File No. 312.115/321


Responsible American merchant banker, just from Chihuahua informs me that on morning of June 26, merchants, business men and agents of operating [?] in Chihuahua were notified by police to appear at Governor’s office. Upon appearing they were notified of forced loan. Those failing or refusing to promptly pay same were imprisoned until same was paid. Receipt reads substantially

In payment of forced loan ordered by the Governor of the State which will be returned from money that is to come.

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No one except authorities has complete list of parties assessed. Including among them were Germans Ketelsen and Degetau said to have been assessed ten thousand pesos, Americans Krakauer, Zork, and Move, American Smelting and Refining Company, Chihuahua Potosi Mining Company, each five thousand pesos, Barron two thousand, George Johnson one thousand, and Englishmen Chihuahua Investment Company owned by Dale Brothers five thousand, and Philip Baber one thousand, and various French, Italian, Spanish, Arabs and other foreign and native merchants. Gallan, Mexican agent of the Smelting Company, Finey, English agent of Baber, Soul, Mexican agent of Dale Brothers and Bovio, Italian mine owner among those imprisoned. Numerous others, names unknown, were also imprisoned.

Military authorities disclaim responsibility for forced loan but made arrests of individuals failing to comply with same. Troops had not been paid except partially for two months and this was given as excuse for loan. There had been no indication of restitution as late as July 3.