New Britain herald., 1919-08-06
MEXICANS CONSIDER
 OIL LEGISLATION
Question to Be Discussed by Et traordinary Session This Month

Mexico City, August 6..-Oil legis- lation will be taken up about the middle of this month by the extra ordinary session of the Mexican con- gress, which will base it's considera- tion of the subject on the message sent to congress last November by President Carranza, according to statement made today to the Asso- ciated Press by Leon Salinas, acting head of the department of industry and commerce and also chief of the oil bureau of that department Senior Salinas declared that in so far as his. departm ent was concerned the ques- tion of new oil legislation was closed, saying that the department in is suing provisional permits for oil in terests to sink wells had turned the
 whole question over to congress forss- final disposition.
 Discussing the reports that Japan-
 csc interests are securing oil lands on
 the Atlantic and Pacific coasts of
 Mexico, Senor Salinas declared that
 his departm had no official record
 of such transactions and that Jap-
 antse oil men had made no in-@
 quiries at the department. He ad-t
 mitted however that it would be
 possible for them to secure holdings
 from private individuals and that hisf
 department would not be advised as
 to these deals. Since most of the
 oil territory along the Atlantic coast
 is held by American. British or other@
 interests, Senor Salinas said it seemed
 hardly probable that any newcomers
 could acquire important holdings by4
 purchasing small tracts from Mexl.S
 cans
 Circular Explained.
 Referring to Circular No. g" giv-t
 ing permission for the sinking of
 oil wells. which was issued under (
 date of August l by the direction of
 President Carranza. the acting head
 of the department saiG:
 This circular is intended to be a 2
 temporary solution of the fuel prob-
 lem. Oil companies have complained
 that their supplies were running low
 and that they could not fill their
 contract because they were not. per- mitted to drill wells as a result of the non-com pliance with the brovis- ions of the degree of July 31 1918.
 The Mexican government for the pur- pose of showing it's helpful disposf- tion. gives permission for companies
 to drill wells providing they subject themselves to the law which will be enacted by the Mexican congress. Commercial Problem If the companies do not agree to obey the regulations which will be
 laid down they will show unreason- able obstinacy. The government.
 has always been disposed to listen to
 thelr appeals when such appeals did not attack legal principles which the nf-Or1 ont ;c to keep and to enforce upon others. The immediate commercial problem of the companies having contracts
 for supplying fuel oil is solved by this circular"
 Senor Salinas said that in addition to the messag ge sent to congress last November by the president there were special reports ready for con- sideration by the committees of con gress which will deal with the sub- 1 Ject. There is in ,N 1ition, a special report from the senate commission which visited the petroleum fields q | few months ago which combined with | other data, was, he said amply suf- 1 fcient for framing new legislation" Attitude of Oil Companies. Nothing is yet available regard | ing the attitude which oil companies l will take with regard to "circular No. | 9" which was given out to meet ob- | jections made by oil companies which | declared that compliance with recent | decrees would result in the loss of rights for which they have been | fighting. It is understood they have | contended that if they accepted the | conditions contained in the decrees l prior to the issuance of circular No | they would. in effect accept the naturalization of their property. | The decrees have provided for the | payment of royalties on production 1 and such payments would be, it is | held, in substance a recognition of standardization.
 Millions to Oppose Mexico. Senor Salinas declared that during
 his recent visit in New York, Alberto | Pani present Mexican minister to | France. was informed by an officials | of an oil company that the oil com panies had not a cent for Mexico | but millions to oppose Mexico" | Senor Salinas said the Mexican gov ernment had full knowledge con- l concerning oil companies which were
 Heading a campaign against the | Mexican government" but that "des- l pite this fact the Mexican govern ! ment is not using this knowledge to honor the companies operations. al- | though this could be easily done." He drew a comparison between | Mexican oil legislation and the all | leged "Confiscation of property In connection with prohibition legisla- | tion in the United States, affecting l foreign investments there.'