Arizona republican., 1920-05-21
REVO[UTIONISTS RULE
 OIL PRODUCERS MUST PAY TAXES 1T ONCE
rRepublican A. p. Leased WIreI


 WASHINGTON, May 20-An implied threat by the de facto government of Mexico to force oil producers to make prompt payment of export taxes was revealed today in belated message from the American embassy at Mexico city to the state department.
 The department of finance was quot cd as ruling that the taxes for March and April must be paid within five days after May 13 and that no exten- sion would be granted. The depart ment added. however, that the com panies would not be expected to comply with a recent decree of the Carranza government almost doubling the amount but might pay the March April assessment in accordance with the tariff fixed for January and Feb ruary.
 The largest oil companies have not paid the taxes, but neither their repre- sentatives nor the state department re- ceived notification of any punitive ac- ton taken by the Mexican authorities. The companies explained that they hesitated in making payment only be- cause of their inability to determine to whom the money should be paid. The state department has ruled that any company may regard it's conduct cor rect if taxes are paid to those actually in authority.
 Since the United States has not rec
 
 ico it is obviously impossible, it was explained for the state department, to go further in the definition of the ex- isting regime in Mexico.
 Press reports today indicated Car ranza had reached Zacatlan in the mountains of Puebla near Tuxpall- Governor Cabrera. brother of Luis Ca brera. chief of Carranza's cabinet, has established the state government at Zacatlan and the indications were that
 
 tain state his headquarters until driven out.
 There has been increasing indication that those in control along the oil coast are in accord with the Mexico City authorities and the opinion was expressed here that a disa greement be- tween the oil producers and the revo- lutionary forces would be obviated
 Following is the text of the Mexican finance departments ruling was sent by the embassy:
 "In view of the reasons given by the representatives of the oil companies in connection with circular of April 27, which fixes the amount of the tax on petroleum exported during the months of March and April, 1920, this depart ment herewith informs the representa- tiVes of the oil comDanies that have to pay the said tax that the department is disposed to modify the above circu- lar in the sense that the taxes on petroleum exported during these two months shall be paid in accordance with the tariff that was enforced dur ing January and February of this year. but with the understanding that the payment of these taxes must be made inside of five days counted from this date and that this term cannot be extended"
 Dr. Alvarao Torre Diaz, confidential agent of the de facto government, warned business men today against dealing with the Carranza consul gen. eral. Mena Brito. at New York or Diego Fernandez, the Carranza charge d'affaires here. Banks also were warned that former eonsuls general had no authority to withdraw funds deposited to their accounts or to the credit of any agency deriving it's au- thority from the Mexican government.