Under the political organization of Mexico, the territory of the state is divided into a number of smaller areas called municipalities; these municipalities have no relation to the density of population in the country, but are extensive areas of country land, frequently including 500 square miles or more. In addition to the assessment made by the state government for purposes of taxation, the municipality assessed the land an amount varying from 50 per cent, to 75 per cent, of the state assessment. Under the national law of taxation as established by Carranza's government, national revenue stamps to the amount of 60 per cent, of the amount of the state and municipal taxes must be placed upon the receipts for these taxes before they are valid. Thus the projectors of this great enterprise were met with a demand to pay a state tax upon their arid lands assessed at the value of productive lands; to pay a municipal tax ranging from 50 per cent, to 75 per cent, of the state's valuation and, in addition, to pay a national tax which was 60 per cent, of the sum of the state and municipal taxes.
It may be interesting to note in this connection that during the Diaz period the maximum of the national stamp tax required to be paid upon state taxes was only 20 per cent, while the Carranza government has tripled the national tax. This assessment was resisted by the company. The
