New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-06
oil Producers
In Mexico Call
Tariff Absurd
Proposed Import Levy Of 35
Cents on Crude and Is
ON Fuel Denounced as
Petroleum Shares Slump
Drop 8 l-8 Points i'm Dav
Tax Would Operate to Shut.
Out Foreign and Exhaust
u. S. Supply, Is Forecast

While members of the Association
II Oil Producers in Mexico were in
session yesterday discussing the pro-
posal 10 place an import duty OF IS
cents barrel on crude oil and % cents
barrel on fuel oil, Mexican Petroleum
shares took another tumble on the
Stock Exchange, falling to the lowe st
price since 1918, and at the close show
ing net loss of SIS points. The low
quotation of the market session was
s0A, compared with the years high
crice of 1914. Most of this loss has
been sustained within the last month.
during which period President Obregoo
has put into effect new export taxes
which. oil men here say, make it i'm
possible for producers of Mexican oil,
10 compete with the American product
At present market prices.
Guy Stevens, director of the Mexican
| Oil Producers Association. said tbe
discussion at Yesterdays meeting cen
tered mainly around the proposed new
tariff duties on oil, although devotion
ments relating 10 the export taxes were
believed to have been mainly responsi-
bic for the bad break in Mexican Pc
'troleum stock.
While Mr.. Stevens declared that no
Uniform policy had been decided upon
with reference to future drilling ou-
erations in Mexico, reports from Tam
pico indicated that many companies
we're closing down because of the al
| legged coniiscatory character of the ex
port taxes. with the result that thou
sands of natives had been thrown out
Of work To meet this situation. it was
reported, President Obregon had is
sued statement notifying the oil COM
panies that the Mexican law required
them TO pay three months wages to
those who had been dismissed. No of
'hcial information on the matter was
received here. Discussing Yesterdays
gathering of oil men Mr. Stevens said +:
The meeting was called to discuss
The proposed import duty of So cents
Il barrel on crude oil and 25 cents a
barrel on fuel oil. The chief result
was that everybody was astounded that
such legislation should have been rec
commended. This will probably be en-
bodied in formal statement to be
issued By the Association Of Oil Pro
lucers il Mexico at later date
Tine general feeling was, however
| lat tariff OF this character was so
absurd that it would not go through
Il would most certainly raise the price
10 gasoline, kerosene, fuel oil and
|ulricating oils and would discourage
Americans going abroad to acquire new
|oi' fields. 1t would drive the refining
con panies to those fields where the oil
S actually produced. Such bill, il
enacted into law, would lead to more
X-,rir Il avb o7 Of {bo oi1 -
the United States.
With regard to the situation in
Mexico TO general agreement has been
reached TO stop drilling operations and
| shipments. nor have we addressed a
Communication to the State Depart
INERT stating that to be our intention.
H. IS clear from an economic stand.
point, however, that foreign owned oil
companies in Mexico cannot continue
' II ship oil under an export tax which
amounts to ASP cents barrel and
brings the total selling price above the
price now charged for American crude
oil
Those who attended yesterdays
meeting included +. L. Doheny and H
| C. Wiley, president and vice president
Of the Mexican Petroleum Company; C.
0 Swain, representing the Standard
OIL Company of New Jerseys Mexican
subsidiary; English Oil Company, Will
| liam B. Lewis; Island Oil and Trans
port Company, 7. J. Murphy; Tide
water Oil Company, A. j. Bayles; At
lantic Refining Company, NJ. H. Spahr
j.; International Petroleum Company
Fred n. Watriss; Mexican Gulf OIL
Corporation, William 7. Wallace; Texas
Company, j. II. Hall, and National Oil
lompany. u r. Cornish.