The Birmingham age-herald., 1924-01-03
LIKELY COMPANIES MAY IGNORE ORDER
Believed They Will Continue Payments To 0bregon
 Government

NEW YORK, Jan. 2.-(By As sociated Press.)-American oil com panies which operate in Mexico, served today with a decree of the De La Huerta revolutionary govern ment directing that production taxes be paid in the future to the revolu- tionists at Vera Cruz. will meet at l1:30 o'clock Friday morning to dis cuss the situation.
 While none of the companies would discuss the matter for publication to- day the concensus of opinion among oil officials was that no notice would be taken of De La Huerta's decree at this time.
 It was said in we'll informed guar : ters tn tathe oil companies would continue to pay the production taxes to the Obregon government in view of the fact that their reports in- dicated that the Mexico City officers had the situation well in hand and for the further reason that the American government has shown a disposition to lend it's support to the established government.
 The De La Huerta decree was served on Guy Stevens. director or the Association of Producers of Pc troleum in Mexico by Enriquo Seld- ner, confidential agent of De La
  in this city. All of the companies operating in Mexico, including the Pan-American Petroleum and Trans port company, the Mexican Petroleum company. Standard Oil company of New Jersey. Gulf Oil company, Sim clair. Consolidated oil company and the Texas company. are members or the association.
 Copies To New York.
 The De La Huerta agent received 2 copy of the decree by telegraph at his suite in the Hotel Pennsylvania and immediately sent copies in both Spanish and English to the associa- tion headquarters.
 Article 1 of the decree directed that the tax on national production of petroleum shall be collected ex- clusively and only in the offices oi the supreme headquarters Of the rev oiution in Vera Cruz.
 The second article stated that the export taxes, the proceeds of which are intended to be applied on interest payments on the Mexican external debt, should be continued as hereto% fore. This was understood to mean that De La Huerta has no intention of interfering with the plan of the Mexican government to carry out the terms of agreement for the resump- tion of interest and principal pay ments on the external debt.
 It was pointed out in that connec- ton that MT. De La Huerta was the official representative of the Mex ican government in the debt agree ment conference. The Mexican com. panies. it was said. would continue to pay the export taxes either to the Obrcgon government at Mexico Clty or direct to the banking house Of J. P. Morgan & co. in New York, where fnr 1s .J-nI government of Mexico.
 Provisions Of Article.
 The third article of the decree stated that any future production tax ,uyments lot made in accordance with the decree would be considered .'null and of no effect"
 American producers of Mexican oil apparently were not greatly con cerned over the immediate effect ot tre De La Huerta efort to direVt taxes from the Mexican government irto the coffers of the revolutionists. T,rus far. it was stated. adVices in- dIcated that the chief port for eA. porting oil. Tampico, was in the ha nds of the Obregon government and that until. or unless the De La Euerta forces obtained physical con- trol of that port. the situation would not be particularly complicated.
 The American Petroleum and Export company, which is said to pay approximately one-half of the Mex ican oil taxes, recently advanced 10,- 0eO,OOO gold pesos to the Obregon government, the sum covering it's estimated production tax for 1924. Bot hthe Obregon government and the De La Huerta faction have recog- nized the payment 1t was said, be- cause of the fact that the money was advanced prior to the outbreak of the revolution.