New-York tribune., 1920-08-27
Taxes on Oil Paid
On Old Basis, Say
Mexican Producers
Association Explains Situa.
lion by Giving Out Cor.
respondence; New Ar
ra,igement Asked for Paw
ments on Exports

In presenting evidence that taxes on
oil exports had been paid to the de
tacto Mexican government and that
talk of an .ultimatum from President
de la Huerta was nothing more than
propaganda, the Association of Pro-
ducers of Petroleum in Mexico yester-
day gave out copies of correspondence
With the Mexican government IL was
contended that the reply from Mexico
City would set at rest rumors believed
TO be intended to arouse sentiment in
behalf of the confiscatory Carranza
DEGREES
The question of tax payments dates
hack TO payments for the months Of
March and April. Payments were made
the same procedure was followed two
months later. In the mean time nego-
tlatlons were pending to reduce taxes
-on exports, and payment for July and
August was delayed. The Mexican gov
eminent was notified Monday that the
associated companies were ready to
make provisional payment for these
months and submit proofs for new
tax basis. This proposition was ac-
cepted by the De la Huerta regime and
the companies are now paying taxes
LOT July ana August.
They declare that the rumor Of an
ultimatum from the Mexican govern
ment was inspired by interests in Mex
leo and this country seeking to arouse
public opinion in favor of retaining
and enforcing the Carranza degrees,
which have been officially protested by
several nations, including the United
States. BY these DEGREES Mexicans or
Mexican corporations may put in claims
for OIL lands on which there has been
no outlay for prospecting or drilling.
More Than 900 Claims
More than 500 claims have been put
in under these DEGREES, it is said, and
individuals hoping to profit by rent
ing the property from the government
for 81 a year an acre instead Of buy
ing the property outright have been
active in supporting the Carranza de-
crees and the old Constitution. Vari-
GUS efforts to create public sentiment
IN behalf OF these schemes have been
made.
The producers association, fearing
that its property is renaced by this
movement, has taken steps 10 counter
act the ropaganda and is now seeking
to clear UP the reports OF unpaid back
taxes and ultimatum talk. The letter
to the De la Huerta government offer
ing to pay taxes for the last two
months folows:
THE undersigned has been instruct
ed to express to your eXcellency, on
behalf Of the several oil companies,
their sincere appreciation OF the con-
sideration shown by your excellency
in the matter OF export taxes on crude
petroleum and its various derivative
for the bimesters March April and
May-June
"Although the values expressed in
Circular No. "A are still much higher
than the actual prices of the crude
oils and their derivatives for the re-
spective bimesters and should in our
opinion, be further reduced, we realize
that substantial reduction has al
ready been made from the values ex-
pressed in Circular No. 81 and that
the final liquidation of the export
taxes for the past two bimesters has
been postponed by Your government on
several occasions to permit of further
consideration and OF final determina-
tion which you would consider fair
and just.
Ready to Pay Taxes
"In view of these considerations and
of our desire to meet the possibly
urgent needs existing, the oil compa-
MES 90 not leel INdt tney SNOulO ask
of your excellency at this time any
further postponements of the liquida-
ton of the taxes, but respectfully re-
quest that at some time entirely con-
venent to you, either before or after
the taxes have been liquidated in ac-
cordance with Circular No. A, they
be permitted to present to your eX
cellency further information respect
ing the prices that are being obtained
for the crude oils and their derivatives
and to discuss generally with you the
matter OF the administration Of the eX-
port tax law.
"The values expressed in Circular
No. Al are substantially an average of
the value specified in the January-Feb-
ruary tariff and those specified in
Circular No. 81, and their application
is particularly high and burdensome
for the March-Aprl bimester and in
the case Of the distillates and Panuco
crude.
"We feel assured that the consider
alton already shown by your excel
lency that many of the embarrass-
ments that have heretofore sometimes
attended the liquidation Of our export
taxes can in this way be removed and
that if the values expressed in Circu-
lar No. A are then found to be too
high an equitable adjustment will be
made by your government on future
bimesters. With renewed assurances
of our appreciation and respect
Reply From Mexicans
The Mexican governments reply fol-
lows:
The President is informed of your
courteous message received to-day in
which you see fit to state in the name
of the Association of Producers of Pc
troleum in Mexico to this government
that the companies are disposed TO pay
the taxes if they are received and
given an audience on proofs they will
present for the purpose of fixing just
and equitable price on the export of
petroleum | make haste to tell you
that the government, headed by Senor
de la Huerta, is determined to work
always justly and equitably in all its
matters and therefore you may at once
cover your taxes. after which you may
submit the proofs you consider peril
neDt, on the understanding that they
,,,;i i %ol, ,,,+0 81