Arizona republican., 1922-05-04
OIL COMP PAN|ES
Sc MEXICAN
TAX ARGUMENT
Republican A. p. Leased wirsl

IHepupltCdn n, r Leased WIre1
MEXICO CITY, May S.-The COM
mittee representing the five Amer
ican oil companies concluded their
ten day discussions with Adolfo de
la Huerta, minister of the treasury
this afternoon.
Results satisfactory to both parties
have been reached, in taxation mat
ters, according to a statement given
to The Associated Press by Walter
G. Teagle, president Of the Standard
Oil company of New jersey, speak
ing for the commission.
Mr.. Teagle declined to comment
on the efforts made to form a great
pooling company for the exploitation
+ of Mexican properties, but substance
seemingly is given rumors that a
snag was struck several days ago
in this project by the final para
graph of the formal statement issued
this evening, which says:
Views on the future development
OF the petroleum resources of the
republic have been exchanged and
at a later conference, it is hoped
that satisfactory understanding
may be reached"
The statement as given out by Mr..
Teagle, speaking for the other men,
bers of the committee of five made
up OF J. w. Vandyke, president Of
the Atlantic Refining company, T.. l.
Doheny, president of the Mexican
Petroleum company; E. c. Lufkin
president OF the Texas company and
Harry Z. Sinclair, chairman of the
Sinclair Consolidated Oil corporation
says:
"The Mexican government has
shown us every courtesy and Min
lister de la Huerta has been most
| generous in giving us fully of his
time in order to cover the various
matters under discussion. Much
consideration has been devoted to
tax problems and results satisfactory
to both parties have been reached
AS to production taxes a basis
OF valuation of petroleum products
/ has been agreed upon using actual
| selling prices as a criterion and
| providing, moreover, for an increase
| in the rate of taxing as selling
! prices advance. AS to expert taxes,
| the arrangement made by the Mexi-
/ can government with the committee
on September 8, last, remains effec-
/ tive. and it is expected that during
a conference with the secretary (de
la Huerta) will have in New York
with Bankers, a final disposition of
/ lHiS matter Will De redcneu.
Views on the future development
/ of the petroleum resources OF the
republic have been exchanged and
at later conference, it is hoped
that a satisfactory understanding
may be reached"
The American oil men left Mexico
City this evening on a special train
for San Antonio, Texas. Mr.. Do
heny and his son are going to Los
Angeles and Messrs. Teagle and
Lufkin to New York.
Questioned as to the relation be-
| tween Minister de la Huerta's con-
| ference with American bankers and
the expert taxes as mentioned in the
statement, one member of the COM
mittee admitted that payment of the
taxes in Mexican bonds may be con-
sidered in conjunction with the
! bankers"
There was broad intimation that
| Senor de la Huerta will confer with
the oil men as well as with bankers
while he is in New York.
As far as could be learned here
| tonight, the present agreement OF the
oil men with the Mexican govern
ment is virtually an extension of the
understanding reached last fall and
/ that. a further adjustment either by
another visit to Mexico City by the
oil men or otherwise, will be neces-
sary, although not in the immediate
! future. 1t is asserted that the COM
mittee at no time during the nego-
| tiations made any request which
might be construed as a demand for
change in the Mexican constitu-
tion. One member of the committee
said in this regard:
I'VE were here on matters OF gem
eral oil interest and did not so be-
yond our Jurisdiction.
Asked for a general summary Of
the results obtained from the series
of conferences, this member OF the
committee said better understand :
| ing had been reached on the enure
nefrolerm situation in Mexico and
that the tax problem had been salts
factorily ironed out. Senor de. la
Huerta, up to the present. has with
held comment on the conference.
Prier to their departure, the Amer
lean oil men paid their respects to
President Obregon.