The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-16
MEXICO IGNORES
AMERICAN PROTEST
ON NEW OIL LAW
IT axes Imposed By Car
I rama Open Way to
/ Conhscation.
HUN HAND SEEN
+
II eutons Hope to Cripple
4 Allies By Cutting Off
I Available Fuel Sup
/ ply From Navies.

Washington. Aug. 15.--The Mexican
governments arbitrary refusal TO con
slider the British protest against oil
taxes brought out here today that a
similar communication from the United
States has been entirely ignored BY
Carrsnza.
The result was an announcement by
accredited representatives of American
oil companies which control the bulk
of the Mexican oil fields that they have
decided to ignore Carranzas oil decree.
The executive officers and representa-
tvs OF the oil companies have been
holding meetings in Houston, New
York and Washington to consider all
phases of the situation, The hnal reso-
luton Was to refuse payment of
rentals ir1sp-ssi and the consequent
recognition of the very much more
vital eonhscatory features OF the de-
cree.
one effect of the failure to pay the
new land rentals Will be to throw oil
properties open to announcement. IL is
Gclarad This means the Mexican gov
\ ernment will be left free TO seize the
4 oil aelds and dispose of them to others
/ unless protection Ia afforded by the In
tereeted governments. such situa-
many. ii is said, II gives added sig
niscsuce TO the recent boast OF Albert
Balm, president Of the vast German
shipping syndicate and OF Herr Won
!, Rood emann. the petroleum king" that
they possess definite prospects of ex-
countries.
Statements obtained from important
producers Of petroleum In Mexico fol-
lows
.tMexico's reply lodges the issue Re-
cent oil DEGREES issued in Mexico are
based on the latest constitution of Mex
leo which attempts to vest In the ma
tson oil deposits acquired lawfully by
American. British and Dutch COM
ranies. on which the allies oil supply
depends. Incidental mention of con :
fiscatory taxes was made IN the Brit
ish and American notes. but the pro-
tests were distinctly directed against
the connscation OF oil.
AS stated In the American note; The
1 United States cannot acquiesce in any
procedure ostensibiy or nominally In
the form OF taxation . but really
resulting In conhscation of private
property and arbitrary deprivation OF
vested rights
This is the Issue. Mexico attempts
40 strip American and British oil own
tere and lessees of their property rights
evades. except In the statement that
The modern conception OF property
is that II il social function" which
IL the Bolshevik and not the demo
cratic theory. II has not been and
will not be accepted In international
law. Mexico would have to mean that
a government may at will seize the
property of foreigners who acquired II
legally and for value and pass such
property to third parties.
Foreign Minister -Aguilar states that
the oil companies must exhaust their
rem edies in Mexican courts. This they
are doing with small hope of success
/, In view OF the statement OF the Next
can chief Justice that he and his col
leagues are first revolutionists and
then judges. A fair Interpretation OF
the constitution Is that the connscator,
article is not retroactive. but thu
Judges are revolutionists frst. Fur
thermore. his government contemplated
eei1ing the properties before the frs'
possible date for legal action.
He refuses to accept the British
protest, maintaining that England al
ieges British subjects have rights su
perior to Mexican citizens. This Il
not the case. Their rights are th'
same but foreigner In any land ha.
: superior remedy to citizens in tha'
he may invoke diplomatic Intervention
against injustice. outrage or spoilatior
or conhscation in any form. Mex
lean has the same advantage over &
Britisher in England.
"Hts statement that the Mexican
government gives guarantees to the OF
producers facilitating their develop
oDt ocrnrA with fha far