New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-23
New Workers Will Take
Up With Government
New Export Duty Al.
legedTo Be Confscatorv
Accept Invitation
Issued by Obregon
'Ieagle, Doheny, Sinclair,
Van Dyke and Beatty
VIII Depart at Once

Walter c. Teagle, president Of tbe
standard Oil Company of New Jersey.
announced yesterday that 2 delegation
Of American oil men plans to depart
Immediately for Mexico City to take
up with the Obregon government at
Mexlco City the matter of adjusting
the differences arising out of the re-
cent imposition of what the American
producing interests in Mexico consider
a confscatory tax upon oil exports
Ihls move on the part of the Ameri-
can interests was accepted yesterday
in we'll informed quarters as a first
step toward clearing up the whole
troublesome problem of Mexican oil
taxes in way that will permit of a
resumption Of the normal flow Of Mexi-
can crude petroleum to the world mar
kcts.
Five in Delegation
The delegation, which is going to
Mexico at the suggestion of the Mexi-
can government itself, will consist Of
Mr.. Teaglc. Edward l.. Doheny, of the
Mexican Petroleum Company and al
lied producing interests; j. w. Van
Dyke, head Of the Atlantic Refining
Company; II. +. Sinclair, of the Sim
clair Consolidated Oil, and Amos l..
Beatty, president Of the Texas Com
pany. The delegation will give all of
the leading American producers in the
Mexican fields representation in the
discussions, and the fact that these
men have decided to make the trip to
Mexico City is believed to Indicate
a belief on their part that satisfactory
results will be attained
The scrmai statement issued by Mr..
Teaglc yesterday said:
"Goverrment officials of Mexico have
Indicated Willingness to confer will,
representatives OF the OIL companies
with q view of discussing, and, if pos
sible, adjusting the differences grow
ing out of the recent tax dec-ces and
the oil companies have appointed a
committee Of FIVE who will 60 to
Mexico at once on this mission"
Tie new tax decree of the Obregon
government, made effective Oh July l.,
brought the combined ad valorem and
specific export taxes on the principPl
oil products to the following figures III
terms of American currency, accord
ing to the figures Of The Association of
Producers of Petroleum in Mexico:
Heavy crude. 2312 cents berrel;
light crude, 3674 cents u barrel;
fuel, 20 cents barrel; refined gaso-
line, l 23 cents gallon crude gaso-
line, 8 ID cents a gallon
Taxes Exceed Cost Of Oil
According to the American oil IN
terests, in some cases these taxes
amount to considerably more than the
prevailing price Of the oil at the well
and slightly more than the current
price at the Mexican ports. which in
cludes not only the value of the we'll
tation from the field to the sealoading
stations.
The reply Of the American produc-
ing companies to the imposition Of
these alleged confscatory taxes by
Mexico has been suspension Of pro-
ducing and exporting operations in
Mexican fields as far as possible. Only
in cases where contracts for delivery
of oil had to be met have the Amer
can companies been shipping oil out
of Mexico. According to the figures
of the association OF American pro
ducers, exports Of oil dropped rs per
cent in the first two weeks OF July,
and it is said that a further decline
in shipments has taken place since
then.
The Mexican government in an
the new decree in June held
that the new export tax levy was
framed primarily to provide the gov
ernment with funds with which TO re
sumo interest payments on her exter-
nal debts long in default. The promul-
cation of the decree was followed by
the filing of a vigorous protest at
Washington by the American produc-
ing interests.
Standard Tankers Change Anchorage
The announcement that the commit
tee is about to go to Mexico to seek
an adjustment of the whole problem
took on added Importance yesterday
when it became known that the idle
feet Of Standard Oil tankers, here
tofore anchored in the Hudson River,
has lately been shipped to new an
chorage at Chesapeake Bay. This was
taken yesterday as possibly indcat-
ing an early resumption Of tank ship
operations out of Mexican ports.
MEXICO CITY, Aug. % {By The As
socated Press). The newspaper I'll
Universal to-day says it is Informed
that the heads Of the important oil
companies in the United States will
leave New York Wedne sday for Mex
leo City for a conference with gov
ernment officials here looking toward
(Continucd on next paus)