The sun., 1913-11-15
WILSON STILL HOPES
HUERTA WILL QUIT


| tO"''"u yT"Vl TUSt f-uVc
concessions and he important par; they
play in the presen; situation We're regarded
as the most interesting development.
Tn many quarters the prediction was
made that unless these concessions TO the
British oil interests could be disposed OF
satisfactorily In the near future they
eventually would prove disturbing ele-
ment IN the Mexican problem--even more
J than the political principles involved
Revives Pearson COncession.
| According 10 advices received here
Huerta has revived a concession, extraor-
dinary in It's terms. which WAS granted 10
the Pearson oil interests during the !, :,
days OF the regime Of Porhrio Ditz
This concession was suppressed by
Madero and has been brought to life
again by Huerta. who has further broad
| ened its terms so as To make II IA matter
OF the u.s, vital 'm,,c''sace not only L.
Mexico but 70 the United States.
Besides giving the British concern the
! privilege of carrying ON all sorts OF ac-
| t!vties in the oil fields OF the east coast
! country and the privilege OF importing all
/ kinds Of materials and products into
| Mexico free of duty, the concession is
Understood 20 exempt the British nrm
from the payment OF all local and export
taxes on its products.
This of course Will give the British
concern treme ndous advantage over its
/ competitors. most Of whom are .\mer-
can. which will have to pay the export
I TAX
A few days ago step was taken by
! the Huerta Government indicating the
working out ~ the reported plan for
1 handing to the British interests n vast
trade. Notice was served that the export
| tax on crude petroleum would be adj
vanced al once from 90 cents 10 81 "A ton.
! This tax. 80 the American oil producers
say in their appeal 20 the state Depart
ment is practically confiscatory and will
| put them out of business AT the present
| prices Of oil.
| The Pearson oil companies are reported
| to control an output Of more than 1oo,-
| 600. 900 barrels OF oil year. The ex.
emption OF this vast produc, from the
high export tax to be charged other oil
, producers represents. Of course. differ
ence OF millions Of dollars In the cost OF
marketing the British oil.
Eject on American ExpOrts.
The saving thus put In the pockets OF
the British concern would pay the in
terest on a big loan. On the other hand.
the exemption would yield a double profit
for there is little doubt that American oil
pds tiic
tax. will sell their oil to the British At
whatever price the latter will pay. they
being able to send the oil abroad duty
free.
The needs Of the British navy on the
one hand and the high station officially
and socially Of those Britons interested in
the oil concessions in Mexico are said to
make the policy OF the British Govern
ment and the welfare OF the oil producing
companies practically inter1ependent.
II Is reported here that much OF HUI
erta's cash supply OF recent months has
originated In sources interested In the oil
concessions, which are regarded as the
quid pro quo in the matter OF assisting
Huerta Those familiar with the vastness
OF the Mexican oil deposits declare that
what money may have been given to
Huerta Is as nothing compared to the i'm
mense values and certain proftts contained
in the control OF the oil fields and that
because Of her great stake In the eastern
oil fields Great Britain has gone as far
as she deemed it exredient in adopting a
non-inte rference policy In regard TO the
United States and Huerta.
The real arrangements between the
Mexican President and the oil interests as
we'll as the interest OF public men In Eng
land In the matter ts not generally known,
according to advices received In Washing
ton.
AS mas peen dlTetuy lI1IlCHttu ITeSlutnt
Wilson IL determined that this concession
and others of which he has been informed
shall not he legalized by the Congress due
to meet to- morrow. Once the concessions
are confirmed by Congress II is realized
the difficulties OF suppressing them will be
increased many fold
II IL President Wilson's understanding
that Huerta has not only sold out special
favors In the oil fields but that he has
also turned into cash special privileges In
the form Of other concessions to Euro
peans 1t is his plan to have Congress
confirm these as well AZ the oil conces.
sions.
In his speech at Mobile President VIII
son took a determined stand against the
concession system In Latin America. The
state Department already has indicated
It's disapproval Of Americans trying to get
special favors Of that character In Latin
American countries.
ON the other hand the Administration
does not intend, II possible, that Euro
peans shall get the kind OF monoplistC
privileges from Latin American Govern
: men,s which Americans are not supposed
to get