New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-06-06
PeIacz, Friend of Ameri.
cans, Expects to Obtain
Guarantees for Owners
Within a Short Time
Own Interests at Stake
Peaceful Invasion by U. S.
Business Interests Urged
as Benefit to Nation
By Sophie Treadwell
Special Cable to Tho Tribune

MCAlCO (ll1, June O.-Manuel
Pelaez, the famous rebel chieftain of
Tampico and the Mexican ali Ameri-
cans swear by, is in daily conference
here with officials of the new govern
n,ent. seeking protection for the oil in
forests Of the country. Within a few
days it is expected he will announce an
agreement reached with General r
Elias Gales, the new Minister Of War,
providing guarantees for the owners of
oil properties. The forthcoming state
ment is eagerly awaited by American
oil interests here.
In an interview l had with Senior
Pelaez to-day the leader announced his
support Of the plan of Aqua Prieta and
his Endorsement of the new govern
ment. He added cautiously that, Of
course, the actualities of the under
standing with General Alvaro Obregon
and President de la Huerta had not
been worked out completely.
Pelaez a Cautious Man
Pelaez is far different man to in
terview than General Obregon. Pelaez
is cautious and reserved. He thinks
twice and answers questions only in
generalities.
This Mexican "king of OIL" as he
himself explains, rose in rebellion
against the central government when
the oil laws enacted by Carranza
threatened his private property in oil
lands and his huge personal income
from those lands When the laws were
equipped a fighting force to guard his
own properties against what he regard
ed as unjust laws. His power got
steadily greater and he became a chief
tain on his own account.
1t is frankly admitted that the forces
under Pelaez were responsible for the
protection of many American oil prop
critics in and around Tampico
1t is expected that if the agreement
Huerta government is completed Pc
laez will continue to act as the prin-
cpal military authority in Tampico,
but as a general in the regular Mex
lean army When I asked him II he
would disband his troops in case the
agreement were reached his answer
was q smile.
Intervention Favored
Pelaez said he favored the peaceful
invasion of Mexico by American in
terests. as he felt they were highly
productive of good for the whole ma
ton. He expressed belief that Mex
and prosperity and said he was firmly
convinced that such peace could be
maintained without the use Of armed
force.
Pelaez said that IN his conferences
with members Of the de facto govern
ment he had gained the impression
that the reduction Of the size Of the
national army. especially in the num-
Der of generals, was one Of the first
Gales, in order to get the country on
working rather than a fighting
basis.
Senior Pelaez seemed to me most IN
warlike and quite unassuming but
dignitied. He told me he was edu-
Gated here until he was twenty. He
worked on his family's farm, he said,
until he was thirty, and then in 1913
rose in arms. At this point, when his
he stopped, thought while, and
added: That's all"
MEXICO CITY, June (By The AS
sociated Press) .-General Salvador AL
varado, Provisional Secretary Of the
cested that an Anglo American com
mission of bankers be formed to lend
Mexico 1Oo,00o,o00 pesos for a period
of FIVE years.
"A step we must take to restore
Mexico's fnancitl position" he de-
clared, ais to reduce expenditures, es-
pecally those for the army. A force
Of $4,000 men, with not moro than ten
or twelve high chiefs, Ia sufficient,
expect to make enemies in trying to
perform my duty, for men defend their
pocketbooks moro tenaciously than
their lives"