The New York herald., 1921-07-11
TAMPICO TO DISMISS
5000 OIL WORKERS
President Obregon Takes Up
Situation That Rapidly Is
Growing Worse.
BIG GRAFT ON RAILWAYS
Mexican Newspapers Pleased
at the Withdrawal of United
States War Craft.
BIG GRAFT ON RAILWAYS

MEXICO CITY, July 10. Energetic
measures to relieve the condition OF un-
employed laborers in the Tampico oil
fields are being pushed by the Govern
ment, President Obregon directing the
work. which is in active charge of Gen.
Cesar Lopez Lara, Governor of Ia.
maulipas.
Although the situation, according to
the Governors report to President Obre-
gon. is "the same" advices from the
oil regions tell of impending further
shut downs, with the possibility that
more than 5000 workers will be dis.
missed tomorrow. Many are in desper-
ate circumstances and are being cared
for at the Government expense until
| transportation can be obtained for them
TO other parts of the republic. where
public work is being carried on.
The labor situation is the most seri-
Gus problem facing the Mexican Gov
ernment at the present time. says a
statement by President Obregon, which
adds that the Government will make
every effort to enforce Article 123 of
the Constitution, providing for an in
dennity of three months pay.
This action would compel the Ameri-
can oil companies which are reporting
shutting down operations to incur a
heavy bill for wages to idle men.
The newspapers here comment in their
editorials to-day on the withdrawal of
the American warships from Tampico
waters. seeing In Secretary of the Navy
Denby's order, as one of them puts It,
concrete evidence that Mexico is able
to regulate its affairs without outside
help"
Excelsior charges Secretary DENLY
with "jingoism." which it says, 'is pre-
vented from becoming n menace to Mexi-
can peace through the prudence and
mental equilibrium of Secretary of State
Hughes"
Claude I. Dawson, American consul at
Tampico. according to the correspondent
of FL Heroldo has denied that he re-
quested the despatch of the American
warships as a protective measure.
Mismanagement of the national rail-
| roads and graft in connection with their
! operation have cost the Government
more than 300. 100000 pesos, or an aver
! age of 100000 pesos monthly, the
heads of the railroad departments were
told last night when they assembled to
meet Ernesto Ocaranso Llano, the new
national director of railroads.
The announcement was made by Ra-
mon F. Denegri, President Obregons
personal representative on the railroad
board of directors, who said in this con-
nection president Obregon has been
disagreeably surprised to learn of the
vast amount Of graft which has been
, taken, and has given strict orders for
its elimination"
Senor Denigri, appealing to the rail-
way employees for cooperation and hon
! est effort. said the railroad system was
the greatest contributing factor to the
commerce and industry OF the republic.
VERA CRUZ. Mexico. July 10.-Two
/ thousand Government soldiers. COM
manded by Gen. Guadalupe j. Sanchez,
left here yesterday for the oil region
extending from Tuxpam to Tampico
The troops will guard property and
maintain order in the petroleum dis
trict where there is much unemploy-
ment due to a shutdown Of Gil opera
| tons
! Withdrawal of American warshps
| from Tampico made good impression
on the people here. but there Is some
| apprehension as to what action the
United States Government may take
relative to the situation which has de-
veloped in the petroleum industry in
Mexico.