Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-30
GALES OIL LAW
DOUBTED BY FIRMS
Mexico Still Retains Subsoil
Rights-Process of Ap-
peal Indefinite.
several Of the attorneys for ,h. "a.

Several Of the attorneys for the va.
rious Oil companies interested In Mex
leo do not belize the legislation pro
posed by President Gales goes far
enough. They are pleased with the
spirit OF the new law. but they are
perplexed as to how the Mexican Gov.
eminent In going 10 settle some very
vital points that are neither mentioned
in the recent Supreme Court decision
nor in the bill which attempts 10 ero-
body ii 9 ideas OF that decision.
First, reading re the text Of I'll new
law reveals that the doctrine o. posi-
tive acts is preserved, namely. no oil
rights are recognized which have been
acquired before May /, 1917, unless
before that date a positive act was
contaminated. such az actual expIolta-
ton OF an oil well or the making os a
lease between the Ia - owner and the
oil company expressly stipuiatizz that
Oil exploitation il intended.
Still Called Concessions
Second. the so-called confirmation
OF rights must still be made through
the troublesome word concessions"
This is predicated the theory mat
national ownership IN the suh,sol 10
retained at all times by the Mexican
Government. II Is construed 20 mean
that titles. after all. must be given I'D
and that in their place indean!ts con.
cessions are substituted.
Third. IL concessions" are necss-
sary. then what becomes % foreign
companies. which are expressly Cor
hidden BY Mexican Law to obtain con
cessions"? Must all foreign cor,o--
tons be reincorporated as Mexican
institutions? AS such they would, Of
course, lose their right OF appeal, 10
the American Government, for In
81 ince. because they would no I.nEsr
be entitled from the Mexican view
point to American protection. The
Department Of state. however, insists
that no America. citizen can Su--en-
der his right to diplomatic appeal. and
that even IL he valves Il the Depart
ment OF State car intervene IN his be
half on its own volit!on. Stili. the
question is far from settled from the
viewpoint OF concerns that want 20 DO
business but prefer 10 remain as
American companies
No Chance for Review.
Fourth. 10 provision is made tor
judicial review OF decisions by the
Mexican department OF interior. L
has been assumed tina. the app.ica-
tons for confirmation OF concessions
would have TO be passed OF Or the
Mexican department, and tha: the
right OF review has been cut OF. This
affects not only leases but tides &C
Quired before May !. 1917.
Also il has not been explained and
the law does not indicate whether the
Mexican government in pursuing its
Id OF national ownership % resources
means to set itself up as party 20 the
question OF validity OF titles and isax 9
or will allow the matter 70 BE- ore as
between the land owners and the 2s--
sons or companies TO whom the land
was sold or leased.
The American companies operating
in Mexico are prefectiy willing 20 haS 2
their titles or leases reviewed as BE-
tween the original owners and them
selves as lessees. but do TO. believe
the Mexican government should pct
itself IN the position o. having been
the original owner. II that Is The a.ti-
tude. then the titles In effect have been
retroactively coniscated by the Msxi-
can government and the titles ard
leases really pass from the land oxa-
ers TO the Mexican government as
original owners.
Until these points are resolved the
oil controversy VIII hardly De called
settled. and the Department % STATE
will be besieged by the oil men 70 cor
tinue its efforts through Diplomatic
channels 10 prevent rstrcac-sv.ty n
tn application OF the new law
Il may be ;hA, the Mexican govern
mens intends by decree or depart
mental ruling 20 cover the points IN
dispute. hut that IS why the oil men
are hesitant to grow enthusiasts over
the new law sill the foregoing ages-
lions are answered.
tccey-axai iee;1