File No. 812.63/45.
This decree constitutes the most radical measure touching the mining
interests that has been advanced by any faction engaged in the present
revolution, and a close study of its provisions will reveal its
character to be no less than a measure designed to bring about the
practical confiscation of mining properties throughout Villa territory,
since it is practically impossible for owners of claims and developed
mines to comply with the requirements laid down. The action indicated
realizes one particular of a prediction the undersigned has privately
been making for more than a year past, and puts into a practical shape
what he has believed to be and has pointed out as being the ultimate
aspiration of the present movement in this country.
A further report upon the general effects of this decree will be made so
soon as it is possible to give appropriate study to the question. In
advance of this prospective report, I venture to call attention to the
following paragraph from the Introduction to the Mining Laws of Mexico
(Lic. Rodolfo Reyes: 1910: American Book Co.) page 4, which epitomizes
the relation between grantor (the Mexican Federal Government) and
grantee, which has formed the basis of all past transactions in
ore-bearing properties (oil and coal excepted), the provisions of which
are entirely abrogated now by this new decree. The paragraph indicated
is as follows:
It may be noted that the great majority of mineral claims held by
foreigners—and principally by Americans, who are the leading developers
of mining properties in Mexico because of their superior methods both in
the technical operation of the mines as well as in systematic business
management of them—have been bought from Mexicans at good figures; and,
in addition, that large sums have been expended in the payment of what
are known as “pertenencia taxes,” the pertenencia, a hectare in extent,
being the unit of mine grants. There are many Americans who have
bankrupted themselves in the mere payment of taxes on their mining
claims, and the application of [apparent omission] their claims at this
time will work better [bitter] hardships upon them.
[Inclosure—Translation.]
Mining decree issued by Francisco Villa at
Monterey, March 19, 1915.
decree no. 5.
law relating to the forfeiture of mining
properties.
I, Francisco Villa, General-in-Chief of Operations of the
Conventionist Army, do hereby make known to the inhabitants of the
Republic:
That by virtue of the extraordinary powers conferred upon me by the
Decree of February 2, 1915,75 issued in the City of
Aguascalientes, and
Whereas the voluntary suspension of mining operations without
sufficient reason therefor is prejudicial to the nation, since
sources of wealth necessary to the general welfare are thereby
withdrawn from use, and because the public revenues are thereby
lessened through the nonpayment of taxes that would accrue in case
of permanent exploitation; and
Whereas the payment of the present tax on mining claims should not,
according to the Constitution of the Republic, imply a monopoly of
the properties involved, which would be the case if the grantee of a
mining claim were to base his title only on the payment of the said
tax, since thus, merely by the payment of a small fee, a source of
wealth could be withheld from the commerce of the world for the
exclusive enjoyment of the grantee; and
Whereas the foregoing considerations are just now of an importance
all the greater because, in view of the condition of the country, it
is necessary, on the “one hand, that the Treasury lose none of its
income, indispensable to the discharge of its obligations, now
increased by war, and, on the other hand, that the Revolution
realize as far as possible its aspirations, one of which is the
abolition of all monopoly; and
Whereas not only on account of the public utility—recognized by the
mining laws—which the exploitation of the claims promotes or which
is derived from the transactions arising from exploitation, should
the Government endeavor to prevent the decay of the mining industry,
but also on account of the notorious injuries resulting from a
falling off of mining activity, which might at the present juncture
cause fresh disorders in addition to the sufferings of the
needy—
Therefore I have seen fit to decree the following:
Article 1. Article 51 of the Mining Law76 is amended to read as follows:
Article 2. The terms “voluntary suspension” and “abandonment” shall
be construed to mean cessation of mining operations for sixty days
or more except in case of accident or force majeure, to be defined
by the Secretary of Fomento. The maintenance of a watchman or a
corps of employees in charge as caretakers of a property shall not
be considered to be mining operations unless at the same time
interior work is being done in the mine.
Article 3. Every individual or company at present holding a mining
claim, or to whom in the future a mining claim may be granted, must
maintain in activity at least one exploitation work within each five
contiguous pertenencias or fraction thereof, it being understood
that such an exploitation work is a shaft, pit, tier, tunnel or
other works, whatsoever its name may be, which is required for the
process of extraction, and not such as serve merely for access to
the works.
Article 4. The provisions of the preceding articles shall not
prejudice the maintenance in good order of the timbering and other
necessary work to insure safety and health in the interior of the
mine.
Article 5. In mines now abandoned, or in which work is now suspended,
work shall be renewed in the manner prescribed by Articles 3 and 4
hereof, within one hundred and twenty days from the date of the
promulgation of this decree.
Article 6. A period of one hundred and twenty days shall also be
allowed to each person or company possessing a claim of more than
five pertenencias
[Page 895]
which
have not been exploited as abovesaid, within which to put them in
working order in conformity with this decree, except in case of
forfeiture of the property because of failure to pay the taxes
thereon.
Article 7. If such person or company shall have failed to pay the
taxes on such property, a period of ninety days shall be allowed,
from the date of the promulgation of this decree, for the payment
thereof and the initiation of work on said property.
Article 8. No individual may hereafter denounce more than fifteen
contiguous pertenencias; and no company may denounce more than one
hundred and fifty pertenencias in the same mining district;
provided, that when the Secretary of Fomento, upon expert
information, ascertains that the nature of the minerals or lands to
be exploited is such as to require for their exploitation a greater
number of pertenencias than herein specified, the number thereof may
be increased.
Article 9. For the purposes of this decree that relate to forfeiture
on account of voluntary suspension or abandonment whether recent or
longstanding, or because of the inadequacy of the exploitation, the
mining Agent shall inform the Department of Fomento of each case in
which the aforesaid period of sixty, ninety, or one hundred and
twenty days shall have passed without the prosecution, renewal or
increase of work, as the case may be; and the said Secretary shall,
upon expert information, declare the causes of such suspension,
abandonment or inadequacy, and shall declare the forfeiture of the
property involved, in the same manner as forfeitures for failure to
pay taxes are declared in the Department of Hacienda.
Article 10. The Mining Agents, in order to comply with their duties
as stated in the foregoing article, shall keep themselves informed
of the progress of work in the mines within the district in their
respective charge.
Mine owners, when prevented from working their mines, whether by
accident or force majeure, shall immediately give notice thereof to
the Mining Agent, who shall ascertain, through experts appointed by
him for the purpose, the cause of the cessation or abandonment of
work.
Article 11. Every resident of the Republic shall have the right to
denounce, by application to the Department of Fomento through the
appropriate Mining Agency, any mining property on which work has
ceased, or which has been abandoned or is not being fully exploited
by the individual or company that had denounced it, whether
continuing to pay the taxes thereon or not.
Transitory Article 1. All provisions of law in conflict with this
decree are hereby repealed.
Transitory Article 2. This decree shall go into effect on the first
day of next April.
Done at the City of Monterey, Nuevo Leon, on the 19th day of March,
1915.
