File No. 312.115/110.
Vice Consul Bevan to the Secretary of State.
Tampico, December 12, 1914.
Two companies were advised that the taxes imposed by the Carrancista Government would have to be paid at Tamapache to the Villa authorities. General Pelaez has so far been unable to show any credentials from General Villa, or give any guaranties that if the taxes were paid in Tamapache, they would not have to be paid again in Mexico City. At the present time demands have been made in three different places for the payment of the oil taxes, namely, in Mexico City, in Vera Cruz and in Tamapache.
On December the 8th, an official notice was issued by the customhouse in Tampico to all the oil companies notifying them that the Federal taxes would have to be paid to the regularly appointed Constitutionalist authorities, or to the head office in the city of Vera Cruz, and that such payments as may be made to other authorities [Page 718] alien to the Constitutionalist Government would be considered null and void.
This condition of affairs leaves the oil companies in a serious predicament. If they make any payments to the Villa agents, they will necessarily incur the disfavor of the Constitutionalists, whereas on the other hand, if they refuse to pay the taxes to the forces that are in control of the oil fields, they will have to suffer for the consequences. The companies have all decided to temporize, and if necessary to compromise on the best terms they can for the time being, and await future developments.
In regard to these companies having to pay double taxes, I respectfully suggest that the Department endeavor to have General Carranza send a force large enough to protect the oil fields, or make some arrangement that would not force the companies to pay double.
I have [etc.]