J. Kruttschnitt to Colonel House

Following up our conference this morning, I herewith submit the suggestions made by Mr. D. J. Haff preceding my call upon you.
I concur most heartily in his views as to the great opportunity offered the present administration to perform a great service, not only to the Mexican people, but to all of its own citizens interested in Mexico, as well as those of foreign nations, which, in a certain sense, are entitled to the assistance of our Government for their protection in Mexico.
I may say that this plan has been discussed with the interests represented by Mesrsrs. Phelps, Dodge & Co., the Greene Cananea Copper Company, Mr. Doheny of the Mexican Petroleum Company, and others, all of whom have approved it enthusiastically and have urged him to make every effort to bring it to the attention of the President.------------The political situation in Mexico is briefly defined as follows: The Governors of the States of Coahuilla and Sonora, dominating the political machinery of these two States and aided by a large following in Chihuahua, are in control of almost the entire area of the northern boundary States of Mexico, and are in rebellion against the administration of President Huerta, calling themselves Constitutionalists. They do not pretend and have not pretended to secede from Mexico, but they have denounced Huerta as a usurper and his administration as illegal, and are largely supported in that position by the attitude of the United States Government in refusing to recognize Huerta as the President dejure of Mexico. They pretend to exercise the Federal authority and enforce the Federal laws within the territory of the States of Coahuilla and Sonora in trust for the nation until a constitutional President, as they call him, pledged to the support of the law, can be elected. The Constitutionalists, however, are practically without resources – that is, without funds – and have exhausted for the most part their sources to obtain funds, and we feel quite sure are in a position where a friendly powerful intervening influence like the Government of the United States could bring about a suspension of hostilities and an agreement between the Constitutionalists and the Federalists represented by the Huerta administration. The Constitutionalists steadfastly refuse to recognize Huerta or to treat with him. The United States Government, therefore, has a great opportunity by acting quickly, of presenting a plan to Huerta agreeing to recognize him on condition that he call an election¹ at an early date, October 26th being too remote, and that he guarantee a fair election in all those States of which he has control, the Constitutionalists to do the same and to participate in the election. The Constitutionalists, on the other hand, to agree that in consideration of this election being called and being fairly held that hostilities shall be suspended, and that they will loyally support the President who shall be chosen as the result of such election.
We do not think it necessary to insist that Huerta shall resign and some other interim President be appointed in his stead, because he is not pretending to hold the power in Mexico, except for the purpose of bringing about peace and a constitutional election, and to guaranatee that a President legally elected may be installed. He is the de facto President at the present time, and is a man of energy and executive ability, is in command of the army and is, better than any other person, able to carry out such an agreement; and we feel certain, from our knowledge of the situation on both sides and the temper of both sides, that both the Federalists and the Constitutionalists would welcome the friendly intervention of the Department of State of our Government to bring about an understanding between the two factions and peace in the country, as the most graceful and practicable way of getting out of the difficult situation in which both sides now find themselves.² It may be possible even that Huerta, if recognized by the United States, would consent if necessary to step aside and allow some other person acceptable to the Constitutionalists to serve as interim President during the elections, if peace could in this manner be established. If this is not done, war will continue until the country is absolutely exhausted, banditism will grow and increase until there will be no security for human life and private property whatever in the Republic. The people of that country are unlettered, and as soon as they find that there is no authority that can hold them in check, they will exercise their savage instincts and the false notions which they have acquired of the meaning of “liberty”, to the destruction of all order, and Mexico will be put in a condition from which it will not recover in fifty years, and the thousands of millions of foreign property invested in the country will be depreciated, and in many cases absolutely destroyed. The losses now amount to millions of dollars per day and the situation cannot much longer be sustained.
In addition to that fact foreign nations are becoming restive and are seeking to undermine the influence of the United States in Mexico. The British Government has already recognized Huerta in a most marked manner by autograph letter from the King due to the efforts of Lord Cowdray (Sir Weetman Pearson) who has the largest interests outside of American interests in the Mexican Republic. He is using his efforts to obtain a large loan in England, and we are informed that he has succeeded on condition that the English Government would recognize Huerta, which has been done. If Mexico is helped out of her troubles by British and German influence, the American prestige will be destroyed in that country and Americans and the commerce of the United States will suffer untold loss and damage. On the other hand, if the Huerta government falls as the result of the hostility of the American Government or its inactivity in the present crisis, it will make us morally responsible for consequences too frightful to contemplate.
Judge Haff was in Cananea ten days ago and saw the lawless condition of things; the people are in the same frame of mind that they were in the city of Paris in 1793 and are as ready to commit depredations against life and property. The want of opportunity for employment which is increasing daily is putting the people in a starving condition and great looting may be expected in the near future unless conditions can be speedily changed. Our Government has the opportunity to do a great service to humanity and gain lasting glory by it; in fact a service far greater than that which was performed by President Roosevelt in bringing about an understanding between the Russian and Japanese Governments in their late war.
If you can do anything to bring this suggestion to the attention of the President and induce him to act quickly you would perform a great service. Our Ambassador in Mexico is, in my opinion, the man to attempt this work. It might be found necessary to send a special envoy to treat with the Constitutionalists, while entrusting our Ambassador in Mexico to treat with the Huerta Government. But in any event, it should be an easy task for the Department of State, because neither side will for one minute repudiate an official suggestion of the United States Government and its powerful influence presented in the form of a wish and backed, as it necessarily is, with the moral right to demand that it shall be accepted and complied with, when it is considered that the interests of the United States in Mexico represent practically every industry of that country excepting that of agriculture, and that the commerce of Mexico with the United States represents more than 75% of her total foreign trade, all of which, so important to both countries, is now imperilled.
I attach some newspaper comments that appeared yesterday and this morning. If the President should wish it, I am confident that Judge Haff, and others representing Mexican interests, would be glad to call on him at Washington to discuss this matter further.