Indianapolis Times, Indianapolis, Marion County, 28 November 1939 — Page 6

£00D NEIGHBOR POLICY PERILED BY MEXICAN OIL

Republic’s High Court Slated To Uphold Expropriation Of U. S. Companies.

(Editor’s Note: The Mexican ofl situstion, 3 thorn in the side of the good neighbor policy, has been examined at first hand by Walker Stone “of “the Scripps-Howard newspapers. There follows the first of ‘several dispatches detailing his findings and impressions:)

By WALXER STONE Times Special Writer -

MEXICO CITY, Nov. 28.—Unless Mexico can increase her oil sales in the markets of the world, substantially and promptly, she will soon be required to cut down oil production drastically. This imminent threat of curtailment, with the consequent loss of wages to oil workers and purchasing power to the country—and the political discontent which that implies—may explain why the Mexican Supreme Court, after months of delay, unexpectedly brought up the oil companies’ expropriation case for final judgment. Mexico is producing daily about 45,000 barrels of oil more than she is consuming domestically and sell- * ing abroad. With that amount daily being added to the 16,000,000 barrels already stored here, and with only about 2,000,000 barrels of unused storage space remaining, Mexico within 40 days will have nowhere to store her excess oil output.

Must Double Exports

To maintain her current rate of production, she will have to double her exports. There is no doubt in anybody's mind here, and never has been, as to what the Supreme Court’s final decision will be. The Cardenas Administration is not getting cold feet on its Socialist program. The expropriation of the properties of British and American oil companies, as the culmination of disputes between the companies . and the oil workers’ union, is considered by the revolutionaries controlling the government here as the brightest star in Senor Cardenas’ record. And the Mexican Supreme Court is part and parcel of the Administration. Every one of its 20 members was appcinted by President Cardenas, and their terms will expire, Shes the time his does, Nov.

No Turning Back Expected

The decision drafted for the Supreme Court’s approval, and now pending, rules that though the dispossessed corporations ar@® entitled to return of the books, papers and money in the vaults at the time the Government took over, and to compensate for actual investments in refineries, pipe lines and other plant and equipment, the oil und Found is the “patrimony of the na So far as the present ne of Mexico are concerned there is to be no turning back from this Socialistic concept. The Government hopes the companies will philosophically accept the Court’s decision, expropriation as an accomplished fact, and settle the controversy on the Government's terms. It is eager for settlement because it hopes thereby to reopen markets that have been closed to Mexican oil.

Tankers Needed

In addition to surplus oil stored in this country, Mexico owns and is paying storage charges on an estimated 1,500,000,000 barrels of gasoline at the port of Houston, Tex. Mexican officials say they could sell their oil to Italy and other neutrals in Europe, and in Seuth American markets and even to some customers in the United States—if only they could get tankers. Under terms of a barter deal, Italy is constructing three tankers for Mexico—to be delivered in January, February and March. Mexicans are hoping Premier Benito Mussolini can stay out of the war long enough to fulfill his contract. The outbreak of war left Mexico holding the bag on its barter agreement with Germany. This Government had delivered $10,000,000 worth of oil to Germany, but Germany had delivered only. $4,500,000 worth of goods in exchange. The U. S. State Department has taken the position that Mexico has a right to expropriate property, provided it makes “prompt and adequate compensation,” but that with failure to so compensate, expropriation is in fact confiscation and therefore untenable.

The British Foreign Office, how-

expropriatory right. American and British companies refuse to accept payment in what they describe as “stolen oil.” refuse to relinquish claims to ownership of the. oil underground which comprises a large part of the $450,«

000,000 value placed on properties

which Mexico has taken from the companies,

Next—Mexico expects to sell oil

They

BARGAIN (RILEY

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SATURDAY NIGHT, DEC. 3

figures on black background.

Five hundred persons interested in Indiana’s pioneer days and in world history will convene at the Hotel Lincoln, Dec. 8 for the annual two-day Indiana History Conference. . The conference will be held jointly by the Indiana Historical Society; the Seciety of Indiana Pioneers and the Indiana History Teachers Association. Hans Leonhardt, former supporter of the League of Nations government in Danzig and now an exile living at Franklin, Ind., will lecture at a dinner in the Hotel Lincoln at 6:15 p. m. Dec. 8. The conference will open at 12:15 p. m. Dec. 8, with the annual luncheon and business meeting of the Indiana Historical Society. Reports will be given on the society’s activities, including excavation of the Angel Mounds near Evansville, compilation of a bibliography of Indiana writers, and preservation of pioneer mills, cemeteries and covered timber bridges. Officers will be elected. The general session of the Historical Society at 2:30 p. m. will be addressed by Charles Heberhart, Madison newspaperman, and Fred W. Eley, Indianapolis, Deputy State Attorney General. Richard A. Cordell, professor of English at Purdue University, and William D. Peat, Indianapolis, director of the John Herron Art Institute, will discuss “Indiana Literature” and “Early Indiana Portraits and Portrait Painters,” respectively, at the night session of the society. Saturday's program will open with a breakfast by the Indiana History Teachers’ Association at 8:30 a. m. at the Indianapolis Athletic Club. Prof. Albert L. Kohlmeier, head of the Indiana University history department, will preside. Talks at the association’s general session at 10 a. m. will be given by Helen Elliott of Tech High School, Eldon R. Burke of Ball State Teach-

son of Indiana University.

You'll See a

ers College and Walter B. Hendrick-

Times Photo.

Here's the first Indiana automobile license plate for 1940. It was taken to the plate sale department by Miss Janet Geier (left), secretary to.Frank Finney, Motor License Bureau chief, and presented to Miss Mary Nauer. The No. 1 place traditionally goes on the Governor's private car. The sale of plates will begin Dec. 11. They have silver

4 Indiana History Groups|: To Meet Here Next Week

Robert Phillips, professor of political science at Purdue, will discuss “Democracy and the Totalitarian State” at the association luncheon. General sessions also will be held at 10 a. m) Saturday, Dec. 9, the Junior Historical Societies and History Clubs, and the archeology and genealogy groups. i The Society of Indiana Pioneers will hold a luncheon and business meeting at 12:15 p. m. Saturday and a general session at 2 p. m. President Otho Winger of Manchester College will address this society at a dinner at 6:30 p. m, closing the convention.

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175,000 INSPECT CITY'S SCHOOLS]

Education Week. Viewed as

Improving Relations With Parents.

Education Week, with more adults visiting Indianapolis schools than ever before, was pronounced a success today by the School Board. ‘The week was celebrated here and nationally, Nov. 5-11. It attracted 75,565 aults, 5000 more than last year. Teachers throughout public and high schools said the week had suc-|. ceeded in its primary purpose—to bring about better understanding between parent and teacher. »

* One father was reported as say-|

ing: “These things are fun. I wish we had them twice a year instead of just once.” Technical High School, with 12,000, had the most parents and

friends in attendance. Crispus At-}|-

tucks was next with 6148. Twelve grade schools attracted more than 1000 each. School 62 at 10th and Wallace Sts. had nearly 1900 and School 84 at 57th St. and Central Ave. about

HOOSIERS, 78 AND 85, STAGE A FIST FIGHT

Times Special WABASH, Ind., Nov. 28.—A septuagenarian and an octogenarian nursed wounds today following a battle in which one required treatment at the County Hospital, A 78-year-old man told police he was insulted by another 85-year-old occupant of his rooming house. Fists flew until the old man was struck on the head. He said a stick was used. Police held the 78-year-old man until the other was released from the hospital.

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By Science Service. WASHINGTON, Nov. 98—The strangest air accident, the Civil Aeronautics - Authority reported

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The plane was damaged badly, the pilot was injured slightly, the student was unhurt but scared. What happened to Hie bee was unreported. :

CLUB TO SEE | : FILMS The Beech Grove Townsend Club will meet at 7:30 p. m. tomorrow at the new City Hall at Main and 7th

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Times Special - PT. WAYNE, Ind., Nov. 28 —High

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the Tower. Although the Federal Communications Commission has not as yet acted upon the Farnsworth application for a charter to build an experimental television station, ee officials said hey are sure the FCC will grant permissi on, Quarters will be remodeled to house necessary equipment. The station's antennae will be erected in the building's observation tower and communicating cables will be installed from the company's Ft. Wayne plant to the Lincoln Tower.| This will enable programs to be

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Found: A Hollywood - writer who.

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FRANKLIN, ‘Ind, 28—A ‘new schedule: of on legal fees, said ‘to “be generally lower than boring counties, has been vlaced in effect by ie Johnson County Bar Associatio ‘The pcg ‘which’ modifies in some instances the cost of legal fees for certain types of Sv civil actions, ig |

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“Everybody understands that railroads exist to provide transportation for the bene. fit of patrons, employment for the benefit of workers, purchasing power for the benefit of farmers, merchants and manufacturers, taxes for the bepefit of governmental employes. Amid this welter of confusing claims, let us never forget there is another benefit that lies at the foundation of all —the benefit which is conferred upon the railway owner as the result of being permitted | to" make

some money.

Far, far too many railway owners are making no money today; some of them are lucky to keep their property out of the hands of the sheriff. Yet the investment represented in railway ownership is the one thing that provided the plant and stimulated the enterprise upon. which all railway prog. ress has been based. Under private ownership the future of the railroads depends most closely upon adequate earnings— earnings that will maintain their credit and attract new capital for the fur. ther improvements that traffic will demand,

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