The daily banner. (Cambridge, Md.) 1897-2008, 1921-08-29
.:.1 . ~ ! I'll. ssr:i1
n }|s;RIEGl21.ljTION
arrival at Capital Of laaang
Us. Producers FIfStStGp,
COURT MAY TAKE A HAND
Judqes Announce Early Decision of
Confi8catory Feature Of the Consti-
tuition.

Mexico City. AUG. ."-'EIis is to be
oil week in MeNic" City.
Petroleum in all its rrNlti"us phases
embracing taxation and alleged prop
nrty cuntisration, will be discussed by
! various branches of the Mexican GOV
erument with Il view TO removing this
stumbling block OF resumption OF dip
lOmatic relations between the United
States and Mexico.
The five heads of large American
oil companies, en- route here to take
up oil questions with the government.
are expected to arrive today. Coupled
with their visit is announced the deter
mination of the supreme court I" rem
der Il clarifying decision. not later
than September 10. on the alleged re
.oactiVe and cuntiScatory article -
ut the Mexican constitution.
The visiting American oil men are
scheduled to arrive here in the morn
ing and conferences with Secretary OF
ihe Treasury de LII Huerta relative Il"
the tax ON oil exports are To begin
immediately These conferences prob
| :tttN VIII continue l''l StNNl''I VIZ '''
Il" ~ecretary's office and then are eN-
.pcted To shift to the national palace
where President Obre@"n VII partici-
pate.
1t has not yet beer disclosed here
whether the conferences will extend
heyOng Il mere discussion OF the recent
taXation deCreeS. hut it is regarded as
l,;, l,l+ .Isl e the
week will see some definite understands
tag reached-either It compromise ON
he TAX question or an agreement TO
disagree.
\ nAw phase of the situation has
Eaen presented by the failure of sew
"al American oil companies to pay
! ITO the national treasury their July
.axcs. which fell due August %.
President Obregon's recent decree
imposing an approximate increase Of
- per cent upon oil export taxes be-
.liAe effective July !, and the vigor-
nus protests against this levy were in
creased last week, when the govern
npnt ordered Il new TAX upon oil with
t:l the country Representatives OF
some Of the oil companies asserted
-Hnt Ills IaSt tax was imposed so sud
denly that immediate compliance was
l.iI' :S.bl.. and they therefore post
.'.,llt.tt alYiaN payments.
RumorS were current here that this
:!2ferment of payment had caused an
unfayoralle impression among high
government officials, who were report
ed to be considering Il possible can
collation. Of the appro ching conference
~, fhr American oil men until pay
n,rnts have been made. So far as can
- learned. however. there is no OIL
,ial ground for such reports.
Hearings before the supreme court
IN approximately $50 oil ;mparo asses,
which were begun las week, are to be
continued, and, according to newspa-
- urtS. the court expects To hand
down Il decision within the next two
weeks.
Although it is realized that the oil
question is not the only one at issue
between the United States and Mex
&C. there is apparent belief. which is
reflected in newspaper editorials, that,
once this question il Settled the path
10 amcable understanding i clear. Of
ficially. there is no expression of sen
timent beyond the bare announcement
by President Obreg0n that the Ameri-
can oil men We're coming. and that
"the first steps have been taken over
the shortest route.