Milford chronicle., 1940-03-15
INSIST On RETURN or
PROPERTIES

J Ia formal statement issued in
Mexico City a few days ago, Presi-
dent Cardenla insisted that:
Tho Government considers that
in the matter in question there has
been no denial of Justice In any of
the aspects of the appropriation of
properties of the oil companies, nor
has the Government refused to make
pl Ompt and Just compensation; /;
therefore, this case must be decided
to the last detail directly between
the Mexican Government and the
companies themselves.
! In making this statement PreSi-
dent Cardenas conveniently over
looked the fact that MexicO's inten-
ton to deny justice is revealed in her
attempt TO wipe out all asset value
fOl the subsOil petroleum and in the
highly arbitrary way lOng-term con-
CessiOns were cancelled. Cardenas'
pUppet supreme court reasoned that
inasmuch as the oil companies had
mt yet extracted the oil, ana as II
becomes theirs only on capture. no
oil has been taken from them, hence
no payments needs TO be made. The
court holds 10 be of no consequence
whatever the fact that Mexico coll
| liscatcd the right 10 reduce the oil to
possession. And yet this is the sole
purpose anyone invests in oil prop
critics.
This speciOuS reasoning embar-
rasses honest-thinking people who
arc sympathetic with Mexico's social
purposes. Interestingly enough. it
was wholly exploded in the diplo-
matte protests by the United States
from 1917 to 1927, when Mexico also
tIicd to cOnliJcate the subsOil pc
tIOlcum from the owning companies.
The convincing arguments of Secre-
taries Lansing, Colby. Hughes. and
Kellogg, capped by the Bucareli
Agreements and the MOrrOw-Calles
Agreement. completely disposed of
such ridiculous contentious at that
time. In the diplomatic correspond
cnce and b ythOse agreements Mexi-
co agreed as specifically as a cOun-
try can agree, that the subaOil pc
tIOleum was the property of the sur
face owners or lessees aud that they
alone had the exclusive right 10 cx-
plOre for and extract il either in
or as long as their con-
ceSSiOns ran.
Mexico is able TO propose the valu-
alton figure of $l5,O00.OOO only by
these subsOil values,
which constitute the biggest part by
far of the values involved She also
hints at her Willingness TO make
eventual payment at this shrunken
price-and what is so worthless as
a Mexican promise 10 pay?
Evidence of MexicO's inability to
pay any compensation is Indicated
when Mexico was unable TO pay the
relatively small amount involved in
the agricultural appropriations Only
by quasi-fOTced loan or advance from
foreign mining companies was Mexi-
co able to collect S1,0O0,O00 as a So
called first payment on these claims.
Judging by the railway exprOpri-
0tiOns. which also have not been
paid for. promise to pay In long
distant future appears to satisfy the
Mexican conscience. But II does not
satisfy the law either in Mexico or
abroad. by MexicO's own calcula-
tiOn, thcrefOr9, which limits valua-
ton exclusively to surface proper
ties at the deprecated tax value-it-
self no measure of real value-Mexi-
CO would have to admit that the val
Ues of the oil properties must be in
the neighbOrhoOd of probably $780,
100000 U. S. As far back as March
81, 1923. Minister of Foreign Affairs
Pani valued the properties at $780,
100000 U. S. Some Of the largest in
vestments were made after the Nor
rOw-Calles Agreement Of 1927, on
which foreign investors had the right
10 rely.
II is because of the futility Of ex-
pecting Mexico 10 make even token
that the despoliated com
panies have insisted upon the illeg-
ality Of the Cardenas seizures, which
violated Mexican law, the Mexican
international law and
formal Mexican United States agree
ments. They accordingly have de-
manded a restoration OF the proper
ties to the management Of their ow-
ners.