File No. 812.77/122.
The American Consul General at Monterey to the Secretary of State .
Monterey , April 9, 1912 .
I have the honor to state that the threatened “walk out” of American railroad men here in Mexico is causing considerable anxiety amongst the better class of people. It is a recognized fact that the majority of American railroad men here in Mexico are not only competent, but they are quite a superior class of citizens. In fact, I have noted a great improvement between many of the American railroad men in Mexico of twelve years ago and those of to-day. As a rule our American railway conductors and engineers are sober, law-abiding citizens, remaining neutral as to local politics, and attending strictly to the business of the railroad company by which they are employed. As a rule they receive large salaries and instead of sending this money out of the country, Mexico is constantly benefited by this thrifty class who have money to spend and who invest it and spend it here in the republic. A large number of these Americans have spent years in Mexico and have been largely instrumental in bringing up the railroads in Mexico to their present high standing. Ten years ago nearly all of the railroads here were manned by Americans and there were few Mexican conductors or engineers, whereas to-day only about 62 per cent of the conductors and engineers are Americans, the balance are Mexicans who have been taught railroading under experienced American railroad men. Many of these American railroad men have passed the age limit which would enable them to find employment on American railroads in the United States, and, as they have spent a large part of their life railroading in Mexico, they greatly dislike being crowded from their positions and compelled to seek employment in other lines of business.
I have been told by some of the principal engineers and conductors that all the American railroad men ask is to be fairly treated by the railroad company, which they have helped to make what it is to-day in Mexico. I understand their demand to be that no less than 50 per cent of the engineers and conductors shall be Americans and that the policy of discharging Americans for unwarranted or slight causes, without giving them a proper hearing, cease. And that no Americans be discharged without a good and sufficient cause. As I understand it the American engineers and conductors in Mexico have not made any unreasonable demand.
American capital built these roads, a large part of the stock is owned in the United States, and while the Government of Mexico is supposed to own the controlling stock at the present time, it is understood that the bonds, which were given in exchange for said stock, is the property of American citizens.
[Page 920]The facts appear to be that these American railroad men, who are capable and responsible and who are the safe and competent guardians of American property, have already been greatly reduced in numbers. If their just rights are denied them they will, without doubt, leave Mexico, or at least quit railroading, and the railway properties will undoubtedly suffer as a result of their being crowded out of their present positions, which will not only result in a hardship to the men who have devoted the best part of their lives in building up these properties but will result in great loss to the people who own stock in the railroads.
It is furthermore understood that if this great body of men are compelled to leave the service, railroad men in the United States and employees of steamship lines touching at Mexican ports will show such sympathy as will cause a general tie-up in the movement of all freights between the United States and Mexico.
There exists what appears to be a well-founded rumor that railroad and steamship men will refuse to handle freights either in or out of Mexico if these American railroad men are unjustly driven from their positions.
The tying up of the railroads at the present critical time would undoubtedly greatly add to the seriousness of the present conditions prevailing throughout this country. It would mean the cutting off of the supplies brought into Mexico by railway and steamship lines, and it would make it impossible to market the products of this country outside of Mexico. The food supply would largely be cut off. The fuel supply would soon give out. The mines, smelters, and the mills would soon be compelled to close down, and starvation, more terrible than the present revolution, would soon be felt in every part of this republic.
It is hoped that every reasonable influence will be brought to bear on all parties concerned which will tend to bring about a just and satisfactory settlement of this serious question.
I have [etc.]