El Paso herald. (El Paso, Tex.) 1901-1931, 1919-03-15

" interests IN Mexico are directly interested and all
L other foreign investors indirectly, in the announcement
from Washington president Caanza has ordered the
royalty taxes" on oil production paid Immediately It
sts up conflict which had been settled temporarily and
raises anew the question whether the United States VII
protect foreign interests in Mexico whether other pow
ers say England or France viii do it. It reOpens the
whole subject Of the rights Of foreign companies IN Mexico
The American official apparently is that Carranza
has broken faith with the United States government IN or
deng this tax to be paid He had agreed to postpone ae-
ton until the Mexican congress could meet and take action
On the decree.
when president Carranza issued the decree declaring
all oil lands state property and requiring foreign COM
panes to pay royalty taxes" the American government
protested energetcay The American companies refused
TO pay the taxes taking the ground that such payment
would constitute admission Of the Mexican
ownership Of petroleum They started action IN the Mex
can courts seeking relief from the decree Protests were
also made by three other governments.
There belief at the time that the Mexican effort
70 deprive foreign companies Of their ownership Of oil
vesting possession in the Mexican government inspired
By the then German minister baron Won Echardt He was
known to be doing influence the Mexican gov
eminent in every conceivable way and he credited
with having gained extraordinary measure Of good VIII
from high pers0nages at Mexico City. But, owing
20 the resistance Of the oil companies and the protests Of
their governments the royalty waived for the
time being and the production Of oil continued without fur
Their hndrance President Carranza agreed TO authorize
law which understood to with the approval
Of the American government, and to submit it to con-
Eress.
Congress- however adjourned without taking action and
now comes the decree putting the oil decree into effect at
Those IN opposition to president Carranzas admin
Taon VIII at voice suspicion that by passing the
oil question BY congress acted IN complete understanding
with Caranza who might say that since congress had
failed to take any action It his prerogative to 90
ahead with the royalty decree.
This puts the squarey up to the oil operators and
their governments The operators particularly II
quandaTy because If they refuse to pay once ordered
they and their properties apt TO suffer. they pay
they believe the courts would consider payment pma
face admission Of the governments ownership Of the oil
and their suits would thus be lost.
The government Of the United States may be able to
intervene again BY request to president Caranza to mo
" the decree to acceptable form postpone its e
feet until congress has had further opportunity to act
dispatch Of Friday said president Caranza had summoned
congress to special session 70 consider oil Iegis
laon and other matters This special session is to be-
gin Nay and certainly the Mexican government would
not suffer BY holding off enforcement Of the decree for
little than month
The contention Of the foreign oil companies and their
governments is that the oil decree practically confisoa-
tory 50 much that would ruinous President Car
rama has done little far to the impression that
ms policy Is one Of sezng for Mexico what foreign brains
labor and capital have developed and he has perssenv re-
fused to admit that foreign powers have any right TO
make objection, matter what may done to their na-
uona N Mexico. BE looks at these as domestic questions
and holds that foreigners Mexico have exactly the status