Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-13
II. S.-MEXICAN TROUBLE
NOT MERELY OIL FIGHT
Less Than $50 of $3.50, 900 Invested
by Americans Represents Such
Vent,pres--I,andL Laws Blamed.

States. now entering it's tenth
wear. has arisen from the at
tempts of the Mexican govern
ment to put into effect laws and reg
.ulatiOns passed by various congresses
or promulgated by executives under
authority of the socalled Carranza
Bolshevik constitution of 1917. This
controversy does not cover the muir
der of hundreds of Americans or the
pillaging of properties by soldiers and
bandits during the last Is years.
The claims commission is strug
Cling with that side of the case.
The State Department estimates
American Investments in Mexico at
something over 1880 100000 and the
department has repeatedly stated that
IL these laws and regulations become
effective great part of these invest
ments will be coniiscated at the ex
penSe of more than $40, 000 Americans.
who either own properties outright
or own stock in corporations affected.
Not Merely an "Oil Fight"
According to the department less
than IS per cent of these investments
represent oil, but because oil appears
as the largest single class of invest
ment the public frequently looks upon
the entire controversy as an on
fight"
Since the controversy began in 1917
the State Department has maintained
that Mexico is attempting TO con
fscate American properties acquired
in good faith prior to the passage of
the constitution without accomplishing
the owners for such property.
The department has never denied
Mexico the right to denounce pur-
chases following the adoption of the
constitution or to take over any prop
critics providing the owners were paid
for them. In other words, shorn of
legal teehnicalities and diplomatic
phraseology. the department for almost
10 years has sought to prohibit
Mexico from confiscating American
properties through retroactive legis-
lation.
Major Phases Involved.
There are three major phases in.
volved in this controversy. They are
invariably twisted and confused. They
arise from ID the alien land laws, ~
the agraran laws and (3l the petro
leum laws and regulations. all of
which are based on the Carranza con-
atitution.
+. These laws provide:
Cd That the various states of the
republic shall Subdivide the agrIcul-
tural properties within their limits
and parcel them out to MeXicans;
each state to determine the maximum
area to be allotted TO an individual.
CD That no foreigner shall take
title to lands within 100 kilometers of
the borders and within so kilometers
of coasts of Mexico and that such
lands owned by foreigners shall be
turned over to Mexicans within fve
years after the fdeath of the present
owners,
CD That all petroleum deposits of
Mexico are the exclusive property of
the nation; that they shall be ex-
plotted only through concessions
granted by the government and that
no foreign company may receive or
: operate under such concessions. For
eign individuals may apply for such
concessions providing they specifically
renounce their &rightS as American
citizens and abjure the protection of
the American Government.
Provisions of Agrarian Laws.
/. Under the agrarian laws each state
is in effect the sole arbiter of the
ownership of lands within its con-
fines, it matters not in whom the
legal title is vested or when it was
acquired. Local committees are au-
thorized to subdivide farms and
ranches. They decide how much land
en- individual may own. The owners
have no adequate legal recourse.
They are supposed to be paid in bonds
of the state No Mexican state bonds
have ever been paid. AS a matter
of fact, no title holder has even been
3, given those bonds, worthless though
they may be.
Generally speaking. these laws
affect two types of Americans. In the
70s and S0s of the last century, when
fror IN of o
capital to Mexico, he invited wealthy
Americans to interest themselves in
building railroads and developing the
natural resources. AS bonus on
their speculation the government al
lotted them large tracts of public land,
mostly arid and sterile. AT that time
1t had no market value. Since then
1t has had market value of approx.
mately dollar or two an acre.
Copy U. S. Policy i'm West.
In following this policy DiaZ was
merely copying the method used by
the United States Government in open
ing the West, when great railroad
promoters and others We're given pub.
lie lands as a bonus for moving set
tiers and building the lines. In fact,
he went back to the colonial history
of the United States, when George
Washington and many others received
large grants in payment for survey
ing lands and in the hope that they
would develop them. Many of these
large estates were seized during the
early days of the revolution. the cattle
was run off and the ranch houses
were frequently burned. They have
been deserted since. These absentee
land owners have received little SYM
pathy.
The second class is represented by
small land Observation-Disclosures and
colonies of Mormons and other sects
and denominationS-Who went to
Mexico years ago, bought their lands
and spent many years developing
them. More than 1900 of this type
OF American has. at one time OF
another, appealed to the State Depart
ment and the department has sent
hundreds of notes to Mexico protest
ing against the pillaging and expro.
priation Of these properties.
The agrarian laws have been used
as a. pretext by petty local leaders
generals and politicians for stealing
cattle and harvesting crops that the
American farmer sowed. The prac
tee is to select properties that have
been carefully cultivated or stocked
and. under the agrarian flag, they have
taken possession nominally in the in
terest of their followers and after
looting them have moved on to other
fields, In some instances, where the
land is particularly fertile, they leave
their henchmen in possession.
Appeal to L. S. Fatal.
The owner, frequently at the point
OF a gun. packs his bag, makes ms
wav 70 the border and complains tt
the state Department. Few have re
NAMED in Mexico. as death is likely
In no the Denalty for appealing Il