The Bridgeport times and evening farmer., 1918-10-24
MEXICO CLAIMS
 RIGHT TO OILS f AND MINERALS
U. s. Watching Neighbor's Courts for Outcome of Suits Brought By
 Foreigners
RESULT MAY HAVE
 SERIOUS EFFECT
Future Relations With Lat in America Involved by
 Tampico Dispute

Washington, Oct 24.-The status of American investment in Mexico is an object of concern to the United States. Future commercial relations, not on- ly with Mexico, but with the whole of Latin America, may be affected by the outcome of the dispute over the pos session of land and mineral rights in the Tampico oil district, says review of the oil situation just issued by the Department of Commerce.
 The government, as well as oil in terests, is watching carefully the pro- gress of suits instituted in the Mexi can courts by the American, British, French and Dutch oil companies. for relief from the program of the Car ranza government, arising from a pro- vision of the Mexican constitution of 1917 which attempts to vest in the nation only the right to minerals and oils under the soil of the republic.
 ''In its bearing on our future com mercial relations with Latin Ameri- ca" declares the review by the De- partment of Commerce, "the status of our investments in Mexico involves far reaching possibilities. If all our foreign investments were to be trans
  ly acquired with guarantees of perma nence (such as occur in the Mexican | mining laws of 1884, 1892 and 1909) | to the state of temporary concessions, requiring renewal from time to time by contracts in the wording of which | we have no share. we should face an unprecedented situation. Our com mercial relations, not only with Mex leo but with all of Latin America de- bends upon mutual confidence. The liberal supplies which the United States has granted to Mexico, together with Ambassador F7etchers note of April 2, constitute our side of the present case. A signal factor, how ever, will be the decision of the Mex ican courts upon the suits now in pro- gress." The note of April referred to was handed to the Mexican government after all oil companies operating in the Tampico fields had been ordered to file manifests of property under penalty of confiscation and 1t had been decreed that new taxes called rentals" and "royalties' should be imposed. It declared that "the Unit ed States cannot acquiesce in any procedure ostensibly or nominally in the form of taxation or the exercise of eminent domain. but really result ing in confiscation and arbitrary de- privation of vested rights" At the same time the British. French and Dutch governments notified the Car ranza government that in the event confiscatory measures were put into effect they would be obliged to pro- HI,I suited in a modification of the de- cree of confiscation.
 Article 27 of the new Mexican con- stitution is the center of the dispute. Three decrees have been issued under its provisions, imposing conditions on the oil companies which they regard as confiscation. 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 ac- quire ownership in lands, waters or mineral fuels in the Republic, but that the government may grant the same right to foreigners, if they agree to be considered and treated as Mexi- cans and waive all right of protection from their home governments, for
 
 penalty for such an appeal.
 It has openly been charged that the Mexican government was unduly in- fluenced by German agents who hop ed through the decree to cut off the supplies of fuel oil needed to keep the allied navies and merchant fleets at sea as the vesting of sole rights to this fuel in a neutral government would lra To orIo al contraband and prevent it's sale by Mexico or producers operating under contracts with Mexico, to the allied governments.
 Inasmuch as Mexico ranks third among the oil-producing nations ot the world and Russia which stood sec ond no longer is furnishing any ap- preciable quantity, the Tampico pro. duction was vitally necessary to the nations at war; and the American British, French and Dutch compan. les acting under advice of their gov. ernments, refused to file the demand ed manifests and applied to the Mex ican courts for relief.
 Not one of the American compa nies operating in Mexico says the De partment of Commerce report. evei has obtained a concession of lant from the Mexican government, theil contracts of purchase or lease hay ing, in every case been made witt private owners who held titles extend ing back often for more than 25t years.
 The demands of the war for fuel oi are continually increasing, according to the review. Petroleum stocks il the United States were reduced b, s,034, 635 barrels during the first si: months of 1918. With heavy in creases in shipping, many of the nev ships being oil burners, a further de mand may be expected. At least 2, 500,00 barrels of Mexican oil pc month has been used in the past fl connection with the military and do mestic needs of the United States an, estimates of the present need plac the requirements as high as 4,O0O, 900 barrels a month. In addition tho navies of the allies-especially tn British-require fuel oil. mostly ob tained from Mexico, to keep them O. - the high seas.