File No. 812.6363/91.
[Untitled]
New rate of collecting oil production tax is great benefit to oil companies. The new decree is based on law of June 3, 1912, placing tax at 20 cents per ton, in Mexican gold, allowing exception of paying same in American gold which means New York exchange at rate of two for one. This is big reduction from rate of 75 cents, Mexican, charged by Federal Government. Respectfully request instructions relative advising American companies to pay same without protest. In connection with decree for payment oil and customs Charges and taxes, it said that bank currency issued prior to February 19th, 1913, recognized by Constitutionalists as valid but will not be accepted in payment of such Charges.
Up to present time no demands for loans or war taxes have been made upon American citizens oil companies.