The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-27
ANSWER MADE TO
MEXICAN CLAIMS
OF OIL SEIZURES
American Organization of Pc
trOIeum Producers Presents
Letter to State Department
Kidding Statements.

WASHINGTON, Aug. 27.-Reply to
recent statements by members Of Pres
ident Carranza's official family in Mex
leo City to the effect that the Mex
lean government had a right to enact
laws that would result in the confis-
cation Of property owned by foreign
ers and that retroactive laws were
J~ustifiable in international law was
made by the American Association of
Producers Of Petroleum in Mexico in
a letter presented today to the state
department.
1.-THE newspapers for several days."
the letter said, have carried state
ments emanating principally from
Mexico City intended to justify article
81 of the Mexican constitution of 1917
which declares that all petroleum In
the republic belongs to the nation.
Cabrera, Schiaffino and the others
now plant themselves on the broad
ground that in the public interest the
Mexican government can confiscate the
private property of Americans and
other foreigners without violating in
ternational law. According to their
theory property rights such as the oil
companies have acquired are subordi-
nate to the welfare Of the Mexican pub
lie and therefore can be wiped out,
This has been their real position from
the beginning, trough 1t has undergone
mild disguise from time to time. They
started out by citing American law on
the subject but it was shown that
American law is precisely the reverse
Of their contention and now they cite
the French authority, Francois Lau-
rent. He is quoted as follows: Laws
may have retroactive effect when pub
lie interests are at stake The actual
statement by Laurent (Droit civil, vol.
1, Chap. ~, Sec. S1) was;
Too Absolute.
q 1T is commonly argued that laws
have retroactive effect when general in
trest so demands, because no right may
be acquired against public interest.
According to our view this is too abb
solute. II private parties nay invoke
against the application Of a retroactive
law, only their interest impaired by the
retroactive effect, the impaired interest
should cede before general interest
| But when private parties have a RICH
impaired by the law, the court may
not in the name of general interest de-
stroy or modify the rights Of citizens
The maintenance Of rights Is the great
est of all interests.
80 again it transpires that the au.
thority, relied on is squarely opposed t.
| their theory.
They have dropped the expostula.
ton that the constitution and laws are
not retroactive. They now admit that
they distinctly are. and the sole ant
only authority cited to prove that such
things may be proved to be plainly
against their contention. On such /
base is built up their justification o
%spoilation,
Their argument that to seize the
oil lands from their rightful owners
n turn them over to the Mexican
government to develop would rebound
to the public benefit Is answered b.
the record made in the management o
railways, express companies and othei
industries SO seized"
All these arguments have been care
fully weighed by the state department
and the decision Of this government
was stated In the note of April 2, 1913
which protested against the specific
articles of the constitution as confis.
catory. The same conclusion was
reached by the governments Of France
England and Holland. 1t is stated BY
officials that Mexico will not. be al
lowed to confiscate the oil properties.