The Washington herald., 1919-04-19
Spillane Discusses
Problems Facing u. S.
Interests In Mexico

sells. Great Britain's mastery of
the seas was made secure by Brit
ish coaling stations along all the
lanes of the Seven Seas.
A vessel that uses coal for pow
er has to give up valuable bunker
space and. sometimes. cargo space
for fuel. An oil driven ship car
ries a surplus supply of fuel in her
ballast tanks.
An oil driven vessel can travel
three or four times as far as q
coal driven steamer without taking
on more fuel and have more space
for cargo.
So soon as there are oil stations
throughout the world II is newt
able that the oil driven ship will
supplant the coal driven ship.
That day Is not far distant.
Mexico Has Largest Basin.
Mexico has In the district for
100 miles north and south of Tampi-
CO perhaps the largest oil basin in
the world. The quality Of the oil
is not SO good as that pumped from
our Pennsylvania and Oklahoma
Welb, Uut II 10 BOOu chouBh-
Many of the oil carrying ships
that are in service in the Mexican
trade take on cargo far on shore.
anchoring under or alongside pipes
through which oil is pumped from
the wells many miles inland. The
oil ships take on cargo almost as
rapidly as grain ships take wheat
from elevator spouts.
Edward l. Doheny. now presi-
dent of the Mexican Petroleum
Company. was the first to develop
the Mexican oil lands. The Stand
ard Oil. the Royal Dutch Shell,
Texas Oil Company. Metropolitan
Petroleum, Cowdory and other COM
panies have big holdings. /,
II the Mexican oil properties could
be operated fully and freely there
would not be much Of an oil problem
today. Gasoline and kerosene and in
Vulnerable by-products Of petroleum
would be more plentiful and. prob
ably, much cheaper.
Carranza's stand on Fields.
Senior Carranza, however, makes the
task of the men interested in Mexican
oils rather difficult.
The constitution of Mexico is a good
deal like that of the United States in
regard to vested rights in develop
ment of mineral lands.
1t is contended by the oil people that
| they acquired and developed their oil
fields according to Mexican law.
Whether Senior Carranza thinks their
claim is correct does not signify. What
is important Is the fact that, appre-
| ciating the great worth of the oil
district, he wants to squeeze every
dollar of tribute he possibly can get
out of the foreigners for the privilege
of producing and exporting OIL
Carranza is a clever old boy. He has
made capital of the fact that in the
| time of Porfirio Diaz, Limantour and
the "Cientifcos," there was a good
deal of bribery and corruption In the
granting of concessions and franchises
to foreigners desirous Of exploiting
Mexico's resources. He has made II
appear that there was some of II in
the administration OF Madero and
Huerta. The only simon pure honest
man in power in Mexico in 100 years
is Venustiano Carranza, IL you
would believe what Carranza and
his admirers say.
Plays Them Both Ways.
When the oil men in Mexico have
tried to show they developed their
properties In strict accordance with
constitutional law and have stood
on their rights, Carranza has shifted
a bit and increased the export tax
The oil men acknowledge the Justice
and warrant of an export tax, but
they ask to have it established and
maintained for a definite period and
not changed whenever Carranza is
in the mood to do so. Also they ask,
II they conform to every law and reg
ultation imposed by the Mexican ma
tional government, that the govern
ment protect and safeguard them. To-
day the Carranza government Is not
in real control Of the oil district Vari-
Gus guerrilla bands hold sway there
and defy Carranza. These bands
blackmail the oil companies. The oil
concerns pay tribute to them and.
in addition. have armed forces of
their own to protect their properties.
There is no question Of the right
Of Mexico to exact an export tax.
There is no doubt either that Car
ranza's government Is bound legally
and morally to protect the oil men.
sion or the prejudice of the people
for his own benefit at the same time
getting "all the traffic will bear" out
of the oil people. With rare adroit-
ness he plays one oil interest
against the other and, so long as
it appeared that Germany had a
chance of winning the war. he was
influenced by the German agents.
Now he is playing-t the British
against the American and the Royal
Dutch shell against both.
Harassed on every side the Amer
lean companies ask the American
government to safeguard them in
their rights.
Sooner or later Washington must
ask Mexico to come to some definite
stand in regard to the oil matter.
Carranza's play is to continue to
procrastinate. He Is a past master
at that game.
Meanwhile the world Is oil hungry
and the largest oil bed of the world
is being worked to only n small