The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1919-08-06
oil LAWS WILL
Be FRAMED BY
MEXICO SOON
Consideration to Be Given at
Congress Session,
(By The Associated PrsssD

MENllO III !, lucSuay, huR' j.
Oil legislation WI be taken up about
the mid lie Of this month by the ex-
traordinay session OF the Mexican
congress which will base its consider
alton OF H.. subject on the message
sent to congress last November by
President CarranIa. according to
statements made today TO The Associ-
ated Press by Leon Salinas, acting
head OF the department OF industry
and commerce and also chief OF the
oil bureau OF that department. Senor
Salinas declared that, insofar as
his department was concerned, the
question OF new oil legislation was
closed saying that the department IN
issuing provisional permits for oil IN
terests to sink wells had turned the
whole question over to the congress
for final disposition.
Japanese Reports Uneonfirmed.
Discussing the reports that Japanese
interests are securing oil lands on the
Atlantic and Pacific coasts of Mexico,
Senor Salinas declared that his de-
partment had no official record Of
such transactions and that Japanese
oil men had made no inquiries at the
department He admitted however,
that it would be possible for them
to obtain holdings from private
individuals and that his de
partmcnt would not be advised as to
these deals. Since most OF the oil ter
ritory along the Atlantic coast is held
by American, British or other inter
csts, Senior Salinas said it seeped
hardly probable that any newcomers
could acquire important holdings by
purchasing small tracts from Mex
icans
Referring to Circular No. 0, giving
permission for the sinking of oil
wells which was issued under date OF
Aug, by the direction Of President
Carranxa, the acting head of the de-
partment said.
This circular is intended 10 be
temporary solution OF the fuel prob
lem Oil companies have complained
that their supplies were running low
and that they could no, fill their con-
tracts because they were not per
mitted to drill wells as result OF the
non compliance with the provisions OF
the decree of July 81, 1918.
Must Accept Mexican Law.
"The Mexican government. for the
purpose OF showing its helpful dis
position, gives permission for com
panies to drlil wells, providing they
Subjec, themselves to the law which
will be enacted by the Mexican con
greSS.
"li the companies do not agree tc
obey the regulations which will be laid
down they will show unreasonable oh
stinacy. The government has Away.
been disposed to listen to their ap-
reals, when such appeal, did not at
tack legal principles which the gov
ernment is under strict obligations
10 keep and TO enforce upon others.
The immediate commercial problem of
the companies having contracts for
supplying fuel oil, is solved by the cir
cular."
Senor Salinas said that In addition
10 the message sent TO congress last
November by the president there were
special reports for consideration by the
committees o. congress which will
deal with the subject. There is in ad-
dition a report from the senate COM
mission which visited the petroleum
fields a few months ago. which, com
bined with other data, was, he said,
amply sufficient for framing new leg
islation"T
Companies Attitude Unknown.
Nothing is available regarding the
attitude which oil companies will take
with regard to Circular No. g." which
was given out to meet objections made
By oil companies which declared tha
compliance with recent deerees woulc
result in the loss of rights for which
they have been fighting. II is under
stood they have contcnded that II the,
accepted the conditions contained IL
the DEGREES prior TO the issuance oi
Circular No. 9" they would, in effect
accept the naturalization of their
property. They have provided for the
payment OF royalties on production
and such payments would be, it is held
in substance, a recognition OF nation
alization
Senor Salinas declared that during
his recent visit in New York, Alberto
Pani, present Mexican minister to
France, was informed by an official
ct IN oil company that "the oil compa
nies had not cent for Mexico but
millions to oppose Mexico" Senior
Salinas said the Mexican government
had full knowledge concerning oil
companies which were leading a cam.
paign against the Mexican govern.
men,," but that despite this fact the
Mexican government is not using ,hi.
knowledge to hamper the Companies
operations, although this could b.
easily done" lie drew comparison
between Mexican oil legislation an
the alleged "coniiscation Of proper,
in connection with prohibition legis
lation in the United States, afiectin
foreign Investments there"
Senor Salinas declared his depar
usent was preparing a pamphlet fC
distribution which would give the con
plets history Of recent oil DEGREES an