Page:Margaret Shipman - Mexico's Struggle Towards Democracy (1927).pdf/36

 occurred a great scramble for oil lands, in which Mexican small investors felt themselves discriminated against by law and government policy. Scores of small companies were formed and two large ones, i. e., in 1907, the Mexican Petroleum Company (Doheny) under the laws of Delaware with a capital stock of $60,000,000, controlling 550 thousand acres of land; and, in 1908, under the laws of Mexico, the Mexican Eagle Oil Company (Lord Cowdrey and several Mexican directors) with a capital of $50,000,000, controlling 800 thousand acres. Thus the stage was set for the struggle between American and English oil interests.

The business depression of 1907 in the United States caused financial pressure upon Mexico which led to the reorganization of the Mexican national debt, establishment of currency upon a gold basis, and negotiation for a loan. It was currently understood that these transactions brought large profits to financiers and feeling became so high that the loan was given up. Government control of the railroads was effected in 1909 by purchase of stock, controlling over half the mileage. This was supposedly done in opposition to the railroad merger at the time being put through by E. H. Harriman, whose exclusive control Diaz feared. All these measures were costly, added taxation and pressure upon business interests and the masses.

In 1907 and 1908 severe frosts and droughts caused failure of crops in Mexico. In average years the value of Mexico's corn-crop exceeded that of any other one product, vegetable or mineral, but