During his time in Haiti, he clashed with Haitian president Philippe Sudré Dartiguenave over economic issues, which resulted in McIlhenny suspending Dartiguenave's salary, causing a diplomatic crisis and inviting private criticism from the U.S. State Department.
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Assuming control of Tabasco operations, he ran McIlhenny Company for eight years, expanding and modernizing production, and increasing promotion and advertising of the increasingly famous product.
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