Office of the Historian

File No. 312.115/110.

Vice Consul Bevan to the Secretary of State.

No. 1316.]
American Consulate,
Tampico, December 12, 1914.

Sir: I have the honor to advise the Department that on December 7 General Manuel Peláez, who is in command of the Villa forces, sent a communication to the Compañía de Petroleo “El Aguila” S. A., a British corporation, imposing a forced contribution of $100,000 Mexican currency; and one to the Penn-Mex Oil Company, an American corporation, for $50,000 Mexican currency.

The two companies were also advised that the taxes imposed by the Carrancista government would have to be paid at Temapache to the Villa authorities. General Peláez has so far been unable to show any credentials from General Villa, or give any guaranties that if the taxes were paid in Temapache they would not have to be paid again in Mexico City. A copy of the General’s letter and its translation is enclosed for the information of the Department.

At the present time demands have been made in three different places for the payment of the oil taxes, namely, in Mexico City, in Veracruz, and in Temapache. On December 8 an official notice was issued by the Custom House 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 Veracruz, and that such payments as may be made to other authorities, alien to the Constitutionalist Government, would be considered null and void. A copy and translation thereof is enclosed for the information of the Department.

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, [Page 782] 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. Col. Josué Benignos is at Tuxpam in command of about 600 troops, and with a few reinforcements would be able to protect the oil fields. However, his loyalty to General Carranza is doubted, and he is expected to go over to whichever side shows the most likelihood of winning out.

I have [etc.]

Thomas H. Bevan
.
[Inclosure 1—Translation.]

General Peláez to the oil companies.

Nationalist Army, Peláez Brigade,
Temapache, December 7, 1914.

The undersigned, General in Chief of the Villista forces operating in the Huasteca region, imposes on the Compañía de Petroleo “El Aguila” a forced contribution for troop expenses of $100,000 (one hundred thousand pesos), which the General Superintendent of said company will please pay in to these Headquarters within the term of eight days.

The above company is also advised that, from now on, all taxes which the so-called Carrancista Government may have imposed upon it must be paid into these Headquarters, with the understanding that it cannot excuse itself from such payments even though it may claim to have made them to some authority appointed by said Government.

General Manuel Peláez
.
[Inclosure 2—Translation.]

Custom House circular.

Office of the Stamp Tax,
Tampico, December 8, 1914.

The Head Office of the Stamp Tax, in Vera Cruz, in their circular No. 8, dated the 3rd inst, advise me as follows:

The Department of Finance and Public Credit, in an order of this date, advise me as follows:

“By order of the First Chief of the Constitutionalist Army, in charge of the Executive Power, all companies or owners of mining lands or petroleum explorations existing in this country, from this date must make payments for Federal taxes to the respective Head Offices of the Stamp Tax, under the Constitutionalist Government, or to the Head Office of the Stamp Tax, at present located in this city, provisional capital of the Republic; such payments as may be made to other authorities, alien to this Government, will be considered null and void.”

All of which I have the honor to transcribe to you for your information and action.

A. Guimbarda
.