Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-03-26
Latest Order of Department Of
Industry Considered to Be
Intended to Force Compa-
nieS Into Line,
FOREIGNERS SUFFER
UNDER new ORDERS
All Foreigners Who Drill With
out Confiscatory Permit viii
Be Severely Punished Under
Ruling,
tsy MORNING JOURNAL SPECIAL tEAsEo wiasl

Washington, March 25.--Officials
of the state department have begun
study of the order of the depart
ment of industry at Mexico City
threatening to punish foreign com
panies and individuals for drilling
wells or doing other petroleum de-
velopment work without permission
of the federal government, 1t was
learned authoritatively today. The
order, which was made public by the
state department yesterday, reopens
the Mexican oil question, which was
believed to have been left to the Mex
lean courts and the extra session of
the Mexican congress to decide with
out further action either by the oil
men or the Mexican government.
British and French oil companies az
we'll as American, are interested In
the recent developments.
Ambassador Fletcher. who has
been in Washington for some months
aiding Acting Secretary of State Polk
during the absence of Secretary l-ans-
ing in Paris, conferred today with
representatives of the American oil
companies and a statement of the oil
companies position was laid before
him.
Is Old Question.
The feature of the oil trouble in
volved in the circular order issued in
Mexico City last Saturday IS said to
date back to January, 1915, when
Carranza was first chief and was be-
set with enemies on every side. A,
that time he decreed that all develop
ment work should stop Immediately
and that no new work should be UNI
dertaken without permission.
Representatives of the British
French and American oil companies
protested against this order but were
assured by Carranza government of
ficials and the diplomatic representa-
tves of the United States in Vera
Cruz that the sole purpose of this
decree was to exercise the proper po-
lice power of the state and prevent
unsafe drilling and building opera
tions. Upon this assurance the oil
men of the three countries agreed to
seek permission for development
work, although, it was pointed out
here today. they had by this action
bound themselves to ask for licenses
or permits to do what they had a
perfect right to do without permits
because of their property rights.
In 1917, when the new constitution
was put into effect, the Mexican gov
ernment began to refuse permits fol
such work, according to authoritative
information. An American compan.
was refused a permit for such worl
in December, 1917, on the ground tha
it was a foreign corporation and al
such had no right to receive a conces
sion to develop oil. This was the frs
open attempt by the Mexican govern
ment to establish the government
ownership of all mineral deposits al
defined by the new constitution. Oh
the companys protest that this ruling
abridged its legal rights the Mexican
government granted provisional
permit to complete the operations IL
question.
Permits Refused.
Subsequent DEGREES were announced
Each intended to put into effect aru
Gle q of the Mexican constitution
(Continued on PAGE Two.)