The Lodge Corollary extended exclusion to foreign companies

The Lodge Corollary widened the doctrine beyond foreign governments to companies whose ownership might create a strategic foothold. Its immediate setting was a poorly substantiated rumor about Japanese interests at Magdalena Bay in Mexico. The alarm over Japan contrasts with the long-standing tolerance of British and other European commercial holdings. Americans had recently celebrated Japan's victory over Russia at Tsushima, showing how quickly aligned interests could become rivalry. Tolerated British holdings and earlier indifference to Hawaii indicate that Pacific competition drove the alarm more than any neutral rule against foreign commerce.