20 THE IRR1 GA TION A GE. 



proved, is looked upon in Europe with suspicion; our venal vote 

 catching politicians having so thoroughly destroyed the confidence of 

 foreign investors to our individual and natural integrity. The term 

 American was at one time synonymous with honesty; few Americans 

 doing business abroad find it so at the present time, quite the reverse. 



In view of the wide-spread suspicion of American investments, it 

 was not surprising that the Rio Grand Dam & Irrigation Company 

 signally failed to place its bonds. But the directors continued to per- 

 severe in their efforts to carry out the objects of the company, being 

 assured of the unanimous support of the land owners in the valley, 

 and realizing that unless early steps are taken to impound the flood 

 waters of the Grande, the farming interests would for the most part 

 speedily fall into desuetude, 



Finding that in the state of the money market it would be impossible 

 to place the shares and bonds of the American company, and being 

 advised that investors abroad would be more likely to entrust their 

 money to an English company, managed by a Board of Directors of 

 high rank and standing, responsible to the shareholders under English 

 law, it was decided to raise the capital necessary for the proposed 

 irrigation works by leasing to an English company, to be incorporated 

 under the laws of England, the American company's franchise rights, 

 privileges and undertakings. The best legal advice obtainable was 

 taken as to the legality of the American company's rights, and upon 

 being satisfied that a lease giving control only of the American com- 

 pany's property could not be construed by the most violent jingo of 

 the anti-English party as constituting the holding of real estate, or as 

 being in any way a violation of the Alien Act, the English company 

 was incorporated. 



A Board of Directors consisting of gentlemen of exceptionally 

 high standing was, with great difficulty, formed, capital was under- 

 written, and shares and debentures of the English company were 

 issued to the public. Capital was underwritten and subscribed largely 

 upon the strength, high rank and representative character of the 

 Board of Directors, and in the course of a few weeks after the issue 

 of the prospectus, the chairman visited the Rio Grande Valley on be- 

 half of the company. Upon being satisfied by the company's legal 

 advisers that the American company's titles were unassailable, and 

 English company's lease legal, arrangements were made for the con- 

 struction of the proposed irrigation works. It was never for a mo- 

 ment considered possible that American state officials could be capable 

 of secretly plotting to invalidate the valuable rights legally conceded 

 . by a previous administration. 



Encouraged by this new Anglo-American enterprise, English in- 

 vestors evidenced an inclination to become somewhat less distrustful 

 of American honesty. The market for American irrigation securities 

 generally improved, and the long prophecied era of prosperity for the 



