The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-12-12
Loss OF
MILLIONS
INVOLVED
Carranza Refuses to Permit
Further Drilling Of Ameri-
can Oil Wells in
Mexico.
SERIOUS INTERFERENCE i! !!
Production Is Necessary for OIL Burn
Ing Ships Of Y. 8. Navy and
Some Southern
SERIOUS INTERFERENCE

limited Press Leased Wire Service. ]
WASHINGTON, Dec. 12-Carran-
za's refusal to permit further drilling
of American, oil wells in Mexico may
cost the United States government
$500, 100000 it was estimated hers
today The expenditure would be In
CURED in converting 1850 oil burning
vessels into coal burners.
Representatives Of American oil
concerns here today were confident
the state department would take firm
steps to influence Mexico to desist
its interference with American opera
tions. They asserted that II the oil
is not saved, the United States navy
will be crippled and some railroads,
mostly in Texas, will be rendered idle.
The consumption of oil in this cou1i-
try Is expected to reach 100000
barrels: this year, which is 4S.000.000
more than will be produced In this
country. The demand for oil is in
creasing every year over the amount
produced in the United States and It
is, said only Mexico can supply this
demand.
The American wells in Mexico dur
ing 1918 exported 4O,000,000 barrels to
the United States and UP to the end
of October they had exported during
the year 50,000,000 barrels TO this
country, it was said today by repre-
ssntatives Of the companies.
The present action of the Mexican
government involves one million acres
of reserve Oil land bought and leased
by American companies. it was said
If drilling of new wells is permanently
prohibited by Carranza, the produc.
tion in year will be cut fifty percent
and will be rapidly decreased until
all the present wells are exhausted,
the representatives Of the oil COM
panies assert.
The shipping board is understood
to need between forty million and
sixty million barrels for the year be-
ginning next April. The Mexican
oil fields have been relied upon to
supply about eighty per cent of this
The navy relies on the Mexican
field for about twenty per cent OF
it's fuel oil, it was said, while the
railroads that run on oil need twelve
million barrels from Mexico.
Killing Time In Puebla. :
[By Ralph H. Turner, United Press
Staff Correspondent
MEXICO CITY, Dec. 11.-William
O. jenkins, American consular agent,
charged in a message to the United
Press from Puebla tonight that the
state court there is killing time" on
his request to cantcel the $500 bond
on which he was recently. released
from jail.
"The court has advised me my re-
quest to cancel my bond is being
considered" Jenkins wired. "As a
matter of fact, they are killing time.
SO far as know there are no other
matters which would require resump.
ton of my hearing"
The belief was expressed in Ameri-
can circles here that the Puebla
court will continue to mark time un.
til the Mexican governments reply
to the latest American note is dis.
patched.
The correspondent learned today
that while Jenkins was In the capi-
tai Tuesday, President Carranza in
dicated his desire to see the Ameri-
can, but diplomatic obstacles pre-
vented the meeting.
Artificial Crisis.
WASHINGTON, Dec. 12.-Ygnacio
Bonillas, Mexican ambassador, Geclar-
cd today in an interview that attempts
were being made to create an artificial
crisis over the Tampico oil situation.
He asserted that ill feeling aris-