Evening star., 1940-08-11
Problems Of Mexico
Pile Up for Successor
1oPresident Cardenas
Conservative Course Is
Forecast as Reforms
Get Out of Hand

Get Out of Hand
fntf
MEXICO CITY Correspondence
of the sociated Press -
Mexicans, long trained in the vir-
tueof patience, are wondering what
the future holds for them after De-
cenber l, when President Lazaro
Cardenas leaves the Office he has
held six years.
THE last few months of his ad-
ministration have piled up many
problems pressing for immediate
solution, not the least of them that
Of the s4oo, 100000 oil industry.
Gen. Manuel Avila Camacho, ad-
nninistration party nominee, claims
he was overwhelmingly elected to
the presidency, but so does Gen.
Jaun Almazan, independent. No
matter which man takes Office Mexi-
co doubtless will pursue conserva-
tive course.
'Il Carednas Spanks Union.
In the meantime, while the coun-
try is enjoying the greatest build
ing boom in its history and is find
ing larger markets in the United
States to help offset loss of sales of
Oil to Germany and Italy, Presi-
dent Cardenas has bent the Petro-
leum Workers Union over the bar
rel with an economy and wage-cut
spanking, and has told the employees
of the worker operated National
Railways System to get ready for
theirs
He has told the workers the dras-
tic action was necessary because the
two socialized industries were finan-
cially in the red and were being
operated inefficiently.
Observers estimate that Mexico
has lost at least $14,0O0,O0 in 2S
months of operation or the oil in
dustry. This is important money for
a government with an annual bud
get of s90,0000OO.
President Cardenas said it was up
to the workers to prove for their
own cause and for their country
that isolated failures and errors" in
the plan of worker operation of
1ndutries did not mean the plan
was no good.
Union Blames Officials.
The Petroleum Workers Uuion
lo000 strong, is unwilling to take
the economy order lying down, how
ever, and has told the general man.
ager and the general sales manager
OF the Government Oil Administra-
ton 1t would do everything possible
TO have them removed from office.
The union contends it is not op-
posed to economies but objects to
being drafted secretly" and at the
expense of the workers when it
claimed the real responsibility rested
on maladmlniStration and incompe-
tence of government t-appointed ex-
ecutives.
Besides railroads and petroleum
workers now operate many mines,
sugar mills, textile factories. flour
mills and other industries. Some,
like the Oil industry, were expro-
prlated; others were delivered to the
workers when the owners despaired
after frequent strikes and labor de-
mands upheld by the courts.
War Steps in as Factor.
President Cardenas, who previ-
ously had admitted an operating loss
In the Oil industry, has said the oil
firms failed to keep their property
IN condition, and that heavy capital
investments were necessary for re-
pairs, modernizations and improve
ments. Moreover, he said, the Eu-
ropean war had blocked sales of oil
there and pay roll costs had jumped.
Friends of the President say his
one burning desire is to reshape the
destlnies of the doWntrodden. i'm
poverished group from which he
came. To accomplish this he gave
Mexico its most radical govern
mental program in history.
Critics claim he has nearly
wrecked the country and that only
extremely conservative policies will
permit Mexico to get over the shock.
While the oil appropriation was
the most sensational of the Cardenas
acts, there have been others which
perhaps, affected more deeply the
Mexican economic and social struc-
lures.
He put into operation a law pro-
viding for the seizure of large farms,
overturning in few years owner
ship of most of the country's best
farms with consequent shock to
production.
Poured Money Into Improvement.
He gave labor board powers and
encouraged worker operation of va
rious industries. He sped a great
public works program. including ir-
rigation and power dams, highways,
school plants, port improvements
and railroad and highway bridges.
The banana industry, once impor-
tant, has died as jor enterprise.
Labor troubles discouraged opera
tion and additional investment by
private capital. Plant disease now
threatens determination of the in
dustry and private capital is lacking
for the costly fight on the pest
ravage
The mining industry has it's diff
culties. Besides frequent strikes,
the government put a IL per cent
tax on mineral exports: Recently.
the war has shut off markets for
certain metals, and a rise in the
price of the peso has decreased peso
returns for metals sold abroad.
Uncertainty Affects Business.
Meanwhile, general business in
Mexico is quiet because of the un-
certain political situation. The agri-
cultural outlook is only fair.
But the whole picture is not dark
by any means. The national treas