Evening star., 1922-12-23
VAST MEXICAN OIL
GRANT REPORTED
Los Angeles Men Declared to
Have Blanket Concession
on Rich Government Land.
ADJ0INS OLD WORKINGS
Involves II. 1.000, 900 Acres and Pro.
vides Operation Under Protested
Royalty Clauses.
by the Associated Press.

ISy the Associated Press
Los ANGELES. Cal. December 23.-
The Los Angeles Times today re
Iorted an announcement from the
promoters that a group of Los An
geles manufacturers. bankers and oil
operators has obtained from the Mex
ican government what amounts to "a
blanket concession on all govern
ment lands in the oil district Of the
east coast"
1T is by far the bigEest oil trans
action in Mexican history" the Times
said. land probably the most impor;-
ant deal of Its kind in the world. for
il involves 100000 acres OF land
adjoining rich workings Of the oldes,
established companies in the Tampico
and TuXpam districts"
The paper further declared "the
transaction also has important po
liticai significance. coming as 5;
does after the extended controversy
between the Obregon government and
the American oil companies. in which
the United States government has
been az yet an unsuccessful arbi-
traitor"
Accept Royalty Clause.
1t is announced the Los Angeles
group will go into the Mexican Oil
district and operate according to the
Mexican article q, and under a fed
eral concession on the same royalty
basis which established companies
have declared confiscatory The cor
cession. II is stated. permits them :"
drill on lands Immediately Joining the
richest wells in Mexico.
The announcement came after the
return here from Mexico City of W
w. Wilson. q. E. Moreland and GeorRr
j. Bushmiller. who stated they OBJ
tanned the concession after an inter
view with President Obregon, who
personally went into the details Of
the enterprise.
made out under the direct supervision
of NJ. Alesrio Robes. secretary of in
dustry. commerce and labor In the
Obregon cabinet. Mr. Wilson said
the lands designated comprise vir-
tually all federal oil lands extending
along the gulf coast from a point
north of Tampico to Tuxpam, close
to holdings of the Standard Oil Com
pany. the Doheny interests and other
prominent oil companies. The con-
cession also includes the Island of
Juana Ramirez. said to have been
long sought by American companies
because Of its important location In
geological surveys.
Concession Provisions.
The concession provides that 40
per cent of the gross production go
to the Mexican government: that the
concessionaires pay 5 pesos q year a
nectar for the lands they will ex-
ploit; that deposit OF 400, 900 pesos
be made and that 100000 pesos be
invested in works and exploration
within year.
Two years are given for explora-
tton and the concession runs for
twenty years. with provision for re-
newal.
The exploitation will be financed en-
tirely by Los Angeles capital. II Is
announced. and plans already are
well advanced for the selection of a
center for the active work of the un-
dertaking.
Wilson and Moreland are manu-
facturers OF oil-drilling machinery
and Bushmiller is an oil operator.
Other members of the syndicate,
which is described as a close cor
poration. include Harry Lee Martin.
capitalist: Austin o. Martin. banker:
John o. Corerly. capitalist: Ferdi-
nand J. Bushmiller. oil operator, and
DR.. l. d. Jones. physician and capt.
talist.
Mr.. Martin and Mr.. Moreland are
expected 10 return to Mexico City
to put the plan into operation as soon
as possible, II is said