Evening star., 1924-02-11
McAdoo, On Stand, Defends
Dol,eny Post, Denounces Foes

to represent Mr.. Doheny's companies
professionally in his Mexican dlm-
culties. =.
tion of May /, 1917. was an attempt to
assert ownership by the Mexican gov
ernment in the mineral deposits of the
subsurface Of lands in Mexico. II this
article should be given retroactive ef-
feet it would result in the confiscation
of properties of American citizens law.
fully acquired prior to the adoption of
that constitution. This presented a
grave situation for American property
that the Wilson administration on
April 9, 1918, through Ambassador
: Fletcher. at Mexico City, filed solemn
protest against 1t. This attitude was
; administration throughout it's life.
When the Harding administration came
in Secretary Hughes adopted the same
policy. This policy was insisted upon
by the American commissioners to Mex
leo, Messrs. Warren and Payne, and, as
l understand 1t. was practically made a
condition of recognition Of Mexico by
the United States.
Saw Vital Importance.
tor general Of the railroads of the
United States. The fuel problem was
one of the most serious with which We
,, had to deal. / was then made to real
ize keenly the tremendous Importance
of fuel oil from Mexico. A great num-
ber of American industries along the
Atlantic seaboard were dependent upon
Mexican fuel oil.
. The preservation of this fuel oil
, supply was then, and is now, essen
tial to our internal economy. Not
alone is this true. but the question of
an adequate oil supply and of an ade-
quate oil reserve is one of the most
important for any nation under con-
ditions of modern warfare. In fact,
the crucial test in the next war, if
one should come. is going to be not
alone war machinery and. appliances,
but control of an adequate supply OF
petroleum to meet the needs of ma
tional defense and offense. 1t is no ex-
aggeration to say that the strongest
nation in petroleus resources will be
the most likely victor in such a con-
test. For all of these reasons, there
fore, the American government and
the American people were interested
ply. which was lawfully owned or
controlled by American citizens.
In 1915 I called the first pan
American financial conference in
Washington. 1t was attended by all
the South and Central American re-
then in state of revolution. The fol-
lowing year. 1916, / attended the first
session of the International high COM
mission of all the South and Central
American republics at BuenoS Aires,
in the Argentine. At this session were
discussed economic. financial and
other problems of great consequence
to the whole of Latin America, and
gained familiarity with conditions
prevailing throughout South and
Central America, which could not
have been obtained in any other way.
these economic and fina ancial problems,
but in promoting closer and better
relations between the United States
and all OF these republics.
Protection Desirable.
Mr. Doheny'S companies, as we'll as
Mr.. Doheny. enjoyed an enviable
reputation when he called on me in
1919. His companies were the out
standing independent oil companies
furnishing the required supply of
Mexican fuel oil to our industries
along the Atlantic seaboard. They
were also the only strong companies
offering competition with the So
called oil trust in the United States.
For the purpose of preserving COM
petition and securing the essential
supplies of fuel oil for our industries 8
along the Atlantic Seaboard. it was
highly desirable to protect, by every
legitimate and proper means, the OIL
| bearing properties of American citi-
Gems in Mexico.
When Mr.. Doheny, therefore.
asked my firm 20 act for him profess
/ sionally in trying to prevent the con-
fiscation of his valuable petroleum m
properties in Mexico. representing
several hundred million dollars, it ap-
pealed to me because of my general
knowledge of the oil industry and of
Mexican and Latin American relations
gained in the manner 1 have de-
scrlbed, and because it was in line
with the declared policy of the admin
istration to protect American proper
ties against confiscation in Mexico.
Saw Opportunity to Serve.
II believed that an opportunity was
presented to render a genuine service,
outside Of my professional work, in
promoting Latin American commerce.
and more particularly in contributing
to the protection of all America n
rights in Mexico, If retroactive and
confiscatory effect to article 81 of the
Mexican constitution could be pre-
vented
This, with. my letter of February
"a, 1924, gives the history of my pro-
fessional connection with the Doheny
companies The service / have rem
,dered to them was in good faith and
in full satisfaction for the fees that
and they owe me nothing"