Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-18
MEXICO QUESTIONS
KELL0GC'S REPORT
Challenges Accuracy of His
Statement to Senate on
Oil Situation.
BY the Associated Press.

By the Associated Press.
MEXICO CITY, February 1S.-The
Mexican department OF commerce and
industry challenges the accuracy of
Secretary Kellogg's recent report to
the American Senate on the Mexican
oil situation in declaration published
today.
While the departments statement
Is made. it says. with the intention of
"rectifying errors contained in press
dispatches from the United States.
originating perhaps from vicious in-
formation spread by a group of in
terests opposed to the Mexican laws, :"
the main points dealt with are these
made in Secretary Kellogg's report.
I6, Not 40. Companies There.
"It has been stated" one Of the
reports says, that out of 40 American
companies owning oil lands in Mexico
only four have applied for confirma-
tory concessions in accordance with
the law. There are 16, not 40, such
proprietary companies, of which half
have solicited combinations.
''At the end of 1926, lat oil COM
panies were operating in Mexico, of
which 125-a great majority-ac-
cepted the new legislation.
"It Is said that the Penn-Mex and
Texas oil companies are not carrying
on actual production. Neither of
these companies has ceased to pro-
duce petroleum. The total production
of both companies during the last six
months was between 100000 and
250, 900 barrels monthly"
"It is affirmed" the statement con-
tinues, that the East Coast and New
England Oil Cos. have no property
titles. The first owns land and the
second does not, but even so it must
be remembered that in Mexico, as in
all oil countries. companies only ex-
ceptionally purchase the land on which
they drill or intend to drill their wells,
and in the majority Of cases they
acquire titles Of diverse nature, such
as leases, concessions, etc.
Companies That Baked.
Among the companies refusing to
accept the new legislation the follow
ing are especially cited: Atlantic Ref1n-
ing Co, Atlantic Gulf OH Corporation.
Humble Oil & Refining CO., Island
Oil G. Transport Corporation, Stand
ard Oil of California, Standard Oil of
New Jersey. Mexican Co., Anglo-M Mex
lean Petroleum Co, Royal Dutch Shell
and Leopold Newborg, w. L. Hern-
stadt and Malcolm Anderson.
"Of the mentioned names, the fol-
lowing are totally unknown. and are
not or never have been registered in
the petroleum department: Newborg
and Hernstadt. Anderson since 1917
has not figured in the official records
as affecting oil operations. No notice
was had of the Humble Co. operating
in Mexico either directly or by sub.
sidiary, though it is known that it is
affiliated with the Standard Oil Of New
Jersey, this perhaps being the reason
| for it's interest in our petroleum
affairs.
THE Atlantic Refining and Atlantic
Gulf and Mexican Petroleum, through
their affiliated companies in Mexico,
do remain opposed to the law. The
other companies either totally or par.
TALLY have accepted the law. Thus
| Of the Island Oil Co, one subsidiary
has accepted and two have rejected
the law. It's refinery has been closed
! since 1924.
Standard Oil Accepted.
"The Standard Oil Of California,
through its only known subsidiary
the Richmond Petroleum, fully &C.
! CONTINUED on Page 8, Column 2.)