The New York herald., 1921-07-06
OIL MEN MEET TO
PROTEST OIL DUTY
Say Tariff in Fordney Bill
Will Drive Refining Busi-
ness From U. S.
CAN'T SEE MUCH REVENUE
Organized Effort Will Be
Made to Modify or Elm
mate New Levy.
CAN'T SEE MUCH REVENUE

American oil producers having ex-
tensive investments in Mexican operat-
ing properties are considerably aroused
over the proposal to include In the Ford
ney tariff bill an import tax OF % cents
on fuel oil and S5 cents on crude oil, and
an organized effort may be made to have
the duty modified or eliminated before
the final passage of the bill. A meet
ing of the Association of Producers of
Petroleum in Mexico was held yesterday
In the associations headquarters, 81
Broadway. lat which virtually every MEM
Der company was represented. and the
proposed tariff was discussed from every
angle
Guy Stevens, director OF the associa-
tion, said a formal statement setting
forth the contentious OF the organization
may be prepared later in the week. The
general feeling at tne meeting. Mr..
stevens said. was that the proposal is SO
absurd the OF men cannot believe 1t
will go through. -,
Not only would the proposed tariff
raise the price OF oil and refined prod
ucts in this country. he said, but 1t would
also completely discourage the invest
ment Of American capital IN foreign oil
fields and drive the refining industry out
oe this country. 1t would also lead to
more rapid exhaustion of the oil re-
sources of the United States. The reel
ing of the oil men Is that the Govern
ment should encourage the conservatism
OF American oil fields as well as the
acouisition of foreign oil properties by
American capital.
tariff cannot raise great deal OF rev
enue. In last year, he said, the totai
inonorts of oil from Mexico amounted TO
1O6. 600. 900 barrels, which at an average
duty of so cents a barrel would net tne
Government approximately S31 31,0OO,oOV'
or the total imported last year, however,
rs 900 600 barrels were re-eXporteu'
leaving about 10000, 0e0 barrels In TINS
country. The oil thus sent out again.
Mr. Stevens said would in all prooapll-
itv be sent directly from Mexico to itS
ultimate destination If the tarirt were
applied, so that the actual importatlons
would, on the basis OF 1920 imports
total around 100000 barrels, whlch
would give the Government about S12'-
000,0 coo of revenue.
No action has been taken by the OIL
association looking toward the cessation
Of oil shipments from Mexico or the cur
tailrnent of production as a result or the
heavy export taxes which became ef1ec-
tive on July I, Mr.. Stevens said. Never
theless It is known that most or the
companies have either stopped or are
making arrangements to stop their ship
ments II the Mexican Government does
not change Its decision
The Mexican Petroleum Company is
shipping out of Mexico only the refined
products and certain grades Of oil on
which the tax is not so enormous The
shipment of crude oil and some OF Its
products has been completely stopped
by the company. The Standard OIL
Company OF New Jersey announced
some days ago that its tankers had been
withdrawn from the Mexican service.
Those attending the associations
meeting included Edward l.. Doheny. H..
c.. Wylle, DIR. Norman Bridge and f. K.
Kellogg, Mexican Petroleum Company :;
c. o. Swain, Burton Wilson, Gen. Palmer
e. Pierce and Arthur F. Corwln. Trans
continental Oil Company (Standard
OnD William e. Lewis. English OIL
Company; y. j. Murphy and George
Grace. Island Oil and Transport Com
pany: A. ]. Byies and John a. Young
Tide Water Oil Company NJ. II. Spahr.
Jr.. Atlantic Refining Company; Fred
erick n. Watriss and r. ID. Hannah. In
ternational Petroleum Company j. IL.
Hall, Texas Company, and II. r. Corn
lsh. National Oil Company