No. 295.

Mr. Nelson to Mr. Fish

No. 432.]

Sir: On the 8th instant there appeared in the Diario Oficial a long series of documents showing the relations which have existed for several months between the Mexican government and the Lower California Colonization Company, and the measures taken by the former to ascertain [Page 653] whether the company had or had not fulfilled the terms of its contract within the time therein stipulated.

According to the seventh article of the so-called “Leese contract,” the company was bound to introduce into the peninsula of Lower California, within a term of years ending on the 4th of May last, two hundred families of colonists. As the result of a commission given to an officer of the custom-house of La Paz, to report upon the number of families of colonists existing in Lower California on the above date, that officer states that there were but twenty-nine families, but that there were in addition between four and five hundred single men, by counting whom the company claims to have fulfilled its engagement.

The government agents deny, 1st. That any number of single men can be legally considered to compose the families spoken of in the contract; 2d, that more than a small percentage of the single men referred to have been brought to the peninsula by the colonization company, alleging that they came thither for other purposes, especially for the gathering of the orchilla plant; and 3d, that such persons cannot be considered as colonists, they having come for the purposes of a temporary speculation. Acting upon this report the Mexican minister of public works addressed a note, on the 29th of June last, to Mr. Drake De Kay, secretary and general agent of the Lower California Company, (A and B,) declaring the concessions of land made to that company null and void for non-fulfillment of the terms of the contract, and that the government would proceed to open an account against that company for trespasses upon the national domain, and especially for the quantities of salt and of the orchilla plant which it has extracted from such public lands. The minister concludes by stating that he has sent copies of his note to the departments of the interior and of finance, “in order that they may proceed to take the proper steps concerning the introduction of goods at Magdalena Bay, and the continuance at that place of persons who improperly occupy public lands,”

Your obedient servant,

THOMAS H. NELSON.

B.

[Translation.]

Mr. Balcarcel to Mr. De Kay

Sir: On the 19th of April, 1869, Mr. Jacob P. Leese, the representative of your company, was informed of the obligation under which the said company was placed, in respect to its taking possession of the lands it was to colonize in Lower California, according to its contract, of subjecting itself to the operation of the laws of the republic, applying for that purpose to the proper judicial authority, and previously executing a measurement and survey of those lands.

When you communicated to this department, on the 22d of September last, that the company was disposed to proceed by legal measures to obtain all the rights, exemptions, and immunities to which it was entitled according to its contract, and that with this object it had landed the first exploring and colonizing expedition, this government deemed it proper to repeat the above instructions, and informed the governor of Lower California that the colonization was to take place according to contract, not only in the zone comprehended between the parallels of 24° 20? and 27°, but also in that between 27° and 31°; leaving untouched in the former the property of Mexicans, whatever might be the titles alleged, even when they might not be yet confirmed; and taking possession, in the latter zone, for the proposed colony, of all the lands, without other limitation than that of reserving the fourth part for the native Mexicans who may solicit them. You were also informed at that time that the company was under obligation to execute [Page 654] immediately, in the first of these zones, a general measurement of the lands, in order to separate those belonging to Mexicans from those which were to be colonized; and that it was also under obligation to survey and determine, with the greatest accuracy, the parallels of 27° and of 31°, in order to enter thereafter into the possession of all the wild lands between these parallels, except the fourth part reserved for citizens of this republic.

Before this time, the government had to send to Lower California a scientific commission charged with the survey of the said parallels, in order that the company might meet with no difficulties in that respect, and the said commission being further charged to be present at the measurement made by the company.

The said company, instead of proceeding to the said measurement as the first step toward entering upon possession of the lands ceded for colonization, limited itself to the occupation of certain lands, and to the location of a small number of persons upon them. Although these irregularities attracted the attention of the government, it allowed the agents of the company to remain at Magdalena Bay, because they manifested a desire to explore the ground first, in order to proceed to the survey and measurement afterward. Moreover, as the government comprehended that for the establishment and success of the colonies it was indispensable that the company should introduce along with the colonists provisions and other objects necessary for their subsistence, as well as the utensils necessary for the works to be executed in the foundation of a colony, and all the more so in lands of that character, it facilitated, as far as possible, that class of importations, opening at the proper time, by virtue of his constitutional faculties, to the commerce of the high seas, the port of Magdalena Bay, which had been chosen by the company for the beginning of their work of colonization, and therefore the most adequate for the landing of the goods destined for the supply of the colonists.

All these measures of the government had for their object the colonization of the peninsula, and desiring to know if it was being done in accordance with the terms of the contract, the government named a special agent to proceed to Magdalena Bay, along with a judge of Lower California, in order that his acts might all have due credit and responsibility, and to form a register of the number of families who should have established themselves in the territory up to the 4th of May last, the date on which, according to the seventh article of the contract, the company should have introduced at least two hundred families of colonists. By the report of the said special agent to this government and the accompanying register authorized by the judge, it is proven that on the 4th of May last there were in the districts examined by that agent twenty-one foreign families, amounting to fifty-nine persons, and forty-five Mexicans inscribed as colonists, among whom were eight families; the sum total being therefore twenty-nine families, composed of one hundred and four persons. The company also presented as colonists introduced by it four hundred and twenty-six individuals, among whom only two were females, which individuals not only do not constitute families, but do not even possess the character of colonists, since they have not definitively left their own country to settle in this, but are now in the peninsula merely with the object of exercising a certain industry for a limited time.

From these facts it may be deduced that the company has failed to fulfill the seventh and other articles of the contract, since it has not introduced into the peninsula the two hundred families of colonists mentioned therein as a minimum. But the government knows, moreover, that the company, without having legally taken possession of its lands, has devoted itself to their exploitation in an undue manner, unauthorized by the terms of the contract. This department is also informed that since the month of February, 1870, Mr. J. Jansen, who calls himself an agent of your company, and claims to act under its authority, has exploited upon a great scale, and still exploits the salt mines of Ojo de Liebre against the express stipulations of the eighth article of the contract. The company itself has not only collected and exported the lichen called orchilla, in grounds of which it was not yet legally in possession, but has assumed to grant an exclusive privilege for the exercise of this industry, for which it would have no faculties, even in case of having fulfilled its contract, and having become the proprietor of the said lands.

Since the seventh and other articles of the contract have not been fulfilled, the stipulations of the seventeenth article are now to be applied, they being as follows: “If the contractors shall fail to fulfill any of these conditions within the time and manner stipulated the concession shall become null and void, even though they may have delivered in advance the sum of money mentioned, and in such case they shall be indemnified with 500 sitios de ganado mayor, between the twenty-seventh and thirty-first degrees of latitude,” and by virtue of this danse the citizen President of the republic has been pleased to declare that the concession of lands made for purposes of colonization, in favor of your company, has ceased to be binding, and is null and void.

As stipulated by the last clause, the government is disposed to indemnify the company with 500 sitios de ganado mayor, between the parallels of 27° and 31°, for which purpose it awaits that the company take the proper steps in this department, by means [Page 655] of a properly authorized representative; it being understood that there will previously be drawn up articles of settlement, in which the government will demand from the company the amount properly due for the articles of public property which it has taken without permission, and for the exploitation it has made of salt and of the orchilla plant in lands which are to be considered as belonging to the nation.

This decision is now communicated to the departments of the interior and of finance, in order that they may proceed to take the proper steps concerning the introduction of goods at Magdalena Bay, and the continuance at that place of persons who improperly occupy public lands.

Independence and liberty!

BALCÁRCEL.

Mr. Drake De Kay, Secretary of Lower California Colonization Company, Magdalena Bay.