South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-10-05
Petroleum Producers
ASSaiI Statement of
Mexican Oil Chief

WAsHINGTON. oct I'm formal
Representations hled with state de-
partment. the Association Of Pro
ducers OF Petroleum takes issue with
recent declarations made in Mexico
City BY Leon Salinas acting head Of
the Mexican department Of industry
and commerce and chief Of the oil
bureau of that department. Justify
ing the Carranza governments at
titude on the confscation question.
Beside. refuting statements by Sa-
linas. the petroleum producers again
charge that the acts OF the Carran-
"a government against. which they
complain are IN violation Of the
laws OF Mexico itself and in contra
vention OF TIE accepted laws or ma
tions
1T is admitted says the state
ment. that the question Of pro
prietorshiP Of coal lands in Mexico
and the Spanish colonies was sub
ject Of contention. but nowhere in
the Spanish grants or subsequent or
dinances Of the Spanish crown was
petroleum treated as the kings pa
trimony or the property Of the ma
ton. II any contention did exist It
was set at rest in Mexico by the
mining law OF 1854.
Law Clears Up Matter
Before this date neither coal nor
petroleum had been developed in
Mexico at all, the law Of 1855 sim
ply cleared up a matter in question.
l. "a.
coal and oil were acquired by Amer
leans under this law and the laws
20 the same effect OF 1892 and 1910.
By the expenditure Of vast amounts
Of money. American individuals and
companies have given "a value 20
these lands relying upon the laws OF
Mexico. Their tenure was never
questioned. IN fact IL was repeated
ly ratified by acts OF Mexican courts
and the Mexican government has
since 1912 continuously recognized
rights so acquired under Mexican
law by collecting taxes upon the
lands and upon the product
The Mexican governments con
tention that a mere change I'm con-
sittutional precept appearing in
constitution which itself prohibits
any retroactive legislation. which
p-ecept against retroactive effect
y.as called 20 tho attention Of the
ambassador OF the United States, (
with an assurance that no law or
constitutional provision would take
effect retroactively in advance OF the I
presentation OF his credentials in
February. 1910 may operate 10 di- /
vest foreigners Of rights legally ac-
oUired has been well answ cred by.
protests OF your department. IN
harmony with such protests, the
members Of this association have
taken united stand and refused 10
be trapped by any exigencies OF Mex
lean government DEGREES demanding
the performance OF acts the effect
Of which would be 10 acquiesce in
the Confscation and render the
American protests nugatory.
Refuse Permission To Drill.
Because we have refused to ad
NIT the loss Of our properties. the
Mexican government has seen II 10
refuse us permission % drill on our
lands until we perform such acts
OF acquiesence. The government has
gone 20 the extent of sending armed
forces TO stop the drilling Of n we'll
cn property Of a member OF this
a. association which mem Der had. in
harmony with your protests. refused
% acQuiesCe in Confscation of his
property In other cases. the Mex
lean government has granted rights
60 third parties under mining claims
provided for IN DEGREES against
which the American government has
protested. and wells have been and
are being drilled on such lands by
such third parties
I'm reply to Secy Salinas state
ment we beg leave TO call your at
tcntion 90 the fact that these acts. .
as Is well known 10 YOU. are i'm open
violation OF the laws OF Mexico UNI I
der which our investment OF time. F.
money and energy was made and
violate the accepted law OF nations" I