-Caveat Lector-

from:
http://members.tripod.com/~american_almanac/prometh3.htm
<A HREF="http://members.tripod.com/~american_almanac/prometh3.htm">American
Prometheus -- The American System</A>
--[3a]--
The American Promethus, Part III:

The USA and Peru's War of the Pacific --
America vs. Imperialists

by Anton Chaitkin

Printed in The American Almanac, 1989. First printed in New Solidarity
 Newspaper, September, 1986.
------------------------------------------------------------------------

In the first two parts of this series (New Solidarity, Aug. 1 and Aug.
22, 1986), we saw how Americans made their country a great industrial
power after the Civil War. They had regained through war the power to
use the government for national development. With federally financed
railroads as the technological "driver" of the economy, with productive
investments protected by high tariffs, the nationalists set up America's
new steel and electrical industries. Their greatest accomplishments were
made in the face of concerted opposition by the international financi
ers.
We saw that the nationalist republicans were organized in Philadelphia,
as a group with political, military and commercial aims. With the aid of
the most advanced German scientists in geology, metallurgy and
chemistry, they built up America's skills for mining and processing iron
and coal, and for agro-industry; and in mathematics, astronomy and
geophysics as crucial elements of military success.

The European aristocratic oligarchy, represented within the U.S. by
their agents in certain Boston and New York families, sought to brake
the advance of American development. Trumpeting "Free Trade" and various
anti-capitalist slogans simultaneously, they scandalized and financially
wrecked the developers (we might accurately rename their philosophy,
Free[dom from] Enterprise). They won restrictions on the government's
power to issue credit and to subsidize railroads. Their own
international banking syndicate increasingly usurped the position of
arbiter of America's financial affairs.

In Part 3 we will observe the fight between the Americans and the
European oligarchs over the role America would be permitted to play in
the less developed countries. American nationalists -- Prometheans --
proposed to help build up other nations' own capabilities for industrial
and scientific achievement. A community of self-sufficient republics
could then withstand the wrecking operations of the oligarchs, and
eventually free the entire world from their grip.

The anti-republicans proposed that America should instead serve only as
an extension of European financiers' power over world development, and
that technological "disruptions," such as America's revolutionary steel
and electrical complexes, should cease -- both in the United States and
in the tropical countries.

This dispute over America's global purpose came to a dramatic showdown
in 1881. This was effectively the last stand of the American
republicans. Today, 105 years later, the U.S.A. is in urgent need of
winning virtually the same contest, presented to it in precisely the
same arena.



------------------------------------------------------------------------
Civilization in Danger


In April, 1861, when Southern separatists fired on Fort Sumter to start
America's 1861-1865 Civil War, their European political sponsors were
already on the march globally with new imperial adventures, threatening
to drag the world back into the Dark Ages.

The British countered India's 1857-58 Sepoy Rebellion with the
reinvasion and crushing of the Indian subcontinent, saving the source of
their opium. They were simultaneously engaged with their French ally,
Napoleon III, subduing China in the 2nd Opium War (1857-60), saving the
market for their opium amongst the ungrateful Asians. The British
allowed Napoleon III, meanwhile, the franchise to conquer Indochina
(1858-1867), sowing the seeds for the American disaster a century later.


The instant the United States was tied up by insurrection, the European
imperialists jumped to attack the unprotected southern flank of the
Americas. Announcing their resolve to force debt payments from the
government of Benito Juarez, the armies of Britain, France, Spain,
Austria and Belgium invaded Mexico late in 1861. The British and Spanish
withdrew in April, 1862, and the Mexicans defeated the French army at
Puebla in May, 1862. Napoleon III reenforced the invasion and captured
Mexico City early in 1863 -- just following U.S. President Abraham
Lincoln's proclamation of emancipation for the millions of negro slaves
held by the insurgents.

In June of 1864, the Hapsburg Prince Maximilian was installed as Emperor
of Mexico. That same Spring, 1864, the navy of Spain attacked Peru,
annexed Peruvian islands, and declared Spain's right to recolonize Peru.


In the following year, Argentina, Brazil and Uruguay were sponsored by
the British in a genocidal war against Paraguay, killing over half the
Paraguayans and breaking up that country's attempts to industrialize
itself on the U.S. model.

When the rebel slaveowners surrendered to U.S. forces in 1865, the
restored threat of American power helped to repair the situation south
of the border. The French, pounded by Juarez's U.S.-equipped army,
withdrew and left Maximilian to be executed. The Spanish dropped their
pretensions to reconquer their long-lost Peruvian colony.

Neither oligarchical versions of history, nor the later political defeat
of America's republicans, should divert us from understanding the
American Civil War as the central theatre of a global war between
freedom and slavery.



------------------------------------------------------------------------
World Development to 1880

A monument to the ideals of victorious republicanism was erected in 1869
in the National Cemetary at Gettysburg, where Abraham Lincoln had
delivered his famous wartime Address. Liberty stands atop a pillar,
whose base is surrounded by the figures of War, History, Plenty and
Peace.
War is represented by a veteran in repose on a cannon which has seen
hard use, his hand open in the hope of peace, his demeanor that of a
watchful citizen-soldier rather than a militarist.

History has a book open on her lap, with the pyramids of Egypt and the
columns of classical Greece cut in bas-relief.

Plenty holds a sheaf of wheat; a violin, sheet-music and a painter's
pallette are by her side.

Peace is a clear-eyed mechanic holding a gear, standing next to a frieze
of an industrial plant. A globe is surrounded by mariner's ropes and
tools, and the motif of the pyramids is repeated, celebrating the
completion during 1869 of the Suez Canal.

French engineer-diplomat Ferdinand de Lesseps had directed the Canal
construction for the previous decade, despite the objections and
attempted interference of the British. The khedive of Egypt commissioned
Giuseppi Verdi to compose an opera in honor the opening of the Suez
Canal; his "Aida" was first produced in Cairo in 1871.

Lesseps' interest in organizing Suez, a partnership of the peoples of
France (whose subscriptions paid half the cost) and Egypt (whose labor
built it), cohered with his family's tradition.

Ferdinand's grandfather Martin de Lesseps was French consul general in
Russia during the reign of Catherine the Great, when Russia and other
European powers formed the League of Armed Neutrality, helping France
ally with the American colonies against Britain.

Ferdinand's father Matheu de Lesseps was director of French secret
intelligence in the Middle East during the Napoleonic wars, competing
with the British for influence in the Islamic world. After Napoleon's
defeat, despite the subjection of France to Britain and allied
continental oligarchs, Matheu de Lesseps managed to have himself
appointed Consul in Philadelphia, Pennsylvania, where he lived from 1818
to 1822. He negotiated with Secretary of State John Quincy Adams a
commercial treaty between France and the U.S.A.. He was in a position to
counsel the Philadelphia-based American nationalists on strategic
affairs, as a member of their American Philosophical Society. His
friendships with the Egyptians later helped his son Ferdinand launch the
Suez project, while his contacts in Philadelphia, the center for exile
Spanish American patriots, would give Ferdinand the background for a
similar enterprise in the New World.

At an 1875, international congress of the French Geographical Society,
an organization once chaired by Alexandre von Humboldt, Ferdinand de
Lesseps announced his interest in cutting an interoceanic canal through
Central America. "Lazzaroni" nationalist Admiral Charles H. Davis, chief
of the U.S. Naval Observatory, had sent a representative to the Paris
meeting. The U.S. Navy wanted a canal for maximum mobility of its fleet,
to be able to challenge Britain for naval supremacy in the Western
Hemisphere. Apparently for just this reason, the British and their
friends in New York and Boston opposed the canal, as long as America
played an anti-colonial role in the region.

In 1880 Lesseps toured the United States to drum up American support for
his new Panama Canal Company. Pennsylvania industrial figures -- Andréw
Carnegie, steel engineer Alexander Holley, and the wife of crippled
Brooklyn Bridge builder Augustus Roebling -- turned out to a testimonial
dinner at Delmonico's in New York, the hall decked out in French and
American flags. Everywhere Americans hailed Lesseps as a hero. He chose
Secretary of the Navy Richard W. Thompson, a nationalist disciple of
Henry Carey, as chief promoter and chairman of the Canal Company's
American Committee.

Lesseps asked for American subscriptions to the stock of the company; he
would be happy, he said if Americans bought a majority interest, and the
company's headquarters was established in Washington or New York. But
J.P. Morgan got control of the U.S. sale of its stock, and not a single
share was to be sold in the United States. President Rutherford B.
Hayes, under the influence of the Morgan-Rothschild international
banking syndicate which had forced through Specie Resumption the
previous year, turned a cold shoulder to Lesseps. Hayes declared that
the Monroe Doctrine was adverse to "foreigners" building an interoceanic
canal. He fired Navy Secretary Thompson for associating with the French
canal effort.

The French company began digging the Canal through Colombia's Isthmus of
Panana in February, 1881. The President of Colombia at the time, Dr.
Rafael Nunez (1825-1894), was an exceptionally well-educated statesman.
A Free Trade advocate during his earlier career, Nunez left Colombia in
1863 and spent two years in the United States covering the Civil War as
a journalist. Here he was confronted with the great constitutional
question, centralized republican institutions, for the enduring power of
an independent nation, versus decentralization in the form of states'
rights or regional autonomy. This was precisely the question facing his
own country, where Nunez' British-influenced Liberal Party took the side
of states rights, championing the outmoded Colombian constitution that
prevented national development.

It was in the great arena of the war in North America that Nunez
apparently first distinguished for himself the political realities of
the nation-state from the Free Trade dogmas of British liberalism.

Nunez wrote from New York on November 2, 1864:

"...the true conservative will be he who keeps this country [the U.S.A.]
standing and saves it in its present crisis...In all political
societies, as in everything else, a conservative element is
indispensible as a principle of existence and of progress.

"In the passionate language of parties, all the elements of this type
may be confused with inaction and even with retrogression. And I say
confused, because there is as much difference between the one and the
other, as between good and bad, between truth and falsehood...The
conservative element in this country has been the principal of national
unity, fortunately and with foresight counterposed since the first years
after Independence, to the dissolving doctrine of the absolute
sovereignty of the States.

"This principle of national unity combined with, but superior to,
privileges of local government, is the soul of the Constitution; and
proof of this is that in the presidential election, the states do not
vote with equality, but only in respect to their populations; and that
the Constitution was not dictated by the States as independent entities
or sovereignties, but by the people of the states collectively. 'We
(says the Constitution) the People of the United States, in order to
form a more perfect union, etc., etc., ordain and establish this
Constitution.'

"The first Constitution [after the Revolution, i.e. the Articles of
Confederation] had the character of a pact between sovereign States;
but...all the influential men of that epoch, led by Washington...[won
the establishment of the] second and final Constitution, under whose
rule since 1787, the career of the United States has been so marvelous,
that it is impossible to avoid recognizing the excellence of this
mechanism."

Nunez goes on to discuss the economic reality behind the states rights
rhetoric of the "feudal gentlemen of the South." They have exaggerated
"the liberal Jeffersonian legacy" to preserve their hold on the commerce
of the nation, exerted through 4 million negro slaves, worth, as assets,
at least $4 billion, and much more in the product of their labor. [1]

Nunez spent many more years abroad, working and studying in England and
in Continental Europe, before returning home. As president of Colombia
in 1880-1882, and 1884-1886, he proclaimed a fully nationalist program
in the tradition of Alexander Hamilton, Friedrich List, Henry Carey and
Lincoln. It was in this Colombia of Rafael Nunez, that Lesseps began to
build the Canal through the Colombian province (state) of Panama.





------------------------------------------------------------------------
American Nationalism vs. The State Department

As the republican nationalist group, based in Philadelphia, forged ahead
with the industrialization of the United States after the Civil War,
they planned for the extension of that construction effort into the
republics to the south. William J. Palmer, a gallant freedom fighter
before and during the war, projected a railroad route from Colorado
through to Mexico City. His intentions regarding Mexico were the same as
towards Colorado, whose high-quality, capital-intensive industries he
was busy developing.
Palmer absolutely distinguished his plan from that of an imperialist,
whose policies either kill or impoverish the victims of his looting.
Palmer's project, backed by the Careyite nationalists, was designed to
expand wealth-producing capabilities and living standards simultaneously
in the United States and Mexico. The 1873 annual report of Palmer's
Denver and Rio Grande Railroad stated:
"when the connection is made, an enormous through traffic will spring up
between the heart of Mexico, with its harbors on two oceans, and the
Rocky Mountain country of the United States -- Colorado, Kansas,
Nebraska, New Mexico, Wyoming, Montana, Utah, California....

"[In return for a mass of imports from Mexico, our] New West
will....send back a thousand articles of domestic and agricultural use
now unknown to the Mexicans -- iron plows, shovels, cooking-stoves,
grates, ranges; also mining machinery and implements of all kinds,
sugar, cotton, and woolenmills and brick machines, wagons and carriages,
general hardware, and all sorts of tools, bar-iron and steel, wire, guns
and pistols, pipe, furniture, butter, hams, cheese, lard, grapes,
apples, bush and other temperate fruits, not to be had there, wines and
brandies from the Rio Grande Valley of New Mexico, ice, choice stallions
and bulls, etc., to improve their degenerate breeds, cotton and woolen
goods, and innumerable other necessities and luxuries from which the
people of Mexico have been almost entirely cut off, in consequence of
their topographical isolation. The manufactured part of this list, and
articles of skill generally, will at first come by this route from
Chicago and St. Louis, but in a few years from the works at Canon City,
Denver, Pueblo, and Albuquerque, in Colorado and New Mexico.

"In the course of time, as the artisans of Mexico become skilled, as
capital there takes a manufacturing turn, as coal mines are opened, and
iron works and a more complex kind of manufactures are established, many
things will be made there which, for the first few years, must be
imported; but, by that time, the very growth which this would indicate
will render necessary an interchange manifoldly larger...."

Palmer sought the cooperation of the Mexican government for his railroad
construction project. To this end, he agreed to avail himself of the
services of Gen. William S. Rosecrans, who had been U.S. ambassador to
Mexico in 1868 and 1869. Upon assuming office as U.S. President, Ulysses
S. Grant had removed Rosecrans from his post. Grant had earlier removed
Rosecrans from his position as commander of the Army of the Cumberland,
after Rosecrans' flight from the battlefield of Chickamauga.

Rosecrans stayed on in Mexico, negotiating with the government of
President Benito Juarez for railroad concessions. Though Juarez was said
to have reached an understanding with Roscrans, Juarez died in July,
1872, and the deal was never fully agreed to by the Mexican government.

Palmer, frustrated in his plans throughout the 1870's, fired Rosecrans
as his representative and worked directly with the Mexicans himself, and
through his own man James Sullivan. He was able to start work on the
Mexican National Railway, of which he was the designer and pioneer
builder, only during the 1880's.

The delay, occasioned by Rosecrans' failure to consummate a deal with
the Mexicans, was to prove fatal to the cause of republican industrial
development of Mexico. The real sponsor of Gen. Palmer's project within
Mexico was Mattias Romero, Benito Juarez's ambassador to the U.S. There
were, of course, Mexican opponents to the railroad development, who
proposed, under blatant British influence, that Mexico "protect itself"
from its northern neighbor by depopulating the entire area of northern
Mexico, preserving it as a desert through which nothing could be
transported!

But beyond this opposition, there was a very ugly, secret side to
Rosecrans, which Juarez and other patriotic Mexican leaders probably
suspected. This is revealed in a letter, never before published, written
from Rosecrans in Mexico City to Secretary of State William Seward,
dated Feb. 28, 1869. This was less than a week before the inauguration
of President Grant, who would replace both Seward and Rosecrans.

In this letter, which we have copied from the State Department archives,
Rosecrans called for the United States to intervene in Mexico in order
to overthrow the government of Benito Juarez:

"The present Government of Mexico arrived here and assumed full control
of Mexico nearly two years ago....What have they done? By refusing them
Amnesty, they have lost the support of that very large and intelligent
body of Mexicans compromised by supporting or acquiescing in the Empire
[i.e. the European invasion and occupation, 1861-67], and have inspired
them with hatred and ill will. They have persecuted the religion of the
people[.] Churches whose charitable foundations for the support of
schools, hospitals and worship had been confiscated...conscientious
people have lost hope as well as confidence in their Justice....They
have lost the confidence of all the foreign, and most of the Mexican
capitalists and businessmen [Juarez still refused to put payment of
 foreign debts above the industrial development of his desperately poor
people -- AHC], as well as the large property holders....The army is
demoralized and discontented; public Justice notoriously retarded or
corrupted; the public highways infested with robbers and kidnappers....

"The late experience of European intervention having proven
unsuccessful, and our friendship and trade offering more advantages to
European nations than any likely to be derived from political
intermeddling with the affairs of Mexico, the liberty and the duty of
such intervention in its affairs as may be consistent with Justice,
humanity, and our own interests, will not only have their consent, but
will be urged upon us at no distant day.....

"The present government while apparently the legal representative,
neither represents the intelligence, the conscience, the prosperity, or
the business of the Nation...

"It is weak, vacillating, corrupt, and while of necessity appearing
firmly [sic] to us it fears and secretly opposes the introduction of
American Commerce, industry, population and enterprise, and will base
its policy on the low passions and prejudices of the Mexicans, and has
no firm intention of opening the country to emigration from the United
States....

"Officers of the cabinet have advised public creditors to take small
percentages on their claims as a full payment. Nor does the future
promise better results....While the Government is staggering under the
weight of pecuniary difficulties to meet ordinary expenses, all the
claims of its domestic and foreign debt qre slumbering, even the
interest unpaid. What hope [sic] in this cabinet to meet these impending
obligations in which our citizens will soon be largely interested?

"Almost the entire foreign element here, the chief capitalists and large
land owners, the Imperialists, and the conscientious Catholic, would be
glad to have American intervention in any way, that would place the rule
in their hands without bloodshed, robbery, and social
overturn...."[emphasis added] [2]



------------------------------------------------------------------------
Americans vs. Imperialists in Colorado...


The Drexel-Morgan partnership deliberately created the Panic of 1873 as
an attack against what its European patrons viewed as dangerous American
expansion of railroads and heavy industry. Other, more direct methods
were also used to the same end.[3]

The Northern Pacific Railroad construction had stopped because of Jay
Cooke's induced bankruptcy. But Gen. William J. Palmer's continuing
mid-continent development program stood out as the boldest American
effort, matching that other project of the Philadelphia Interests,
Andréw Carnegie's Pittsburgh-area steelworks. Palmer's Denver and Rio
Grande Railroad was building westward across the towering Colorado
Rockies, and southward from Colorado Springs toward New Mexico; it
proposed to continue through Albequerque and El Paso. Then Palmer's line
from Mexico City would run up to El Paso, and across from Mexico City to
the Pacific. Meanwhile Palmer's organization had begun opening Colorado
coal fields, and his Central Colorado Improvement Company founded the
town of South Pueblo in 1873, where Palmer would initiate the first iron
and steelmaking complex in the American West.

During 1873 the financial group formerly known as the "Boston Concern"
pushed its long moribund Atchison, Topeka and Santa Fe Railroad into
action against Palmer, suddenly building across Kansas to Grenada just
inside Colorado. Their plan was to physically block Palmer's further
construction southward toward Mexico, and westward into the Rockies,
while preventing his building rairoads in Mexico that might lead to
industrial development there.

The Santa Fe Railroad was owned principally by John Murray Forbes and
Thomas Jefferson Coolidge, members of the "Boston Concern" who had made
their fortunes selling opium in China. They were backed financially by
the Baring Brothers bank in England, sponsor of the world narcotics
traffic throughout the nineteenth century. Coolidge's father Joseph had
been paid $10 million per year by the Scottish firm Jardine and Matheson
to run opium past the Chinese police. Forbes was also the leading
organizer of propaganda for Specie Resumption, to replace Abraham
Lincoln's government credit expansion policy with absolute credit
control by the international banking syndicate.

A Santa Fe subsidiary line pushed through from Grenada to Pueblo,
Colorado, in 1875. Palmer's efforts at this time were flagging due to
the credit squeeze from the Panic. His D. & R.G. did not reach the area
of the Colorado-New Mexico border until 1876. By June, 1877, trains were
running across the summit of the Sangre de Cristo mountains at La Veta
Pass, 9,300 feet above sea level, higher than anything built so far in
Europe or North America. Palmer's famous narrow gauge road made this
pioneering mountain construction possible.

Throughout the 1870's, the Boston and allied New York bankers waged
financial war on Palmer's enterprise. They bought up his stock from the
pinched Philadelphia investors. Eastern bondholders tried to close him
down in May 1877, but Palmer managed to win refinancing of his debts.

The fireworks began early in 1878 on the Raton Pass, over which the
Denver and Rio Grande intended to extend its line from Trinidad,
Colorado, across into New Mexico. Officials of the Santa Fe saw that D.
& R.G. men were on their way to Raton Pass, so they rushed a group of
armed men to occupy the pass. When Palmer's men arrived they were unable
to proceed with their work, and were forced to withdraw.

The D. & R.G. was preparing to build a line from Canon City, through the
rugged canyons along the Arkansas River, up into the new booming mining
town of Leadville. The Boston men learned of Palmer's intentions by, it
is said, intercepting Palmer's April 18, 1878 telegram ordering out a
construction crew. Officials and workers of the Santa Fe, heavily armed,
deployed overnight to occupy Royal Gorge, just west of Canon City. When
Gen. Palmer's crews reached the Gorge, they did not withdraw, but
displayed their own weapons and took up positions opposite those of the
Santa Fe.

With a physical stalemate, the parties entered into a long court battle
over the right-of-way. Financial warfare against Palmer continued,
however, particularly in pressure through stock market operations. By
October, 1878, Palmer was forced to sign a 30-year lease giving
operating control of all his existing lines to the Santa Fe. The unbuilt
Royal Gorge line was not included, and the armed standoff there
continued.

In June, 1879, Palmer won a writ from a Colorado court authorizing him
to reposess his railroad. Not surprisingly, the Bostonians had not
wished to operate a Colorado railroad at all, and had broken the lease
contract by failing to maintain the D. & R.G., and charging rates that
effectively prohibited any freight from travelling on it!

When the Bostonians baldly announced that the Colorado court had no
jurisdiction in the case, and then stole the county seal with which the
writ was to be stamped, Palmer's forces prepared to move. The Santa Fe
complained that Palmer planned violence; according to D. & R.G.
historians, the militia was actually called out but refused to budge
against Palmer.

On the night of June 11, 1879, copies of the writ were distributed to
sheriffs in towns throughout the state. Using his own armed men, and
sheriffs who were willing to enforce the writ, Palmer seized all the
rail lines, train stations, telegraph offices and work depots of the
Denver and Rio Grande system. He travelled through the night on a
special military command train.

The biggest fight occured in Pueblo. The Bostonians brought in Bat
Masterson, marshall of Dodge City, Kansas, with a gang of thugs.
Governor C.A. Hunt, a Palmer ally, marched into Pueblo at the head of
several hundred of Palmer's coal miners to confront Masterson's gang. A
posse of the Pueblo sheriff shot it out at the train dispatcher's
office, and more Palmer troops arrived from Colorado Springs. By
morning, the whole rail system was in Palmer's hands.

But the court battle went on inconclusively, In April, 1880, a
"compromise" signed by Palmer and Santa Fe President Thomas Jefferson
Coolidge was ratified in court. The D. & R.G. would not, for the next
ten years, build south of Colorado, but Palmer would legally regain his
line and could extend it within Colorado and to the west without Santa
Fe interference.

Though the Bostonians had stopped Palmer's drive toward Mexico, he
promptly used his new notoriety to raise $50 million to build up
Colorado. In the three years 1879 to 1882, Palmer built 908 new miles of
railroad within the state. In 1880 the South Pueblo Ironworks began
operating a Bessemer steel plant and rolling mill; the first rails were
produced in April, 1882. The Colorado Coal and Iron Company produced
coal, iron ore, pig iron, steel and rails under Palmer's presidency
until 1884.

The New York bankers who had refinanced his debts in 1877 renewed the
financial war against Palmer in 1881 and 1882, finally taking control of
the D. & R.G. board in 1883; Palmer and his associates were forced to
resign. The bankers made no pretense of running a railroad. They
squeezed it, took a strike in 1885, and delivered the company into
bankruptcy. Palmer's Colorado Coal and Iron Company was eventually taken
over by John D. Rockefeller as the Colorado Fuel and Iron Company,
famous for its violent war with the labor force. No more industrial
development on any important scale ever again took place in Colorado
after Palmer passed from the scene.



------------------------------------------------------------------------
...And South of the Border


Working with concessions granted to Gen. Palmer and his agent James
Sullivan, the "Mexican National Construction Company" (a Colorado
corporation) began building its line in Mexico under a May, 1881
contract for the "Mexican National Railway Company" (also a Colorado
corporation). There was at this moment, as we will see shortly, a flurry
of activity under a new American presidential administration committed
to rapid progress throughout the Western Hemisphere.

By 1883, Palmer had completed rail lines stretching 255 miles north from
Mexico City, and 235 miles south from Nueva Laredo, at the Texas border,
to Saltillo. The line from the Pacific Ocean had progressed less than 30
miles when it was halted in November, 1882, for lack of funds.

Under the strain of continual financial warfare by the international
bankers, Palmer had written in 1878 to his former assistant Edward H.
Johnson, who was then Thomas Edison's business manager:

"Edison's last developments beat Aladdin completely. I always declared
he could invent anything he wanted to. Give him my compliments, and tell
him I wish he would discover for me some mode of building a railway to
Mexico without money."[4]

While Palmer was strapped for cash, the Boston group struck in Mexico.
>From sympathetic parties in the Mexican governemnt, they took over the
concession that had previously been granted to Palmer for a rail line
from El Paso to Mexico City, forcing Palmer to commence his line from
further east, at Nueva Laredo. The Bostonians also got the right to
build a Mexico City-Pacific Coast line, generally following the original
concession to Palmer.

Though Palmer had surveyed Mexico's rail lines from the beginnning, and
had begun construction, he was, at last, completely stalled in Mexico
and he was frozen out. His own Mexican National Railway Company was
reorganized by British bondholders in 1886.

The lines he was building, and those of the Bostonians, were completed
so far as he had mapped them out. The Mexican government took national
control over the railroads early in the 20th century. But Palmer's
planned use of the rail lines, for industrial development, was aborted
in Mexico as it had been in the American Rockies.

Thomas Jefferson Coolidge, whose money had stopped Palmer's railroad
from connecting Colorado and Mexico, founded the United Fruit Company in
1899. Coolidge combined Boston-British opium money and the muscle of New
Orleans-based Russian immigrant mafiosi. His United Fruit was to carry
out the plans of which the secessionist Knights of the Golden Circle had
spoken only in secret, hushed tones. Under Teddy Roosevelt's manic
glare, tropical countries would become giant plantations, but yielding
bananas or coffee instead of cotton. They would not be permitted to
follow the liberating example of the United States of America, though
the U.S.A. then still remembered how it had recently fought its way to
industrial greatness.

Before this tragic lapse in America's Promethean mission, the republican
forces were to make one last great stand. The showdown would come in
1881.
--[cont]--
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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