Arizona republican., 1919-12-11
NEW OVERTURES FOR ACTION IN MEXICO HANDED THE PRESIDENT Mexican Interference with
 Oil Companies Is
 Protested
 Output Threatened Decrees so Drastic That Stoppage of Production
 Seems Inevitable
[RepubIIcan A. p. Leased WIrel

lhepuDllCdH A. r. LedSCu WITSl WASHINGTON, Dec. 10 - Another memorandum on the Mexican situa- ton was sent today to President Will son. It deals with the interference of the Mexican government with the op eration of American owned oil prop critics in Mexico, and was prepared by. Chairman Payne of the shipping board, after representatives of the Associated Mexican Oil Producers, headed by B. R. Kellogg, of New York, had pre- sented the situation to him.
 At the same time MT. Payne pre- pared and sent to Secretary Lansing letter urging the importance of pro- tecting the American supply of Mex ican fuel oil upon which the shipping board is almost solely dependent for fuel for it's 800 oil burning passenger and freight steamers.
 Protest Against Oil Decrees
 It developed today that the state de- partment has been continuing to pro- test to the Mexican government against decrees forbidding the drill ing of new wells on privately owned property in the Tampico fields and other decrees affecting the oil inter ests of American and other foreigners in Mexico.
 Three notes have been dispatched within six months, but 1t was said to- day that President Carranza had not replied to any of them. The first went forward last June IS, the second OH October 1, and the third on Novem
 Der IS. In the first two, the state apartment specifically protested against the action of the Mexican government in preventing the drilling of new wells on property owned by Americans and insisted upon more adequate protection of Americans working in the Tampico oil region.
 The note of November IS was dis
 patched after receipt of official iu-
 formation that Carranza had seized
 another American owned we'll on No vember 12.
 It was learned today that Mexican military forces, at various times dur : ing the past month, have stopped . drilling operations of American com panies on the pretext that permits
 to drill had not been obtained. In or
 der to obtain the permits" foreig1 oil companies must agree in advance that such wells as may be drilled would become the property of tn, ? Mexican government. The United States has repeatedly protested agains : these decrees in particular.
 l Drill Without Permits g Certain American owned companie g desiring to increase oil production. t
 meet the present fuel oil shortage il . the United States, it was said, hay 2 drilled wells without admitting the los f of their property by such acts r The state department, both througl n rd inf al ,rv,l
 cations, was said to have informed tn g Mexican government that this actiol t by the American companies was no y in defiance of the Mexican authorities 5, but only the exercising of rights ac e quired under Mexican law.
 s Announcement that Chairman Payn l had communication with the residen if and Secretary Lansing regarding tn l. Mexican oil situation was made b f Representative Gould, republican c
 New York, who accompanied the O
 men to the shipping board. MT. Payn
 would not discuss the matter, explain
 ing that 1t was now in the hands (
 the president and the state depart
 ment.
 It was understood. however, that th
 chairman informed the president that
 stoppage of oil production in Mexic
 seemed threatened and that shoul
 this occur the board would be seriousl
 embarrassed in operating its vast fle,
 of steamers. Reserve supplies now c 4 hand, the president was said to ha,
 been told, would last only few weel n and with the Mexican supply cut of y most of the oil burning ships wou
 have to be laid up as the compani,
 under contract to supply the boar
 with oil receive the bulk of their SUI
 plies from Mexico.
 l. The oil shortage has become ar acute. 1t was said in official circle a, that the shipping board is withholdir lg a call for bids until the companies al " able to increase their available SUI l. plies. The navy department and raj ty road administration also were said f. be facing more or less serious situ, mi tion.
 Gould Attacks Wilson Attitude D. In his statement on the situatio of Representative Gould attacked the a, k, ministratton's attitude toward Mexi or and said the president now had befo or him both Senator Falls memoranda re concerning "the bolshevistic activiti
 of the Carranza government in th ed country and Judge Payne's memora ut dunn showing one of the practical e i- fects upon our economic life of N Id Carranza's neighborly' attentions" or Tn view of this information" on continued, it will be hard for one i- President Wilson's alert intellect eh escape the suspicion that the Mexic; at government deliberately seeks to a a. gravate the existing industrial unre " in this country by adding to the SC n- iousness of the fuel famine here.
 'The responsibility for the wht on situation rests with President Wilse ge Just so long as we continue to putt r. along with 'watchful waiting so lo as will the Mexican menace to our poll ke cal and industrial peace continue a