Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-13

the ability to manage his own affairs
or to farm even as much as a few
acres; that the law is merely used as
method for giving a legal aspect to
footing and robbing.
In 1901 group Of American
biologists went to Mexico, at the invi-
tation OF the government of that coun-
try, 10 examine eXudeS Which appeared
IL contain petroleum. They discov-
cred oil in the jungle near Ebano. in
the State of san Luis Potosi, 80 miles
west of Tampco. An American cor
poration purcha sed that land outright
from the Arguinzonia family. which
had owned it in fee from the days of
the Spanish viceroys. Its acquisition
was under the JuareZ constitution of
1857 and laws hereunder, which de
Clared the owner of the land to be
sole owner of the petroleum deposits.
The title to the land vested in these
Americans was as clear as any title
held on any piece OF real estate in the
District of Columbia, and their rights
to exploit it for petroleum equally
clear
Oil men the world over-Americans
Britishers and Hollanders princi-
pally-tiocked to those jungles, which
made all but inaccessible a territory
and 100 miles north and south along
the coast line. More oil has been pro-
duced from that strip than from any
oil field OF equal dimensions in the
world.
Foreigners Invest S20O, Zoo, 900.
approximately 5000, 200. 900 of for.
eign gold has been dumped into that
jungle by foreigners in payment to
the owners for their lands in outright
purchase or for oil leases and royal
ties, in addition to hundreds of mil
lions of dollars paid in wages, plants,
etc. This tremendous development
was carried out as in the oil fields OF
America. Many of the Mexican own
ers became rich, as the American
owners of ranches in Texas and Ar
kansas and Kansas and West Nir.
ginia were enriched when the oil men
purchased or leased their properties.
A few American companies were
successful-just l2-out of hundreds
that failed from the adversely com
mon to pioneers. Thousands of wells
We're drilled at great expense that
never produced gallon of OIL Many
thousands of MexicanS were, and are,
employed at wages higher than they
ever dreamed of receiving before for.
eign capital developed the fields.
There is popular impression that
these properties were acquired by con-
cessions engineered through the Mex
lean government. This Is a popular
delusion. Nc American oil company
has ever had concession to oil lands
III MeXico-with one exception
small company, where concessions
were on public lands. They did not
belong to the government and the
government could not grant them.
They belonged to Mexican landowners.
who could and did sell or lease them
under the laws.
Land Law Confusing.
The Mexican government has Of.
fered to give the American owners
concessions of so years from the date
of the original purchase or lease in
lieu of their fee simple titles or leases.
and the Mexican government states
that such concessions would not de-
prive them of their properties because
before the end of that time the oil
deposits would be exhausted. With
out discussing the attitude of the
State Department in relation to this
attempted forcing of exchange Of
titles Tor revocable concessions. the
constitution and laws specifically pro-
hibit foreign corporations from taking
out such concessions.
The State Department has repeated
~ asked for an explanation OF the
manifest disparity between the state
ments of the Mexican government that
the concessions would protect Ameri-
can companies and this paragraph of
the constitution which forbids the is
suance OF these very concessions to
American companies.
Reports recently telegraphed from
Mexico City state that 666 foreign oil
companies acquired rights to approx
mately 28,500,000 acres prior to 1917.
and that Of this number only % have
declined to apply for ''confirmatory'
concessions. Information in the State
Department indicates clearly that
these statements are grossly mislead-
ing. the 444 companies which ap-
piled for concessions are not produc.
ers. They merely have prosnects.
most of this acreage is in the public
domain, where there is no particular
reason to believe that oil may be
developed. Politicians control some of
these concessions and hope to sell
them IN stocks to Americans, without
having expended any money whatever
in exploration or development.
Promoters Called Coyotes"
The gentlemen promoting these con.
cessiOnS are known in Mexico as co.
yotes-a term synonymous with wild
eating.
In 1911 Diaz fell before Madero.
Madero. the reformer. fell before
Huerta, the dictator and eventually
Huerta fell. Up to this time none OF
these governments presumed to touch
American properties. In fact, up to
TINS period the plea of Mexico had been
for foreign capital.
In the Fall of 1916 Carranza as
sembled his chieftains at Queretaro
Their slogan had been Back to the
Juarez constitution Of 81" This hand
picked convention of Carranzistas
adopted what they termed "a liberal
constitution based on the constitution
or 81 embodying the articles which
the State Department has been pro
testing against ever since
Ii reports from reliable sources are to
be credited, this constitution, in SO far
as 1t affected vested rights, was writ
ten by Luis Cabrera at the instigatior
OF an American Iincoln Steffens) and
an agent Of the German government
Or. Hermann.
IL appears that the German objec
tive was to nationalize petroleum, sc
that as national property it could no,
be sold to the allies for the British
Meet. While the State Department
has no legal evidence to establish the
/, German intent, officials are satisfied
| that it Is true. mindful as they are OF
I the fact that Carranza was notorious
| ly pro-German and anti-American,
Wilson Made Protest.
The Wilson administration immedi
| ately protested and recognized Car
rama only after his solemn assurance
that these articles would not affect
American holdings.
Nevertheless, in February, 1918, Car