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136 division of Mexico. Among other things, he is also a strong power along the American border, where he and his associates own the Mexico Northwestern Railway and several smaller lines, as well as vast tracts of lands and huge lumber interests. In Chihuahua he is establishing a large steel plant and in El Paso, just across the line, he is building a half million dollar sawmill as a part of his Mexican projects.

S. Pearson & Son have been given so many valuable concessions in Mexico that they were responsible for the invention of the term, "the partners of Diaz." Through concessions given them by the government they are in possession of vast oil lands, most of which are unexploited, yet so many of which are producing that the company recently gave out a statement that it would hereafter be in a position to supply its entire trade with Mexican oil. Its distributing company, "El Aguila," contains on its directorate a number of Diaz's closest friends. Pearson & Son, also, have monopolized the contracts for deepening and improving the harbors of Mexico. Since their advent into the country some fourteen years ago the government treasury has paid to this concern $200,000,000 for work on the harbors of Salina Cruz and Coatzacoalcos, and the Isthmus railroad. This amount, a government engineer told me personally, is an even double the price that should have been paid for the work. In 1908 Diaz's congress appropriated $50,000,000 to install an extensive irrigation project on the Rio Nasus, for the benefit of the cotton barons of the Laguna district in the State of Durango. Immediately afterwards the Pearson company organized a subsidiary irrigation concern with a capital of one million. The new company drew up plans for a dam, whereupon the Diaz congress promptly voted