FALL IN MEXICAN OIL SHARES. ,
In view of the reported findings and recommendations of the Committee appointed in Mexico by the Board of Arbitra- tion to investigate the economic conditions of the petroleum companies in Mexico, it is not surprising that the shares of the Mexican oil companies should have shown special weakness last Monday. The Committee asserted that the combined profits of the petroleum companies in Mexico were excessive, the 'companies having recovered their invested capital over ten years ago, and that the average annual profits for the past (Continued on page 296.)
FINANCIAL NOTES
(Continued from page 294.)
three years represented '34 per cent. on the invested capital. These statements are challenged by the Mexican Eagle Oil Company who state that in 1936, which was the best of the three years, their profits amounted to less than 9 per cent. on the invested capital. Nevertheless, the recommendations of the Board of Arbitration are of a most extraordinary character, among them being proposals that all oil workers should be placed upon a forty-hour five-day week with pay for a fifty-six hour week, a month's holiday in the year, pensions up to 85 per cent. of the retiring wages and full pay whilst on strike, without limit of period, &c., &c. The petroleum companies are to be entitled to seventy-two hours within which to file their objections and, doubtless, such objections will be promptly registered.
Previous page
