The Waterbury Democrat., 1938-03-30
Oil Seizures Climax 2O-Year Strife
 Over Black Gold Below the Rio Grande
Appropriation Will Cost Americans
 $2OO,OOO,OOO
BY NEA SERVICE

Mexican oil has been more or less of an international headache for more than 20 years. With the gov- ernment moving rapidly to take over American oil properties and inter- ests valued at around 100000, 900, a crisis has been produced which is the latest of long series centered on the rich Mexican oil fields.
 American oil interests in Mex ico, considerably less valuable than British, have been decreasing for more than decade. But they are still extensive.
 Three great American companies, Standard of New Jersey, Standard of California, and Sinclair, have 1n- terests in nearly 5,000,000 acres Of Mexican oil lands, and maintain re- fineries, pipe lines, storage tanks, railroads and other equipment. They are the survivors of many compan- ies which crowded into Mexico from the United States when the oil boom came to that country 25 years ago.
 American Discoveries
 The Mexican oil fields were dis covered for practical purposes, by Americans. In 1900, E. L. Doheny and Charles A. Garfield began ex- ploration, and blew in their first practical well in 1904, near Tampico. Lord Cowdray and his Dutch Shell interests were close on their heels.
 The present phase of the prob- lem began in 1917 when new constitution was adopted by MeM- co declaring for the naturalization of petroleum resources.
 The World War had dislocated world oil markets by withdrawing the Russian fields from production, and the rush for oil that followed the war boosted the importance of the Mexican fields until at one time they were producing 25 per cent of the world supply.
 Black Gold"
 There was rush for Mexican oil lands and concessions. There was violence, and many rags to riches tale. Tampico grew from row of mud huts on the Gulf to a prosper ous "boom town; around 1921-1922 it was one of the maddeSt Whirli- gigs in the world.
 There was big money to be had, and sometimes it was not without influence on the rapid changes in government which became a by- word in the United States as Mex ican Revolutions"
 But always the basic principles of the popular revolution of 1911 when Madero displaced Diaz, kept impressing themselves by popular demand on successive presidents. Beginning with 1917 and the new constitution, the moose began to tighten around foreign oil and other interests, and it has been tightening by fits and starts ever since.
 In 1924 and again in 1927 con- fiscation was imminently expected under Obregon and Gales, but negotiations arrived at compro- misses.
 No More Cream"
 Mexican labor, growing more ag- gresSive and better organized, kept making higher and higher demands, taxes mounted. While the fields were still profitable, the cream of the "old days" under Diaz was off.
 In 1928 Ambassador Morrow ar ranged with President Gales a settlement of the difficulties. This, generally speaking, guaranteed to pre-1917 operators the properties developed up to then, and con- ceded close government supervision over those developed since.
 But President Cardenas succeeded Gales, the country swung still farther leftward, union workers demands grew more peremptory. Cardenas claimed government roy