Bisbee daily review., 1919-03-26
]. 5. BEGINS PROBE INTO MEX|CANO|L
 SIT TUATION
Order of Government Below
 Border Object of Investiga- ton by State Department
American Petroleum Firms Present Cases, Re-opening Questions Thought Settled
Rv RevIew Leased wlrel


 WASHINGTON, March 25-Officials of the state department have begun a study of the order of the government of Mexico to punish foreign companies and individuals for drilling wells or doing other petroleum development work without permission of the fed eral government, it was learned auth .oritatively today. The order, which was made public by the state depart ment yesterday, re-opens the Mexican oil question which was believed to have been left to the Mexican courts and the extra session of the Mexican congress to decide without further action either by the oil men or the. Mexican government British and French oil companies, as well as American, are interested in the recent developments.
 Ambassador Fletcher, who has been in Washington for some months aid ing Acting Secretary of State Polk during the absence of Secretary Lans- ing in Paris, conferred today with representatives of the American oil companies position was laid before him
 Trouble Is Old One.
 The feature of the oil trouble in- volved in the circular order issued in Mexico City last Saturday is said to date back to January, 1915, when Ca arranza was first chief and was beset with enemies on every side. At the time he decreed that all development work should stop immediately and that no new work should be undertaken without permission. Representatives of the British, French and American oil companies protested against this order, but were assured by Carranza government officials anc the diplomat ic representative of the United States in Vera Cruz that the sole purpose of this decree was to exercise the proper police power and to prevent unsafe drilling and building operations Upon this assurance the oil men of the three countries agreed to seek per mission for development work, al- though, it was pointed here today, they had by this action bound them selves to ask for licenses or permits to do what they had a perfect right to do without permits because of their property rights.
 Refused Permits.
 In 1917, when the new constitution was put into effect, the Mexican gov ernment began to refuse permits for such work, according to authoritative information An American company was refused a permit for such work in December, J1917, on the ground that it was a foreign corporation and as such had no right to receive a concession to develop oil. This was the first effort made by the Mexican government to establis hthe govern ment ownership of all mineral deposits as defined by the new constitution. On the company's protest that this ruling abridged its legal rights, the Mexican government granted a pro visional permit to complete the oper- ations in question.
 Subsequent decrees were an nounced Each was put into effect article 27 of the Mexican constitution, which the governments of Great Bri- tian, France and hte United States have declared ''conuscatory" since August F, 1918, permits have been refused to companies which have not filed manifestations" or entered into contracts with the Mexican govern ment, the terms of which have not been definite. As for drilling opera
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