Evening star., 1938-09-14


dominantly Indian, is attempting to
re-establish the ancient Indian Eiido,
or village ownership. This is about
as closely related to Stalinism as
Mexican beans to caviar. Despite
Cardenas' personal supervision, how
ever, the land is reverting once more
not to the peasants, but to local
politicos. However, this may work
out. Cordell Hull is specializing on
the impossible in expecting Cardenas,
or any succeeding Mexican head, to
discontinue the appropriation of the
large estates. After all, 1t is only
what France, Germany, Czechoslo-
vakia. and, in effect, Italy have done
without compensat sation-since the
World War.
The greatest sufferers among the
former owners are first, the Church:
second, Mexicans; third, Spaniards,
and only fourth, Americans, among
whom the largest individual holders
are William Randolph Hearst and a
Mr.. jenkins. commonly reputed to be
a front for the Church At first a
pretense was made of payin. in gov
ernment bonds. BY 1927 that was
dropped. Cardenas wants to know
why the American State Department
manifests excitement at this late date.
Mr.. Hull's recent notes ask $lo,-
100000 for the uncompensated Amer
ican lands, but offer to arbitrate both
That valuation and terms of payment.
In itself, this request would be ac-
ceptable to the Mexican government.
The sum might be pared down to a
few million or a few hundred thou
sand on the basis of actual money
paid for the lands. But as an open
and above-board settlement with
Uncle Sam would necessitate like
settlements with all native and other
foreign owners-an impossibility for
any Mexican treasury or politician
to. contemplate. And so Mr.. Cardenas
keeps limiting in his replies that he
would like Mr.. Hull to drop the land
claims and let him make it up to
Uncle Sam in some other way-while
Mr.. Hull keeps standing on principle
and reason. There the land issue
rests
The oil-seizure issue also cuts
deeply into Mexican life and politics,
and since the oil companies have ap-
pealed to American public sentiment
for support the background concerns
us. 1t was a principle of Spanish law
inherited by Mexico that wealth under
the ground belonged to the king or
state and could not be signed away.
Diaz, however, gave concessions to
British and American oil companies
in outright contravention OF this con-
stitutional principle. Some oil lands
were paid for-often to primitives who
had no conception of their value
others were granted by state and fed
eral governments and still others sim.
ply squatted on.
Investments Evaluated.
The American companies claim
roughly to have invested about $780,
100000 in equipment. refineries and
distribution plants. The British claim
is twice as much. A Department Of
Commerce estimate at the end OF 1896
fixed 500, 100000 as the American in
vestment. The Mexican industrial cen.
sus Of year earlier estimated 49,
900, 900.
As early as 1918 the Mexican revo-
luton was moving against the oil mo-
nopolies, insisting that Diaz conces-
sions had no legal validity. Woodrow
Wilson hit back hard, standing pat
with our wartime ally. Britain. The
situation remained open until Dwight
Morrow, late Ambassador to Mexico,
secured confirmation of the conces-
sions in return for our national and
moral support of the Gales govern
ment. While our Department of JUS
tice was prosecuting certain oil men
in Teapot Dome days the Department
of State was battling for their prop
critics in Mexico. Cardenas, succeed
ing Gales, was anxious to let the oil
question rest until completion Of the
agrarian reforms so dear to his heart.
1t was dumped in his lap by tho for
wardness of labor and the .Sbtuse
craftsmanship of oil.
In 1884 trouble began to brew
through the resentment of many petty
unions in the oil fields over unequal
pay and conditions. There were no
standards of wages, hours and housing.
Cardenas tried to ameliorate the sit
uation by general union which could
negotiate a standardized contract in
all fields. But labor leaders began
harping upon wages paid by the same
companies for the same work across
the Texas line and pointed out that
the companies paid lower taxes and
made more profit per dollar invested in
Mexico. Many Mexicans thought the
workers demands were extravagant
but deeply resented the bulldozing at
titude of the companies.
In 1896 the unions called strike
For nearly two years Cardenas kept
the men at work while conferences
and the Federal Labor Board endeav-
ored to reach a settlement. The board
finally recommended increases in
wages and services OF 261s mil
lion pesos-a little over one-third
of the demands. The companies
offered 20 million and filed an in
junction in the Mexican Supreme
Court to prohibit action on the
boards award. But the court sustained
the boards recommendations. The
companies came out with ill-advised
newspaper ads stating they would not
abide by the Supreme Courts decision
and that they "felt sorry for Mexico"
Unions Threaten Suit.
Again Cardenas intervened. and
brought the companies to thin q
few hundred thousand pesos Of agree
ment with the boards figure. But
the companies declared they must
have more freedom than the law
granted in choosing confidential en-
ployes not under union control. Car
denas gave his word that the COM
panies would be able to operate with
out further cost than that stipulated
by the board. The agents Of the
companies demanded that he put it
in writing. Cardenas stepped out on
a matter OF Latin honor, and washed
his hands Of Cancellation. This All.