Demands Truth About Mexico.

New York Times 100 years ago today, July 18, 1913:
President Wilson Declines to Act on Stories He Has Been Unable to Confirm.
Special to The New York Times.
    WASHINGTON, July 17.— A policy of frankness adopted by the Administration to-day in regard to the Mexican situation has served to clear away in some respects the uncertainty that has existed as to the meaning of recent developments in that perturbed country, and to throw light on the policy now pursued by the Government of the United States and that which may be followed in the future.
    From the very best source of official authority, the correspondent of The Times learned that the so-called representations made to the United States by European powers concerning the condition of affairs in Mexico in reality were the views of the diplomatic officers of those powers in Mexico City, prepared in concert and transmitted to their Governments. One at least of the powers saw to it that those views were placed in the possession of the State Department. In taking that action, however, the power or powers involved made no statement of its or their own opinion concerning the status of Mexican affairs, and suggested no course which the United States might be expected to pursue to end the chaotic conditions prevailing in that country. There was not even an inquiry as to what the course of this Government would be.
    It is apparent from what was said that the action of the President and the Secretary of State in directing Henry Lane Wilson, the American Ambassador in the City of Mexico, to come to Washington without delay, was due in large part to the course of the European representatives there in making concerted statements to their Governments.

Washington Lacks Information.
    The general reason for the call to Ambassador Wilson at this admittedly critical time, however, was the inability of President Wilson and the other principal officers of the Administration to get an accurate and comprehensive idea as to what was taking place in Mexican territory.
    Strange as it may seem, the United States Government, with all its excellent sources of information, has been unable to obtain reports that would give it a satisfactory picture of what has been going on in Mexico and an illuminating description of the present conditions of things from political, military, and diplomatic standpoints. There is no complaint that Ambassador Wilson has not been sufficiently frank in his advices, although a feeling appears to exist in official circles that Mr. Wilson has been cautious in expressing himself, in the fear that if his views should come out they might be misunderstood or cause an exaggerated idea of the situation to be given. Rather the decision to bring the Ambassador to Washington was based in part on the belief that a much better understanding of the prevailing conditions in Mexico could be obtained through conferences between him and President Wilson and other officers of the Administration.
    It was admitted by administration officials to-day that they were at sea as to exactly what was going on south of the Rio Grande. They have reason to believe — although there is qualification of this in a parenthetical remark that with regard to Mexico nothing seems to be certain — that the reported demonstrations in Mexico City against the United States and Americans were fomented by a small group of Mexicans trying to force the United States Government to recognize the administration of President Huerta. It is asserted, also, that there is an equal artificiality attaching to many other things that are said to be happening in Mexico.
    Inquiry made by this Government into many reports of outrages in the Southern Republic has raised doubt as to the truth of a large number of other statements concerning conditions in that country. One instance to illustrate the growing belief of Government officials here that a persistent effort was being made to disseminate false reports as to the Mexican situation, was given by an official.

Can't Confirm Suicide of Women.
    Early this month there was a press dispatch that Durango had been captured and that women who were attacked had committed suicide. The State Department began immediately an effort to obtain accurate information as to the reputed affair. Telegraphic messages were sent to the American Consuls in Durango and other places in the neighborhood. No confirmation of the story could be obtained, and in the opinion of officials here the alleged incident never occurred.
    "But, although I express the opinion that it never occurred," said an official to-day, "the very phraseology I use shows our embarrassment. I saw that, in my opinion, it never happened, but the fact is I don't know whether it did or did not happen."
    This official emphasized the desirability of getting exact information as to what was occurring in Mexico. He suggested that the newspapers might cooperate with the United States Government in trying to obtain correct news and also on keeping the public from being misled by the rumors that crossed the border.
    In connection with the reports that pressure was being exerted by some foreign powers to compel this Government to adopt a more radical course in Mexico, the explanation was made to-day that nothing that had come from any foreign nation in regard to Mexican affairs could be interpreted as "pressure" in the sense in which that word had been used.
    Perhaps the most important statement made in a high official quarter was that when Ambassador Wilson had made his report in person it would be possible — at least the hope that it would be possible was expressed — for President Wilson to plan a definite course of action provided conditions did not change abruptly and throw the situation into confusion. Another important bit of information was conveyer in a contradiction of the suggestion that Ambassador Wilson's return to this country was in the nature of a recall.

Wilson Sent No Investisgators.
    It was denied in an official quarter that President Wilson had sent any special Commissioners to Mexico to gather information as to the state of affairs in that country. A previous explanation that Dr. William Bayard Hale, who had gone to Mexico on a journalistic mission, had been writing his impressions for the benefit of the President was confirmed, and it was also said that the views of a Mr. del Valle as to the Mexican situation had been communicated to the President through another person, but beyond those. It was asserted, the President was not getting advices from Mexico outside the regular official channels.

Senator Fall's View of the Situation.
    Senator Albert B. Fall of New Mexico, who has taken an active part in the work of the sub committee of the Senate Committee on Foreign Relations in its investigation of the alleged American influences behind the Mexican revolutions, predicted to-day, in a prepared statement, that the United States eventually would be compelled to intervene and restore order in the southern republic.
    Mr. Fall has large holdings in mines and ranches in Northern Mexico, and in the Orozco revolution against President Madero he made no secret of his long friendship for Gen. Pascual Orozco. But when, after the murder of Madero, Orozco joined forces with Gen. Victoriano Huerta, Mr. Fall's sympathies did not follow him. Not long ago the Senator denounced Provisional President Huerta on the floor of the United States Senate as a "traitorous and treacherous assassin."
    The Huerta Government answered that charge by saying that Mr. Fall had contributed $200,000 at a time to the revolutionaries. Senator Fall denied that, and said the accusation came from animus resulting from his refusal to urge President Wilson to recognize Gen. Huerta. It is suggested that Mr. Fall's prediction of ultimate intervention by the United States will be as little palatable to the revolutionaries as to the Provisional Government.

Senator Fall's statement follows:
    "I am in thorough accord with the Administration in the policy of non-recognition of the Huerta Government as a government. My reasons for this are as follows:
    "It is a fact susceptible of proof that in at least four of the Central American Republics, just prior to the inauguration of Mr. Wilson, revolutions were brewing. Revolutionary agents had purchased arms and ammunition, some of which it is understood was stored, and possible yet is stored, in Cuba, and some of which it is rumored has been delivered through British Honduras.
    "It is a fact within my knowledge that certain prominent revolutionary agents of these Central American Republics believed firmly that the Wilson Administration would reverse the Taft policy in the matter of sending marines, troops or ships to protect American interests within these republics, and incidentally, of course, in so protecting the interests, possibly aid one or the other contending factions.

Mexico Mostly Against Huerta.

    "The greater portions of each of twenty-five States out of the twenty-seven are at present in the hands of the opposition to Huerta, whether the opposition of the present allegiance be to Zapata, Carranza, Pesqueira, Martinez, or other leaders. In the two remaining States armed bands are operating against the Huerta troops.
    "Under the Madero regime and under the present regime no volunteers have joined the Government forces. I speak of volunteers as we understand the term in the United States. With $2 a day offered for soldiers, the only method by which recruits have been enrolled has been through the emptying of the jails in the Federal district and in the different States of the republic, and the forwarding of such so-called volunteers under armed guard to the nearest garrisoned station held by the Government forces.
    "Sixty-two million dollars left by Diaz in the Treasury has been dissipated, and no volunteers except such as mentioned have appeared. Twenty millions more of the bond issue of 1911 have been expended without securing a volunteer, so that it appears that even if, through the recognition of Huerta, his so-called Government were enabled to place another foreign loan, the proceeds would be of no avail whatsoever in securing men with whom to restore peace and order in Mexico, except from the source mentioned — that is, the jails of Mexico.
    "Next, the bonded indebtedness up to 1911 of the Republic of Mexico was approximately $200,000,000 in gold, and of this indebtedness under the funding bond issue of 1899 $52,000,000 was placed through American financiers and some little of it is held by American investors. Sixty-seven million dollars was placed in England, sixty millions in France, and the balance in other portions of Europe. Of the total bonded indebtedness of Mexico up to 1911 $21,000,000 was ostensibly owned by Mexicans.
    "The bond issue made under the Madero administration was placed through American financiers, or at least money was obtained by loans from American financiers upon such bond issue. Under this last bond issue the contract was entered into that it should be secured, as was the funded debt, by 62 per cent. of the total imports and exports collected by the Mexican Republic, leaving 38 per cent. unpledged.

That New Mexican Loan.
    "The new loan proposed by the Huerta Government was proposed to be secured by the remaining 38 per cent, of the imports and exports. Of this new loan of $97,000,000, $8,450,000, approximately, was to be placed in the United States, Belgium, Holland, and the other countries of the Continent, except France. Seven million dollars was to be placed in Great Britain and the remainder in France. Of this remaining sum, approximately, $18,000,000 was offered to the French investors recently, together with the $7,000,000 to be taken by the English and a portion of the $8,000,000 in which the American financiers were to participate with those of Belgium and other countries.
    "I do not know exactly how much of the amount offered in the United States of this $8,000,000 was secured. Reports, however, from the foreign markets show that of the total amount offered there less than 15 per cent. was taken. The proceeds of this loan were very largely to be taken up for maturing railroad bonds, coupons, and interest.
    "Now, the situation is this: Carranza served notice on the public in this country, as well as in Europe, that if successful he would not recognize this ninety-seven-million-dollar loan. At the same time he filed with the State Department of the United States a decree by which he pledged himself and his party to recognize and provide for the payment of every dollar of damage done to American or other foreign property owners in Mexico, through the destruction of any property, or through injury to life, limb, or liberty, not only such damages accruing during his revolution, but the damages which had already accrued from the time of the overthrow of Diaz to the breaking out of the Carranza revolution after the assassination of Madero.
    "If the Huerta Government is recognized by the United States, it is said that Huerta would then be able to place this loan of $97,000,000, which has been underwritten largely by the French, who are most deeply interested. This loan would then be secured by all the remaining revenues from imports and exports not already pledged.

American Claims Would Wait.
    "The claims of Americans for damages to property, life, &c., in Mexico will aggregate an enormous amount, certainly not less than one hundred and fifty million dollars. How would this one hundred and fifty millions be paid by the Huerta Government, the Carranza Government, or any other Government of Mexico, with their entire proceeds of imports and exports pledged until every dollar of all their present indebtedness, including the ninety-seven millions issued by Huerta, is paid off? The result is that a recognition of the Huerta Government would be regarded as validating a contract absolutely pledging all the revenues, no matter what they may be increased to, derived from imports and exports to the payment of, first, all other claims before any American claims for damages could be paid.
    "It is perfectly apparent that the syndicate underwriting this ninety-seven million dollars, which is merely in the shape of ten-year notes rather than bonds, is very deeply interested in the recognition of Huerta. Then the United States would be bound, as possibly might be the other nations who have already recognized Huerta, to treat with Mexico for the payment of damages to its citizens upon a basis of recognizing the prior right of foreign bondholders to the revenues of Mexico.
    "The ultimate result, in my judgment, will be the same, and eventually the United States will be compelled to intervene to restore order and maintain peace in Mexico. Otherwise, the United States will be called on by foreign countries to surrender its American policy, together with the Monroe Doctrine, as this American Monroe Doctrine policy has been understood in Europe and insisted on by our citizens — at least, up to and during the Cleveland Administration."