New-York tribune., 1920-01-19
Business Takes OH a Ruddv
British Complexion as
U. S. Interests Fight With
Carranza and His Laws
Millions Are at Stake
English Beating John d. at
His Own Came i'll Selling
Lands, Declares Dealer
By Wilbur Forrest

the unlimited support or the United
States government in their fight
against Article 81 Of President Car
ranza's new Mexican constitution, or
settle their differences somehow soon,
the enormously valuable oil busine "a
in the southern republic will pass to
the British.
While tho American oil companies
arc squabbling with Carranza over his
arbitrary and confiscatory constitu-
tonal article, British oil interests are
calmly grabbing the business.
1t is with considerable interest that
those watching the Mexican-American
oil war from the inside are also watch
ing the Agulla Company-Mexican
Eagle Oil Company, formed of COM
5ination of the Old Royal Dutch Shell
and the Pearson, interests s-obey all of
Carranza's mandates and continue TO
operate and. furthermore, expand with
marvellous rapidity.
Is Becoming Monopoly
Under It's program Of amicable obei-
sance, the Aguila Company is rapidly
becoming the "Standard Oil" of Mex
leo. Its exports are enormous and it's
wholesale and retail business in Mex
leo itself is already considerable. Draw
ing oil from the ground in the Tampico
region, the Aguila refnes it in Mexico
and ships it to all parts of the republic,
Offices for wholesale and retail trade
have been established in all the prin-
cipal cities and many Of the secondary
places, and the oil patron may buy
from the Aguila store anything from
gallon of gas" for his automobile,
oil for the crank case or oil for the
sewing machine to crude or refined
products in carload lots. A choice line
Of American manufac cured oil cook
stoves are also found in these British
John D. stores, which urge the Mex
lcan public to use oil.
They are beating John D. at his
own game in Mexico" suggested an
oil man in Mexico City with whom l
discussed the oil situation recently.
While we Americans scrap with the
Mexican government because we are
tired of paying graft and refuse to
pay the graft which will eliminate
Article 27, our British friends are
calmly and suavely conforming to that
article and getting the business. It's
just another way to play the Mexican
game and | suppose they know where
they stand. You've got to admire
them"
Article 81, American oil men will
tell you, is the most pernicious piece
OF Mexican legislation ever contrived
to bleed the foreigner. Under the
protectorate of Porfrio Diaz. who be-
.lieved in encouraging foreigners to
invest their money in Mexico and thus
develop the great natural resources of
the country. Americans prospeoted for
oil many years ago and after much toll
and expense struck it rich. Precious
brown liquid gushed from the first
we'll developed by what is now known
as the Dohcny interests. Drawn to
the Mexican oil bonanza, other Ameri-
cans focked to the scene. British and
Dutch interests came along, and within
few years tens of millions of dollars
hssd been invested in oil lands and oil
Development in the states of Tamauli-
pas. Vera Cruz and San Luis Potosi,
district whose natural "bridgehead"
Is Tamp;co.
How Rights Are Granted
An oil company either buys its land
outright or leases it for the purpose of
drilling for oil. Until Carranza's at
!eption was drawn to the Tampco oil
nelcs during the European war and
the valuable assistance they were Civ
ing to Allied navies and Allied war
mahrg generally, drilling and produc-
ing OF oil in the Tampico fields went
normally onward. The fields were con-
.rolled By the Allies and therefore
we're aiding the Allies.
mere IS no way to prove that Ger
nah influence on Carranza aided to
irame Article q of the Mexican Con-
stitutlon, but the fact remains that it
was promulgated by the Carranza Con-
stitutIonal Convention at Queretaro, to
vecome effective February 8, 1917. and
sne United States declared war on Ger
many ranging herself with the Allies 8
u ,asse more than two months later.
"netner the warlike intention of Uncle
pam was so apparently defined at the
oeginnlng Of 1917 that German in
nuences, seeing the handwriting on the
Naii, worked on the Carranza conven-
''0n VIII never be definitely known.
Article u briefly gives the owners
~ ~ OIL and coal lands the right to work
.ns surface soil-such as agriculture,
..ss"'e. grazing, etc.-but denies them
.h .,'s 'ignt to extract oil or coal from
.m .d1 suD-surface, unless they renounce
sna ~ cam to the lands already bought
a"o paid for, agree to abide by all
.s~s made in future with regard "a
..sse lands and their development, and
- .."ouhce their right to invoke the aid
x.elr snelr own government, if they are
'''eisners, against Mexico.
Protest by Americans
nrn.ay, D,ehy, the American oil companies
pso'ested that they did not buy Mex;
80, 80 'ands Tor the purposes Of agricul-
" grazsng, but avowedly for the
'urpose Of drilling oil wells.
-. ne Aguila Company, however. on
c.'' s assumption, il il supposed in some
~, ~fs' tnat such constitution could
.s'. o.. su!viYe, or that more was to be
Ecu Ecu IN agreeing with the Carranza
s:.ihment, cohformed TO all rcpula-
''.ns OF Article 27.
..hs result At the present moment ia
IA d..1' .ns british corporation continues
H. alli and produce oil unhampcred.
ryl,.. american companies, who are car
lEn,.sA"n Ing IN an active propaganda in the
ennes .a ntatea against what thew term
esn e.cati'n .n Of property by the Mcxi-
srs government, continue TO fight. but
sye."' ~" continuing 70 drill and produce
gsn.r IA tnat territory controlled by
leader ''"'i faiacz, the rebel
IT,. sae =, ,iampico oil field IL peculiar IN
ca, w "eils after prodncinv for yari-
krss .pel'rds turn 10 halt wat.r the
Ia, hnh ~. MIXTURE pollutinx the oil 80
Tbexs commercial value is destroyed.
aens,.. 10 pfccss: yet discoyered TO
Inn me MIXTURE, and once we'll
9ct,n, Sannr II IL abandoned and for
.inn. Drilling therefore must con
esnan., ,s.In.nstaftly 10 keep the various