Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-05-11
TOO MUCH CRAFT
IN MEXICO SAYS
CONSUL GENERAL
Former U. S. Diplomat Puts
His Finger on Pulse of
Trouble in Southern Re-
public; Oil Situation Bad.
,sv ~oss'so ,ouRs.l SPECIAL LEASED v'stl

tBN @oRsiHo JOURNAL SPECIAL LEASED v'kEl
Washington, May 10,-Ameri-
cans who have gone into petroleum
development in Mexico "have done
it with exactly the methods as they
would go into its development in
pennsylvania or California"
Franklin Y. Lane, former secre-
tary of the interior, testified today
before the senate Mexican inves-
tngating committee Mn Lane
now is vice president of the Mexi-
can Petroleum company.
Americans are operating on
lands purchased from private Mex
lean owners with right to drill for
oil incorporated in tho deeds, Mr.
Lane said. He denied statements
made before the committee re-
Gently by John Lind, once Presi-
dent Wilson's personal representa-
tive in Mexico that Carranzas at
tempt to transfer the ownership
Of Mexican oil deposits into the
hands of the Mexican government"
correspond with similar procedure
of the United States in installing
oil-leasing laws on the American
public domain
Tine United States has never at.
tempted to confiscate oil on pri-
vately owned lands" Mr.. Lane said.
Mr.. Lane said there was ire
mendous need for fuel oil in the
United States, and that shortages
already were here.
1--WE have got to get an outside
supply of oil for development of
the United States" said he, re-
marking that England had been
remarkably foresighted and fore
handed in oil development all over
the world"
Chairman Fall, citing English
oil exploitation in Asia Minor,
asked Mr.. Lane if he thought that
was a menace"
Not if Americans develop oil
laying around the borders of the
Caribbean sea as the English are
developing around the south end
of the Mediterranean sea-" was the
response.
+. r. Kellogg, an attorney for
the Pan American Oil corporation,
analysed before the committee
Mexican and Spanish laws con-
corning minerals, which showed,
he said, that ownership of the sur
face always carried with it own
ership of coal and oil under
ground.
II have only gone to this length"
said Mr.. Kellogg, because Mr..
Lind has disseminated a statement
which is likely to cause most seri-
Gus harm to all Americans who
have been struggling for years to
maintain rights which they estab-
lished years ago on invitation of
the governments concerned.
"Carranza has granted several
purported drilling concessions to
various persons within the last
eight months under which part of
this oil owned by Americans is be-
ing confiscated without compen-
sation to its owners"
George Agnew Chamberlain,
who resigned as consul general to
Mexico about a year ago because,
he said, my hands were tied and
l was doing no good there" de-
clared the chief difficulty in Mexi-
CO was graft.
"And graft there 49, means cut
ting the arteries of the nation--its
commercial life-and letting the
life blood out for the benefit of
the hooters. Conditions are getting
worse all the time" said Mr.. Cham
berlain.
Senator Brandegee asked Mr..
Chamberlain IL the general condi-
tons had not been reported to the
state department.
Frequently by cable and re-
port" the witness replied. Henry
p. Fletcher, the ambassador, join
ed with me. He, too, has resigned.
because of It, ! haven't touched on
the oil situation, which is even
worse. We finally got out letter
to Americans, saying we could give
no information about commercial
opportunities, investments or prop
erty they had there, so long as
Americans could even be murdered
without action in redress. The state
department approved the letter.
"All this began and grows from
the repeated statement Of Presi-
dent Wilson that no matter what
Mexicans did to Americans, we
would never take effective action
against them for so doing. That Is
what gave Carranza power. 1t has
been policy of waiting without
watching"