MEXICAN PETROLEUM

Evening Star, Issue 22913, 22 March 1938, Page 9

MEXICAN PETROLEUM

REDRESS FDR EXPROPRIATION INJUNCTION PROCEEDINGS PENDING Press Association —By Telegraph—Copyright MEXICO CITY, March. 21. Mr Joseph Daniels, the American Ambassador, said the United States was not considering diplomatic intervention, and warned petroleum interests that they must seek redress for expropriation from the courts. Subsequently 17 of those affected announced that they were filing injunction .proceedings against expropriation. PRESIDENT'S ACCUSATIONS DENIED (British Official Wireless.) RUGBY, March 21. (Received March 22, at 11.30 a.m.) The London financial agents of the Mexican Eagle Oil Company are advised by its managers that the President of Mexico, in his recent broadcast speech, accused petroleum companies, among other things, of haying supplied money, arms, and ammunition for the Assistance of the rebellion in Mexico. The managers declared that the company had never at any time adopted or encouraged such methods. Its sole occupation had been to develop the properties entrusted to it for the maximum benefit of the nation, its employees, and shareholders. British and American diplomatic representatives in Mexico City are continuing to maintain close contact regarding the extent to which the interests of their nationals are affected and the issue is being closely watched in Whitehall and Washington.

[Eighteen thousand workers seized control of the properties of American and British petroleum companies, representing an investment of 450,000,000 dollars, after the Federal Labour Board cancelled the companies’ labour contracts on the ground that they did not comply with the Supreme Court’s wage ruling, under which the companies were ordered to pay 40,000d0l in compensation wages, which the companies contend is impossible.]