Jalapa Affair

At Jalapa, State of Vera Cruz, Mexican workmen employed in an American-owned electric light and power plant went on strike demanding, so despatches averred, a 150% increase in pay. The plant is owned by the Higgins Estate Inc. of Manhattan and was managed by William K. Boone, U. S. citizen; but Mr. Boone, unable to effect a settlement with the strikers, was forced to surrender the entire plant to the State authorities, acting on the orders of Governor Jara, and promptly left to file a protest in the U. S. All this took place last March.

The U. S. Government, on Apr. 16, instructed U. S. Ambassador Sheffield to protest against the seizure; last week, the Federal Government of Mexico made reply. In short, it defended the state Government's action, stating that temporary seizure was necessary in the public interest to end the strike and that Boone could have reached a compromise agreement with the strikers had he explained to the Syndicate that the Company was owed $250,000 by the state and municipal governments. In answer to charges that Boone's life had been threatened, the note said that he could at any time have demanded Federal protection but did not. The note implied, however, that the plant would be returned to its owners.