Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-08-27
AMERICAN REPLY
/ TO.MEx|C0 ON WAY
Answers Protest Received
i Against Bandit Pursuit
= by CavaIrymen.
OIL MEN ANALYZE LAWS

The American governments reply
to Mexico's protest against the dis
patch IF American troops into Mexico
in pursuiss of bandits who held two
American aviators for ransom. was
sent forward today, it was announced
at the State Department. Officials de-
clined to discuss the contents OF the
note, saying that it probably would be
made public in Mexico City.
Oil Producers Statement.
Reply to statements by members of
President Carranzas official family in
Mexico City to the effect that the
Mexican government had a right to
enact laws that would result in the
confiscation of property owned by
foreigners. and that retroactive laws
were justifiable in international law
was made by the American Associa-
ton of Producers of Petroleum in
Mexico. in letter presented yester-
day to the State Department.
Cabrera, Schiaffino and the others
now plant themselves on the broad
ground that in the public idnterest the
Mexican government can confiscate
the private property of Americans and
OtheT foreigners without violating IN
ternational law" the letter said. Ac-
cording to their theory property
rights, such as oil companies have &C
quired, are subordinate to the well
fare of the Mexican public and there
fore can be wiped out. This has been
their real position from the begin
ming, though it has undergone mild
disguise from time to time.
Cited American Law
''They started out by citing Ameri-
can 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 Laurent He is quoted as
follows: Laws may have retroactive
effect when public interests are at
stake The actual statement by Lau-
rent (Droit Civil. vol. i, chap. 4, sec.
sS1) was:
s Tt is commonly argued that laws
have retroactive effect when general
Interest so demands. because no right
may be acquired against public inter-
est. According to our view, this is
too absolute. If private parties may
Invoke against the application of
retroactive law, only their interest
impaired by that retroactive effect.
the impaired interest should cede be-
fore general interest. But when pri-
lyate parties have a right impaired by
the law. the court may not in the
name of general interest destroy or
modify the rights of citizens. The
of all interests.
so again it tranSpires that the au-
thority relied on is squarely opposed
to their theory.
They have dropped the expostula-
tIonS that the constitution and laws
are not retroactive. They now admit
that they distinctly are; and the sole
and only authority cited to prove
mat such things may be proves to be
plainly against their contention. On
Hch 2 base is built up their justifa-l
Ses"Their argument that to seize the oil
3knds from their rightful owners. and
e{1rn them over to the Mexicon govern,
hent to develop would rebound to the
Tublic benefit is answered by the record
made in the management Of railways,
Nxpress companies and other industries
- seized"
Arguments Carefully Weighed.
IAN these arguments have been care
faily weighed by the State Department
md the decision of this government was
9eated in the note of April 2, 1918, which
4rotested against the specific articles
.1 the constitution as confscatory. The
Aame conclusion was reached by the
governments of France, England and
Holland. 1t is stated by officials that
Mexico will not be allowed to confiscate
the oil properties.
s-Dr. Juan B. Rojo, counselor of the
Mexican embassy. will leave Washing
1Dh today for Mexico City. having been
pdmmoned home by the Mexican foreign
$tlce. II is reported in diplomatic cir
t4es that DIR. Rojo will be designated
Mexican minister to Guatemala, which is
considered the most IMPORTANT post next
no that in Washington in the Mexican
diplomatic service.