract.]
Memorandum relative to the Mexicanization of the
National Railways of Mexico.
Mr. Dearing, at the direction of the Ambassador, called upon Mr. E.
N. Brown, President of the National Railways of Mexico, by
arrangement, at 3.30 p.m. on the eighth of January, 1912, in
relation to certain agitation, supposed to have the sanction of the
Mexican Government, for the so-called Mexicanization of the National
Railways of Mexico, i. e., the substitution of Mexican for foreign
employees. Since some sixteen hundred Americans are in the service
this agitation at once assumes importance for them and thus for the
American Government and the American Embassy in Mexico. Indeed,
trouble has been narrowly averted on several occasions and as late
as August, 1911, a general strike of the Mexican employees was
threatened and was discourged only when the Mexican Government
frowned upon it for matters of policy; i. e. the Government is
favorable to the Mexicanization but does not wish it to be
accomplished by strikes which would certainly bring about
international complications. The agitation in question is now two
years old and dates virtually from the issuance of what is known as
the Limantour circular of 1910, copy of which will be found in Mr.
Jaime Gurza’s book enclosed in the Embassy’s dispatch of September
18, 1911 (No. 9501)
Mr. Brown said that the foreign bondholders would certainly oppose
any attempt by the Mexican Government to eliminate American
employees and [Page 915] said that
they had already been very active when nothing more than the
possibility of such a thing existed.
The difficulty, he said in effect, is that the Government, while
understanding the situation and while well disposed, has to
withstand a pressure from the middle and lower classes almost too
strong to be resisted. As a matter of fact the Government would
prefer to have the management of the railway in American hands, but
as the various state officials and petty authorities of all kinds
conceive that the railways are state property and that they as
citizens have certain rights over them, they cannot, on account of
their number, be ignored. This misconception, Mr. Brown thought, was
largely due to the demoralizing Limantour circular above referred to
which had been seized upon by the people as evidence of rights
which, as a matter of fact, do not exist.
Mr. Brown said that the Mexicanization of the National Railways is
actually being effected and in the only way in which it can be
carried out to the satisfaction of all concerned. The present policy
and method is to promote men from the ranks whenever they are found
to be capable of filling the higher vacancies, the places being
given, everything being equal, to Mexicans. He said this plan had
been in operation on the old National Railways for about eighteen
years and that in time practically the entire shop force had been
Mexicanized without any loss in efficiency, only ten foreigners
being now employed. He remarked that the company had taken great
care in training its men and that even in the administrative
department he was preparing to take in various Mexicans who had
demonstrated their fitness.
Mexicanization even of the minor personnel cannot be effected now
without disrupting traffic but that it is in gradual process of
accomplishment as above indicated.
Mr. Brown, upon being asked if discrimination was being practiced by
Mexican railway officials against American subordinates for the
purpose of forcing them out of the service, answered “No.”
Mr. Brown said that he had been assured by both the President and
Ernesto Madero, the Secretary of Hacienda, that there would be no
change in previous and established policies of the Government in
relation to the National Railways and that he believed that they
were sincere in their statements. But while evidently sincere now
might, he thought, if agitation continued and pressure by the people
became too great, be forced to take a different attitude, i. e.,
that they would stand by the status quo as long as the people
acquiesced.
Speaking of the physical condition of the National Railways, Mr.
Brown said the roadbed and equipment were in the best of condition
and better than any railroad west of the Mississippi in the United
States.
[Inclosure 2.]
The Chairman of the General
Board of Adjustment for the Order of Railway
Conductors to the American
Ambassador
.
131 Plazuela de Buena
Vista,
Mexico, D. F.
,
January 12, 1912
.
Dear Sir: I am enclosing you herewith the
report on conditions affecting the “road men” of the National
Railways of Mexico, which you asked for.
The conditions as I have stated them are not in the least
overdrawn—every word of it is true and can be proven.
If you can, in your official capacity, do anything that will get for
us the “square deal” that we should be entitled to, I assure you
that it will be greatly appreciated.
Very sincerely, yours,
[Sub-inclosure.]
Labor Situation on the National Railways of
Mexico.
For a period of something over two years no conductors, and few
engineers, have been hired, so that the number in the service is
gradually growing less.
A great many of the Mexicans who have been given positions as
conductors are men who have not earned this preference by reason of
proficiency in the [Page 916]
practical knowledge of the duties and responsibilities of a
conductor or engineer.
The current book of rules of the National Railways, under which road
employees work, reads, in part, as follows: “To obtain promotion
capacity must be shown for greater responsibility.” The conductors
and engineers feel that they have a reasonable cause for complaint
by reason of the fact that some of them have Shown capacity for
increased responsibility, yet they have not been promoted, and if
the present policy of the company continues they will not be.
The greatest cause of complaint the men have is that they are being
discriminated against in matters of discipline. An offense against
the rules by an American is generally the cause for his discharge,
where the fault is a dischargeable offense and if it is not a
dischargeable offense the man is heavily demerited. Similar offenses
on the part of a Mexican are taken little, if any, cognizance of. It
looks as though the policy were to get rid of the American employees
and save the Mexican ones.
Many of the men who are now left in the service are men who have been
with some of the properties constituting the National Railways for
years and they have passed that age when they could go to the United
States and get employment as conductors or engineers. They have
given the very best years of their lives to railway service in
Mexico and have helped to make it what it is. Their feelings may be
imagined as they view the attitude of the company toward them. There
was a time when an old employee who had erred in the performance of
his duty was given some consideration because of long and faithful
service. If any consideration is being shown now it is not
apparent.
The last annual report of the company shows that there were 1,219
foreigners employed on the system, which is 3.19 per cent of the
whole number.
