File No. 312.115/111.
Vice Consul Bevan to the Secretary of State.
Tampico, December 19, 1914.
Sir: I have the honor to advise the Department that during the first part of November General Manuel Peláez started a Villista movement in the Huasteca country, which comprises the oil fields in the Tuxpam District. On November 15 he sent Major Luis A. Ruiz to the camp of the Aguila Petroleum Company with instructions to demand 30,000 pesos, and if the demand was refused to take the money by force. It was explained to Major Ruiz that there was only money enough in the safe to meet the weekly payroll and that there were 1,000 men in the camp who would start a riot if they were not paid. He finally agreed to compromise for 15,000 pesos, leaving barely enough for the payroll. At the same time he took seven horses and several mules with equipment from the camp. The Penn-Mex Petroleum Company operating near Tuxpam has been subjected to the same kind of treatment. Practically the whole Tuxpam oil field is controlled by the Villistas, while Tuxpam and Tamiahua, the two outlets to this field, are still in the hands of the Constitutionalists or rather the Carrancistas. The Carrancistas have notified all the companies operating in this district that if it can be proved that they have aided these companies [sic] in any way, with arms, ammunition, or money, they would be closed down.
On December 6 another demand was made at the Pearson camp at Potrero del Llano for 30,000 pesos, which was refused. On the following day a written communication was sent to the general managers of the Aguila Petroleum Company and the Penn-Mex Petroleum Company demanding that the former company pay 100,000 and the latter 50,000 pesos for the support of the Villista troops. Eight days was given in which to make the payments.
Up to the present time neither of the companies has made the payment. This matter was reported by telegraph and both companies have been notified that the Department has taken the matter up with Consular Agent Carothers placing the matter before General Villa.
The Huasteca Petroleum Company, one of the largest companies operating in this district, has received entirely different treatment from the Villista troops. The superintendent of their large camp at Juan Casiano, State of Vera Cruz, received a notice from one of their chiefs, Alberto Medellin, giving them absolute guaranties to respect the interests and the personnel of said company. It has been rumored that the reason the Aguila Company was subjected to a forced contribution was on account of a long-standing feud between the company and the family of General Manuel Pelaez. The company however denies this emphatically.
Last night about six o’clock it was decided to send reinforcements to Tuxpam and all the private launches in Tampico were commandeered [Page 784] by the military authorities. All the speed boats and expensive launches were filled with soldiers and started out for Tuxpam. High-powered motor boats were used for towing large barges of soldiers, which heavy service practically ruins their motors. Consequently the oil industry is at a standstill as regards transportation. Several of the companies have been forced to close down their work because they have no means of sending men out on the work or of getting fuel oil to the camps. All the launches that have been commandeered are under Mexican registry; therefore the Mexican Government has the right to commandeer all ships flying the Mexican flag, and the oil companies have not disputed this right, notwithstanding the terrible hardships it works on their operations.
I have [etc.]