The Barre daily times. (Barre, Vt.) 1897-1959, 1918-10-24
AMERICAN INTERESTS
nv MEXICO AFFECTED
By the Dispute Now Being Held Over the
Possession of Land and Mineral
Rights in the Tampico
Oil District.

Washington, Oct. 24.--The status OF
American investment in Mexico is an OBJ
ject of concern to the United States
Future commercial relations not only
with Mexico, but with the whole of Lat.
in America, may be affected by the out
come Of the dispute over the possession
of land and mineral rights in the Tam
| pico oil district, says a review of the oil
situation just issued by the department
of commerce
The government. as well RS oil inter
ests, is watching carefully the progress
of suits instituted in the Mexican courts
by the American, British, French and
Dutch oil companies for relief from the
program Of the Carranza government,
arising from provision Of the Mexican
constitution of 1917 which attempts to
vest in the nation only the right to min
erals and oils under the soil OF the re-
public.
In It's bearing on our future CONNER
'cial relations with Latin America de-
clares the review by the department Of
commerce, "the status OF our investments
in Mexico involves far.reaching POSSIBLE
tiles. If all our foreign investments were
to be transferred from the state of prop
erty, duly acquired with guarantees Of
permanence tsuch as occur in the Mex
lean mining laws Of 1884, 1892 and 1901
to the state of temporary concessions re
quiring renewal from time TO time bv
contracts in the wording of which we
have no share, we should face an un
precedented situation Our commercial
relations, not only with Mexico but with
all OF Latin America depends upon mu.
tual confidence The liberal supplies
which the United States has granted to
Mexico, together with Ambassador
Fleteher's note OF April 2, constitute our
side OF the present case. A signal factor.
however, viii be the decision Of the Mex
lean courts upon the suits now in prog.
ress"
The note Of April referred to was
handed to the Mexican government after
all oil companies operating in the Tam
pico fields had been ordeted TO file mani
tests Of property under penalty Of con
fiscation and il had been decreed that
new taxes called rentals" and 'royal-
ties should be imposed 1t declared that
the United States cannot acquiesce in
any procedure ostensibly Dir nominally in
the form of taxation or the exercise Of
eminent domain, but really resulting in
and arbitrary deprivation of
vested rights" AT the same time the
British, French and Dutch governments
notified the Carranza government that in
the event confscatory measures were put
into effect they would be obliged to pro.
tect their own interests" This resulted
in modification Of the decree Of con
fiscation
Article % of the new Mexican consti-
tuition is the center of the dispute Three !
DEGREES have been issued under its pro.
visions, imposing conditions on the oil |
which they regard as conhsca
ton. The constitutional article provides |
that ownership of all petroleum is vested |
in the nation; that only Mexicans by |
right Of birth or naturalization have the |
right to acquire ownership in lands, wa
teFe or mineral fuels in the republic, but |
that the government may grant the same |
right to foreigners, if they agree to be
and treated as Mexicans and |
waive all right Of protection from their
home governments, forfeiture of their
being the penalty for such an
appeal
It has openly been charged that the
Mexican government was unduly inhu-
'need by German agents who hoped
through the decree TO cut off the supplies
If fuel oil needed to keep the allied ma
1ies and merchant fleets at sea, as the
resting Of sole rights TO this fuel in a
Neutral government would make the
rampico production national contraband
md prevent its sale by Mexico or pro-
lucers operating under contracts with
Mexico, TO the allied governments.
Inasmuch as Mexico ranks third among
he oil producing nations of the world
md Russia, which stood second no long !
II is furnishing any appreciate guam
ity, the Tampico production was vitality
necessary to the nations at war; and the
American, British, French and Dutch
acting under advice of their
governments, refused TO file the demand
d manifests and applied to the Mexican
ourts for relief.
Not one of the American companies
,perating in Mexico, says the department
# commerce report, ever has obtained
concession of land from the Mexican gov
rnment, their contracts of purchase or
ease having in every case been made
With private owners who held titles ex-
ending back often for more than $50
ears.