El Paso herald. (El Paso, Tex.) 1901-1931, 1919-03-22

reason now Ior believing LhdL
Of nations, and not the United States viii have the
Job Of arguing with Mexico the treatment to be &C
corded foreigners Mexico and foreign investments in the
same country If 50, Washington viii be relieved Of task
obviously embarrassing which It has been touching gngey
and then sidesteppng eagerly from time to time.
The state department has been openly reluctant to take
up any matters which might result IN dscoTd with Mexico
and It has seemed that only the insistence Of Great Britain
and France has suced to cause representations 70 De
made to Mexico City about such matters the threatened
conscaon Of foreign owned property IN the Iapoo dis
To Tsze that affairs are so shaping themselves as to
place the hands Of the league the responsibility Of
sonng with MEXICO it Is necessary to note that the United
States did finally protest to Mexico about the oil decree
and president Caanza then consented to waive imposition
of the until the Mexican congress had time to act upon
the decree The congress ADJOURNED without aetng ana
Caanza then reported to have ordered the decree INTO
effect Immediately.
This caused furore among the oil companies and the
state department at Washington displayed interest
as result Then president CarTanza authority for
announcement that the last decree merely formal
made for the sake the record and that the whole nat
Of taxation would lie until It could be taken
by the special session Of congress which he has summoned
to convene On Nay I.
The understanding then is that the oil companies VIII
not pay their coHfiscatory taxes Immediately, though
dered to do and that the dispute VIII be dropped for
the time being, at least.
The Mexican congress VIII convene May I, but it
VIII probably be June later before It vadaes Carran
zRs oil decree replaces it with other tax lesla
ton; this for the that bound up the wrangle
the whole theory of states ownership Of resources
This theory espoused by Gen CaITanza holds that the nat
ual Of the country do not pass ont Of the gov
ements ownership to that individuals that high
royalties therefore to be paid by the firms indi-
vdua who develop those resources Obviously the ques
ton IS not to be settled in day.
It may be regarded almost certain, however, that
president Carranzas view viii prevail and that decree
IN reference to the oil industry viii be upheld by the Mex
congress His influence dominant with the congress-
It seems, and his party in control
There is every likelihood, theH that E5t only VIII the
royalty question be threshed out with Mexico BY
foreign authority but also that another contention Of
MeEc0 that foreigners deprived Of their nationality
IN Mexico and have right to appeal to their govern
ments, viii also have to be discussed This IS so unfair
IN conflict with accepted international usage that It
cannot be permitted to 60 unrestricted
But If the Mexican congress takes action on the roy
atty matter before june It is almost certain that by that
time the league Of nations VIII be IN existence not fully
organized It VIII be IN position at least TO docket inter
national disputes for future discussion.
The United States VIII be a member Of the league Of
nations It IS taken for granted The understanding IS that
Mexico IS also in favor Of it. at least the appeal Of Gen
Carnza early IN 1877 for Of neutral powers to
force ending Of the by means Of an economic en-
barge, construed Then Caranzas move was looked
upon prOGernan designed shut off the flow
d fue oil from Iampico for the supply Of the British grand
eet and the American navy. Now It being referred to
as precedent which TO base assumption that Mex
co must favor league Of nations since it ted to organ
ze IN 1917 and advocated use Of the economic
weapon which is proposed that league Of nations shall
use If occasion warrants
It would be a relief for the league instead Of the
United States, to talk things with Mexico for when
ever our government makes protest offers sugeey-
ION IneTe IS always some party Mexico to
set up that the colossus Of the north Is reaching out
TO grab Mexico So, any suggestion is looked upon as an