YALE UNIVERSITY [TRANSACTIONS OF THE AMERICAN INSTITUTE OP MINING ENGINEERS.] DEC 8 1931 [Copyright, 1902.] LIBRARY A Synopsis of the Mining Laws of Mexico. BY RICHARD E. CHISM, M. E. , PH.D., MEXICAN ATTORNEY- AT-LAW, MEXICO CITY. (Mexican Meeting, November, 1901.) v CONTENTS. PAGE Introduction, 2 I. Mineral Substances, . . . . . . . . . .5 II. The Exploitation of Mineral Substances,- ..... .6 III. Mining Property and Mining Claims, ...... 7 IV. Prospecting for Minerals, . . 9 V. The Ministries of Fomento and Hacienda, . . . . .12 VI. Mining Agents, 13 VII. Mining Surveys and Mining Surveyors, ...... 18 VIII. Acquirement of a Mining Concession, . . . . . 22 IX. Amplification, Reduction and Kemeasurement of Concessions : With drawal of Applications, . .29 X." Proceedings in Opposition : Mining Litigation : Penal Jurisdiction, . 33 XI. Metallurgical Works, 36 XII. Expropriations for Mining Purposes, .38 XIII. Easements and Tunnel- Eights, . 40 XIV. Mining Contracts and Companies, ....... 44 XV. Foreigners and Foreign Companies, . 45 XVI. Registry of Mining Transactions, ....... 47 XVII. Taxes on Mines, 50 Note. — The following abbreviations are used in reference to the laws, etc., cited in this Synopsis : C. Fom., Circular of the Ministry of Fomento (Mining). C. Hda., Circular of the Treasury Department. C. Adm. del Timbre, Circular of the General Administration of the Stamp Tax. L. min., Mining Law of June 4, 1892. L. imp., Mining Tax Law of June 6, 1892. R. L. min. , Regulations of the Mining Law, June 25, 1892. E. L. imp., Regulations of the Mining Tax Law, June 30, 1892. L. met. prec, Law as to Taxes and Duties on Precious Metals of March 27, 1897. B. L. met. prec, Regulations of said Law of March 27, 1897. Tar., Tariff of said Law. Uv\Vd 1^ \ 2 a synopsis of the mining laws of mexico. Introduction. In 1885 I presented at the Chattanooga meeting of the In stitute a Digest of the Mining Code of Mexico,* in force at that time. Since that time the law has been radically altered, and I have thought that it would be; of interest to the Institute to have in its Transactions a synopsis of it as it now stands. In order to reduce the volume of this synopsis, which is at best very extended, I am compelled to omit many details, for which I must refer the reader to my Encyclopedia of the Mining Law of Mexico ; but all the fundamental part of the law has been carefully, retained. The pursuit of mining in Mexico under the Spanish do minion was governed by disconnected decrees and ordinances until the year 1584, when were formed what are called the Ordenanzas del Nuevo Ouaderno, under the Government of Philip n. These laws governed until January 15, 1784, when the famous " Ordinances of Mining," which had been enacted by the King of Spain in May of 1783, came into force in New Spain. After the accomplishment of the independence of Mexico, the Spanish Ordinances remained in force, with very few changes. In 1857 a new Constitution was'adopted in Mexico, which did not delegate the power of mining legislation to the General Government, and hence left the several States ' free to enact their own laws. However, nearly all of the States continued to use the Spanish mining legislation. Only two States, Durango and Hidalgo, adopted mining codes of their own. , The changes of governmental methods, and of mining and metallurgical systems, made the old legislation so difficult in - its applications to the modern form of mining industry that it was resolved to adopt another organization, which should be general in its character and uniform for the whole Republic. In 1883 a Constitutional amendment was adopted conferring upon the General Government of Mexico the power to legislate upon mining matters, and in November, 1884, a new Mining * Trans., xiv., 35. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 3 Code, with accessory legislation, was adopted, and put in force from January 1, 1885. By this new Code the Spanish Ordi nances of 1783, the succeeding colonial legislation, and subse quent Federal and State laws upon mining, were utterly abol ished, even in those parts not contrary to the provisions of the new Code. (Code, Art. 218.) This new code was the one of which I made the Digest which appears in our Transactions, as quoted above. Its prin ciples were, in many respects, a great improvement upon the vague legislation of the old Ordenanzas, and were especially beneficial because they did away with the conflicting legislation of the several States. However, when the monetary crisis arising from the fall of silver began to be severely felt in this Republic, the necessity of still more liberal mining laws became apparent, and resulted in the promulgation, June 6, 1892, of the present law, with its accompanying and subsidiary laws and regulations. The old Spanish laws and the Mining Code of 1884 were based upon a working tenure of mining property, under con ditions hard to fulfill and fruitful of litigation. The law of 1892, based on principles entirely modern and liberal, gives the miner the property of his mines in an irrevo cable, perpetual and secure form through the payment of a yearly tax, with full liberty as to methods of work and amount of work to be done. This law. is one of the most illustrious monuments to the executive ability of General Diaz and his cabinet that could possibly be desired. Its results were immediate and con spicuous. Immense mining and smelting establishments have sprung up, the cost of the production of silver has been greatly reduced, and the gold-product of the Republic has increased very largely. Foreign capital has been liberally invested, and is still flowing in an increasing stream into the Republic, which, in a few years, will undoubtedly be the largest producing mining country in the world. The wise and liberal law of 1892 saved Mexico from • national bankruptcy, and started it upon a career of prosperity which is entirely without precedent, except, perhaps, in the development of the South African gold- fields. The following table, taken from a government publication, is a convincing demonstration of the influence of wise legisla- 4 A SYNOPSIS OF THE MINING LAWS OF MEXICO. tion upon the progress and growth of the mining industry. It refers to the silver-product of Mexico only ; but the figures for gold would show an even more flattering increase : Quinquennial of Fiscal Years. Silver. Exportation of Ores, Bullion, Mexican Coin. Annual Average. Annual Aver age Increase. Legislation of the From 1880-81 to 1884-85 From 1885-86 to 1889-90 From 1893-94 to 1897-98 1126,771,390 167,993,780 267,417,591 $25,354,278 33,598,75653,483,518 Unification of the Legislation in the Republic. Mining Code of 1884 $ 8,244,478 19,884,762 Law of 1892— In The fundamental part of the Mining Law of Mexico is con tained in a little pamphlet of one hundred and nine pages, which can be obtained at the Fomento Department free of charge. The contents of this pamphlet comprise the Mining Law of June 4, 1892, with its Regulations, and the Mining Tax Law of the same date (also with its Regulations), and a few Circulars and subsidiary Laws. These Laws are, in effect, the fundamental portion of the Mexican Mining Code at present in force ; but the whole body of legislation which affects the rights of miners, and especially foreign miners, in this country is very much greater. We have : The Mining Law of June 4, 1892. The Regulations thereto. Thirty-four Explanatory Circulars, with Rulings of the Fo mento Department. Law of October 31, 1892. Decree of December 31, 1892. Law of June 4, 1894. Law of December 13, 1897. Law of June 3, 1898. The Mining Tax Law of June 6, 1892. The Regulations thereto. Thirty-nine Circulars, with Rulings of the Treasury and Revenue Stamp Department. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 5 Law of Taxes and Duties upon Precious Metals of March 27, 1897. Regulations of said Law. Tariff of said Law. Besides which, many references are made to : The Civil Code of the Federal District of Mexico. The Code of Civil Proceedings of the same. The Code of Commerce of the Mexican Republic. The Foreign Law of 1856. The Foreign Law of 1886, and The Federal Constitution of Mexico. In the present synopsis, the more important of the above laws have been carefully digested, and their provisions have been arranged in as orderly a manner as possible under the seven teen different heads, or sections, into which I have divided the subject as shown in the table of contents prefixed to this paper. I. Mineral Substances. The Mining Law of Mexico divides all mineral substances into two classes. The first class contains such substances as may not be worked without a previous concession, and the second class such sub stances as belong to the owner of the soil and may be worked without a concession. The substances for whose exploitation it is indispensable, in every case, to obtain a proper mining concession are the fol lowing : A. Gold, platinum, silver, mercury, iron (except bog-ore, alluvial ore and ochres mined for coloring material), lead, cop per, tin (except placer tin), zinc, antimony, nickel, cobalt, man ganese, bismuth and arsenic, whether all these substances are found in the native state or mineralized. B. Precious stones, rock salt and sulphur. (L. min., Art. 3.) The substances whieh the owner of the soil where they are found in place may exploit freely, and without the necessity of a special concession in any case, are the following : A. Mineral oils and mineral waters ; the country-rock, which is to be used either for itself directly or as raw material for ornamentation and construction; the materials of the soil, as earth, sand and clays of all kinds. 6 a synopsis of the MINING LAWS OF MEXICO. B. In general, all 'other substances not before excepted. (L. min., Art. 4.) H. The Exploitation of Mineral Substances. The exploitation of mineral substances, whether those that are subject to concession or whether those that belong to the owner of the soil where they may be found, is subject to all the regulations that may be established for police and security.* After said regulations have been complied with, the miners shall enjoy the most complete liberty of industrial action, to work in the manner which may suit them best, — with activity, more slowly, or suspending their labors for a greater or less time. They may employ in their workings any number of workmen they may choose and at the point which they may believe to be most appropriate, and they may follow the systems which they may find most convenient for their private interest for removal, extraction, drainage and ventilation. Notwithstanding, the mine-owners stand responsible for any accidents that may occur in the mines through bad working, and must pay the damages and losses that may be occasioned to other proprietors for lack of drainage or for any other cir cumstance that may injure the interests of other parties. (L. min., Art. 23.) The exploitation of mine products shall be strictly confined within the respective boundaries, and these boundaries can only be passed when the ground is free, and a previous concession of amplification must be obtained. In order to enter any other person's claims it is absolutely necessary to have the consent of the owner, except in the case of a legally established servitude. (L. min., Art. 8.) No exploitation of the substances which are subject to con cessions shall be permitted in mines or placers, whether by open cut or subterranean workings, unless protected by a duly registered legal title. (R. L. rain., Art. 43.) Whenever it becomes necessary to open any drainage-tunnel in a given locality, the execution thereof shall be carried into effect according to a private contract between the interested parties. See Sect. XHL, of this Synopsis. * No such regulations have as yet been established (October, 1901). A SYNOPSIS OF THE MINING LAWS OF MEXICO. 7 III. Mining Property and Mining Claims.- Mining property legally acquired is irrevocable and per petual as long as the Federal tax upon property is paid. (L. min., Art. 5.) The primordial title-deed of all mining property acquired according to the laws now in force is that which is made out by the Ministry of Fomento by virtue of the powers conferred by said laws. (L. min., Art. 6.) Mining property, except in case of placers or superficial de posits, is understood to be only with respect to the subsoil, and not to the surface. The owner of the mine must come to an agreement with the surface owners for such part of the surface as the mine-owner may need to acquire for mining purposes, as below. The surface continues under the ownership of its proprietor, except in -such part thereof as the miner needs to occupy in certain cases and conditions. (L. min., Art. 7.) The water which is raised to the surface by virtue of the subterranean workings of mines belongs to the owner of the latter. The provisions of the common laws must be observed as far as relates to the rights of the owners of the lands over which said waters take their course. (L. min., Art. 9.) Whenever the owner of any mine shall transfer the same, he must give notice thereof, in writing, to the Principal Local Administration of the Revenue Stamp Tax, through the cor responding subordinate office or agency. Said Principal Administration shall give account thereof to the Secretary of the Treasury, to be duly noted in the register. (L. imp., Art. 8, and R. L. imp., Art. 27.) The same notice must be given in the case that any person or company does not desire to continue with the property of any mine or mines which may have been acquired. (L. imp., Art. 8, and R. L. imp., Art. 27.) The default of payment of the Federal tax constitutes at present the only cause of the loss of mining property, without any recourse. In this case the mining property remains free from all en cumbrance, and may be conceded to the first applicant. (L. min., Art. 29, and L. imp., Art. 6.) 8 A SYNOPSIS OF THE MINING LAWS OF MEXICO. Mining property is classed as real estate,* but' mining stock is personal property. The unit of a concession, which is a mining claim (perte- nencia), is a solid of indefinite profundity. It is limited on the exterior by that part of the surface of the ground which serves as the projection of a horizontal square of one hundred meters on each side, and on the interior by the corresponding four ver tical planes. The pertenencia is indivisible in all contracts made as to mining concessions, and which affect the ownership of the same. (L. min., Art. 14.) A fractional part of a claim cannot be the subject of a mining concession, unless it is found between other claims already con ceded. (L. min., Art. 15.) Those mines which may have been at work or legally pro tected from the necessity of being worked at the time when the Mining Law of June 4, 1892, commenced to be in force, shall preserve their claims with such measurements as they may .have, if the owners so desire it, even though said measure ments should be different from the new measurements now established. (L. min., Art. 4, transitory.) Mining concessions may take in, whenever there is sufficient free ground, whatever number of claims may be applied for, without taking into consideration whether the applicants are one only or several — whether these constitute a company or not; and as many claims may be acquired as may be desired. (L. min., Art. 15, and C. Fom., July 1, 1892.) The marking off and measurement of the claims on the ground does not imply any right to the occupation of the lat- ter, and only serves to show the boundaries of the mining con cession. The applicant should thoroughly understand that he must agree with the owner of the land for the acquisition, whenever he may so wish, of such a part of the surface as he may need to occupy for the dependencies of his mining works, or of the whole of the surface marked oft into claims (in the case of placers or superficial deposits). This acquisition may be through mutual agreement and in * By inference and precedent only ; the law does not say so expressly. A SYNOPSIS ' OF THE MINING LAWS OF MEXICO. 9 accord with the owner, or by expropriation, by promoting the corresponding judicial decision. (R. L. min., Art. 40.) See Expropriation ; Sect. XII. of this Synopsis. Applications for mining concessions in which interrupted (separated) claims are asked for shall be admitted whenever said claims are all in the same municipality and on the same mineral deposit; but in the case of being in different munici palities or on different mineral deposits, separate applications must be presented with reference to each claim or group of claims in each separate mineral deposit or municipality. (C. Fom., October 31, 1899.) IV. Prospecting for Minerals. Any inhabitant of the Republic may undertake exploration work on public lands by giving notice thereof, in duplicate, to the local Mining Agent, in which notice shall be accurately laid down the boundaries of the zone of exploration. The Agent shall return one duplicate notice to the explorer, after endorsing thereon the day and the hour of the presenta tion thereof, and shall notify the explorer that in case of making excavations there they shall not exceed ten meters of extension, neither in length nor in width. (L. min., Art. 13, and R. L. min., Art. 10.) In those localities of the Republic which are not compre hended within the district assigned to any Mining Agent, the notices and vouchers for prospecting permits shall be presented to the local postmaster, who, in this case only, may receive said documents, and shall note on them the day and hour of pre sentation ; and, besides,' he shall give immediate notice to the Ministry of Fomento by mail and by telegraph, if there is one. (R. L. min., Arts. 48 and 49.) Upon lands belonging to private owners, prospecting can only be done by the permission of the owner or of his representa tive.* These persons, if they consent, must give to the pros pector a proper voucher, with an indication of the boundaries of the lands where the prospecting is to be done. This voucher is to be presented to the Mining Agent, so that he may take * Prospecting on private lands can only be done by permission of the owner, but soliciting a mining concession (denouncing a mine) on such lands does not seem to need any permission. 10 A SYNOPSIS OF THE MINING LAWS OF MEXICO. note thereof and return it to the prospector, after having noted thereon the day and hour of the presentation. (L. min., Art. 13, and R. L. min., Art. 11.) If the necessary .permission cannot be obtained from the owner or his representative, the prospector may apply for it to the local Mining Agent, offering a bond for the damages and losses that may be caused. The application shall be on view for the owner of the land for the term of fifteen days, and he shall be notified that unless he puts in an objection he will be held to be a consenting party thereto. When the above.term has expired the Mining Agent shall give the proper decision, and, if necessary in any case, shall fix the amount of the bond after a careful estimate of the damages which truly and positively may be caused to the owner of the land, so that the bond may not be excessive. When the bond has been drawn up the Mining Agent shall give to the prospector a proper voucher, with a description of the boundaries of the zone of exploration. (L. min., Art. 13 ; R. L. min., Art. 12; and C. Fom. of July 1, 1892.) During the peremptory term of three months, counted from the date of the notice, of the permit, or of the administrative decision just referred to, the Mining Agent shall admit for the prospecting zone, and within the limits thereof, only such appli cations for a concession as may be presented by the prospector himself. (L. min., Art. 13, and R. L. min., Art. 13.) In those cases where the Mining Agent may receive an expert report, under the responsibility of its author, in which the existence of subterranean gold-placers is indicated, the term of exploration maybe lengthened up to one year. The rest of the proceedings shall be the same as for other prospecting permits, except that the shafts to be opened for prospecting may be as deep as may be necessary. (Law of November 13, 1899, Art. 1.) The lengthening of the term of exploration for subterranean' gold-placers is not to prevent the admission of applications for mining concessions, according to the laws in force, within the limits of the zone of exploration, to exploit deposits of any other minerals. (Law of November 13, 1899, Art. 2.) The Mining Agent will be careful to publish, on his Bulletin A SYNOPSIS OF THE MINING LAWS OF MEXICO. 11 Board, a copy of the prospecting permit, notice or administra tive decision, and must indicate, at the end of the respective copy, the exact -dates on which the exploration should com mence and terminate. (Law of December 14, 1897, Art. 2.) When the peremptory term above noted has expired, no new prospecting permits shall be admitted to registry for the land explored, nor shall any prospecting notice be admitted with respect to the same ground, until after the expiration of six months, during which time the ground in question shall re main entirely free for applications for mining claims situated therein. Within mining camps, where there are properties in posses sion, prospecting shall only be done on ground which is at least 200 meters from the boundaries of the claims or in abandoned mines. In every case the prospector must clearly and precisely desig nate the situation and boundaries of his ground. (Law of December 14, 1897, Art. 1.) Inside of private edifices and their dependencies, prospecting can only be done by permission of the owner. Prospecting is not permitted near the nucleus of any town, but only at the distance of fifty meters from the exterior lines of public and private residences and their dependencies. The same distance shall be observed with respect to any other public work or construction, but may be reduced to thirty meters from the exterior lines of common roads, railroads and canals. As far as relates to fortified, points, the minimum distance at which mining exploration can be carried on shall be one kilo meter, starting from the exterior line of the works. (L. min., Art. 13, and R. L. min., Art. 14.) According' to the General Custom House Ordinances, Art. 452, such persons as may arrive fromf oreign parts to prospect for lands or mines, and who bring with them wagons, carriages, tools or instruments for prospecting, and who may solicit per mission to enter the country therewith, may obtain the same from the Secretary of the Treasury, at his discretion. Such parties must give a bond, to the satisfaction of the local Custom House Administrator, to cover the amount of duties that may be determined at the time of arrival, and which must be paid 12 A SYNOPSIS OF THE MINING LAWS OF MEXICO. if the re-exportation of the goods is not made within the time fixed by the Treasury Department. V. The Ministries of Fomento and Hacienda. This first is generally called, in Spanish, " Secretaria de Fo mento." Fomento means " encouragement " in English, as nearly as it can be translated. Some later translatots call it the " Department of Public Promotion," but there is no justi fication for using the word " Public," although the word " Pro motion " is a passably fair translation of Fomento. The Ministry of Hacienda corresponds to the Treasury De partment in the United States. Hacienda, in this connection, means everything relating to public revenue and expendi ture ; in a more restricted way, it means the wealth of any in dividual; specifically, a plantation or farm. The mining industry in Mexico is by law dependent upon the Ministry of Fomento. Said Ministry, as a branch of the powers vested in the Executive of the Union, may decree such measures as it may judge proper for increasing the prosperity of the mining industry, and shall watch over the fulfillment of the laws relative thereto, by means of the engineer inspectors of mines. (L. min., Art. 30.) The said Ministry must pronounce on every docket of a mining concession the final decision corresponding thereto, and must issue the primordial title-deeds of mining property. The said Ministry should publish every six months, in the Diario Oficial of the Federation, a list of the title-deeds which have been issued during said period. (L. min., Art. 6, and R. L. min., Arts. 16 and 50.) Every time that the Ministry of Fomento issues a title- deed, a detailed account must be sent to the Secretary of the Treasury of the concession to which said title refers. (R. L. min., Art. 37.) The immediate control of mining affairs in the Ministry of Fomento is committed to Section Third, which is, in fact, a Central Mining Office. The Secretary of the Treasury, in its mining branch, has charge of the collection of the revenue stamp tax, of the an nual mining tax, the coinage tax and the assay fees, etc., and of the exportation of the precious metals. a synopsis of the mining LAWS OF MEXICO. 13 The Treasury Department may, whenever it shall consider it equitable and convenient to do so, modify the rule by which the annual mining tax is to be paid. in the local Principal or Subordinate Administration of the Revenue Stamp Tax. Note. — Mining taxes are frequently allowed to be paid in Mexico City, or in some other central locality, when not convenient to pay them in the district where ' the mine is located. In such a case the Treasury will give notice thereof to the General Administra tion of the Revenue Stamp Tax, so that this office Juay communicate the same to the principal local stamp tax office where- the mine is situated. (E. L. imp., Art. 20.) The Treasury Department may grant a special concession to metallurgical companies to have their products assayed, and the taxes thereon liquidated, in their own establishments. (R. L. met. prec, Art. 1.) The Treasury shall determine the compensation of public officers who sell stamps. (R. L. met. prec, Art. 1.) The Treasury shall designate certain government offices, banks or commercial houses on which drafts may be drawn to pay for bullion purchased by the Treasury for coinage pur poses. Also, the Treasury shall fix the term in which said drafts shall be payable. (R. L. met. prec, Art. 20.) The Treasury may fix the minimum value per ton which is to serve as the basis for drawing up bonds for the exportation of precious metals and substances containing them. (R. L. met. prec, Art. 35.) The Treasury may make special regulations for the transpor tation of metals and minerals within the zones of twenty kilo meters along the coast and the frontiers. The Treasury may modify or condone any administrative penalties. (R. L. met. prec, Art. 34.) VI. Mining Agents. The primary authority of the Executive, represented by the Ministry of Fomento, is delegated to certain officials called Agentes de Minerid, or Mining Agents. The Mining Law prescribes that the Secretary of Fomento shall appoint in such mining districts where, in his judgment, it may be necessary, special Agents dependent on his Depart- 14 A SYNOPSIS OF THE MINING LAWS OF MEXICO. ment. These Agents shall receive and put through the proper course all applications for mining property and surplus ground that may be presented to. them, and shall exercise such other functions as may be designated for them in the law and regu lations. (L. min., Art. 16, and R. L. min., Art. 1.) An Agent of the Ministry of Fomento must be a Mexican citizen in full possession of his rights, and he must not be exercising any office of authority in the State or Territory where he belongs, nor in the Federal District. (R. L. min., Art. 3.) For the legal impediments of the Mining Agent, see below. At the time of appointing each Agent, the circumscription or the limits within which he is to exercise his office are to be designated, and the first boundaries, as well as any subsequent modifications of the same, shall be published in the Diario Oficial (official daily newspaper) of the Federation. (R. L. min., Art. 7.) For each Agent who may be appointed in any mining dis trict, there shall also be appointed such substitutes as may be required according to the amount of business in the district in question. Said substitutes must have the same qualifica tions as the Agents, and shall be the substitutes for the Agents in all temporary or permanent absences that may occur, as well as when, through legal impediment, th*e Agent is unable to act in any particular case, for any of which cases they shall be previously summoned by the proper Agent. (R. L. min., Art. .4.) The Agents, to exercise their office, should have a patent (despacho), with a stamp of ten dollars. When they forward this amount they must also remit "three dollars and twenty cents for the signatures and formalities of the patent. (C. Fom. of August 29, 1892; but this has been abolished by a recent enactment.) Whenever any Agent wishes to absent himself from his place of residence for less than eight days, he may do so by previously notifying his substitute to act. The substitutes do not need a patent ; forvthe discharge of their office, simply the appointment conferred upon them shall be sufficient. (C. Fom., November 28, 1892.) If the time of absence is to be longer than eight days, per- A SYNOPSIS OF THE MINING LAWS OF MEXICO. 15 mission should be previously obtained from the Ministry of Fomento, by notifying the cause of the absence and its duration, so that the ministry may resolve upon the proper course. (C. Fom. of November 20, 1892.) In case of death, or of serious illness which prevents the proprietary agent from summoning his substitute, the latter may proceed to exercise the functions of the Agent, of which he shall immediately advise the Department of Fomento by mail, and also by telegraph, if the latter exists. (R. L. min., Art. 6.) The functions of the Agents are administrative only, and are perfectly defined by the existing regulations as to mining. (C. Fom. of July 1, 1892.) In case of doubt about the application of the law or its regulations, the Agents must consult with the Ministry of Fomento. (R. L. min., Art. 1.) Agents have no right to accept more than the fee fixed by the proper Fee Bill, and they must consult the Ministry of Fomento with respect to the amount of their fees in any case not provided for in the Fee Bill. (R. L. min., Art. 8.) See Honorarios. The books kept by the Agents do not need other authori zation than that of the Ministry of Fomento. (C. Fom., Au gust 1, 1892.) The duties or obligations of the Mining Agents are : I. To make known to the public the place in which they attend to mining business and the hours they devote daily to said business, which business must not be interrupted except on Sundays and national holidays. (R. L. min., Art. 7.) II. To. give course to applications for mining concessions in the manner to be described under the head of Acquirement of a Mining Concession, Sect. VIII. of this Synopsis. III. To give course in the same way to the prospecting permits as is laid down under Prospecting, Sect. IV. IV. To proceed in case of withdrawal (desistimiento), am plification (ampliacion), reduction (reduccion), or correction (rec- tificacion) of claims, according to the rules laid down under Sect. IX. of this Synopsis. V. To remit to the Ministry of Fomento any information required. 16 A SYNOPSIS OF THE MINING LAWS OF MEXICO. It is expressly prohibited for the Agents to receive and keep on hand moneys intended for the payment of the annual mining tax. (C. Fom., April 12, 1892.) The Agents are responsible for the errors or omissions in the dockets (expedientes), if said errors or omissions are im putable to them. (L. min., Art. 19, and R. L. min., Art. 31.) Impediments. — A Mining Agent shall be deemed necessa rily impeded from acting officially in the following cases : I. In matters where he has an interest, direct or indirect. II. In cases in which are interested any of his blood relatives in direct line, without limitation of degrees, his collateral rela tives within the fourth degree, or his relatives by marriage up to the second degree, inclusive, in every case. III. When the Mining Agent or his relatives, as set forth, have a lawsuit pending of a like nature to the one in question. IV. Whenever there exist between the Mining Agent and any of the parties in interest intimate relations proceeding from some civil or religious function, sanctioned and respected by custom. V. Whenever the Mining Agent may be an actual partner, tenant or employee of some one of the parties in interest. VI. Whenever the Mining Agent has been tutor or guar dian of one of the interested parties, or is actually administra tor of the property of such person. VII. When the Mining Agent is heir, legatee or beneficiary of one of the parties in interest. VHI. When the Mining Agent or his wife or his children may be debtors or bondsmen of any of the interested parties. IX. When the Mining Agent may have been lawyer, attor ney, expert or witness in the matter in question. X. If he should be related by blood or marriage to the lawyer or attorney of any one of the interested parties in the degrees expressed in Sect. II. (R. L. Min., Art. 5, and Code of Commerce, Art. 1132, Sects. I. to IX., and XII.*) In case of death, or of serious illness which may prevent the proprietary Mining Agent from summoning his substitute, the latter may enter into the exercise of his functions and * These are the articles of the Code of Commerce relating to the impediments (disqualifications) of Judges of First Instance. A SYNOPSIS OF THE MINING LAWS OF MEXICO. l7 must give immediate notice to the Minister of Fomento by post, and by telegraph, if there should be one. (R. L. Min., Art. 6). Honorarios [Fees] . — The Mining Agents of the Ministry of Fomento are authorized to charge fees according to the regu lar Fee Bill. (L. min., Art. 16.) This Fee Bill is as follows : I. For_ endorsing proprietors' prospecting permits or notices and registry of the same, one dollar (peso). II. For the procedure and issuing of the prospecting permit issued by the Mining Agent when the proprietor refuses con sent, two dollars. IH. For the registry of each application for a mining con cession or amplification and rectification of mining claims and for the registry of the same, one dollar. IV. For the notices, summons and summary of dockets, at the rate of twenty cents for every ten lines or fraction thereof, and, besides, ten cents for the examination of each one of the leaves which are contained in the dockets and other documents to be included in the summary. V. For the writing, comparison and countersigning of the certified copies, and for other copies, at the rate of one dollar for each 100 lines or fraction thereof. VI. For the search for dockets or for any other documents in the archives, one dollar. When the parties in interest do not furnish sufficient data and the search must be made among documents corresponding to more than one year, one dollar for each year of the search. VII. For each kilometer of going and for each kilometer of return, when traveled for the performance of any official duty, twenty-five cents. •VIIL For ocular examinations or exterior inspections, and making a report thereof, five dollars. IX. For inspections, official visits or examinations, in work ings underneath the surface, five dollars for every 100 meters ¦ of depth, or fraction thereof, to which said workings extend, and five dollars for the report thereon. X. For presence at meetings which do not exceed one hour of duration, three dollars ; and for every hour or part of an hour over that time, one dollar. (R. L. min., Arancel.) 2 18 A SYNOPSIS OF THE MINING LAWS OF MEXICO. By a Circular of Fomento of September 1, 1892, the Mining Agents are authorized to charge one dollar for the comparison and countersigning of the plans presented by the expert sur veyor, and the same for the comparison and countersigning of the copies of plans which may be copied from the archives of the Mining Agency by the parties in interest. The Mining Agents only have a right to charge the above- named fees, and should consult with the Ministry of Fomento as to what should be the amount of their fees corresponding to cases not provided for by the Ministry. (R. L. min., Art. 8.) The default in the payment of fees, if attributable to either applicants or opposers, implies for the first that they have de sisted from their application for a concession, and for the second that they are to be considered as having desisted from their opposition and as consenting to all the claims which have been brought forward by the applicant. (R. L. min., Art. 36.) VH. Mining Surveys and Mining Surveyors. The measurement and laying out of mining concessions is to be done by graduate experts, or by practical experts if gradu ate experts are not at hand. The Mining Law requires that within the three, days next following the presentation and registry of an application for a mining concession, the Mining Agent must appoint a gradu ated surveyor expert, or, if none such is to be found in the place, a practical expert, who shall measure the claims and gores applied for and draw up the corresponding plan, marking clearly thereon the monuments (landmarks) of the claims or gores aforesaid, as well as the contiguous claims within a zone of at least 100 meters all around. The Mining Agent may appoint the expert indicated by the applicant whenever said experthas the necessary qualifications. (R. L. min., Art. 19.) The expert, within eight days after his appointment, must notify the Agent whether he accepts or declines the appoint ment ; and, in the former case, that he has already made an - agreement with the applicant with respect to the payment of the fees. The Mining Agent shall make the corresponding note thereof on the docket. By desire of the applicant, the above term of eight days may A SYNOPSIS OF THE MINING LAWS OF MEXICO. 19 be prolonged by the Mining Agent, one single time only, for the same number of days more. (R. L. min., Art. 20.) At the time of making the note of the acceptance of the ex pert, the Mining Agent shall fix for the expert a peremptory term of sixty days to present, in triplicate, the corresponding plan, accompanied by a detailed report; and he shall deliver to the expert a certified copy of his appointment, canceling there upon a revenue stamp of ten cents for each leaf. The said copy shall conclude with the admonition that whoever may re sist the performance of the field work which the said surveyor has to carry on will be in danger of the penalties laid down in the law. If the surveyors, in the performance of their work, actually meet with resistance, they shall demand the assistance of the public forces. It has been expressly declared that surveyors, during the discharge of their duty, have the character of executors of a legitimate order of a public authority. (R. L. min., Art. 24, and C. Fom., July 6, 1892.) The surveyor experts must pay attention to whatever ob servations may be made to them by the applicant (for the con cession they are measuring), and by those who have opposed the application for the concession, or who propose to oppose it. But they are not to express any opinion upon the observa tions, except in the explanatory report which they must present to the Mining Agency. The presentation of said report within the peremptory term fixed by law is a personal responsibility of the experts, who shall be . charged with all the loss and damages that may be caused by any default in the presentation of said document. (R. L. min., Art. 25.) The operations on the field to be practiced by the duly ap pointed surveyor expert shall be executed in such a manner that, by means of the necessary scientific processes, there shall be determined the horizontal lengths of the sides of the claims, and the angles formed by the aforesaid sides with the true meridian. For this purpose the surveyor experts shall determine the magnetic declination of the compass, if that instrument is used to measure the courses of the sides. 20 A SYNOPSIS OF THE MINING LAWS OF MEXICO. Effort shall be made to refer some one of the vertices of the perimeter to fixed points found on the ground, and all the necessary data shall be collected for the verification of the work. Landmarks. — The marking of mining claims upon the sur face of the ground shall be made by means of monuments or landmarks, which must fulfill the following requisites : I. They must never be changed from their position, since they are intended to mark points that are essentially invariable as long as the claims or concessions which they define continue unchanged. They are to be solidly constructed, and must always be preserved in good condition, making such repairs as may be necessary. II. They must be situated in such convenient number and place so that, in every case, from any one of them can be seen the former and the following one. By their form, color, or in some other way, they must be distinguished from neigbor- ing landmarks. Bearing in mind the foregoing instructions, the mining sur veyor appointed by the Mining Agency shall mark upon the ground the points where the landmarks are to be placed. The surveyor shall also mark these points on the corresponding plan which he may draw up. (R. L. min., Arts. 3, 8 and 19.) In case that an increase of the number of claims in any mining concession shall be applied for, the landmarks must be placed upon the boundary-lines of the new property in accord ance with the directions already given. The same shall be done whenever there is a remeasurement (rectification) or a reduction of the number of claims. (C. Fom., September 3, 1892.) Plans. — The plans of the claims shall be neatly and accu rately drawn, on strong paper, for the preservation of the docu ment, but the copies may be taken on tracing-cloth. The scales must always be decimal and proportionate to the object of the plans. The plans must show the length of the sides in meters, the directions of the same with reference to the true meridian the declination of the compass used, with the date on which this was determined, and the area in hectares. (R. L. min. Art. 39.) A SYNOPSIS OF THE MINING LAWS OF MEXICO. 21 The surveyor appointed to measure any concession must pre sent his plans to the Mining Agency within the peremptory period of sixty days, under his own strictest responsibility. The plan must be in triplicate, showing the claims or gores that have been applied for, as well as the neighboring claims within a distance up to 100 meters. One of the three plans (on strong paper) is to be placed in the docket, and the other two are regarded as copies thereof. All three must be compared and countersigned by the Mining Agent before the first plan is remitted to the Ministry of Fomento with the docket. (C. Fom., September 1, 1892.) The plans and reports relative to mining concessions do not need revenue stamps. (C. Fom., October 19, 1892.) In case the parties in interest should solicit copies of any plans existing in the archives of the Mining Agencies, the parties or persons designated by them for that purpose shall be permitted to make such copies on the premises of the Agency. (C. Fom., September 1, 1892.) The responsibility which is incurred by the bad execution on the ground of the work of marking out and measuring the claims extends to the graduated surveyor expert, as weU as to the simply practical experts. (C. Fom., July 1, 1892.) The law does not exact the presence of the Mining Agent, nor that of any other authority, at the act of marking off and measurement of the claims. Hence, the applicants will not have to pay the costs which were formerly to be paid for said presence. The want of said presence does not take away the neces sary legality of the act, which is fundamentally a technical operation, and does not imply the occupation of property nor the infringement of any rights, which latter are guarded by the provisions of the law and its regulations. (C. Fom., July 1, 1892.) The present mining law does not contain any fee bill for the payment of mining surveyors or experts, but there are in sev eral States enactments covering these points; and for cases where they are not covered, the judges frequently use the scale of fees contained in the general fee bill of February 12, 1840. 22 A SYNOPSIS OF THE MINING LAWS OF MEXICO. VIII. Acquirement of a Mining Concession (Denounce ments). The words " denounce " and " denouncement," as applied to mining affairs in Mexico, came into the. English language about 1827. H. G. Ward, in his book upon Mexico, published in 1827 or 1828, was the first or one of the first to use the term, and he defines it as follows: "To 'denounce,' in the Mining Code of Mexico, implies that process by which a legal right of possession is obtained to a particular portion of any vein, worked or unworked, known or unknown, which a miner chooses to select for his operations." The word is almost equivalent to " announce " in English, and has no opprobrious significance whatever. According to the anterior mining legislation of Mexico, the applications for mining concessions were called denuncios (de nouncements) ; but the term is no longer in legal use under the present law, although it is still commonly employed in collo quial language when discussing mining matters. With respect to denouncements, the Transitory Article 1 of the Mining Law of June 4, 1892, says : " All denouncements of mines or of demasias (gores) which are in course of* proced ure when this law commences to take effect shall continue to be in procedure, and the necessary decisions thereon shall be made according to the present law." Any inhabitant of the Republic may apply for a mining con cession. See Foreigners and Foreign Companies, Sect. XV. of this Synopsis. The law concedes complete liberty with respect to the num ber of claims* that may be applied for in any case where there is sufficient free ground, without taking into account whether the applicants are one or several ; neither if they constitute a partnership or company, or not. (L. min., Art. 15, and C. Fom., July 1, 1892.) With exception of the case in which the claims applied for are situated in ground subject to exploration, mining conces- * This clause has been woefully abused in practice, as there are many persons in the Eepublic who have made and are making immense denouncements solely for the purpose of keeping mining ground tied up, and up to the present time the efforts of the Government to prevent this have had no decisive result. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 23 sions are always to be conceded to the first applicant. (L. min., Art. 15.) \ See Mineral Substances, Sect. I. of this Synopsis, for a list of the substances for whose exploitation a concession is necessary. Every application for a concession to mine any of the sub stances which the owner of the soil is free to exploit shall be quashed at once. (R. L. min., Art. 44.) Applications for the concession of mining claims or gores must be presented in duplicate to the proper Mining Agent. Applications must express with entire clearness the number of claims that are asked for, the situation that these occupy on the ground, the location of the ground in the municipality to which it belongs, with the most notable natural signs by which the claim can be identified, and the designation of the mineral substance which it is proposed to mine. H, in the opinion of the Agent, there should not be sufficient clearness, he shall try to secure the same by questioning the applicant himself, and entering all his answers upon the appli cation on the duplicate thereof, and in the registry book of the Mining Agency, in presence of the interested party. But inability on the part of the applicant, or his refusal to give explanations, shall not be a motive for not making the registry, nor for the suspension of the rest of the procedure. (R. L. min., Art. 15.) Any applications for mining concessions that are made in the name of a third party may be admitted, always provided that the applicant who presents himself in that manner will give a bond, and will promise to produce a legal power of attorney in proper form, at latest within the period of sixty days, which is to be allowed to the expert to present his plans and report. If said period is allowed to pass without the production of the power of attorney, it will be at the prejudice of the interested party. (C. Fom,, October 15, 1892.) Attorneys should be appointed by a power of attorney in legal form, if it is desired that the Ministry of Fomento shall deliver the titles to a property to the attorney.* Notwithstanding, and to avoid complications, the interested * A power of attorney in' due form is required, for the purpose of obtaining prompt action upon a mining title before the Fomento Department. 24 A SYNOPSIS OF THE MINING LAWS OF MEXICO. parties may, in their original application, or in a separate appli cation to the Minister of Fomento, designate a person to whom the titles are to be delivered. (Especial ruling of Minister of Fomento.) It is not indispensable that in every case the applicant for a mining property must have an attorney or representative in the City of Mexico to receive the titles of a property. As soon as the papers are approved and the necessary stamps provided, the titles will be sent to each interested party, without any expense to him. (C. Fom., July 1, 1892.) On October 31, 1899, a circular (No. 32) of the Ministry of Fomento was issued, which states that cases have been very frequent where applications for mining concessions have been presented with the deliberate object of preventing other per sons from taking up the same ground ; and for the furtherance of this object a large number of pertenencias (claims) are asked for, or the number is not designated, as the documents simply claim the whole of a municipality, of a district, or of the juris diction of a Mining Agent, etc. The circular then proceeds to explain the provisions of Ar ticle 15 of the Mining Law Regulations, and enjoins that the applications for mining concessions must carefully and exactly comply with Article 3 of the Mining Law of June 4, 1892, and of Article 15 of the Regulations. According to this circular, the applications must contain : 1. The number of claims (pertenencias) to be included in the concession, clearly and precisely stated. 2. The situation which these claims have on the ground. 3. The location of the ground in the municipality. 4. The most notable natural marks by which the ground applied for can be identified. 5. The designation of the mineral substance which is pro posed to be mined. 6. The nature and situation of the deposit in which the min eral is found, for which purpose it must be stated whether the mineral deposit is a vein, a blanket deposit, a placer or has some other form. 7. Mention of the place or places, within the boundaries of the local Mining Agency, where the mineral deposit may be examined; designating the most notable landmarks by which the mineral deposit may be identified. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 25 In case the application does not duly satisfy all these requi sites, it cannot be admitted nor registered. If the above requisites are fulfilled, the Mining Agent, if still in doubt, may interrogate the applicant, and shall note his answers on the application, on the duplicate, and in the Registry Book of the Mining Agency, in presence of the interested party ; but the proceedings must go on, if the above requisites are fulfilled, even if the party cannot give explanations, or even if he refuses to do so. The Mining Agent shall call the attention of the Ministry of Fomento, when the docket* is sent on, to the questions that were asked and the replies thereto. Applications for mining concessions in which interrupted claims — i.e., claims not consecutive — are asked for shall be ad mitted whenever all the claims are in the same municipality and upon the same mineral deposit. In case of being in different municipalities, or upon different mineral deposits, separate applications must be presented with reference to the claim or claims which are situated in each separate mineral deposit or municipality. In every case the applications must contain all the requisites above referred to, so as to be admitted. (C. Fom., October 31, 1899.) A fifty-cent revenue stamp is required on every leaf of the application. At such points of the Republic as may not be comprehended within the district assigned to any Mining Agent of the Min istry of Fomento, applications for mining concessions may be presented to the local postmaster, who, in such a case, shall receive them and take note thereof, designating the day and the hour of presentation. The postmaster must also give immediate notice to the Min istry of Fomento by mail, and also by telegraph, where there is one. (R. L. min., Arts. 48 and 49.) As soon as any application for a mining concession is pre sented to a Mining Agent, he shall proceed immediately to register the same, in the presence of the applicant, with an entry * "Docket" is the best English equivalent lean find for the Spanish word Expediente. 26 A SYNOPSIS OF THE MINING LAWS OF MEXICO. of the day and the hour of presentation, as well as the ordinal number of the docket relative thereto, in the special registry book for applications for mining concessions, and also at the end of the application itself, and upon the duplicate thereof. Said registry book is to be paged and countersigned by the Ministry of Fomento. The applications shall be registered in the exact order of the date and hour in which they may be successively presented, without leaving any blank spaces in the book between the different registrations. (R. L. min., Art. -17.) When an application has been admitted, no other can be re ceived for the same site until after the Ministry of Fomento has entered a final ruling on the docket belonging to said con cession, whether for full mining claims or gores. (R. L. min., Art. 16.) In case of the simultaneous presentation of two or more applications for concessions of mining claims or gores for the same site, lots shall be drawn in the presence of the interested parties, to decide which of the applications is to be admitted and registered. (R. L. min., Art. 18.) Within the three days following the presentation and registry of any application for a mining concession, the Mining Agent shall appoint a graduated mining expert, or, if there are none in that locality, a practical expert, to measure the claims or gores, and draw up the corresponding plan thereof. (R. L. min., Art. 19.) See Sect. VII. of this Synopsis. Within the eight days following the appointment of the sur veyor expert, he must communicate to the Mining Agent his acceptance or rejection of the appointment, and, in the first case, that he is already in accord with the applicant for pay ment of his fees. The Mining Agent shall enter the proper note thereof upon the docket. Said term of eight days may be prolonged by the Mining Agent once, for eight days more, if desired by the applicant (R. L. min., Art. 20.) When the Mining Agent enters the note of the acceptance of his appointment by the surveyor expert,' he shall designate for said expert a peremptory term of sixty days to conclude and present his documents. At the same time the Mining Agent must give the expert a certified copy of his appointment. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 27 The Mining Agent shall then proceed to make out in dupli cate a summary. One copy of the summary shall be posted upon the Bulletin Board of the Agency, and the revenue stamps for this announce ment shall be demanded from the applicant. Said copy of the summary shall remain affixed on the Bulle tin Board for one month, of which note shall be made on the docket. The publication of the summary has the effect of a summons to any one who may believe he has a right to oppose the application for the mining concession of which the summary treats. Opposition is only admissible during four months from the date of the summary, as posted on the Bulletin Board of the Agency. When the four months above noted have passed without op position being made, or if the opposition is not one of those which interrupt the procedure of the applications for mining concessions, or if the docket has been returned by the tribunals with a final sentence, favorable to the applicant: Within fifteen days next following any of the above, the Mining Agents, under their strictest responsibility, must make a copy of the docket, and send the same, with the copies of the plan, in a registered letter, to the Ministry of Fomento. If the applicant wishes to take charge of the delivery of said documents, the Mining Agent may deliver them to him, and shall notify the Ministry of Fomento. (R. L. min., Art. 34.) The Mining Agents cannot suspend the procedure of any mining concession for any motive whatever, unless in cases of opposition. (L. min., Art. 19). Stamps. — Applications for mining concessions must have a fifty-cent revenue stamp on each leaf. The reports made of mining surveys, with the plans, do not require revenue stamps, since stamps are not required on the plans themselves. Neither should stamps be used on the copies of the docket, because the original docket must contain the stamps provided for by law, and also because said copies are and should be regarded as official memoranda. (C. Fom. of October 19, 1892.) 28 A SYNOPSIS OF THE MINING LAWS OF MEXICO. The copies to be given to the mining expert surveyors of their respective appointments must have a ten-cent revenue stamp. (C. Hda. of October 29, 1892, and C. Fom. of Novem ber 12, 1892.) Applications for a reduction in the number of claims must have a revenue stamp of fifty cents on each leaf. (C. Fom. of November 13, 1892.) The prospecting permits made out unconditionally by private parties on their own lands do not cause any stamp tax ; but if they contain any conditions, of whatever nature, the permits shall be considered as contracts, and must have a revenue stamp of fifty cents per leaf. But the notice that must be given to the local Mining Agent before commencing prospecting work in public lands does not require, in any case, the use of revenue stamps. (C. Hda. of August 20, 1892, and C. Fom. of October 17, 1892.) However, such copies of the prospecting permits as may be published on the Bulletin Board of the Mining Agency must have, on each leaf, a fifty-cent revenue stamp. (C. Hda. of April 5, 1898.) Any default in the presentation of documents, affixing reve nue stamps, publications, payment of fees, attendance at con ciliatory meetings (juntas), and, in general, in any of the pro ceedings referred to above, which can be attributed to the applicants, will cause them to be held to have desisted from their application. The docket formed by reason of any application for a mining concession is forwarded, after having passed through the preliminary stages, as above, to the Ministry of Fomento. The docket is examined in the Ministry of Fomento, and, if approved, the making out of the title-deed will be proceeded with. The deed will be remitted to the Mining Agent for delivery to the interested party, together with one copy of the plan, sealed by the Ministry of Fomento. The Ministry of Fomento will send to the Treasury Depart ment a detailed notice of the concession as made. If the docket is not in form for approval, the proper obser vations thereon shall be made to the Mining Agent, so that the deficiencies as noted may be corrected within the term to be A SYNOPSIS OF THE MINING LAWS OF MEXICO. 29 fixed by the Ministry of Fomento, and whenever said de ficiencies are not to be attributed to the applicant or to the Mining Agent. ^ In the first case the applicant shall be declared as having de sisted through dilatoriness. The applicant declared dilatory cannot repeat the same appli cation. In the second case the responsibility of the Mining Agent shall be made effective if he has caused the delay in the pro cedure. (L. min., Art. 19, and R. L. min., Art. 37.) Applicants are not under the necessity of appointing a rep resentative (attorney in fact) in the Capital of the Republic to attend to the proceedings about the docket or to receive the title-deed.* The title-deed will be sent to the Agent for delivery to the applicant, if he has not already designated, in the application itself or in another special writing sent to the Ministry of Fo mento, some 'person in the Capital of the Republic who may receive the title-deed. (C. Fom., July 1, 1892, and a special ruling of the Ministry of Fomento.) When the title-deed has been made out in favor of the con cessionary, he enters at once in possession of his claim or claims without other formality. The title-deed produces all the legal effects of a transfer. (L. min., Art, 18, and C. Fom., July 1, 1892.) IX. Amplification, Reduction and Remeasurement of Con cessions : Withdrawal of Applications. Amplification. — The owners of any mining property may ask for an increase of the number of their claims, and for this purpose must subject themselves to the proceedings laid down for applications for a concession. The plan, which is to be drawn up by an expert in case of an increase of claims, shall include only the new claims which it is desired to acquire, showing the position of these with ref erence to the first property; the landmarks shall be placed upon the boundaries of the new concession. (R. L. min., Art. 42, and C. Fom., September 3, 1892.) * As to this, see note, p. 24. 30 A SYNOPSIS OF THE MINING LAWS OF MEXICO. The applicants for a mining concession may ask for an in crease of the number of claims therein before the publication of their application upon the Bulletin Board. The Mining Agents shall note this application for increase on the first application, on the duplicate thereof, in the Regis try Book of the Agency, and shall also publish the summary of the application with the proper correction. If the increase is desired after the publication of the sum mary, it will be necessary to withdraw the former application so that a new application may be at once presented. (C. Fom., August 1, 1892.) Reduction.— The reduction of the number of claims, applied for or in actual possession, must be solicited in writing, with a fifty-cent revenue stamp on the application. If the reduction is applied for before the publication of the summary, it will be sufficient to have the petition endorsed upon the original application, upon the duplicate, and in the Registry Book. The summary should be published as corrected, and there will be no necessity of making a new application. If the reduction is asked for after the publication of the sum mary, the original application must be desisted from and a new application presented. (C. Fom., August 1, 1892.) A reduction of the number of claims acquired under the new law does not require a new title-deed to the property The Mining Agent before whom the new application is pre sented, accompanied with the corresponding title-deed shall appoint an expert, who, at the expense of the applicant, and within a convenient term which the Mining Agency shall allow for the purpose, shall make a plan of the reduced property lTtiort l0°ate th6 neCeS8ary monuments according to Regu- A reduction of the number of claims can only be applied for during the four months time allowed as above, and counted from the date of the posting of the summary on the Bulletin Board (page 27), or after the issuing of the title-deed. (G Fom January 17, 1901.) *¦ •*om-> The Mining Agent shall also make a note of the reduction as asked for and as practiced, on the register of applications foi concession and on the title-deed of the property, which shall A SYNOPSIS OF THE MINING LAWS OF MEXICO. 31 be delivered to the interested party, together with a certified copy of the proceedings. The docket shall be terminated with the notice of the reduc tion, which should be immediately given to the local office of the Revenue Stamp Tax. In the case of a reduction of the number of claims acquired before the mining law of June 4, 1892, the procedure will be the same ; but ih this case the Mining Agent must conform to the provisions of the circular sent out by the Ministry of Fo mento on August 30, 1892. The Mining Agent must make due mention of all cases of reduction of the number of claims in the monthly report which he has to forward to the Ministry of Fomento. (C. Fom., Sep tember 3, 1892.) If the reduction of the number of claims should be made before the expiration of the term of four months, which the law allows for the completion of the docket relative to any con cession, it will not be necessary that the interested party should desist from his original application. In such cases the following procedure shall be observed : First. — If the application for a reduction should be pre sented before the surveyor expert has made the survey, the Mining Agent shall give notice to the surveyor, so that the sur vey shall be made in accordance with the desires of the party in interest. Second. — H the expert shall have already presented his re port, the Mining Agent shall make a new appointment, so that the reduction may be made at the expense of the applicant, and within a term which shall not exceed the time remain ing for the expiration of the four months allowed by law for the surveys. In either case the Mining Agent shall make a note of the re duction in the docket, and shall bring it to public notice by means of the official newspaper of the State, and by a notice on the Bulletin Board of the Agency. It is understood that the publication made in the newspaper shall be at the expense of the interested party. (C. Fom., No vember 20, 1893.) The time for the publication of the notice shajl be fifteen days. 32 A SYNOPSIS OF THE MINING LAWS OF MEXICO. New applications for the concession of ground now left free shall only be admitted and registered after the expiration of said term. The party interested in the reduction shall be obliged to pre sent to the Mining Agent, before the termination of the pro ceedings relative to his application, one copy of the official newspaper in which the proper publication has been made. If the reduction shall be applied for, and if" any requisite of the law or regulations has been uncomplied with in "the ante rior procedure, the Mining Agents shall note the circumstance in the docket relative thereto. The reduction shall not be pro ceeded with ; and, when the proper term has expired, the docket shall be forwarded to the Ministry of Fomento for the corres ponding decision relative thereto. (C. Fom., March 1, 1897.) Remeasurement.— Whenever a remeasuremeiit is applied for, it shall be subject to the same procedure and requisites as are determined for mining concessions. (R. L. min., Art. 42.) For the purpose of explaining the anterior provision of the law, the Ministry of Fomento, by circular of September 3, 1892, prescribed the following: In cases of rectifications, when it is only sought to repeat the measurement of the claims on the ground, in order to place them exactly in agreement with the title-deed, the procedure will be the same as for a new con cession, and the monuments, or landmarks, should be placed according to Regulations; but as the making out of anew title- deed is not required, the docket must terminate with the de livery, which the Mining Agent will make to the interested party, of a certified copy of the operations as practiced. But if the purpose of the rectification is to correct any errors that may exist in the title-deed, the law demands the drawing up of a new title-deed, and hence the entire proceeding is the same as for new concessions. Withdrawalof Application.— An application for a mining con cession may be withdrawn, after or before the publications by appearing in person or in writing. If the withdrawal is made before the publications, and bv appearance, it will be sufficient for the appearance to be spread- upon the docket, and the minute to be signed by the applicant ' for the docket to be placed in the archives. If the withdrawal should be made in writing, the document A SYNOPSIS OF THE MINING LAWS OF MEXICO. 33 shall be added to the docket, which shall then be placed in the archives. If the withdrawal should be made during the publication of the advertisements, these shall be taken down from the Bulletin Board of the Agency where they are being published, and the same procedure shall be followed as in cases of withdrawal by appearance or in writing, before publication. In the case of a voluntary withdrawal, when all the legal requisites have been complied with in the proceedings upon the docket, the Mining Agents shall proceed to make a proper publication thereof on the Bulletin Board for a period of fifteen days, and until this period is concluded no applications for a concession which may be presented, covering the same ground, shall be received or registered. H the application for a withdrawal shall have been presented in any case in which the requirements of the Law and of the regulations shall not have been fully complied with in the an terior procedure, the Mining Agents shall note the non-com pliance in the respective docket, the application for withdrawal shall not be acted upon, and when the time laid down in the regulations has expired the docket shall be remitted to the Sec retary of Fomento for an appropriate disposition of the same. (C. Fom., March 1, 1897, Sees. 3 and 4.) It should be noted that any omission in the presentation of applications, the supplying of stamps, publications or advertise ments, payment of fees, attendance upon hearings, and, in gen eral, the omission of any one of the proceedings prescribed for the obtaining of a mining concession or for making opposition thereto, whenever such an omission is imputable to the appli cant or to the opposers, will be the cause, for the applicants, of considering them as having desisted from their application for a concession, and for the opposers of considering them as hav ing desisted from their opposition and as being in conformity with the claims brought forward by the applicants. (R. L. min., Art. 36.) X. Proceedings in Opposition : Mining Litigation : Penal Jurisdiction. The publication of the summary in each case of application for a mining concession has the effect of a summons to all those 34 A SYNOPSIS OF THE MINING LAWS OF MEXICO. who may believe that they have a right to oppose the applica tion in question. (R. L. min., Art. 22.) Any opposition that is commenced against an application for a mining concession must be presented within the four months ensuing from the date of the summary, which is published in every case on the Bulletin Board. Apart from this, any opposition, to ' be admissible, must be founded upon one of the following motives : I. Nonconformity of the owner of the ground. H. Invasion of contiguous claims or gores. III. An anterior property in or application for the claims or gores now applied for, or some part thereof. (R. L. min., Art. 26.) If the opposition should be founded upon some other motive, different from the three just mentioned, the Mining Agent shall confine himself to aggregating the document to the docket, without suspending the course of the latter. (R. L. min., Art. 32.) When an opposition is presented by the owner of the ground, alleging that the mineral deposit in question does not exist, and if from the report of the surveyor expert it shall appear that there are indications of the mineral on the surface of the ground, or a prospect hole, or prospect work of any kind in the deposit itself, the Mining Agent shall decline to hear the opposition, and shall continue the proceedings on the administrative docket until their termination, so that the Ministry of Fomento may award to the applicant the property in question, which is under stood to be only that of the subsoil ; and, in any case, the area and price of that part of the surface to be occupied by the miner are always subject to a judicial decision. (L. min., Art. 20, and R. L. min., Art. 30.) In the case that theje are no indications of a mineral de posit on the surface of the ground, nor any prospect hole, or exploration of any kind, for the course to be followed, see under Expropriation, Sect. XII. of this Synopsis. The court will decide whether a mining concession is to be granted or not, and the decision may be appealed from. Except in the two anterior cases,, the Mining Agents shall suspend the proceedings upon applications for concessions whenever an opposition is presented thereto. (L. min., Art. 19.) A SYNOPSIS OF THE MINING LAWS OF MEXICO. 35 Whenever an opposition is presented, the Mining Agent shall advise the applicant thereof by means of a notice, during three consecutive days, on the Bulletin Board (of the Agency), giv ing the name of the opposer and of the applicant, and the ordinal number of the docket corresponding thereto. In this docket shall be made a note of said notice being published (R. L. min., Art. 27.) Except in the case that the applicant may present himself in the Agency to manifest that he withdraws his application, the Mining Agent shall order the document of opposition to be reserved until he shall receive the report and plan of the sur veying expert. (R. L. min., Art. 28.) On the same day in which the latter documents are received, the Mining Agent shall summon the interested parties (appli cants and opposers) to a meeting within the next fifteen days, by means of a notice on the Bulletin Board during three con secutive days, in which notice shall simply appear the number of the docket, the names of the interested parties, and the day and hour of the meeting. At the meeting the Mining Agent shall endeavor, above everything, to reconcile the dissentients and to avoid judicial questions. A note of all these points shall be made on the docket. (R. L. min., Art. 29.) If the Mining Agent does not cause an agreement between the interested parties, he shall suspend all proceedings and deliver the docket to the applicant, so that under his responsi bility, and within a prudent term to be fixed by the Mining Agent, said applicant shall present the docket to the local Judge of First Instance, to whom it may belong. (E. L. min., Art 31.) See below, in this Section. When the opposition has been presented after the plan and report of the surveying expert have been received, but before the expiration of the four months' term fixed by law, the above proceedings for an agreement shall be followed as far as appli cable, this being the only case, except that in which the docket is to be sent to the courts, in which the Mining Agencies may postpone the proceedings up to thirty-five days beyond the four months prescribed for the procedure in the docket, provided that the opposition shall be presented less than twenty days before the day on which the term of four months is to expire. (R. L. min., Art. 33.) 36 A SYNOPSIS OF THE MINING LAWS OF MEXICO. When the aforesaid four months shall have expired without any opposition appearing, or if the opposition is not one of those that interrupt the procedure, or if the docket has been returned from the Tribunals with a final sentence favorable to the applicant, the Mining Agency, under the strictest respon sibility and within the next fifteen days, shall make a copy of the docket, and shall remit the same, together with the copies of the plan, in a registered package, to the Ministry of Fo mento, unless the applicant prefers to take charge of the for warding of said documents, in which case the Mining Agency shall so inform the Ministry of Fomento. (R. L. min., Art. 34). Mining Litigation. — Any lawsuits about mining matters shall be carried on in the Federal District, or in the Federal Terri tories, or in any State, by the judges and tribunals which may there be competent, according to the provisions of the Code of Commerce, observing the rules laid down in Book IV., Title I., Chapter IX., of the said Code, with the condition that the preferential working expense, indicated in Article 1030 of said Code, Sec. II. , is the payment of the mining tax. (L. min., Art. 27.) Penal Jurisdiction. — The crimes and misdemeanors committed officially by the Mining Agents shall be tried before the Dis trict Judges (Federal Judges) acccording to the proper laws. Common crimes and misdemeanors committed in the mines shall be subject to the jurisdiction of the local judges, without prejudice to the power of the Federal authorities to impose a ministerial punishment. (L. min., Art. 31.) XL Metallurgical Works. The term hacienda de beneficio is applied most usually to mills where gold- and silver-ores are treated by amalgamation. The establishment and working of amalgamation-mills, as well as that of all classes of metallurgical-works, is governed by the provisions of the ordinary laws ; that is to say, by the same laws as apply to the establishment of any other kind of industrial or manufacturing business, and as relates to taxes thereon by the Law of June 6, 1887, Arts. 7 and 8. Said law provides that amalgamating-mills and metallurgical- works, when in operation, shall pay to the State where located A SYNOPSIS OF THE MINING LAWS OF MEXICO. 37 or to the General Government, if in the Federal District or in the Territories, as the only tax, which cannot be increased, up to six dollars per thousand upon the value of the buildings, with their machinery, and that every other tax, except the Stamp. Tax, is strictly prohibited. The products of metallurgical smelters, in the form of ar gentiferous lead, are exempt from exportation duties up to a content of 7 thousandths of silver, whenever it shall have been so specified in special contracts. The excess of silver over the above content shall be subject to the payment of duties. (C. Hda. of February 25, 1892.) Metallurgical establishments, working under prior contracts with the Government, in force on March 27, 1897, are excepted from the payment of the Coinage Tax upon the silver they may export directly, as long as the silver content of the argentiferous lead does not exceed 7 thousandths and the silver content of the argentiferous copper is not over 20 thou sandths. If these limits are exceeded, the said establishments must pay the Coinage Tax, upon the excess. This exemption only applies to the products originating in the establishments that have a franchise, but not to the products which these may acquire from other establishments. (L. met. prec, Art. 9.) Metallurgical companies may obtain a special concession from the Secretary of the Treasury to effect, in their own es tablishments, the presentation of the products intended for export, so that the local Federal officers may thereupon perform the assays and form the account of the taxes and duties to be paid. The establishments exempted, under contract, from the pay ment of Coinage Tax upon argentiferous lead and copper of a less amount than 7 and 20 thousandths of silver, respectively, must, when they employ the products of other metallurgical establishments, pay the 2 per cent. Coinage Tax upon the total value of the silver contained therein before such products are employed for subsequent operations. The origin of their products must be proven by metallurgi cal establishments at the Custom House or in the Government assay offices, in the manner laid down by law. (R. L. met. prec, Art. 2.) 38 A synopsis' of THE MINING LAWS OF MEXICO. Concessionaries under the law for the exploration and work ing of gold-mines and placers, published June 6, 1894, should have installed, within the minimum term of two years from the date of their contract, a metallurgical establishment with suf ficient capacity to treat 400 tons of ore weekly, or, in place of said establishment, some other works equivalent in value to said establishments, at the discretion of the Secretary of Fomento. Note.— "Water- rights for mining or metallurgical purposes, if upon navigable or flotable streams, would have to be acquired from the Federal authorities, under the provisions of a special law to that effect. Upon other streams the water-rights would have to be acquired by concession from the Government of the State where located. XII. Expropriations for Mining Purposes. The marking out and measurement of the mining concession does not imply any right to the occupation of the surface prop erty. The owner of the mining concession should understand that he must arrange with the owner of the land, whenever he may find it convenient to do so, for the acquirement of such a part of the surface as he may need to occupy for the dependen cies of his mining business, or of the totality of the surface marked out for his mining claims, in the case of placers or of superficial deposits. This arrangement may be amicable, through a contract with the owner, or by expropriation, through initiation of the proper legal proceeding. (R. L. min., Art. 40.) The workings required for the exploitation and utilization of mines and placers are considered to be of public utility, where fore, in case of disagreement, there may be a forcible expropri ation of the ground necessary for such purpose. (L. min., Art. 10.) If, for any reason, the owners of a mining concession cannot agree, either upon the area of the land which it may be neces sary to occupy for the exploitation of mines and placers, or upon the price thereof, with the owners of the surface ground, the expropriation shall be decreed by the Judge of First Instance, observing the following procedure : I. Both parties shall appoint their own expert appraisers, who shall present their estimates to the judges within the eight A SYNOPSIS OF THE MINING LAWS OF MEXICO. 39 days following, counted from the day on which they were ap pointed. J F If the estimates should be discordant, the judge shall appoint a third expert as umpire, who must present his opinion within an equal period. The judge, taking into account the opinion of the experts and the proofs which may have been rendered, by the parties while the experts were forming their report, shall determine within the following eight days the superficial extension that is to be occupied and the amount of the indemnity. The decision of the judge shall be carried out without further recourse than that of responsibility (of the judge). H. If the owner of the ground to be occupied should not appoint his expert within the term of eight days after being notified by the judge, the latter shall appoint judicially an appraiser who will represent the interests of the land-owner. IH. If the^possessor or owner of the property should be un known or- doubtful, the judge shall determine, as the amount of the indemnity, the sum which may be the result of the exami nation by the appraiser appointed by the concessionary of the mine and the appraiser appointed by the judge to represent the legitimate owner. Said sum shall be placed on deposit, to be delivered to whomsoever it may belong. If, for any reason, the owners of a mining concession cannot agree, either upqn the area of the land which it may be neces sary to occupy for the exploitation of mines and placers, or upon the price thereof, with the owners of the surface-ground, the expropriation shall be decreed by the Judge of First In stance, observing the following procedure : I. Both parties shall appoint their own expert appraisers, who shall present their estimates to the judges within the eight days following, counted from the day on which they were ap pointed. If the estimates should be discordant, the judge shall appoint a third expert as umpire, who must present his opinion within an equal period. The judge, taking into account the opinion of the experts and the proofs which may have been rendered by the parties while the experts were forming their report, shall determine within the following eight days the superficial extension that is to be occupied and the amount of the indemnity. 40 A SYNOPSIS OF THE MINING LAWS OF MEXICO. The decision of the judge shall be carried out without fur ther recourse than that of responsibility (of the judge). H. If the owner of the, ground to be occupied should not appoint his expert within the term of eight days after being notified by the judge, the latter shall appoint judicially an ap praiser who will represent the interests of the land-owner. ni. If the possessor or owner of the property should be unknown or doubtful, the judge shall determine, as the amount of the indemnity, the sum which may be the result of the ex amination by the appraiser appointed by the concessionary of the mine and the appraiser appointed by the judge to represent the legitimate owner. Said sum shall be placed on deposit, to be delivered to whomsoever it may belong. Note. — The mining laws make no provision for the expropriation of water or of wood. The right of way to mines and to open roads would have to be obtained under the ordinary provisions of the Civil Code in force where the mines might be located. • XIII. Easements and Tunnel-Rights. Mining properties and common properties — i.e., real estate not used for mining purposes which adjoins mining properties — shall possess and enjoy (or suffer, as the case may be) the legal servitudes of right of way, right of aqueduct, right of drainage, and right of ventilation. For the imposition of said servitudes, and for the assessment of damages corresponding thereto, the judges shall subject themselves to the laws of each State, and to those of the Fed eral District, and of the Territories, when said laws are not modified by the following rules (L. min., Art. 12) : 1. The legal servitude of drainage consists of the obligation which the owner of one claim incurs to indemnify the proprie tor of another claim for loss and damages which may be occa sioned by not maintaining the said drainage of the subter ranean workings, or by not maintaining the said drainage as much as may be necessary, whereby the water flows from the first to the second claim. Also, in the obligation which all claim-owners have to permit, through their claims, the passage of tunnels or counter-mines whose exclusive object is the drainage of one or more work ings. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 41 II. Drainage-tunnels, when not made by mutual agreement may only be undertaken by the owner or owners of certain claims, for which the said tunnel is an absolute necessity. m. For the case provided for in the. foregoing rule, all the owners of claims that are improved by the drainage secured by means of the tunnel are bound to pay an indemnity in pro portion to the benefits received, taking into account the nature of each mine, and according to the state thereof. IV. The opening of mining-tunnels shall not be commenced without previous license, conceded by the Ministry of Fomento, after hearing the opinion of the local Mining Agent, and after examination and approbation of the plans upon which are de tailed the course and cross-section of the proposed tunnel. See Rule XXII. V. Any pay-ore which may be found while opening the mining-tunnels, if it is found within claims that have been legally conceded, is the property of the owner of such claims'; and if it is found within free ground, it shall be divided between the owners of all the claims improved by the mining-tunnel, according to the proportions laid down in the foregoing Rule IH. VI. If, where a mining-tunnel has been undertaken, one or more veins in free ground are discovered thereby, and if appli cation is made for the concession of the respective claims or gores, the rules as to applications for concessions shall be applied. The tunnel-owners shall be considered as explorers, in this instance ; so that, during three months subsequent to the notifi cation, only from them can be admitted applications for the concession of the claims in question. VII. Whenever the Ministry of Fomento has authorized the license referred to in the foregoing Rule IV., only by express contract can any other persons, apart from those that are men tioned in the license as benefited by the mining-tunnel, be con sidered as undertakers of the tunnel. VIIL The owners of claims traversed by the drainage-tunnel may place an interventor of their confidence within their re spective claims while the tunnel is being opened, The func tions of the interventor are limited to watching the work, and to reporting to the Mining Agent or to the corresponding judge, in the proper case, such abuses as he may observe. 42 A SYNOPSIS OF THE MINING LAWS OF MEXICO. IX. At those points of drainage-tunnels where they commu nicate, for any reason, with mine-workings, gratings shall be fixed as soon as the communication is opened, to prevent transit or passage. X. Only in case of unanimous consent, expressed in. a public deed made by all the interested parties in a general drainage- tunnel, according to the foregoing Rule III., may said tunnel be destined to other uses than to those of drainage. In this case there shall be stipulated in the contract, under penalty of nullity, all the particulars referring to passage or transit, such as are indicated in the foregoing Rule IX. XI. Mines which may be newly opened, at a point where they may be benefited by a general drainage-tunnel already in existence, shall be subject to the foregoing Rules III.. VII., VIH., IX. and X. XII. The legal servitude of ventilation consists of the obli gation, which every owner of mining-claims assumes, to permit that the proprietors of contiguous claims may open communi cation with his interior workings, whenever such communica tion will produce, as a necessary result, a ventilation which could not be obtained in any other manner, except at great expense. XIII. Unless there is an express contract to the contrary, drawn up in the form of a public deed, between the owner of the dominating property and the owners of the serving prop erty, gratings to prevent passage or transit shall always be placed upon the boundary-line of the respective properties. XIV. Whenever a communicating working, not among those mentioned in the foregoing Rule XII., shall, in fact, ventilate two or more workings, this service of ventilation shall not con fer on the mine-owner who opened the communication any right to demand compensation from the owners of the other workings so ventilated, nor shall the said owners, in their turn acquire any legal servitude as an incumbrance upon the mining property which causes the ventilation. XV. If pay-ore should be met with during the progress of a working opened for the purposes indicated in the foregoing Rule XII., the provisions of Rules V., VI. and VIH. shall be observed wherever applicable. XVI. Also, whatever is applicable of Rule IV. shall be ob served. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 43 XVH. All the expenses that may be incurred by the work ings which are to be opened to secure ventilation, and those of the posterior ventilation of the same, shall be at the exclu sive charge of whomsoever solicited the constitution of a servi tude. XVIII. In the future, for the imposition of a legal servitude, as an easement of any mining property, or as an encumbrance to another, there shall be required, either the consent of the owner of the serving property, expressed in a public deed, or by a declaration signed and ratified before a judicial authority, or before the Ministry of Fomento; an administrative de cision, consented to by the interested parties, or a judicial decision. XIX. The owner of claims in whose favor it is supposed that a legal servitude is to be established, but who does not succeed in securing the consent of the party whom it is presumed should grant the servitude, must present himself before the Ministry of Fomento. The Ministry, with the formalities and within the term pre scribed by the Regulations, shall decide whatever it may deem proper, but always after a hearing of the dissident. H" the latter party or the applicant should not be conform able to the administrative resolution, the right shall be reserved to appeal to the proper local tribunals, within the term fixed by the Regulations. The final decision shall be communicated by the tribunal which pronounces it to the Ministry of Fomento. (See Rules XXIII. and XXIV.) XX. If the administrative decision should be favorable to the applicant, and adverse to the opposer, said decision can only be immediately put into effect after the filing of a proper bond by the applicant to compensate losses and damages, in case the opposer should obtain a final decision in his favor before the courts. XXI. The three preceding rules are applicable to all the cases in which the provisions of any of the other rules shall or might give rise to a judicial question. (L. min., Art. 12.) XXII. For the imposition of the servitude of a mining tunnel, as referred to in the foregoing Rule IV., there shall be presented the application made to the local Mining Agent for 44 ; A SYNOPSIS OF THE MINING LAWS OF MEXICO. a permit, which shall be accompanied by the horizontal pro jection (plan) and section of the tunnel, both to an appropriate decimal scale, as well as the sections and other details which are believed to be proper to illustrate the nature and circum stances of the projected works. The Mining Agent shall forward to the Ministry of Fomento, together with the application and the corresponding plans, a report upon the subject, which shall contain his own opinion, founded on the data. The said Ministry, in view of said documents, and of any other data which it may think proper to ask for, shall decide upon the proper course. (R. L. min., Art. 45.) XXIII. The owner of any mining claims, in whose favor it is supposed that an easement ought to be established, and who does not obtain the consent of the person whom it is supposed should bear the servitude, may present to the Ministry of Fo mento, in accordance with the provisions of the foregoing Rule XIX., the corresponding application, accompanied by all the necessary data. The Ministry, in view of the report of the local Mining Agent, and previously hearing the dissident, or his representa tive, shall determine whatever it may think proper within the terms which it may fix, in attention to the circumstances of each case. (R. L. min., Art. 46.) XXIV. If the applicant for the easement referred to in the same foregoing Rule XIX., or the party who should bear the servitude, should not be conformable with the corresponding decision of the Ministry of Fomento, he may go before the proper judge, provided he shall do so within a term of not to exceed two months from the date of said decision. (R. L. min., Art. 47.) That part of the tunnels situated outside of boundary lines is exempt from the mining tax, when the said tunnels are exclu sively designed for ventilation, drainage, and for the extraction of minerals which do not come from the tunnel itself. (L. min., Art. 33.) XIV. Mining Contracts and Companies. A contract in virtue of which money or goods are furnished to the owner of a mine for the working thereof was called avio A SYNOPSIS OF THE MINING LAWS OF MEXICO. 45 (for which the nearest English equivalent is hahilitaiion) in the older mining laws of Mexico. Such a contract is at present either a partnership or a mort gage. (L. min., Art. 25.) The mining law of June 4, 1892, provided expressly in the Article 5, transitory, the following : The contract of avio, and all contracts relative to mining affairs which may be in existence when this law commences to be in force, shall be construed by their own stipulations and on omitted points according to the mining legislation in force at the time when the contracts were made. But it shall be indispensable for the validity of future acts depending upon said contracts that said contracts should be registered according to the provisions of Articles 24 and 25 of this law within the term of one year from the time of the law coming in force. In consequence, if in any case a mining business is trans ferred by any title to a third party, said third party shall be bound by all obligations proceeding from the contracts referred to, since these produce realty rights of action in law. Stock companies or partnerships that may be formed for the exploitation of mines shall be governed by the provisions of the Code of Commerce, except in the part relative to momentary associations, which are not admissible in mining business. (L. min., Art. 24.) Note. — The part of the Code of Commerce above referred to comprises Arti cles 268 to 271, inclusive, which are not applicable to mining affairs. Every mining company or partnership is obliged to register itself at the county seat of the county or judicial district where the mining claims that form the object of the business are situ ated, as well as at the domicile or domiciles which the said partnership or company may have in the Republic. (R. L. min., Art. 54.) XV. Foreigners and Foreign Companies. Foreigners enjoy in the Mexican Republic the same civil rights as the citizens thereof and the guarantees of the Federal Political Constitution, Sec. 1, Title J. Foreigners may therefore apply for prospecting permits 46 A SYNOPSIS OF THE MINING LAWS OF MEXICO. and mining concessions, and have the same awarded to them, provided they are not located within the twenty-league limit. It is to be noted that any foreigner who may acquire real estate (including mines) in the Mexican Republic, and who does not manifest, at the time of said acquisition, his intention to preserve his nationality, is reputed to be a Mexican citizen. (Federal Political Constitution, Art. 30, Sec. III.) According to the law of February 1, 1856, still in force, no foreigner can acquire, without, previous permission, real estate in the frontier States or Territories, unless at twenty leagues distance from the frontier line. • Whenever a foreigner shall present an application for a con cession to acquire any mining property located within the above- named limit, he must send, at the same time, his application for permission, through the local Governor, to the Ministry of Fo mento, so that the said permission may be passed upon, in one or the other sense, whenever the period may arrive for the granting of the title to the mining concession as applied for. (C. Fom. of September 5, 1892.) As to the registry of foreign corporations that may desire to establish themselves or to found branch houses in this Repub lic, Bee Sect. XVI. of this Synopsis. Foreigners who have applied for mining concessions within the twenty-league zone above referred to must present the authorization of the Government to hold mining propeirty within the zone within the period of four months, which is fixed according to law, for the completion of the docket rela tive to the concession. (Page 27 of this Synopsis.) Foreigners who may acquire mining property are subject, in everything that relates thereto, to all the laws in existence or that may be formed hereafter relative to the transfer, use and preservation thereof, as well as to the payment of the respective taxes. Said foreigners cannot at any time plead any rights as for eigners with respect to the above matters. (Law of February 1, 1856, Art. 5.) Consequently, all questions with respect to mining prop erty owned by foreigners in this Republic must be tried be fore the Tribunals of this Republic and according to its laws to the exclusion of any foreign intervention whatever. (Law cited, Art. 6.) v A SYNOPSIS OF THE MINING LAWS OF MEXICO. 47 Any contract for the rental of mines made with a foreigner for a longer term than ten years is to be reputed as a transfer of the property. (Law of May 28, 1886, Art. 31.) Foreign corporations in Mexico enjoy the same rights as are conceded to them by the laws of their own country, provided that these rights are not contrary to the laws of the nation. Law of May 28, 1886, Art. 5.) XVI. Registry of Mining Transactions. The offices which have charge of the public register of prop erty; in default of these, the mortgage offices; and in default of both, the Judges of First Instance of the common (State) law, shall keep an especial book for the registry of mining transactions. (L. min., Art. 25 ; R. L. min., Art. 51 ; and Code of Commerce, Art. 18.) Registration is obligatory with respect to contracts of part nership or of companies, and is optional with respect to title- deeds of mining concessions or property. . The Register Book is to be filled up according to the chrono logical order of the presentation of documents, and the follow ing items must be inserted therein, as nearly as may be : I. The name, title or social designation of the concern. II. The class of operations to which the concern is de voted. HI. The date on which it will commence or has commenced its transactions. IV. Its domicile, specifying the branch houses it may have established, although these branches must also be registered where situated. V. The contracts of association ofevery partnership or com pany, whatever may be its object or denomination, as well as the contracts of the modification, recision or dissolution of the same. VI. The minutes of the first general meeting and the docu ments annexed thereto, in the case of stock companies which were organized by public subscription. VH. General powers of attorney, appointments, and the rev ocation of the same, if such were conferred upon managers, agents, employees or other representatives. VIII. The record of the increase or decrease of the money capital of stock companies or partnerships. 48 A SYNOPSIS OF THE MINING LAWS OF MEXICO. IX. Title-deeds of mining property. X. Issues of stock-loan certificates and bonds, giving the series and numbers of the certificates of each issue, their inter est and payment terms, the total quantity of the issue, and the effects, works, franchises or mortgages (when there are such) which are responsible for the amounts. Stock or obligations emitted by private parties should also be registered in the same way. (Code of Commerce, Art. 21.) If the said title-deed and other papers are not registered, they cannot affect unfavorably the rights of third parties, but said third parties may profit thereby on any favorable points. Notwithstanding the omission of the mining registry, any documents referring to real estate and to real property rights shall be valid against third parties whenever they may have been registered according to the common law. (R. L. min., Arts. 52 and 53, and Code of Commerce, Art. 26.) The mining registry shall be made at the seat of government of the county or judicial district where the mine is located, and, if a mining company is in question, also at the domicile thereof. If, from the extension of the claims (pertenencias), or for any other motive, there should be a doubt as to where the registry is to be effected, the Ministry of Fomento shall de cide, and must communicate its decision to the Treasury De partment. (R. L. min., Art. 55.) The inscription shall be made with the certified copy of the respective deed in hand, or from the document itself, or from the written declaration which the interested party may present, whenever the deed to be registered may not be a " public document." (Code of Commerce, Art. 25.) Note. — A "public document" is one drawn up before a notary public, or some official of equal authority, or by some public officer, administrative or judicial. Documents proceeding from foreign countries, and subject to registration, shall be previously protocolized in the Republic. (Code of Commerce, Art. 25.) Note. — When a document from abroad is to be protocolized in Mexico it must be certified to by an Ambassador, Minister or Consul of Mexico. This cer- A SYNOPSIS OF THE MINING LAWS OF MEXICO. 49 tificate is certified to by the Foreign Office here. The document is then ready to be protocolized — that is, spread upon the record of a Notary Public— if it is in Spanish. If not in Spanish, it must be presented, with a translation, to some Court of First Instance in this Eepublic. The Court appoints an interpreter to ascertain and certify the correctness of the translation, and the order is then given for the document to be put on record by the Notary Public. In any case the Notary retains the original document among his records, and issues a certified copy thereof, in Spanish, for use, which has the legal effect of the original document. The Registers cannot in any case, or for any motive, refuse the entry of the documents that may be presented to them. (R. L. min., Art. 51, and Code of Commerce, Art. 31.) Documents duly registered produce their legal effects from the date of the entry, and cannot be invalidated by anterior or posterior documents not registered. (R. L. min., Art. 51, and Code of Commerce, Art. 29.) Foreign companies or houses which may desire to establish themselves or to establish branch houses in the Republic must present and have entered in the Register a certified copy of their statutes, contracts and other documents referring to their organization ; also, their inventory or last balance-sheet, if they had one ; also, a certificate of being constituted and authorized according to the laws of their respective country. This certificate must be made out by the Minister accredited by this Republic to that country, or, in default thereof, by the Mexican Consul. (R. L. min., Art. 51, and Code of Com merce, Art. 24.) Any change of ownership of a mining property must be notified to the Mining Agent or other officer in charge of the Register, so that the proper note can be made thereon. (L. imp., Art. 7.) The Mining Agents of the Ministry of Fomento shall also keep a registry-book, paged and countersigned by the Min istry of Fomento, in which must be registered all applications for the concession of mining claims or gores that may be pre sented. This registration shall be made immediately, in the presence of the applicant, entering the day and hour of presentation, as well as the number of the respective docket. Blank spaces are not to be left in the book between the sev- 50 A SYNOPSIS OF THE MINING LAWS OF MEXICO. eral entries, and these must, in every case, be exactly subject to the order of their dates and of the hours in which they were presented. (R. L. min., Arts. 15 and 17.) If two or more applications for a concession of mining claims or gores, covering the same site, should be presented simul taneously, lots shall be drawn, in the presence of the interested parties, to decide which of the applications is to be admitted and registered. (R. L. min., Art. 18.) In the same registry-book the Mining Agents shall enter such reductions of the number of mining claims as are applied for and conceded. (C. Fom., September 3, 1892.) XVII. Taxes on Mines. ¦ Caducidad (Loss of Mining Property). — The default of pay ment of the tax constitutes the only cause of the loss of mining properties, which in this case become free of all liabilities and may be adjudicated to the first applicant who shall fulfill the legal requisites. (L. min., Art. 29.) The tax upon mining properties is a Federal tax, and is composed of two portions — one portion to be paid but once in revenue stamps, which are to be affixed to every title-deed to mining property, and the other to be paid annually. (L. min., Art. 28, and L. imp., Art. 1.) The Tax Upon Mining Title-Deeds. The revenue-stamps for the title-deeds to ' mines of gold, silver and platinum shall be of the value of ten dollars, and shall be placed upon the said title-deeds at the rate of one revenue stamp for each claim (pertenencia) of ten thousand square meters, or fraction of a claim which is equal to, or more than, the half thereof. (L. imp., Arts. 1 and 3, and L. de 3d of June, 1898, Art. 1.) When the fraction shall be less than half a claim (whether this fraction is the whole property or whether it constitutes an excess over several claims), a revenue stamp for five dollars should be placed upon the first leaf and another revenue stamp of fifty cents upon the second leaf of the title-deed. The title-deeds to mines which are not of gold, silver or platinum, and which require a legalized concession for their working, need only carry revenue-stamps to the value of two dollars and fifty cents for each claim. A SYNOPSIS OF THE MINING LAWS* OF MEXICO. 51 But these same mines shall cause the same stamp-tax (and other taxes) as those of gold, silver and platinum when the minerals found in said mine contain gold, silver or platinum in any proportion. (Law of June 5, 1898, Arts. 1 and 2.) According to the law of October 31, 1892, the value of the revenue stamps which should be affixed to the title-deeds of mines or deposits of iron and mercury should be one dollar per claim (pertenencia) ; but the article referred to was repealed by the decree of June 3, 1898, according to which the revenue stamps on the title-deeds to such mines are to be of the value above stated. The revenue-stamps to be placed upon the title-deeds to mining property shall be canceled by the Ministry of Fomento, which Ministry will call upon the interested parties for the revenue stamps, either directly or through the local Agency, as soon as the docket has been approved and the title-deeds authorized to be made out. (L. imp., Art. 3, and C. Fom., Sept. 1, 1897.) By the Mining Tax law of June 6, 1892, every mine-owner or possessor, at that time and by any title, was obliged to pre sent his- documents in the local Sub-Treasury office within a fixed time, to have the proper revenue stamps affixed to his title, and also that a note might be made in the Register of the number of pertenencias in the property for the payment of the annual contribution. The time for the above finally ex pired October 31, 1892. Annual Mining Taxes. Every owner or possessor of mines not of gold, silver or pla tinum, and for whose working a legal concession is required, is obliged to pay annually the sum of two dollars and fifty cents for each pertenencia. (L. of June 3, 1898, Arts. 1 and 4.) For mines of gold, silver or platinum the owners shall pay ten dollars per year for each pertenencia (claim of 10,000 square meters). (L. imp., Art. 4.) The mines at first referred to shall pay an annual tax equal to that of the mines of gold, silver and platinum when the ores encountered therein contain gold, silver or platinum in any proportion. (L. of June 3, 1898, Art. 2.) Iron-mines or deposits, in whose favor an exception was 52 A SYNOPSIS OF THE MINING LAWS OF MEXICO. established with respect to the annual impost of the law of October 31, 1892, have now become subject to the general law, according to Article 4 of the law or decree of June 3, 1898. Fractional parts of a pertenencia, less than one-half of a claim (less than 5000 square meters) are exempt from the annual tax. (C. Fom. of February 16, 1898.) Fractional parts of a pertenencia equal to or more than one- half a pertenencia (equal to or more than 5000 square meters) pay the same annual tax as an entire pertenencia. (L. imp., Art. 1.) The annual tax is collected by thirds of a year, in advance, through the offices of the Revenue Stamp Tax, to which the taxpayers must peremptorily present themselves without the necessity of a notice or of any other requisite on which might be founded a delay or excuse. (L. imp., Art. 5, and R. L. imp., Art. 17.) The offices just referred to are the. principal or subordinate Administrations of the Stamp Tax, but the Secretary of the Treasury may assign other offices to receive the tax in such cases as he may consider it just or convenient to do so, by giv ing notice to the General Administration of the Stamp Tax, so that that office may communicate the fact to the Principal Ad ministration of the Stamp Tax, within whose jurisdiction the mine may be comprehended. (R. L. imp., Art. 30.) Permission is frequently obtained to pay mining taxes in Mexico City when it is not convenient to do so in the district in which the mine is located. Every third-of-a-year's tax must be paid before the 31st of July, 30th of November and 31st of March of each year. For said purpose the proper Administration, Principal or Subordinate, of the Stamp-Tax shall deliver to each interested party a schedule (boleto), which contains : I. The name, "Impuesto Minero " (Mining Tax), at its head. H. The name of the State and Municipality to which belongs the office that distributes the schedule. IH. The name of the mine, number of pertenencias on which the tax is to be paid, municipality in which the mine is located, name of the owner, company or enterprise which is in posses sion thereof, and the ordinal number of the register of the title-deed. A SYNOPSIS OF THE MINING LAWS OF MEXICO. 53 IV. The amount of tax to be paid each third of a year. V. Three blank columns destined to receive the revenue stamps corresponding to the thirds of a year, duly stamped. The interested parties must be careful to fix the schedule referred to in a visible portion of the office of the concern. (R. L. imp., Art. 23.) Duplicate schedules may be given out for the mining tax in case of loss of those which were given to the taxpayer at the time of the first payment. (Circ. Adm. Gen. Renta Timbre, November 30, 1897.) Any mine owner may pay his annual tax in advance, if it suits his convenience so to do. (C. Hda., November 10, 1892, Sec. 7.) All kinds of metallurgical-works, including amalgamation mills and smelters, are taxed as under Sect. XI. of this Sy nopsis. Note by the Secretary. — Comments or criticisms upon all papers, whether private corrections of typographical or other errors or communications for publication as " Discussions," or independent papers on the same or a related subject, are earn estly invited. YALE UNIVERSITY L 3 9002 08540 7592