File No. 312.115/55.
Consul Gracey to the Secretary of State.
Progreso, January 24, 1914.
Sir: I have the honor to make the following report regarding political and financial conditions in this district:
On January 12 the merchants and property owners of Progreso, both foreigners and Mexicans, were called to a meeting at the office of the jefe politico and requested to contribute fixed amounts “for carrying on the campaign in the north.” Approximately $30,000 Mexican was collected from local parties, including $3,000 from Mr. W. P. Young, an American, agent of the New York and Cuba Mail S. S. Co. Receipts were given for the amounts collected.
On January 14th the parties who had been forced to make these loans were again called to the jefetura and were requested to return the receipts, and a statement was prepared by the jefe politico to be signed by the contributors. Mr. Young refused to return his receipt without the return of the money, which was finally agreed upon and the $3,000 returned, thus closing the incident so far as Americans were concerned.
On January 16th the parties making contributions were again called to the jefetura and their money returned, it being apparent that the jefe politico had exceeded his authority in calling for the loans and making the receipts.
In Mérida the prominent merchants and planters were called to the Governor’s on the 15th instant and requested to raise a voluntary loan which they declined to do. After consultation however, it was agreed that an increased tax on henequen of one centavo per kilogram would be acceptable, and a decree was issued to that effect.