Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1918-11-14
A.IEn|cA;I INVESTMENT
IN MEXICO AT STAKE
Carranza Government Has TAX
en- Stand That Seems to
Jeopardize Everything.

WASHINGTON, d. C.-Tfc' status OF
American Investment in Mexico us an
object of concern TO the United States.
Future commercial relations not only
with Mexico, but with the whole OF
Latin--America, may be affected by the
outcome of the dispute over the pos
session of land II mineral rights i'll
the Tainpico oil district, says a review
of the oil situation just issued by the
department of commerce
The government. as we'll as 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 gov
eminent, arising from n provision of
the MeXican constitution of 1917 which
attempts to vest i'll the nation only the
right to minerals and oils under the
soil of the republic.
I'm it's bearing on our future COM
mefcial relations with Latin America"
declares the review by the department
oi commerce., the status of u invest
ments in Mexico involves far reaching
possibilities. If all our foreign invest
ments Were to be transferred from the
state of property, duly acquired with
guarantees of permanence (such as
occur in the Mexican mining laws of
1881, 1892 n 1863, to the state of
temporary concessions requiring re-
neWal from time to time by contracts,
In the wording of which we have no
share, we should face an unprecedented
situation. Our commercial relations,
not only with Mexico but with all of
Latin-A,nerica, depends upon mutual
confidence. The liberal supplics which
the United States has granted to Mex
leo, togetae: with Ambassador fletch-
ers note of April! 2. constitute oar side
OF the present case. A signal factor,
Eowever. will be the decision 0s the
Mexican courts upon the suits nov in
Progress"
The note of April 2 referred t, was
!'anded TO the Mexican government
htier all oil companies operating in
the Tanpico fields had been ordered 10
fi.e manifests of property undo, pen
aitE OF confiscation and it had been
decreed that new X called 'lentals''
ana royalties" should be imposed. 1t
declared that the United States cannot
acquiesce in any procedure ostensibly
or homlnally in tie form of taxation or
the exercise of eminent domain. but
T1al!y resulting in conisoation ana ar
Dltrary deprivation Of wasted rights"
AT the same time the British. French
aTd Dutch governments nu.i1cG tie
Callanza government that in the event
cDn1Iscatory measures We're put into
erect they would be OBLIGED to protest
their own interests" This resulted in
a modification of the decree of conf.ca-
ton.
Center Ct Dispute.
Article q of the new Mexican ccusti-
tuition is the center OF the disn,,te
three DEGREES have been issued under
KS provisions, imposing conditions on
the on companies which they regard as
co~nfiscation. The constitutional article
provides that ownership of ali peiro-
ieuhi is vested in The nation; thai only
Mexicans by right of birth or natural
lzatlon have h right to acquire own
efshlp In lands, waters or minera! fuels
IN she republic, but that the governs
merit may grant the same right to for
elsiaefs II they agree to be considered
and treated as Mexicans and waive all
right of protection from their home
governments, forfeiture of their prop
erty being the penalty for such an an
peal.
1t has openly been charged that the
mexican government was unduly in
nuenced by German agents who hoped
tnrouSh the decree to cut off the sup
ples OF fuel oil needed to keep the AL
lied navies and merchant fleets at sea
as the Vesting of sole rights to this
tuel III a neutral government would
make the Tampico production n~atioral
and prevent it's sale by
NaeAlco or producers operating unGer
contracts With Mexico, to the allied
governments.
lnasrnuch as Mexico. ranks tI,srd
among the oil producing nations of the
world, and Russia, which stood second
no longer furnishing any appreciable
quantity, the Tampico production was
vitality necessary to the nations at war:
and the American. British. French and
Dutch companies, acting under advice
OF their governments, refused to Gle
the demanded manifests and applied to
Eve Mexican courts for relief.
Not one OF the American companies
operating in Mexico. says the depart
ment OF m report, ever has OBJ
tanned Q concession of land from the
NtNicSa government, their contracts of
purchase or lease having in every case
been made with private owners who
held titles extending back often for
more than $50 years.
The demands of the war for fuel oil
are continually increasing, accordinr To
the review. Petroleum stocks in the
United States were reduced by 8,O34.6 35
barrels during the first six month of
1913. With heavy increases in SHIN
ping. many Of the new ships being oil
burners, a further demand may be ex-
pected. At least 2,500,000 barrels of
Mexican oil per month has been used in
the past in connection with the mill
tary and domestic needs Of the United
States and estimates of the present
need place h requirements as high as
100000 barrels a month. In addition,