Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-12-11
OIL SUPPLY
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VII Nv Il l. - u
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Der Is. In the first two the State De-
partment specifically protested again.
st the action Of the Mexican Govern
ment in preventing the drilling of
new wells on property owned by
Americans and insisted upon more
adequate protection of Americans
working in the Tampico Oil region.
The note Of November IS was dis
patched after receipt Of official in
formation that Carranza soldiers had
seized another American owned well
on November IL.
II was learned today that the Mex
lean military fo1ces at various times
during the past month have stopped
drilling operations of American oil
companies on the pretext that per
mits" to drill had not been obtained.
In order to obtain the permits" for
eign oil companies must agree in adj
vance that such wells as may be
drilled would become the property
of the Mexican government.
The United States has repeatedly
protested against these DEGREES in
particular.
Certain American-owned compa-
MES desiring to increase oil produc-
ton to meet the present fuel oil
shortage in the United States. it was
said, have drilled wells without ad-
hitting the loss of their property
by such acts. The State department
both in informal and formal COM
munications, was said to have in
formed the Mexican government that
action by the American companies
was not in defiance of the Mexican
laws, but only exercising rights ac-
quired under Mexican law.
Further testimony taken by the
Fall committee investigating Next
can affairs made public today. pic
lures the Carranza government as
regarding all diplomatic protests of
the American government as per-
functory, and accredits to officials Of
the Mexican government policy OF
driving Americans out OF the coun-
try.
The committee made public today
the testimony Of W. F. Buckley. an
American lawyer long resident In
Tampico and one of the well-known
men of the American colony in Mex
leo.
Luis Cabrera (Mexican minister Of
finance) told me very frankly" testi-
fed Buckly, that the menace Of the
American in Mexico must be removed
and that the only way to do this was to
drive him out of the country and take
his property.
"He explained to me-" the witness
continued. that Mr.. Wilson was what
he was pleased to term an. advanced
liberal. a great Democrat whose con-
Germ was for the welfare Of the people
Of the world ana was not limited to the
narrow bounds Of the United States. He
said," continued Buckley. Mr.. Wilson
was opposed to capital in Mexico and
everywhere else. no matter to whom the
capital belonged. and that In expelling
the American from Mexico the Consti-
tutionalists would receive the sympa-
thy Of the American government"
Announcement that Chairman Payne
had communicated with the President
and Secretary Lansing regarding the
Mexican oil situation was made by Rep
resentative Gould. Republican, New
York, who accompanied the oil men to
the shipping board. Mr.. Payne would
not discuss the mater. explaining that
It was now in the hands Of the Presi-
dent and the state department.
It 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 few weeks
and with the Mexican supply cut of
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 supplies
from Mexico.
The oil shortage has become 90 acute.
IL was said in ofncial circles. that the
shipping board is Withholding . call for,
bids until the companies are able to
increase their available supplies. The
navy department and railroad admins
tration also were said to be facing q
more or less serious situation.
In his statement on the situation Rep
Gould attacked the admin
attitude toward Mexico and