File No. 812.00/14836.

Special Agent Carothers to the Secretary of State .

[Telegram—Extract]

Regarding new mining law, it is not intended to injure all legitimate mining industries, and each company or individual may make representations to Minister of Fomento in Chihuahua and secure exemption if justified. The law is intended to prevent the purchase by speculators of mining properties that are now dormant, to hold for sale at immense profit. It is my intention to go to Chihuahua as soon as possible and discuss matter with Escudero, in order that he change or modify the decree. I would recommend that mining men, especially those who have working properties, take matter up at once in Chihuahua.

Carothers.