The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-07-08
MEX LEADER
To UNMASK
u. S. OIL MEN
Secretary Gales Charges
Americans With Scan
dalous Actions.

Mexico City, July S-Plutarcoe
Gales, secretary of the interior,
told Mexican newspaper men in
formally Wednesday night that the
Mexican government was pre-
pared to unmask American oil pro-
ducers" whom he charged with
"scandalous actions, not only
against the Mexican treasury but
against the United States as well"
This statement was published in
three Mexico City newspapers and
there was much speculation of the
meaning of the secretary's state
ment
Producers Dodge Taxes.
Although the wording of the
declaration of Senior Gales varied
in yesterdays newspapers, each
printed interviews attributing to
the secretary the same sentiments.
He was said to have referred to al
legged attempts by American oil
companies to dodge income taxes
by dissolving the parent corpora
tions and forming numerous sub
sidiaries. Continuing, the secretary
said, according to the version print
ed by Ell Universal:
Knowing the other systems
used by the oil companies to hide
the true status of their enterprises,
the Mexican government, in de-
fense of it's own interests, has, by
means of special agents in the
United States, started an active
campaign to pull the masks from
the faces of these companies"
Defends Article %.
Mr.. Gales is said to have re-
ferred to the complaints of oil com
panies against article q of the
Mexican constitution, which ma
tionalizes petroleum deposits
What has the Mexican govern
ment DONE" he asked, ito warrant
these unjust complaints that this
article is retroactive and conhsca-
tory?"
The secretary is said to have as
serted that oil pipe lines should be
made public utilities, adding:
When regulating article 27, we
will deal with this subject"
Companies "MOnOpOlisdc-"
In conclusion the secretary men
toned alleged "monopolistic ten
dencies of large oil companies,
which have already acquired pipe
lines, roads and terminals, causing
hardships for smaller companies"
Local representatives of oil COM
panies reiterated in statements to
newspaper men last night that it
was impossible for their concerns
to operate except at a loss under
President Obregon's recent decree
increasing taxes on oil exported
from the country. They asserted
that no increase in oil prices could
be expected before six months at
least, adding by that time exporta-
tion will have ceased entirely.
Famine Threatens Tampico.
Mexico City, July S.-United
Press. THE situation in the Tam
pico oil fields, already critical as
the result of unemployment, was
regarded in semi-official circles as
aggravated by the presence of the
American. gunboat Sacramento in
the port.
Trouble may be precipitated by
the presence of the warship, it was
pointed out. If so any force the
Sacramento could land would be
insufficient to restore order.
Actual famine in the oil districts
is considered imminent. The rail-
way has been cut between Tam
pico and San Luis Potosf by
wreck attributed to washout-
This has had the double result OF
decreasing Tampico's food supply
and cutting off shipment of Oil TO
Mexico City and other Industrial
centers, threatening a suspension
of work.
Oil shipments have fallen on IS
per cent since the new Mexican eX-
port tax became effective, accord
ing to unofficial estimates