As to the textile industry, the cotton mills are amongst the foremost in the world, and their large capacity and splendidly-built factories are a source of surprise to the European or American traveller. A large number of these mills are actuated hydraulically or hydro-electrically. In 1907 there were 142 mills throughout the country in operation, employing 33,000 operatives, with 694,000 spindles, and 23,500 looms. Of these mills 35 are in Puebla, 12 in the Federal District, 11 in Coahuila, 14 in Vera Cruz, and the balance in the other states, whether upon the mesa central or upon the Atlantic or Pacific slopes. Among the most important of these industries may be named the Industrial Company of Orizaba, whose output in 1907 reached a value of £850,000, with a profit of £255,000 to its French owners; the Vera Cruz Industrial Company, profit £84,000; Atlixco Industrial Company, Puebla, French owners, profit £89,500; San Antonio Abad Company, State of Mexico, Spanish owners, profit 8 per cent. paid in 1907 upon its capital of £350,000; and numerous other lesser, but profitable concerns, scattered about the Republic. The amount of cotton used by the Mexican mills in 1907 was 36,700 metric tons, and the total value of the output was £5,168,000. Thus is shown how important for Mexico is her textile industry.[43]

43 These figures of dividends are from the Mexican Year Book, 1908.

Other enterprises are the Santa Gertrude's Jute Mills, and the Aurora Jute Mills; the San Ildenfonso Woollen Factory, the Mexico linen factory, silk factory and others—all of which are dividend-paying industries, of 7 to 12 per cent.

The cigarette factories of Mexico are among the best-equipped and largest in the world. The foremost of these are the "Buen Tono" factory, with a daily output of four to five million cigarettes; and the "Tabacalera," with a daily output of four million cigarettes. There are in addition 480 other factories throughout the Republic, and others for the manufacture of cheroots, cigars, snuffs, and cut tobacco. The Mexican products cannot, however, compete with the Cuban brands in favour as yet.

As to the sugar mills there are more than 2,000 of different magnitude in the country, the largest being in the States of Morelos, Vera Cruz, and Sinaloa, and these are equipped with modern appliances. The production of Mexican sugar for 1907 was 119,500 metric tons; of molasses 68,300 tons; and of rum 567,090 hectolitres.

Iron and Steel factories are represented mainly by those of Monterrey, owning extensive coal and iron deposits, and operating with a capital of £1,000,000, founded in 1900. The rolling plant produced in 1906 structural iron, steel rails, bar iron, and wire to the amount of 24,500 metric tons. The company has suffered severe drawbacks, and this output represents but a quarter of its capacity; but it is expected that the enterprise will work its way on to financial success. The Encarnacion Iron Works, in the State of Hidalgo, which have been operating since 1850, produce bar iron of various kinds; and the Apulco Foundry, in the same state, turns out pig-iron, castings, and machinery. Other concerns are the San Miguel Iron Works, in the same State, and the Comanja Iron Works, of Guanajuato. All these four enterprises are owned by an Englishman.

Of Paper Mills the San Rafael factories in the State of Mexico are the leading enterprise. This is situated in a well-wooded and well-watered region near the foot of the snow-capped mountains, Ixtaccihuatl, and produces some 20,000 metric tons of paper per annum in much variety, from the finest to the cheapest kinds. The company owns large forest areas for pulp making; its capital is £700,000, and it paid a dividend in 1907 of 8 per cent., it is stated.

An industry which has very recently come into being is that of extracting crude india-rubber from the guayule shrub, which abounds in a wild state over vast areas in the northern plains. There are more than twenty factories engaged in this new industry, and, in addition, quantities of the shrub are exported.

Other industries are the soap works of La Laguna, manufacturing soap and cotton-seed oil and cake from the products of this important cotton-growing district. A dynamite factory near the same region—at La Tinaja—operates under a special concession from the Government. A cement works at Hidalgo, of 50,000 tons annual capacity, has been started.

Breweries.—A number of breweries exist, as those in the capital, and at Monterrey, Toluca, Orizaba, Chihuahua, Guadalajara, Cuernavaca, &c;, and these generally produce good beer such as supplies the home demand in general, and has largely killed imports of the foreign kinds. Of flour mills 400 establishments supply flour, whilst the meat-packing and cold-storage business is represented by the Mexican National Packing Company, of British control, in Michoacan, the centre of a livestock industry. This is the only modern establishment of its kind. It was opened in 1908, and is an important enterprise.