Evening star., 1921-08-21
MAY SOLVE MEXICO
OIL DIFFICULTIES
Supreme Court Will Try
Cases Pending as Far
Back as 1918.
By the Associated Press,

MEXICO CITY. August 20-Possi-
BILE solution of the difficulties be-
tween Mexico and the United States
ton, which has to do with petroleum
deposits in Mexico, is seen by rep
resentatives of oil companies here in
the announcement that the supreme
court intends to hold public hearings
beginning Tuesday next on tenn
AGAINST the government by foreign
oil companies. some of which have
been pending since 1918.
Various oil men stated today that
II the courts decision Is far reaching
enough it doubtless would be ac-
indicating Mexico's judicial interpre-
tation of controversial clauses of the
famous article.
VIII Call $50 Suits.
1t is understood that approximately
$50 of the suits. most Of them dating
back to the Carransa Gegime. will be
called up for hearings. The majority
OF them were brought after Car
ranza's decree was issued ordering
ings or make them subject to de-
nouncement
Virtually all the foreign companies
refused to make manifests, result
ing in almost 200 announcements
against their properties. This pre-
cipitated numerous legal actions to
determine the ownership of the prop
critics.
When President Obregon assumed
power he prohibited the issuance of new
permits for drilling on denounced prop
critics, which virtually rendered them
considered by the supreme court in its
anticipated decisions Is the matter Of
announcements embracing alleged con-
Courts Intentions Unknown.
The supreme court has been consider
ing the suits for several weeks and re-
Gently held several conferences with
ton Of the courts NEUTRALITY-SUSPICIOUS. vi % it
will pass strictly upon the immediate
questions involved in the suits, or take
advantage Of the opportunity to lay
down once for all. as the nations
attitude toward the alleged confiscatory
and retroactive aspects Of article "a.
Some of the oil men here frankly are
dubious that the court will render a
decision OF such a nature as to settle
the questions now in dispute.
The chamber Of deputies, which re-
Gently announced 1t was about to take
definite action relative to the regula-
ton Of article e. is NOW nearing the end
OF ltS extraordinary session, and there.
Is no indication that such a measure
will be taken up. The petroleum COM
mission Of theschamber Is said to have
completed the draft of a bill dealing
With oil which 1t intends to present to
the deputies next week fof considera-
ton. but well-informed sources here
consider it extremely unlikely that the
lower house will take any action for the
present ----- /
Seek Oil Storage Total.
MEXICO CITY. August 2o-Imme-
diate and complete reports showing the
amount Of petroleum ip storage upon
which taxes may be levied will be re-
quired Of all oil companies in Mexico
by. the department of commerce and
industry next week. it Is learned in
semi-official quarters. It is understood
the department some. time ago asked
its legal advisers as to its right to re-
quire such q report, and that it has
been assured that an order to that
effect would be within the law.
Newspapers declare that oil taxes
received by the government during
July amounted to only 36 per cent Of
the normal revenues from petroleum.