Today & Yesterday

To study the faces of Francis W. Rickett and Bernard E. Smith (see cuts) is to study two of the world's best poker faces. These famed international operators in oil, gold mines, concessions of all sorts, shaky currencies and everything of a speculative and spectacular nature last week were big news in Mexico City.

The supreme croupier is a state such as Mexico, which has just calmly raked in by expropriation $400,000,000 worth of oil properties owned by U. S. and British citizens (TIME, March 28). The game of oil must now be resumed in Mexico and, with such mulcted players as Standard Oil and Britain's Shell in a huff last week, there was a grand chance for Rickett & Smith to grab front seats at the Big Table before the wheel began to spin again. There ought to be bargains in Mexican oil today.

At Addis Ababa smart Emperor Haile Selassie sold to Francis W. Rickett a concession covering oil exploitation rights in almost the whole kingdom. This Mr. Rickett offered in a quick turnover to Standard Vacuum Oil Co., and at the time many Europeans believed this deal (which ultimately fell through) would draw the U. S. into protecting the owners of the concession, thus barring Benito Mussolini from conquering

Ethiopia (TIME, Sept. 9, 1935, et seq.). A typical Ben Smith achievement was his handling of the J. I. Case Co. stock when it tumbled during the Hoover Depression. He kept selling J. I. Case short until he had made huge gains, sloganizing nervous Wall Street at this time with respect to all stocks: "Sell 'em! Sell 'em! They're not worth anything!" Last week famed "Sell 'em Ben" Smith was close-mouthed as usual, but expansive Francis W. Rickett glowingly described his conference with General Lazaro Cardenas, the "New Deal" President of Mexico. The issue, according to Briton Rickett, is whether the Fascist Dictators can be kept from hogging Mexican bargain oil and this precious fluid saved for the great Democracies. "My motives," announced Mr. Rickett, "are patriotic!"

The Mexican Government, few days later, denied that President Cardenas had actually made an oil deal with Messrs. Rickett & Smith as yet. Since they had already rushed by plane to Wall Street, it seemed probable they were contacting prospects, preparing to fly back to Mexico City for the signing of contracts later, if possible. The big question: Was this "hot oil"--that is, are the U. S. and Britain going to agree or disagree with the proclamation by which President Cardenas laid down three weeks ago that it was right and legal for Mexican oil workers to seize these great properties and prepare to operate them in the name of their Government?

Decision on this question was up to Franklin Delano Roosevelt under the Monroe Doctrine, and last week the President quickly chose a formula on which the State Department instructed Ambassador Josephus Daniels to take his stand at Mexico City. The formula: Washington is not disposed to consider that the U. S. and British owners of the seized properties are entitled to compensation based upon their valuation. But Washington is disposed to invite payment by the Mexican Government of compensation based upon what the owners originally paid for the properties and their development, less depreciation.

Secretary of State Cordell Hull's official statement emphasized that the Mexican Government exercised in seizing these properties one of the rights of any sovereign state--the right of expropriation. In a printed handout, Ambassador Daniels said he had been summoned by President Cardenas, whom he found surrounded by resplendent military aides and members of his Cabinet. The Mexican President did not confer with Josephus Daniels but read off a statement which the Ambassador said he thought constituted a diplomatic note. It was flashed to President Roosevelt at Warm Springs. "I am gratified to have thus formally received this important expression of Mexico's deep friendship for my country," read the Ambassador's statement, "I expressed this gratification to the President."

The written pledge by Cardenas, as given out in Washington by the State Department: "Mexico will know how to honor its obligations of today and its obligations of yesterday."

What these obligations are President Cardenas did not state, but U. S. Secretary of State Cordell Hull said that, in view of the "attitude" of the Mexican President, "a rapid, satisfactory and equitable solution of the pending problem between the two countries can be found."

In Manhattan, latest reports were that 25,000,000 barrels of Mexican oil are what friends of Rickett & Smith want to buy, below the world price of oil. And from this purchase the Mexican Government would get some of the quick cash it needs to keep going, make first compensation payments, and thus have a chance of getting the U. S. Treasury to resume the silver purchases from Mexico, canceled after the oil expropriation (TIME, April 4),

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