Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-12-11
Mexican Government Is Now
Reported as Interfering With
the Operation of American
Owned Properties
PRESIDENT NOTIFIED
Chairman of shipping Board Says That
StOppaee Of OIL Production in Mex
leo would Seriously Embarasa Big
Merchant Fleet

Washington, Dec. lo-Anot tner memo
randum on the Mexican situation was
sent to-day to President Wilson. 1t deals
with the Interference or the Mexican
government with the operation of Amer
ican owned oil properties in Mexico and
was prepared by Chairman Payne Of the
shipping board, after representatives Of
the Associated Mexican oil producers,
headed by r. r. Kellogg. of New York
mad presented the situation to him.
At the same time Mr.. Payne prepared
and sent to Secretary Lansing letter
urging the importance of protecting the
American supply of Mexican fuel oil up
Oil which the shipping board Is almost
solely dependent for fuel for its 800 oil
burning passenger and freight steamers.
1t developed to-day that the State De-
partment has been continuing TO protest
to the Mexican government against de-
crees forbiddns the drilling of new wells
on privately owned property in the Tam
pico fields and other DEGREES affecting
the oil interests of American and other
foreigners in Mexico.
Three notes have been dispatched within
six months. but it was said to-day that
President Carranza had not replied to any
Of them. This first went forward last June
IS. the second on October l. and the third
state department specifically protested
against the action of the Mexican govern
ment in preventing the drilling Of new
wells on property owned by Americans
and insisted upon more adequate protec-
ton of Americans working in the Tampico
oil region.
The note Of November IS was dispatched
after receipt of official information that
Carranza soldiers had seized another
American owned we'll on November -.
II was learned to-day that Mexican mill
tary forces al various times during the
past month have stopped drilling opera
tions of American companies on the pre-
teyt that permits to drill had not been
obtained. In order to obtain the permits
foreign oil companies must agree in adj
vance that such wells as may he drilled
would become the property of the Next
can government. The United States has
repeatedly protested against these DEGREES
in particular.
Certain American owned companies de-
string To increase oil production to meet
the present fue{ oil shortage in the
United States. it was said. have drilled
wells without admitting the loss of their
property by such acts. The state depart
ment, both in formal notes and in nfor-
NAL communications, was said to have
informed the Mexican government that
this action by the American companies
was not in defiance of the Mexican author
tiles. but only the exercising of rights
acquired under Mexican law.
Announcement that Chairman Payne
had communicated with the President
and Secretary Lansing regarding the
Mexican oil situation was made by Rep
resentative Gould, republican, Of New
York, who accompanied the oil men to
the shipping board. Mr.. Payne would
not discuss the matter explaining that
II was now in the hands of the Presi-
dent and the state department.
1t was understood, however, that the
chairman informed the President that
a stoppage of oil production in Mexico
seemed threatened and that should this
occur the board would be seriously en-
barrassed in operating its vast fleet
Of steamers Reserve supplies now on
hand the President was said to have
been told. would last only n few weeks
and with the Mexican supply cut off
most of the oil-burning ships would
have to be laid up as the companies
under contract to supply the board
with oil receive the bulk of their sup
plies from Mexico.
The oil shortage has become 80
acute. it was said in official circles,
tnat the Shlppl0g board lS within OldinR
call for bids until the companies are
able to increase their available sup
plies, The navy department and rail
road administration also were said TO
be facing more or less serious situa-
ton.
In his statement on the situation Rep
resentative Gould attacked the admin
istration's attitude toward Mexico and
said the President now had before him
both Senator Falls memorandum CON
cerning tho Bolshevistic" activities Of
the Carranza government in this country
and Judge Payne's memorandum showing
one Of the practical effects upon our
economic life Of Mr.. Cnrranza's neigh
borly attentions"
TN view Of this information" he con-
tinued. at will be hard for one OF Presl-
dent Wilson's alert intellect to escape the
suspicion that the Mexican government
deliberately seeks to aggregate the ex-
listing Industrial unrest in this country
by adding TO the seriousness of the fuel
famine here.
THE responsibility for the whole situa-
ton rests with President Wilson. Just
30 long as we continue to putter along
with 'watchful waitings' so long will the
Mexican menace to our political and in
dustrial peace continue and grow"