The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-29
American Petroleum Magnates
in Agreement With Mexico.
Accept May Schedule of Taxes
Decreed by Oregon.
ALL EMBARGOES RELEASED
IniunctiOns Against DEGREES
Withdrawn by Oil Men.
Announcement Unofficial, But Is
Sufficiently VOuched for.

Houston. Tex, Sept. 2s.-American
oil executives reached an agreement
with the Mexican government and i'm
mediately resumed expectation of pc
troleUm and its derivaties from Mexico
early in September under terms which
contemplate payment of taxes under
the Obregon decree of May "a. last
The degree of June : was ignored
for the present at least. The Mexican
government accepts payments and re-
leases embargoes. the companies
dismissing amparos. or injuctions,
sought against the two DEGREES
This was the information obtained
today from the Southwestern Bureau
at Houston OF the National Petroleum
News, weekly, which presents copy
righted in its current issue details OF
the Mexico City agreement. AS to the
source of the news, the periodical
states that no official announcement
having been forthcoming National
Petroleum News has obtained its in
formation from its own sources and
presents the data as unofficial but
authoritative"
No Double Taxation.
The tax to be paid under the decree
of May p. and which became effective
July l, included payment of tax on
storage June 80, production during
July and purchased oil covering the
month of July, according to the Ma
IlODdl EEIIC4EuIA -NSN1~ IL AlAC 49,
of Swimming plants topping Mexican
crude before expectation and adjust
ment was to be effected that would
prevent taxing of producers more than
once.
The July tax paid was based on cir
cular number 107 covering crude oil
and derivatives of density of 0-93 per
cubic meter valued at $685., crude
oil Of density of O.965 or over al
S11.Os per cubic meter, fuel oil OF
density OF O.95 at SI4-6o per cubic
meter. gasoline at II cents per inter-
and kerosene at three and two-lehLns
cents per liter. without infalsiflcab les'
that is to say. the infalsificables tax
used since Carranza's time for retiring
guaranteed paper money of Mexico
was eliminated.
All Payments in Gold
Payments were provided for in gold
or drafts on New York at two for one
(the figures herein contained being
in Mexican CURRENCY, Mexican gold
rating at so cents on the dollar OF
American gold, under prevailing rate
of exchange. Shipments made in
July were subject to production tax
only and were not TO pay tax under
the DEGREES of June I. but the oil
naturally will be included in June
storage figures and includes July
production or storage OIL
August production was to pay tax
on basis OF circular NO ia WHlCA
reduced basis of valuation of crude
oil of O.s3 TO s14.7O per cubic meter
crude oil Of density OF 0.965 or more
at $3.50 per cubic meter. fuel oil OF
density Of o.s5 to s14'22 per cubic
meter gasoline to 10 40 cents per
liter and kerosene to 3 2-10 cents per
liter. Secretary of the Treasury De
La Huerta has now issued circular
No. 125. fixing the September valua-
ton identical with valuations carried
in the August circular.
Under Obregon's decree Of May "a,
taxation was to be in accordance with
a tariff governing crude oil Of den
sity OF 0.965 at 10 per cent on value.
crude oil of density 0.93 at II per
cent, fuel oil Of density o-95 at 10 per
cent. refined kerosene 10 per cent
crude kerosene per cent on refined,
refined gasoline 3 per cent, crude
gasoline per cent on value of re-
fined. gas l cent for each twenty Gu
bic meters. Lubricants, $3.50 per Gu
bic meter; paraffin, 81 per ton; as
phaltum. IS cents ton.
The decree of June 7 would have
placed an additional tax upon Mex-
can oil.