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COMPENDIUM
l-lio
OF THE
LAWS OF MEXICO
OFFICIALLY AUTHORIZED BY THE MEXICAN GOVERNMENT
CONTAINING THE FEDERAL CONSTITUTION, WITH ALL
AMENDMENTS, AND A THOROUGH ABRIDGMENT OF
ALL THE CODES AND SPECIAL LAWS OF IMPORT-
ANCE TO FOREIGNERS CONCERNED WITH BUSI-
NESS IN THE REPUBLIC. ALL ACCURATELY
TRANSLATED INTO ENGLISH. AN EXTEN-
SIVE COLLECTION OF FORMS BOTH IN
SPANISH AND ENGLISH. A MINUTE
INDEX OF ALL MATTER CON-
TAINED IN THE TEXT
BY
JOSEPH WHELESS
OF THE ST. LOUIS, MISSOURI, BAR
Member of the St. Louis, the Missouri and the American Bar Associations ; Counsel of
the Consulate of Italy in St. Louis; Associate Editor of the Bulletin of the Com-
parative Law Bureau of the American Bar Association, and one of the Revisers
of the Government Translations of the Spanish Codes for Cuba and the
Philippines ; Member of the American Society of International Law ;
Correspondent of the Institute Ibero-Americano de Derecho
Positive Comparado, of Madrid, Spain
OFFICES IN ST. LOUIS AND THE CITY OF MEXICO, D. F.
(MEXICO) 2A SAN JUAN DE LETRAN, No. 29
ST. Louis, Mo., SUITE 907 CARLETON BLDG.
VOL. 2
ST. LOUIS
THE F. H. THOMAS LAW BOOK CO,
1910
d.
Copyright 1910
BY JOSEPH WIIELESS.
All RigJtls Reserved.
La propiedad litoraria pertcnccc al autor, inclusive el
dcrccho de traduccion, quedando hecho el deposito quo
proviene la Ley. Julio de 1910.
FOREIGNERS AND NATURALIZATION. 523
BOOK XII.
FOREIGNERS, NATURALIZATION AND
COLONIZATION.
TITLE I.
LAW OF FOREIGNERS AND NATURALIZATION.
(Ley de Extranjcria y Naturalization, de 28 Mayo, 188G.)
CHAPTER 1.
MEXICANS AND FOREIGNERS.
Art. 822. Mexicans Who Are.
823. Foreigners Who Are.
824. Diplomatic and Seaborn Persons Corporations.
Art. 822. Mexicans Who Are. Mexicans are: 1, Those
born within the national territory of Mexican father either
by birth or naturalization ; 2, those born within such territory,
of a Mexican mother and of a father not legally known
according to law or born of parents unknown or of unknown
nationality; 3, those born without the Republic of a Mexican
father who has not lost his nationality; if lost, his children
will be regarded as foreigners, but they may adopt Mexican
nationality within one year after they become 21 years of
age, upon making the requisite declaration before the Mex-
ican diplomatic or consular agent, if they reside out of the
country, or before the Department of Foreign Affairs, if
they reside in it. If such children reside in the country, and
upon becoming of age accept any public employment, or
524 COMPENDIUM OF MEXICAN LAW.
serve in the army, navy or national guard, they will be con-
sidered by such acts as Mexicans without necessity of other
formalities; 4, those born without the Republic, of a Mex-
ican mother, if the father is unknown, and the mother has
not lost her nationality according to law ; if the mother has
become naturalized in a foreign country her children will be
foreigners ; but they may become Mexicans upon the terms
and conditions stated in clause 3 ; 5, those Mexicans who,
having lost their nationality according to this law, recover it
by complying with its requirements, as the case may be;
C, the foreign woman who shall marry a Mexican, such Mex-
ican nationality being retained even during her widowhood ;
7, those born out of the Republic, who, residing within it in
1821, swore to the Act of Independence, have continued to
reside in the country and have not changed their nationality ;
8, those Mexicans, who, residing in the territories ceded to
the United States by the Treaties of 2 February, 1848, and
30 November, 1853, complied with the conditions required
by said Treaties in order to preserve their Mexican nation-
ality; likewise those Mexicans who continue to reside within
the territory belonging to Guatemala, and those citizens of
that Republic who remain in those belonging to Mexico,
according to the Treaty of 27 September, 1882, provided such
citizens comply with the terms of Art. 5 of said Treaty;
9, foreigners who become naturalized according to the pres-
ent law ; 10, foreigners who acquire real estate in the Repub-
lic, provided they do not declare their intention of preserving
their nationality; at the time of making the acquisition, the
foreigner must declare to the Xotary or Judge acting as
Notary, whether he desires or not to obtain the Mexican
nationality conferred by Sec. Ill of Art. 30 of the Consti-
tution, the foreigner's declaration on this point being stated
in the deed; if he chooses Mexican nationality, or omits to
make any declaration on the subject, he may applv to the
Department of Foreign Relations within one rear, in order
to comply with the requirements of Art. S28, and be held
FORP:IGNERS AND NATURALIZATION. 525
as a Mexican; 1 11, foreigners who have children born in the
Republic, provided they do not prefer to retain their foreign
nationality ; at the time of making the registry of the birth,
the father shall declare before the Judge of the Civil Register
his intention on this subject, which shall be entered on the
record ; and if he chooses Mexican nationality, or omits to
make any declaration on the subject, he may apply within
one year to the Foreign Department, in order to comply with
the requirements of Art. 828, and be held as a Mexican;
12, foreigners who shall officially serve the Mexican govern-
ment, or who accept from it titles or public functions, pro-
vided that within a year from any of these things they apply-
to the Foreign Department for the purposes stated in Section
11, supra. (Art. 1.)
Art. 823. Foreigners Who Are. Foreigners are: 1,
Those born without the national territory, who are subject
of foreign governments and have not become naturalized
in Mexico ; 2, the children of a foreign father, or of a foreign
mother, or of a foreign mother and unknown father, born
within the national territory, until they shall reach the age
at which, according to the law of the nationality of the
father or of the mother, respectively, they would attain
their majority; if within one year from attaining their
majority, they shall not have declared before the political
authority of the place of their residence that they retain
the nationality of their parents, they shall be considered as
Mexicans ; 3, those who absent themselves from the country
without license or commission from the government, or on
account of studies, public interests or business, and who
remain away ten years without asking license to prolong
their absence, which licenses shall not exceed five years each
time applied for, and good cause having to be shown to obtain
i This Sec., 10, and the next. 11, are in evident conflict with the con-
stitutional precept referred to, which in terms imposes Mexican citi-
zenship on the foreign persons indicated, ipso facto upon failure to make
the declaration of retaining their previous nationality.
526 COMPENDIUM OF MEXICAN LAW.
any after the first ; 4, Mexican women who marry foreigners,
remaining 1 foreigners even during widowhood ; but if the mar-
riage he dissolved, she may recover her nationality by estab-
lishing residence in the Eepublic and making declaration be-
fore the Judge of the civil status, at her place of residence, of
her desire to recover her nationality ; the Mexican woman who
does not acquire the nationality of her husband by marriage,
according to the laws of his country, retains her own; the
change of the husband's nationality, after marriage, involves
the change of that of his wife and minor children subject
to the patria poicstad, if they reside in the country wherein
he becomes naturalized, except when the woman does not ac-
quire her husband's nationality, as just above stated; 5,
Mexicans who become naturalized in other countries ; 6, those
who enter any department of service of a foreign government
without the license of Congress ; 7, those who accept foreign
titles, decorations and employment, except literary, scientific
and humanitarian titles, without leave of Congress. 2
(Art. 2.)
Art. 824. Diplomatic and Seaborn Persons Corporations.
Xational ships of every class are declared to be part of
the national territory, and persons born on board of them
are to be considered as born within the Republic. The chil-
dren of diplomatic representatives and attaches, born abroad,
are always Mexicans, upon the principle of extraterritoriality.
The nationality of moral persons or corporations is governed
by the laws creating them, so that those organized under
Mexican law arc Mexicans, provided they have their legal
domicile in the country. Foreign " moral persons " or cor-
porations enjoy in Mexico the rights granted to them by the
laws of the countrv in which thev arc created, so loner as
* * O
these are not contrary to the Mexican laws. (Arts. 3-5.)
2 See Const.. Art. 34.
FOREIGNERS AND NATURALIZATION. 527
CHAPTER 2.
EXPATRIATION.
Art. 825. Right Incidents.
Art. 825. Right Incidents. The Mexican Republic rec-
ognizes the right of expatriation as natural and inherent in
all men and as necessary to the enjoyment of personal lib-
erty, and therefore permits its inhabitants to exercise that
right and leave the country and establish themselves in for-
eign countries, and also protects the right of foreigners of
all'nationalities to come and establish themselves within its
jurisdiction, and to be received and naturalized according to
the law.
But expatriation and naturalization in a foreign country
do not exempt criminals from extradition and from the trial
and punishment to which they are subject according to trea-
ties, international practices and the laws of the country.
Naturalized Mexican citizens, although in a foreign country,
have the right to the same protection from the Mexican
government, both in their persons and property, as citizens
by birth ; but should they return to the country of their birth
they shall be liable to any responsibilities which they may
have incurred, according to the laws of such country, before
their naturalization. The Mexican government will protect
its citizens in foreign lands by all means authorized by inter-
national law short of acts of hostility ; but if diplomatic
means are not sufficient, or the wrongs to Mexican nation-
ality are so grave as to demand more severe measures, the
President will lay the whole record before the Congress for
its action.
The naturalization of a foreigner becomes ineffective by
his residence in his native country for two years, unless in
the discharge of some official commission of the Mexican
Government, or with its permission. (Arts. 6-10.)
528 COMPENDIUM OF MEXICAN LAW.
CHAPTER 3.
NATURALIZATION.
Art. 826. \Ylio May Become Application.
827. Procedure on Application.
828. Special Naturalization.
829. Naturalization Effects and Incidents.
830. Colonists Status.
831. Effects of Naturalization.
Art. 826. Who May Become Application. Any for-
eigner who complies with the requirements of the law may
become naturalized in Mexico. At least six months before
applying for naturalization, he must present to the Municipal
Council (Ayuntamicnio^ of his place of residence, a written
petition declaring his wish to become a Mexican citizen and
to renounce his nationality; the original of this petition will
be filed, and a certified copy^issued to him. After the
expiration of the six months, and when the foreigner shall
have completed two years of residence in the Republic, he
may petition the Federal Government to grant him a cer-
tificate of naturalization ; absence in a foreign country with
the permission of the Government for not more than six-
months during the two years, does not interrupt the residence
required by law. The applicant must first appear before
the Judge of the District in whose jurisdiction he is and offer
to make proof of the following facts: 1, That according to
the laws of his native country he is in the full enjoyment
of civil rights by reason of being of legal age; 2, that he
has resided for at least two years in the Republic and been
of good conduct ; 3, that he has a trade, business or profes-
sion, or income by which to live. To this petition presented
to the District Judge, shall be attached the certified copy of
the original petition above mentioned, together with an ex-
press renouncement of all submission, obedience and fidelitv
to every foreign government, and especially to that to which
POREIGXEES AND KATURALIZATIOIST. 529
the applicant lias been subject; of all protection foreign to
that of the laws and authorities of Mexico, and of all rights
which treaties or international law grant to foreigners.
(Arts. 11-14, 20.)
Art. 827. Procedure on Application. 3 The District Judge,
upon the ratification by the applicant of his petition, shall
order the hearing of witnesses upon the points proposed, with
the assistance of the Promoter Fiscal, and he may ask the
Ayuntamiento for a report on the original application, and
hear any other proofs offered, and take the opinion of the
Promoter Fiscal. If the decision of the Judge is favorable
to the applicant, he will remit the original record to the
Department of Foreign Relations, that it may issue the cer-
tificate of naturalization, if in its judgment proper ; and
the applicant shall present to the Department, through the
District Judge, a petition requesting the certificate of natu-
ralization, ratifying his i^mouncement of his nationality,
and affirming his adhesion, obedience and submission to the
laws and authorities of the Republic. (Arts. 15-16.)
Art. 828. Special Naturalization. Foreigners who have
served in the national merchant marine may become natural-
ized after one year's service, making their application to the
District Judge of any port at which the ship may touch,
and their declaration before the Ayuntamicnio of such port.
The formalities prescribed to the two preceding Articles do
not apply to the naturalization of those classes of persons
mentioned in clauses 3, 4 and 6 of Art. 822 and in clauses
2 and 4 of Art. 823, who become naturalized by force of
law, or who have the right to choose Mexican citizenship,
who are held to be naturalized to all legal intents upon the
simple compliance with the requirements prescribed in re-
gard thereto. Those foreigners who come within the terms
s Suits concerning naturalization and the rights of citizenship are
governed by the new Federal Code of Civil Procedure, Arts. G43-648.
34
530 COMPENDIUM OF MEXICAN LAW.
of clauses 10, 11 and 12 of Art. 822, must apply to the
Department of Foreign Relations for tlieir certificates of
naturalization within the terms therein fixed, accompanying
their application by the document which proves their acqui-
sition of real, estate, the birth of children in Mexico, or their
acceptance of a public employment, as the case may be,
together with the renouncement of nationality and oath of
allegiance as required in ordinary cases. (Arts. 17-19.)
Art. 829. Naturalization Effects and Incidents. Cer-
tificates of naturalization will be issued gratis, without costs
of any kind. The act of naturalization being strictly per-
sonal, the applicant can only appear by attorney with special
and sufficient power for this act, which shall contain the
renouncement and oath of allegiance which must be made
by the applicant personally as required by the law, but in
no case can the actual residence of the applicant in the coun-
try be dispensed with. The status of native or foreigner
cannot be transferred to third persons, so that a native can-
not enjoy the rights of a foreigner, nor the latter those of
the former, because of one or the other status. The change of
nationality produces no retroactive effects ; and the acquisi-
tion or rehabilitation of the rights of a Mexican takes effect
only from the day after all the formalities required by law
have been fully complied with. Certificates of naturaliza-
tion will not be issued to citizens of any country with which
Mexico may be at war, nor to those suspected or convicted in
other countries as pirates, slave-traders, incendiaries, coun-
terfeiters, assassins, kidnappers and thieves. Every nat-
uralization obtained fraudulently and in violation of law
shall be totally null and void. (Arts. 19, 21-26.)
Art. 830. Colonists Status. Colonists who come to the
country by virtue of contracts with the Government, and
whose expenses of travel and establishment are paid by it,
are regarded as Mexicans. Their declaration of intention
FOREIGNERS AND NATURALIZATION. 531
to renounce their original nationality and to adopt the Mex-
ican, shall be set forth in their contract of joining the enter-
prise, and upon the establishment of the colony, the renounce-
ment and oath of allegience required by law shall be taken
before the proper authority, and remitted to the Ministry
of Relations for the issuance of the certificate of naturaliza-
tion to the interested party. Colonists coming to the coun-
try on their own account, or that of private enterprises not
subsidized by the government, as well as all classes of immi-
grants, may become naturalized according to the law, which is
also applicable to existing colonists so far as it may not con-
flict with acquired rights. (Arts. 27-28.)
Art. 831. Effects of Naturalization. The naturalized for-
eigner shall become a Mexican citizen as soon as he meets
the conditions required by Art. 34 of the Constitution, shar-
ing fully all the rights and obligations of Mexicans, except
that of holding office or employments which according to the
laws require nationality by birth, unless he was born in
Mexico and his naturalization effected in conformity with
clause 2 of Art. 823. (Art. 29.)
CHAPTER 4.
RIGHTS AND OBLIGATIONS OF FOREIGNERS.
Art. 832. Civil and Property Rights.
833. Residence Subjection to Law.
834. Political Disabilities Expulsion.
835. Matriculation Certificates of Nationality.
Art. 832. Civil and Property Rights. Foreigners in Mex-
ico enjoy the same civil rights as Mexicans, and the guar-
anties secured by Section I, Title I, of the Constitution, sav-
ing the right of the Government to expel pernicious for-
eigners. 4 It is not necessary that foreigners reside in Mexico
4 See Constitution, Art. 11.
532 COMPENDIUM OF MEXICAN LAW.
in onier to acquire public lands, real estate and ships, but
they are subject to the restrictions imposed on them by law,
and every lease of real estate made to a foreigner for a term
exceeding ten years will be regarded as a sale. The Federal
law (.nly can modify and restrict the civil rights enjoyed by
foreigners, upon the principle of international comity, in
such way that they shall be subject in Mexico to the same
disabilities as may be imposed by the laws of their country
upon .Mexicans residing therein; therefore the provisions of
the Civil and Civil Procedure Codes of the Federal Dis-
trict upon this subject shall have, the character of Federal
laws and be obligatory throughout the country. (Arts. 30-
32.)
Art. 833. Residence Subjection to Law. Foreigners
may reside in Mexico without losing their nationality, the
acquisition, change and loss of domicile being governed by
the Mexican laws. Should the individual guaranties be
suspended as provided in Art. -i) of the Constitution, for-
eigners are subject the same as Mexicans to the terms of the
law declaring the suspension, except as may be provided by
treaty. Foreigners are bound to contribute to public ex-
penses as provided by law, and to obey and respect the insti-
tutions, laws and authorities of the country, and to submit
to the decisions and judgments of the courts, without attempt-
ing other recourses than are by the laws granted to "Mexicans;
they can only appeal to diplomatic intervention in the event of
denial or willful delay in the administration of justice, after
vainly exhausting the ordinary recourses created by law, and
in the manner sanctioned bv international law. (Arts. ;>3-
Art. 834. Political Disabilities 5 Expulsion. Foreigners
are not entitled to the political rights of Mexican citizens,
Sec. L'ciicially. ns to rights of foreigners under the Constitution,
Art.-. 8. '.'. 11. ir>. :;<i-:$s.
FOREIGNERS AND NATURALIZATION. 533
can neither vote nor be voted for or hold any public office,
nor belong to the army, navy or national guard, nor assemble
to discuss the political affairs of the country, nor exercise
the right of petition in political matters, except they be nat-
uralized as hereinbefore provided. They are exempt from
military service, but domiciled foreigners must render police
service when required for the safety of property and the
preservation of order in the place in which they reside. For-
eigners taking part in the civil dissensions of the country
may be expelled from its territory as pernicious, but are
subject to the laws for any crimes they may commit against
the Republic, and during a state of war their rights and
obligations may be regulated by international law and trea-
ties ; this law does not confer on foreigners any rights denied
them by international law, treaties or existing legislation.
(Arts. 36-38, 40.)
Art. 835. Matriculation Certificates of Nationality.
The matriculation of foreigners is abolished. Only the
Department of Foreign Relations can issue certificates of
foreign nationality to foreigners requesting them, which cer-
tificates constitute presumption of foreign citizenship, but
do not exclude proof to the contrary ; such proof must be
made before competent tribunals and in the manner pre-
scribed by law or treaty. (Art. 39.)
e See note to Art. 827.
534 COMPENDIUM OF MEXICAN LAW
TITLE II.
COLOXIZATIOX.
(Ley de Colonization, de 15 de Diciembre de 1883.)
CHAPTER 1.
SURVEY OF LANDS.
Art. 83G. Survey and Sale of Lands.
Art. 836. Survey and Sale of Lands. For the purpose of
obtaining lands necessary for the establishment of colonists,
the Executive will order the survey, mensuration, subdi-
vision and appraisement of the public lands in the Republic,
appointing such commissions of engineers for the purpose
as he may deem necessary and determining the system of
the operations to be followed. The tracts laid out are not
to exceed twenty-five hundred hectares, which is the largest
amount which can be sold to one person, of lawful age and
capable to contract.
Such lands shall be granted to foreign immigrants and to
the inhabitants of the Republic who wish to settle on them as
colonists, on the following conditions :
1, T>y sale, at the appraised value made by the engineers
and approved by the Department of Fomento, on install-
ments payable in ten years, beginning after the second year
after the colonist is established ; 2, by sale for cash, or on
less time than above provided; 3, gratuitously, if so solicited
by the colonist, but in such cases the tract cannot exceed
one hundred hectares, and title cannot be obtained until the
colonist proves that he has remained in possession of the
land, and lias cultivated at least one-tenth of it, for five
con-eriitive years.
The Kxeentive will determine what lands should be col-
onized ai once, and will publish plans of the same and the
' COLONIZATION LAW. 535
prices at which they will he sold/ selling only alternate
tracts, and reserving the remainder to be sold on the condi-
tions herein prescribed, when solicited or when directed to be
sold by the Executive, who may mortgage them for the
purpose of obtaining funds which, together with the pro-
ceeds of sales of the lands, will be devoted exclusively to
the purposes of colonization. (Arts. 1-4.)
CHAPTEE 2.
COLONISTS. 2
Art. 837. Requirements Certificates.
838. Privileges and Exemptions.
839. Duties of Colonists Loss of Rights.
840. Other Grants and Aids to Colonists.
Art. 837. Requirements Certificates. To be considered
a colonist and enjoy the privileges granted by this law, for-
eign immigrants must bring a certificate of the consular or
immigration agent, issued at the instance of the immigrant
himself, or of a Company or concern authorized by the
Executive to bring colonists to the Republic. If the solic-
itant resides in Mexico, he must apply to the Department
of Fomento or to the agents authorized by it to admit colon-
ists, in the several colonies established in the Republic. All
solicitants must present certificates from the respective au-
thorities showing their good character and their occupation
prior to the application. (Arts. 5-6.)
Art. 838. Privileges and Exemptions. Colonists locating
in Mexico shall enjoy for ten years from the date of their
settling the following exemptions: 1, Exemption from mil-
itary service ; 2, exemption from all kinds of taxes except
municipal ; 3, exemption from import and internal duties
1 See Tariff of Prices for Sale of Public Lands, Art. 872.
2 See Art. 830.
536 COMPENDIUM OF MEXICAN LAW.
on provisions, where there are none, on farm implements,
tools, machines, chattels, building materials, furniture for
use, and breeding or blooded animals, intended for the col-
onies; 4, personal and ^intransmissible exemption from ex-
port duties on the products which they raise; 5, rewards for
notable works and premiums and special protection for the
introduction of any new cultivation or industry; 6, exemp-
tion from fees for the legalization of signatures and issuance
of passports by consular agents, to persons coming to ^Mexico
as colonists under contract between the Government and any
companv. The Department of Fomento will determine the
amount and kinds of articles which may be brought in free
of duties in each case ; 3 and the Department of Hacienda
will make regulations in regard to the manner of bringing
them in, so as to prevent frauds and contraband, but without
hindering the prompt dispatch of the articles. 4 Colonists
settling on treeless lands, who plant at least one-tenth of the
tract with trees in a number proportionate to its area, more
than two years before the expiration of the term of exemp-
tions, shall be entitled to one additional year of exemption
from taxes on the whole tract for each tenth part thereof
which they devote to the cultivation of forests. (Arts. 79.)
Art. 839. Duties of Colonists Loss of Rights. Colonies
must be established under a municipal form of government,
subject in regard to the election of their officers and the
laying of taxes to the general laws of the Republic and of
the State in which they are located; but the Department of
Fomento may appoint agents in the colonies in order to
better direct their works and to enforce the payment of any
amount- due to the Government. The colonists are bound
to comply with their contracts with the Federal Government,
or with private persons or companies who brought and estab-
lished them in the country.
a See Free List, Art. 845.
* See Arts. 840-847.
COLONIZATION LAW. 537
Every foreign colonist must make a declaration in the act
of settlement, before the federal colonization agent or the
proper notary or judge, of whether he intends to retain his
nationality or wishes to acquire Mexican nationality as con-
ferred by Art. 30 of the Constitution ; colonists have all the
rights and obligations granted or imposed by the Constitution
on Mexicans and foreigners, as the case may be, and are
entitled to all the temporary exemptions granted by this law,
but in all questions arising from any cause they are subject
to the decisions of the Mexican tribunals, to the entire exclu-
sion of foreign intervention.
Colonists who abandon the lands sold to them for more
than one year, and before paying for them, without good
cause proven, lose all rights to said lands and to all amounts
paid ; where the land was donated gratis as above provided,
they lose the land by abandoning or failing to cultivate it
for six months without just cause. (Arts. 10-14.)
Art. 840. Other Grants and Aids to Colonists. In places
designated by the Government for new towns, a lot of land
wall be granted free to Mexican or foreign colonists who wish
to locate therein as founders; but they will not acquire title
to such lot, but will lose all rights to it, if they do not prove
the erection of a residence thereon within two years after
their establishment ; such grants w r ill be of alternate lots.
Mexicans residing abroad who wish to settle in the unin-
habited places along the frontiers of the Republic, are enti-
tled to a free grant of not to exceed two hundred hectares,
on the conditions above prescribed, and to the exemptions
herein granted, for fifteen years.
The Executive may aid colonists or immigrants, in proper
cases and within the amount allowed by the appropriation
laws for the purpose, by payment of the costs of transporta-
tion for themselves and their equipage by sea and into the
interior as far as the railroads extend, with gratuitous main-
tenance for fifteen days, in the places which he may deter-
538 COMPENDIUM OF MEXICAN LAW.
mine, and with tools, seeds, building materials and animals
for work and breeding, the amount of such advances to be
repaid in the same way as the price of the land. (Arts. 15-
17.)
CHAPTER 3.
COLONIZATION COMPANIES.
Art. 841. Survey of Lands Conditions and Terms.
842. Contracts for Colonization Conditions.
Art. 841. Survey of Lands Conditions and Terms. The
Executive may authorize Companies to open up public lands
(ferrenos bdldios), upon condition of making their measure-
ment, survey, subdivision into lots, appraisement and descrip-
tion, and to transport and settle colonists upon said lands;
to obtain such authorization the companies must designate
the lands which they wish to open up, with their approximate
area and the number of colonists they will settle on them in
a given time; such authorization becomes ineffective and not
subject to extension, unless the operations thereunder are be-
gun within the unextendable term of three months.
The proceedings for the survey will be authorized by the
District Judge within whose jurisdiction the land lies, and
when concluded, if there is no oposiior, the records will be
delivered to the company to be presented to the Department of
Eomento, together with the Executive authorization above re-
ferred to ; but if there is opposition, the proper suit will be
proceeded with, a representative of the Treasury Department
Ix-ing a party thereto. As compensation for the works done,
the Executive may grant the companies not to exceed one-third
of the land or its value, but on condition that they cannot
transfer the same to foreigners not authorized to acquire them,
nor in greater parcels than twenty-five hundred hectares,
under penalty of forfeiture to the Government of the lands
COLONIZATION LAW. 530
conveyed in contravention to these restrictions. 5 The lands
surveyed by the companies, except the part so granted to them
in compensation, will be granted to the colonists or reserved,
011 the terms and conditions prescribed in Art. 836 above.
(Arts. 18-23.)
Art. 842. Contracts for Colonization Conditions. The
Executive may enter into contracts with companies or con-
cerns for the introduction and settlement in the country of
foreign colonists and immigrants, on the following condi-
tions : 1, The companies must fix a specific time within
which they will bring in a certain number of colonists ; 2,
the colonists or 'immigrants must comply with the require-
ments of Art. 776 above; 3, the terms of all contracts made-
between the companies and the colonists must conform to the
provisions of this law and be submitted for approval to the
Department of Fomento; 4, the companies must guarantee
to the satisfaction of the Executive the performance of the
terms of their contracts, in which the grounds of forfeiture
and fines must be set out.
Companies making such contracts with the Executive shall
enjoy for a term not to exceed twenty years the following
franchises and exemptions: 1, Sale at long time and low
price of public lands for the sole purpose of colonization ;
2, exemption from all taxes except stamp tax on the capital
invested in the enterprise; 3, exemption from port duties,
except those laid for improvements in said ports, on ships
bringing in on behalf of the companies at least ten families
of colonists ; 4, exemption from import duties on tools, ma-
chines, construction material, and draft or breeding animals
intended exclusively for an agricultural, mining or industrial
colony authorized by the Executive; 5, bounty for each
5 This prohibition on sale is repealed by Art. 8 of the Land Law of
26 March. 1904. herein contained in Art. 849.
6 Such exemption is subject to the provisions of the Regulations of
17 July. 18S9. See Arts. 845-847.
540 COMPENDIUM OF MEXICAN LAW.
family established, and a less bounty for each family dis-
embarked, and a bounty for each Mexican family estab-
lished in a colony of foreigners; 6, transportation of the
colonists at the Government's expense on the subsidized
steamship and railway lines.
Foreign colonization companies will be considered always
as Mexican, and must have a domicile in some city of the
Republic, in addition to such as they may have elsewhere,
and are obliged to have in Mexico a part of their Board of
Directors and one or more attorneys-in-fact amply empowered
to negotiate with the Executive. All questions arising be-
tween the Government and the companies shall be decided
by the Mexican tribunals, according to the laws, without any
interference therein by foreign diplomatic representatives.
(Arts. 24-27.)
CHAPTER 4.
MISCELLANEOUS PROVISIONS.
Art. 843. Private Enterprises Conditions.
844. Colonization of Inlands.
Art. 843. Private Enterprises Conditions. Private per-
sons may set aside all or a part of their own lands for colo-
nization by at least ten families of foreign] immigrants, who
shall have the same franchises and exemptions as those estab-
lished by the Government, provided t-hey subject themselves
to the conditions iixed by the Executive to insure the success
of the colony, one of which conditions shall always be that
each -colonist is to acquire by purchase or grant a lot of laud
for cultivation ; the Executive may also provide foreign
colonists to such individuals, stipulating with them the con-
ditions on which they are to be settled, and may aid them
with the costs of transportation of the colonists. The Execu-
COLONIZATION LAW. 541
five is authorized to acquire private lands by purchase or
grant, where deemed advisable, in order to establish colonies
thereon, subject to the appropriations made for such purpose
by the law. (Arts. 28, 30.)
Art. 844. Colonization of Islands. The Executive may
colonize the islands in both seas under the provisions of this
law, reserving to the Government an area of fifty hectares
on each island for public uses ; if the island is too small to
allow of such arrangement, no lands on it will be sold, but they
may be leased for short terms. In all colonies established
on islands there must always be a number of Mexican fam-
ilies not less than one-half the total number of colonizing
families. (Art. 29.)
CHAPTER 5.
REGULATIONS IX REGARD TO COLONIZATION".
(Beglamento de 17 Julio de 1SS9, sol>re Franquicias conce-
rt Idas a los Colonos por la Lei/ de 15 Diciembre dc 1883.)
Art. 845. Imports Exempt from Duty.
840. Free Importation IIo\v Secured.
847. Duties of Agents Frauds.
Art. 845. Imports Exempt from Duty. Pursuant to the
provisions of the Law of 15 December, 1883, the following
articles for the use of colonists and recognized Companies, are
free of duty :
FOOD STUFFS.
Oil, garlic, dry peas, rice, oats, common and refined sugar,
coffee of all classes, salted and smoked meats, hams, barley,
onions, beans, fruit? and fresh vegetables, ordinary crackers,
chick peas, wheat flour and that of eereals of all classes, con-
542 COMPENDIUM OF MEXICAN LAW.
densed milk, lentils, corn, lard, butter, ground mustard, pota-
toes, pastries, pepper, common or table salt, tea of all classes,
vinegar in earthen, glass or wooden receptacles.
STONE AND EARTH.
Clay piping, bricks other than refractory, paving flags and
slate Tiles of all classes and dimensions worked on one face
only, except those of marble or alabaster, grinding or whet
stones, plain glass for windows and doors, sulphate of lime.
WAGON MATERIAL.
Wheel-barrows or hand carts of all classes ; carts and wagons
of all classes and sizes; iron and steel axles and separate
wheels for the same.
LEATHER GOODS.
Common harnesses for carts and wagons.
DRUGS, starch.
IRON, STEEL AND OTHER METALS.
Woven wire for fences ; hooks and door-latches ; iron and
brass hinges of all classes ; iron, steel or brass key-hole
plates, without plating or gilding; iron, steel, brass, copper
or bronze locks of all classes ; nails, brads, tacks, screws,
bolts and nuts, and rivets of iron or zinc ; channel iron and
sheet iron for roofs; bellows for chimneys; tools and iron,
brass, steel or wooden implements, or composed of these ma-
terials, as well as stakes and handles for tools; iron ovens for
cooking and stoves with the corresponding iron pipes; iron
.-hoe- for animals ; wind-mills, of iron or wood, or of both ma-
terials, for drawing water from wells; iron beams for the con-
struction of houses; corrugated zinc for roofs; machinery and
accessories.
COLONIZATION LAW. 543
MISCELLANEOUS ARTICLES.
Geldings ; brooms ; ordinary lumber ; hair for plastering ;
doors and windows of wood, and of wood and glass ; tents and
tent-poles.
The colonists may also bring in free of duty, once for all,
their new or used furniture and household stuff, if of ordi-
nary quality according to the condition of the colonist ; the
Department of Fomento will determine what colonies shall
have the right to bring in provisions free of duty for such
time and on such conditions as may be deemed proper, as
provided in the law. (Arts. 1-3.)
Art. 846. Free Importation How Secured. Free impor-
tations under these Regulations or under the General Customs
Tariff, may be made by recognized colonists directly or
through the agencies of the colonization companies, or through
commission agents, under the following conditions: The
colonists or their agents must apply to the proper agent of
the Department of Fomento, requesting the importation of the
articles which they need, which are free under the regulations
or tariff, with a list in duplicate, detailing clearly the kind
and quality of effects which they wish ; if this list is approved
by the Agent, he will endorse his authorization on it, and
forward one copy to the customs house through which the
importation is to be made, keeping the other copy in his
files, and sending another to the Department of Fomento,
and will issue a certificate to the applicant as his voucher ;
if there is no Agent, the Department may authorize some
federal employe to act as such. Such importations must
come in a consular invoice containing no other goods which
are subject to duty; when the importation is made, the
Agent or the colonists will make out the petitions required
by the tariff law for forwarding the articles, which will be
presented to the customs house, and if found to correspond
with the document authorized by the Agent of Fomento,
544 COMPENDIUM OF MEXICAN LAW.
the goods will be delivered, but if there is any difference, the
provisions of Art. 388 of the tariff law on the subject will be
followed. (Arts. 4-7.)
Art. 847. Duties of Agents Frauds. The colonization
agents must give notice in advance to the agents of Fomento
of the expected arrival of colonists at the places where they
are to enter the country, so that the customs houses may be
notified, in order that no difficulty may be had in regard
to the forwarding of the effects when they arrive; the names
of the colonists must be stated in ,-aid notices. The Agents
of Fomento must not permit colonists to bring in more
goods than is strictly necessary ; should any colonists or
their agents abuse the concession made them by selling or
Trading in the goods admitted free of duty, the Agent of
Fomento or Administrator of Customs will at once notify
the District Judge, who will investigate the matter and if a
crime has been committed, will proceed to punish it accord-
ing to the law. Details of duties of the Agents of Fomento
and their records are omitted. (Arts. 8-13.)
PUBLIC LANDS LAW. 545
BOOK XIII.
LAND AND WATER LAWS OF MEXICO.
TITLE I.
- LAND 'LAWS AND AMENDMENTS. 1
{Ley sobre Ocupacion y Enajenacion de Terrenos Baldios
de los Estados Unidos Mcxicanos, de 2G Marzo, 18D4.)
CHAPTER 1.
PUBLIC LANDS AXD GENERAL RULES FOR THEIR OCCUPATION
AND ALIENATION.
'Art. 848. Classification Definitions.
849. Lands Subject to Acquisition.
850. Lands Exempt from Acquisition.
851. Leases and Contracts.
852. Effects of Grant.
Art. 848. Classification 2 Definitions. All lands of pub-
lic ownership affected by this Law are divided into four
classes: 1, Baldios; 2, Demasias; 3, Excedencias; 4, Terrc-
nos nacionles, or national lands. Bcdd'ws are all public lands
Avhich have not been devoted to public uses by the proper legal
authority nor granted upon onerous or lucrative title to indi-
1 The Regulations of tins Public Lands Law boar dato 5 June. 1894:
owing to their great length, and to the fact that the Lands Law is pend-
ing extensive amendments, as indicated in Art. Sl>7. the Regulations are
herein omitted.
-See Art. 807. frac. I. amending this Classification.
546 COMPENDIUM OF MEXICAN LAW.
viduals or corporations. Demasias are lands held by private
persons under original grants, but in excess of the exten-
sion called for by the patents, provided that such excess is
within the boundaries called for in the patent. 3. Exceden-
cias are lands held by private persons for twenty years or
more, outside of but lying alongside the boundaries of their
original grants. 4. Xational lands are those baldios which
have been officially selected, surveyed and measured, but have
not been legally granted, also baldios which have been de-
nounced by private persons but abandoned after survey and
measure. (Arts. 1-5.)
Art. 849. lands Subject to Acquisition. Every inhabitant
of the Republic, of legal age and capacity to contract, may
denounce baldios, demasias and excedencias, as herein pro-
vided, in any part of the Republic and in any amount, ex-
cept native and naturalized citizens of the countries border-
ing on the Republic, who by no kind of title may acquire
baldios in the border States. The privileges herein granted
do not remove the limitations imposed by existing laws upon
the acquisiton by foreigners of real property in the Republic.
Former requirements upon holders of baldios to keep them
settled, demarked and cultivated, and those forbidding sur-
veying companies to sell lands held by them except in certain
instances, are abolished, together with all penalties and for-
feitures. 3 Baldios , demasias and excedencias can only be ac-
quired by denouncement and in the manner herein provided,
and at prices fixed by the Executive, and all those held for
twenty years or more by private persons without original
grant, but under conveyances of title emanating from private
persons or public authority not authorized to grant Laldios,
may be acquired in the same manner or by arrangements made
directly with the Department of Fomento as herein provided.
Xational lands can only be disposed of by said Department at
3 The prohibition here repealed is tlint of Art. 21 of the Colonization
Law of !."> Deeenilier, l^s:?. lie rein contained in Art. 841.
PUBLIC LANDS LAW. 54:7
the prices and on the terms fixed in each case in view of the
quality, location and use of the lands,, which prices can never
be less than the current tariff prices for baldios, and lands
can never be granted gratuitously except for public uses,
rewards for services or otherwise as expressly provided by law.
The tariff of prices for baldios in each State and Terri-
tory will be fixed each year by a decree of the Executive
published in January, and in force during the fiscal year ; 4 of
the price received for lands sold two-thirds will be paid into
the Federal Treasury and one-third into that of the State
where the land lies, but neither can refuse to accept their own
evidences of public debt which may be tendered them in
payment by the purchaser; the entire price of lands located
in the Federal District and Territories goes into the Federal
Treasury. (Arts. 6-13.)
Art. 850. Lands Exempt from Acquisition. Xeither by
grant nor prescription can title be acquired to the following,
the dominion of which shall remain always in the Federation :
1, The sea shore; _!, the maritime zone extending twenty
meters from the highest tide mark and along the coasts of
mainland and islands ; 3, a zone of ten meters on both banks
of navigable and of five meters on floatable rivers ; 4, lands
on which monumental ruins are found, with such exten-
sion as is deemed necessary to preserve them. Baldios on
islands in both oceans may be acquired the same as on the
mainland, but in addition to the maritime zone a tract of at
least fifty hectares will be reserved for settlement and other
public uses, but if the island is not so large it will all be re-
served ; islands in navigable rivers, lakes and inlets cannot
be acquired except after expert examination and reports
from the chief political authority of the State, District or
Territory showing that there is no objection to the aliena-
tion ; inlets, lagoons and ponds which are not and cannot
become navigable, and marshes, may be acquired upon like
4 SVo Tariff of Price*. Art. 872.
548 COMPENDIUM OF MEXICAN LAW.
conditions together -with the report of the proper naval
authority ; lands wanted for salt-pits may also be acquired
as herein provided, but the Fomento may have them specially
appraised and sell them at higher than tariff prices if deemed
advisable. (Arts. 14-17.)
Art. 851. Leases and Contracts. The Department of
Fomento may enler into leases or other contracts for the ex-
ploitation of baldios while they are not taken up, as well as
make regulations for the exploitation of woods, resins or
other products of such lands and providing penalties for
their infringement, besides the penalties prescribed by law
for entering or exploiting baldios without permission. Such
leases may provide that the lessee may acquire the lands pref-
erentially (by the dcrcclio del lanto) when another per-
son denounces them, if he makes use of the right within
one month, and reimburses the denouncer for the costs of de-
nouncement, measure and survey of the land. Such con-
tracts cannot prevent the granting of the lands and they must
be delivered to the denouncer within six months from the
issuance of his title ; all permits granted will also cease upon
the land being granted, and the licensee can only recover the
part of the consideration paid proportioned to the unexpired
time. (Arts. 18-1!).)
Art. 852. Effects of Grant The adjudication or grant of
public lands under the proceedings herein established, vests
the title of the land in the grantee as against the Xation and.
private persons who have acquiesced in it or who having
made opposition have been judicially defeated ; but as against
third persons who have not been heard., (lie ownership is only
acquired by prescription or other legal title.
The Kxecutive may temporarily reserve such baldios as ho
may deem advisable for the conservation or planting of
wood-. Indian reservations, or colonization, as provided by
la\v. < Arts. i'0 i'l.
PUBLIC LANDS LAW.
CHAPTER 2.
MANNER OF ACQUIRING PUBLIC LANDS.
Art. 853. Land Agents Denouncements.
854. Proceedings under Denouncements.
855. Oppositions Judicial Proceedings.
856. Special Proceedings with Department.
857. Rebates to Possessors Preemption.
858. Prescription of Baldios.
Art. 853. Land Agents Denouncements. For the pur-
pose of disposing of public lands the Department of Fomento
will establish tne Agencies with one or more Agents and depu-
ties for each, in the several States, Territories and Federal
District, particularly defining the districts in which they are
to act ; they will receive no salary but will collect fees in
accordance with the tariff to be issued by the Department.
An applicant (denunciante} for public lands must present
to the Agent in the district where the land lies, a written
denouncement, in duplicate, in which the location of the land
and its boundaries must be accurately described. Upon
presentation of the denouncement, the Agent will register
it in a special book, and will record the day and hour of its
filing in the book and oil the denouncement and its dupli-
cate, returning the latter to the applicant as an evidence of
his rights ; within fifteen days afterwards the Agent will
ascertain whether the land denounced has been surveyed or
is reserved for any purpose, and if not, he will admit the
denouncement and proceed with it as provided in the admin-
istrative regulations ; the Agent will not proceed with de-
nouncements presented in regard to lands already patented
or denounced, but will record them, and his decision is
subject to review by the Department as provided in the regu-
lations. (Arts. 22-i'G.)
Art. 854. Proceedings Under Denouncements. Everv de-
550 COMPENDIUM OF MEXICAN LAW.
nouncement of public lands must be published in the office of
the Agency and in the official newspaper of the State, Dis-
trict or Territory where the land lies, for the time and in the
form prescribed by the regulations; the applicant must pay
all the expenses of publication, and of the measurement and
survey of the land, which must be made in every case, upon
notice to the adjoining owners, by a qualified expert ap-
pointed by the applicant with the approval of the Agent. If
the laid to denounced is surrounded entirely by lands not
laldio, it may retain whatever shape it has; but if not so
bounded, the new sides laid out must be straight and the
angles as nearly right angles as possible; if entirely sur-
rounded by other laldtos, its figure must be a square.
Where the laldto denounced adjoins lands not laldio, the line
of the latter will be taken as the line of the land denounced,
or a clear distance of not less than one kilometer will be left
between them both, as the applicant may prefer. When the
survey is finished, a plan of the land made, and the terms
fixed by the regulations passed without any oppositor present-
ing himself, the Agent will make copies of the record and
plan, and forward them to the Department of Fomento,
through the medium of the Governor of the State, who will
make such report on it as he deems proper; the Department
of Fomento, upon examination of the record and plan and
after finding that all requirements have been complied with,
will adjudicate the land to the applicant, and will notify
him to pay the price of the land so that the proper patent
of title may be made to him, such notice being given through
the Agent before whom the denouncement was made, if the
denunciant does not reside or has no representative at the
Capital. The price to be paid will be that fixed by the tariff
then in force, and must be paid within two months after
the adjudication, whereupon on presentation of the vouchers
of payment the patent or title will be executed and delivered ;
if payment is not so made the applicant loses his rights and
the land will be incorporated among the national lands; it
PUBLIC LANDS LAW. 551
rnay also bo declared national land and tlic adjudication to
the denunciant refused by the Department if desired to be
reserved or for other public use, upon refunding to the
denunciant all expenses incurred in the denunciation; adju-
dication may also be refused of lands denounced along a
water course where the grant would cut off access of ad-
joining owners to the water, and lands along a water
course should be laid out so far as possible so that all may
have access to the water. (Arts. 27-32, 36.)
Art. 855. Oppositions Judicial Proceedings. If oppo-
sition is presented affecting the whole of the land denounced,
formulated in such way that a determined area cannot be spec-
ified, the Agent will at once suspend the proceedings; but if
the opposition relates only to a clearly specified part of the
land, the proceedings will continue as to the part not embraced
in the opposition, and the proper judicial procedure will be
begun as to the part affected, before the District Court of
the State, District or Territory where the land is
situated ; such suit will be conducted in accordance
with the procedure in summary suits in federal mat-
ters, 5 the Fiscal Promoter appearing as representative of
the public Hacienda, and judgment in the second instance
shall be final. Such final judgment will award the costs of
the suit, and a certified copy will be forwarded to the Land
Agent to be added to the administrative record ; if entirely
adverse to the denunciant, the denouncement will be dis-
missed so far as it affects the rights of the oppositor ; if ad-
verse to the latter, the denouncement will proceed as if no
opposition had been made. The proceedings under a de-
nouncement can only be suspended or the time extended, in
case of an opposition and not otherwise ; when the time is
expired, the Agent must forward a certified copy of the rec-
ord to the Department of Fomento so that it may declare the
denouncement abandoned or impose any penally incurred by
& See Federal Code of Civil Procedure, of 1908, Arts. 5!)0-f>!)8.
552 COMPENDIUM OF MEXICAN LAW.
the Agent; an applicant who has been declared in default
cannot again denounce the same land within one year after
his first denouncement was declared abandoned. (Arts. 33
35, 37.)
Art. 856. Special Proceedings with Department. Exce-
dencias and demasias of a property, as well as baldios im-
properly held by private persons as hereinbefore specified,
may be acquired by denouncement as above provided, or by
direct application to the Department of Fomento, which
is authorized to enter into any arrangement or settlement
which it deems to the interest of the Xation, either declaring
that there are no baldioSj excedencias or demasias within
the limits of a property or by adjudicating to the owner any
which there may be ; but no such arrangement can be made,
until : Plans of the land have been made by a titled expert
as required by the regulations and approved by the Depart-
ment, and positive proof is made that every adjoining owner
approves the boundaries shown by the plan, or that, if any
objection was made, it has been settled by a final judgment;
such proof may be made by escritura publica duly executed
or by appearance before a judge of first instance or the Land
Agent in the district where the land lies ; the original grants
or later deeds of conveyance in legal form must also be pre-
sented to the Department, together with the latest convey-
ance of title, duly recorded in the Register of Property of
the place wherein the land lies, and the original or a certified
copy of the report rendered to the proper District Court
evidencing the possession of the land or of the excedencias
or demasias during the time required by this law. Upon
compliance with these requirements, the Department may
declare that no baldios exist within the limits of the property,
or may adjudicate any such ~baldios, excedencias or demasias
to its owner, upon payment of the price fixed in the tariff in
force when the application was made, less the rebates allowed
by Art. 857 to persons in possession.
GRAND REGISTER OF PROPERTY. 553
National lands may be sold by the Department, for cash or
on time, and at prices to be agreed upon, but not less than
the tariff rates at the time of sale ; if sold on time the title
will not be issued until the price is entirely paid. (Arts. 38
41.)
Art. 857. Rebates to Possessors Preemption. A rebate
of sixty-six per cent, of the tariff price will be made to those in
possession of demasias; of fifty per cent, to those in posses-
sion of excedencias and of baldios under color of title for
more than twenty years ; and of thirty-three per cent, to
those in possession of baldios under color of title for more
than .ten but less than twenty years. The possessor shall also
have the right to be preferred in case such lands are de-
nounced by third persons, provided he exercises the preemp-
tion before the record is forwarded by the Agent to the De-
partment and repays the denunciant all expenses incurred in
the denouncement. (Arts. 4243.)
Art. 858. Prescription of Baldios. Former laws prohibit-
ing prescription of Baldios are repealed, and henceforth any
person not forbidden by law, may acquire by prescription not
more than live thousand hectares of bald'io lands under the
terms of the Federal Civil Code. (Art. 44.)
CHAPTER 3.
GEAXD REGISTER OF PROPERTY.
Art. 859. Establishment Tublic.
860. Effects of Registration.
861. Registration How Made.
862. Changes of Ownership Subdivision.
863. Tax on Registration.
Art. 859. Establishment Public. There is established
the Grand Register of Property of the Republic," which shall
6 See Arts. 284-292.
7 See Art. 867, frae. XII.
554 COMPENDIUM OF MEXICAN LAW.
lie in charge of an Office of the Department of Fomento, and
in which shall be recorded with such requisites and formali-
ties as prescribed by this law and the regulations, the original
titles of baldios and national lands and those issued by virtue
of arrangements made or hereafter made with the Department
of Fomento ; the Register shall be public and anyone may ex-
amine it and secure certified copies of the entries and plans
recorded in it. The Keeper of the Grand Register will
give a bond of not less than $10,000 for damages which may
be caused to the public Hacienda or to private persons by
fraud or omissions in the inscriptions which he makes, but
he shall have the right to make objections to the decisions
by which inscriptions are ordered made, and his liability
shall only cease where in spite of them the order is repeated.
(Arts. 45-46, 62.)
Art. 860. Effects of Registration. Inscription in the
Grand Register is entirely voluntary for the owners and
possessors of lands, who lose none of their rights by failure
to make such inscription, but they can enjoy none of the
privileges granted to registered properties. Every property
so registered will be considered by the Federal Government as
perfect, irrevocable and exempt from every kind of revision,
the simple certificate of registration being conclusive on all
government authorities and agencies, which cannot at any
time require the production of the original titles, or subject
them to any kind of inquisition or revision, nor is the area
of the land inscribed subject to any rectification. Property
so protected cannot be denounced, and any denouncement will
be declared ineffective upon presentation of the certificate of
registration, such declaration being however subject to review
by the Department of Fomento as hereinbefore provided; in
respect of adjoining owners the certificate has the same legal
effect as a valid and perfect title so long as the inscription is
not declared void or modified by a final judgment obtained by
such adjoining owner. The validity of an inscription can-
GRAND REGISTER OF PROPERTY. 555
not be questioned by anyone who himself or through those
under whom he claims, had consented to the boundaries fixed
in the plan presented for registration, or who, having made
opposition before registration, has been defeated by a final
judgment; but the boundaries of such properties are subject
to be identified in proper cases by the government agents
or by private persons interested therein. (Arts. 4752.)
Art. 861. Registration How Made. Xo registration of
lands or property can be made except upon express authority
from the Department of Fomento, which must be filed with
the plan of the property. Every inscription shall contain:
1, The name 'of the applicant ; 2, the name by which the
estate or land is known or which is given to it by the owner ;
3, the location of the land, stating at least the State, Dis-
trict, Canton and Municipality; 4, the boundaries on all
sides, with reference as far as possible to fixed points of
easy identification or to solid and permanent artificial land-
marks ; 5, the date and abstract of all the original titles of
ownership which serve as the foundation of the inscription ;
6, date and abstract of the last deed of conveyance of title
executed in favor of the applicant for registration ; 7, literal
copy of the decision of the Department of Fomento ordering
the inscription ; 8, such other data as the regulations may
require.
The Department of Fomento cannot order the registration
of a property until the following requirements are complied
with : 1, Declaration by the Department that all interests
of the government in respect to the land in question are
satisfied ; 2, presentation of the last conveyance in favor of
the applicant, duly registered in the district where the land
lies; 3, presentation of a plan of the land as required by the
regulations; 4, proof of the consent of adjoining owners to
the boundaries established in the plan, or of final judgment.
against their opposition, in the form hereinbefore provided.
Each inscription must embrace only one estate or property,
556 COMPENDIUM OF MEXICAN LAW.
and cannot include several separate tracts, although belonging
to the same owner. (Arts. 53-56.)
Art. 862. Changes of Ownership Subdivision. The cer-
tificate of registration is effective although the property passes
to other owners ; but the latter may present to the Grand
Register a public instrument, duly registered in the district
where the land lies, proving their lawful succession in title,
and have the certificate changed to their name. Where a
registered tract of land or property is divided, the fact will
be noted on the original entry and plan, and a new inscrip-
tion will be opened for each part which has passed to the
new owner, and a plan of such part must be presented and
filed. Except by transfer and subdivision, an inscription
can only be altered or cancelled by virtue of a final judg-
ment of a competent federal judge or tribunal of the place
where the land is located decreeing that the inscription is
void or should be modified ; the only legal cause for such
decree is proof that the inscription was procured by error,
deceit or fraud or without complying with the requirements
of the law ; the Fiscal Promoter shall always be a party and
be heard in such suits. The Department of Fomento must
notify the Land Agents of all inscriptions of lands within
their respective districts so that no denouncement of any
part of the same will be allowed. ('Arts. 57-60.)
Art. 863. Tax on Registration. Inscription in the Grand
Register of Property is subject to a tax payable in stamps,
which must be affixed to the book in which each inscription is
made, according to the following tariff: Tracts of le>s than
10,000 hectares, at the rate of one cent per hectare, but such
tax cannot be less than $2; between 10,000 and 50.000 hec-
tares, one cent per hectare on the first 10,000, and one-half
cent per hectare on the excess ; for tracts of more than 50,-
000 hoctares the above rates will be paid on the first 50.000,
and one-fourth cent per hectare on all the excess; the forego-
PUBLIC LANDS LAW. 557"
ing taxes will be paid but once, but additional rates payable
also in stamps, may be established by the Department, for
certified copies of inscriptions, and for the entries made on
them in cases of change of owner or division of property.
(Art. 61.)
CHAPTER 4.
GENERAL PROVISIONS.
Art. 804. Prior Titles Validity.
865. Surveyors Denouncements.
806. Corporations Town Lands and Commons.
Art. 864. Prior Titles Validity. All titles issued by
competent authority, according to the laws, and especially
those issued since the law of 20 June, 18G3, 8 went into effect,
are declared exempt from all revision and composition, and
are expressly confirmed and ratified so far as the interests of
the public Treasury are concerned, and the same cannot
hereafter be nullified or modified except for error or fraud
established by final judgment of the competent tribunals of
the Federation ; but said titles only protect the lands within
the superficial area to which they refer, and the boundaries
therein established, and cannot be extended to any others.
Likewise and on the same terms are confirmed and ratified
all grants made by the Department of Fomento by way of
compositions, and the declarations of said Department to
the effect that specified properties do not embrace public
lands. Every original title to terrenos baldios, issued by
competent authority and in conformity with the requisites
of the laws in force at the time the same was issued, is valid
and binding, and does not require any revision, ratification
or confirmation of any kind, provided said title conforms
s The law of 20 June, 1863. governed the matter of bald'ios and pub-
lic land- up to the date when the present la\v of 2<> March, 1S94. was
enacted.
558 COMPENDIUM OF MEXICAN LAW.
with the superficial area and boundaries therein fixed for
the land, or that any defects therein have been cured by com-
position with the competent authority; but lands inscribed
in the Grand Register of Property are not affected by this
requirement, their owners only being required to permit the
identification of their boundaries as provided in Art. 860.
All contracts and arrangements made in regard to public
lands by officials not authorized by law to make them are
entirely void and do not in any way affect the public Treas-
ury. (Arts. 63-65, 71.)
Art. 865. Surveyors Denouncements. Surveyors en-
gaged in the survey of public lands are civilly liable to the
Treasury Department for all damages caused by their negli-
gence or want of skill in the discharge of their office, besides
the penalties to which they are liable for deceit or fraud
according to the penal laws. Xo one can oppose the survey
or mensuration of land or the performance of any other act
ordered by competent authority necessary to ascertain the
truth or legality of a denouncement, but if the land is ad-
judged not to be bahUo in whole or part, the owner is
entitled to indemnity for all damages caused by the denounce-
ment, besides the criminal action which lies according to law;
the foregoing rule does not alter the provisions of Art. 860
in regard to lands inscribed in the Grand Register. The
mere denouncement of public land does not carry the riaiit
to take possession of it, which is only conferred by the issu-
ance of the proper title in accordance with the requirements
of thi- law. (Art-. 66, 72-73.)
Art. 866. Corporations Town Lands and Commons.
Civil communities and corporations are prohibited from and
incapable of holding real estate. The State governments.,
aided by the Federal authorities, will continue to lay OUT, sub-
divide and adjudicate am on a 1 the inhabitants of the towns
the hind- which form the common- (>/Yc/ox) and the surplus:
PUBLIC LANDS LAW. 559
of the town lands (fundo legal) ; the details of this procedure
are omitted, as of no general concern. The Department of
Eomento will issue Regulations for the exploitation of forests
and public lands (baldios) temporarily reserved. 9 (Arts.
67-70.)
TITLE II.
AMEXDMEXTS TO LAXD LAWS.
CHAPTER 1.
BASES FOR REFORMATION OF LAW.
(Law of 30 December, 1002, as Amended by Decree of 26
December, 1905.)
Art. 8G7. Nature and Extent of Proposed Amendment.
Art. 867. Nature and Extent of Amendment. The Fed-
eral Executive is authorized to reform the existing legislation
in regard to public lands (terrenos baldios), in accordance
with the following Bases :
I. The classification made by the law of 26 March, 1894,
into Ijaldios, nacionales, demasias and excedencias, is repealed,
and only one class called baldios, as established in Base III,
and as defined in said Law, ante, Art. 848, will be recognized ;
but the lands embraced in the original title will be considered
protected by it, although the identity of the boundaries and
of the lands within the boundaries indicated in said title is not
strictly preserved, and although they embrace an area greater
than the title calls for. (Amendment of 26 December,
1905.)
II. In a separate Article there shall be enumerated the
lands which are considered as taken out of the ownership
(salidos del dominio) of the Xation, and which cannot be
sold as baldios, including therein lands of whatever extent
9 The Regulations for the exploitation of forests, baldios and national
lands, are of date 1 October, 1894.
:560 COMPENDIUM OF MEXICAN LAW.
which have been possessed by private persons within the
terms of the Civil Code regarding prescription, as well as
those which have been simply occupied for thirty years or
more by herds, cultivation or construction, and inclosed by
fence, ditch or artificial monuments.
III. All baldioS; whether or not comprised within the
boundaries indicated in any title, shall be divided, in respect
of the requisites necessary to their acquisition, into surveyed
and unsurveyed ; the former may be sold directly by the
Department of Fomento, at prices fixed by it, but not less
than the tariff of unsurveyed baldios, and on such terms as
the Department may determine in each case ; the latter can
only be acquired by denouncement or composition made be-
fore the officials, and with the requisites, prescribed by law.
TV. The Executive is authorized to cause all public lands
(baldios} to be surveyed by official commissions; all laws
and regulations authorizing the surveying of such lands by
private surveying companies shall be expressly repealed for
the future, and subsidies and other obligations payable in
such lands shall be prohibited.
V. The Executive is also authorized to issue the proper
titles of ownership to the possessors and occupants of sur-
veyed lands in the cases specified in Base II, upon their
request and payment of the costs incurred by the Govern-
ment in making the survey, in proportion to the area solicited.
VI. Possessors and occupants of such lands who are not
within any of the cases mentioned in Ba-=e II, shall have
the right to be preferred in the purchase of the lands which
they are possessing or occupying, provided they exercise the
right bc'fore the lauds are granted to another applicant.
VII. Occupants and possessors of unsurveyed lands com-
ing under the lerms of the preceding Base, shall have the
same right when I lie laud is denounced by another person,
provided they exercise the right, before ihc in'ant is made to
the denuurianl and pay the costs which he has incurred in
the denouncement.
PUBLIC LA]S T DS LAW. 561
VIII. The provisions of the present law in respect to the
validity and force of titles issued by competent authority,
and that they shall not be revisable by the Executive except
after judgment of the competent Tribunals of the Federa-
tion, shall be continued in force, being amplified by the pro-
vision that the baldios comprised within the boundaries stated
in the title shall not be subject to denouncement where they
have been possessed for the length of time necessary under
the Civil Code for their prescription, in which case such
lands will be considered as withdrawn from the national
domain.
IX. The Department of Foinento is empowed to declare,
on the petition' of any interested party, that any lands are
withdrawn from the public domain- which arc shown to be
protected by a title of ownership issued by an authority thereto
empowered by the law ; such declaration to be made upon
presentation of the said title and of the plan and expert
report in regard to the land, with the requisites prescribed
by the regulations, and from which title and report it ap-
pears that the entire tract is covered by the title. Such
declaration shall be limited to the fact that the land is with-
drawn from the public domain, without reference in respect
to the person of the possessor or owner nor to the titles under
which he holds.
X. The Department of Fomeiito is also empowered to
declare a Ijaldw as withdrawn from the public domain, in
favor of a person acquiring it by prescription, provided that
upon presentation of the plan and report as above required,
it is proven to be in compliance with the conditions of Base
II, by means of an information ad-perpctuam, or by a final
judgment rendered by the Tribunals of the Federation, de-
claring that the fact of prescription has been proven by the
applicant ; the law will determine before what authority or
office such information shall be taken and the requisites of
the same. (Amendment of 2G December, 1005.)
XI. The Department of Foinento will make up a register
30
562 COMPENDIUM OF MEXICAN LAW.
from the data of the expedientes in regard to the foregoing
declarations, the contents of which shall be public, and cer-
tified copies of the plans and declarations may be issued to
any person requesting the same.
XII. The Institution of the Grand Register of Property
of the Republic, established by the Law of 26 March, 1S94-,
shall be substantially preserved, but the Department of
Fomcnto is authorized to reorganize the administrative de-
tails of the registry, and to bring together under the same
organization, said Registry and the other offices, commissions
and dependencies regarding the lands and waters of the
entire Republic. (Amendment of 26 December, 1005.)
XIII. Unsurveyed baldios which are not possessed or oc-
cupied as provided in Base II, may be acquired by denounce-
ment. The proceedings relative to the measurement and
survey of the lands denounced will be conducted by the
administrative Agents of the Department so long as no oppo-
sition is presented to the denouncement, in which event and
straightway the proceedings will be transferred to the Judge
of the District in whose jurisdiction the land lies.
XIV. Of the proceeds of sale of baldios, surveyed or un-
surveyed, one-third shall belong to the State in which they
are located, and two-thirds to the Federation.
X\ 7 . The Federal Executive may order the temporary
reservation of baldios the sale of which is not deemed pres-
ently advisable because the same are needed for some public
j, or for colonies, or other public interests, and may tem-
orarily or permanently reserve lands intended for forests.
CHAPTER 2.
SUSPENSION OF DENOUNCEMENTS AND SALES.
(Decree of IS December, 1009.)
Art. 808. Certain Provisions Suspended.
SOD. Contracts of Lease Terms.
870. Surveys Reservations.
PUBLIC LANDS LAW. 563
Art. 871. Provisions Continued in Effect.
872. Tariff of Prices, 1909-1910.
Art. 868. Certain Provisions Suspended. Pending the re-
formation of the legislation in regard to public lands (ter-
renos baldios), in accordance with the bases of the Decree
of 30 December, 1902, the provisions of the Law of 26
March, 1894, now in force, so far as concerns the denounce-
ment of terrenos baldios, are suspended ; wherefore, the
Agencies of the Department of Fomento will not hereafter
admit any denouncements of such lands, but will proceed
with and finish all denouncements previously made in accord-
ance with said^law up to this date. The power granted by
the laws to the Executive to sell national lands is suspended
until the surveys previously made have been rectified by
official commissions. Contracts or promises of sale of baldios
and national lands, made under the laws of 15 December,
1883, and 26 March, 1894, will be declared terminated upon
the expiration of the periods therein stipulated, and no such
contract can be revalidated nor its time extended. (Arts.
1-2, 4.)
Art. 869. Contracts of Lease Terms. The Department
of Fomento may enter into contracts of lease for the ex-
ploitation of baldios and national lands, subject to the follow-
ing bases : 1, The term of lease cannot exceed ten years ;
2, the price of lease can in no case be less than five per cent,
of the annual value of the land ; for such purpose, the baldios
will be taken at the valuation assigned to them by the tariff
for the current fiscal year, and national lands at the same
prices, plus fifty per cent. ; 3, the contracts of lease may
concede to the lessees the right of preemption where another
wishes to buy the land in accordance with the present law ;
such right must be exercised by the lessee within one month
after notification by the Department of its intention to sell the
land. (Art. 3.)
COMPENDIUM OF MEXICAN LAW.
Art. 870. Surveys Reservations. The Executive,
through the Department of Fomento, will order the survey
and measurement of all ierrcnos baldios vet remaining in the
liepublic, by official commissions paid out of the appropria-
tions for that purpose, and, through said commissions, will
proceed to the rectification of the surveys of all national
lands, complementing such rectification with the geographical
data prescribed by the regulations or administrative orders.
The national lands and lialdlos so surveyed and measured
shall be destined preferentially for colonization and other
purposes of general interest, reserving such lands as may be
adequate for forests. The Executive may sell the lands not
destined for the above purposes, but no sale to any one person
shall exceed 5,000 hectares. In all sales of lands belonging
to the Xation the occupants of the' same should be pre-
ferred, provided that for ten years or more they have in-
closed the lands they occupy with fences, hedges or stakes,
or have cultivated or used the same for any agricultural
purposes, and have moreover for the last five years paid the
taxes imposed on said lands by the respective local laws; such
occupation under the above terms must be proven before
the Judge of the proper District, after citation to and the
attendance of the Ministerio Publico, who will be guided by
the general or special instructions given by the Department
of Eomento. (Arts. 5-7.)
Art. 871. Provisions Continued in Effect. The provisions
of the law of '!('> .March, IS 04, affording possessors of Laldios
and dcmasias means of perfecting their rights and obtaining
hnvl'ul litles, are continued in force. The Department of
Fomento will continue to ell'ect compositions in respect of
such lands which are held under ihe terms of said law;, and
said Department is empowered to make such provisions as it
deem- proper in order that the plan- and export works in
general which must be made for the purposes of such com-
positions r-hall conform to new roouisitos in order to assure
PUBLIC LANDS LAW. 5G5
their accuracy ; in all cases such plans must be made and
works must be done by an expert appointed by the Depart-
ment of Fomento, before the same can be approved. The
provisions of law in regard to the subdivision of commons
(cjidos) are continued in force, but the titles issued by
virtue thereof shall impose the obligation of cultivating or
making use of the lot during ten years, and shall contain the
necessary conditions to the end that the grantee or his heirs-
at-law shall only have the usufruct of said land for the term
of ten years, without the power to lease or sell the same or
grant its use until after such term, during which time nei-
ther the land itself nor any of the rights therein granted,
shall Be subject to embargo by any third party. Violation
of these provisions renders the title void, and the Nation may
reclaim the land by the proper judicial proceeding, so that
it may be granted to the head of a family who possesses the
legal qualifications. (Arts. 8-9.)
Art. 872. Tariff of Prices. For the Sale of Public Lauds :
1909-1910. (Sales Suspended.) Hectare.
In the State of Aguascalientes ' $ 7.00
In the State of Campeche 4.00
In the State of Chiapas 4.00
In the State of Chihuahua 4.00
In the State of Coahuila 4.00
In the State of Colima 6.00
In the State of Durango 4.00
In the State of Guanajuato 12.00
In the State of Guerrero 5.00
In the State of Hidalgo 5.00
In the State of Jalisco 9.00
In the State of Mexico 21.00
In the State of "MicLoacan 14.00
In the State of Morelos 27.00
In the State of Xuevo Leon. 4.00
In the State of Oaxaca 5.00
5GG COMPENDIUM OF MEXICAN LAW.
In the State of Puehla 11.00
In the State of Queretaro 9.00
In the State of San Luis Potosi 4.00
In the State of Sinaloa 4.00
In the State of Sonora 4.00
In the State of Tabasco 7.00
In the State of Tamaulipas 4.00
In the State of Tlaxcala 17.00
In the State of Veracruz 12.00
In the State of Yucatan 4.00
In the State of Zacatecas 4.00
In the Federal District 100.00
In the Territory of Tepic 4.00
In the Territory of Baja California 2.00
'In the Territory of Quintana Roo . 2.00
TITLE III.
LAWS COXCERXIXG WATERS AXD WATER
RIGHTS.
CHAPTER 1.
PUBLIC WATER WAYS AND EIGHTS THEREIN.
(Law of 5 June, 18SS.)
Art. 873. General Ways of Communication.
874. Regulation Public and Private Rights.
Art. 873. General Ways of Communication. Besides the
national highways, railroads, etc., the following are general
ways of communication under fraction 22 of Article 72 of
the Constitution: The territorial seas; the estuaries and
lagoons along the coasts of the Republic ; the canals con-
stnu-ted hy the Federation or with aid from the national
Treasury: interior lakes and rivers, if navigable or floatable;
lakes and rivers of any class and for their whole length,
WATERS AM) WATER RIGHTS. 567
which serve as boundaries of the Republic or of two or more
States of the Union. (Art. 1.)
Art. 874. Regulation Public and Private Rights. The
guarding and policing of the foregoing general ways of
communication depends upon the Federal Executive, who has
also power to regulate the public and private uses of the
same, on the following bases : a, The towns along their
course shall have the free use of the waters needed for the
domestic service of the inhabitants; b, the rights of private
persons in respect to easements, use and supply of waters
created in their favor upon rivers, lakes and canals will be
respected and c'onfirmed, provided such rights are founded
on lawful titles or civil prescription of more than ten years;
c, the concession or confirmation of private rights upon lakes,
rivers and canals can only be granted by the Department of
Fomento when it neither produces or threatens to produce
any change of their course, nor deprives the lower riparian
dwellers of the use of their waters ; d, fishing, pearl-hunting,
and the use and utilization of the estuaries, lagoons along the
shores and on public lands, and of the other territorial seas,
will be specially regulated by the Federal Executive. Ordi-
nary crimes committed on interior lakes, rivers and canals,
and jurisdiction over controversies between private persons
in regard to the application of the Regulations issued by the
Fomento, belong to the competent local tribunals. (Arts.
2-3.)
CHAPTER 2.
CONCESSION OF WATER RIGHTS.
(Law of 6 June, 1894.)
Art. 875. Concessions Conditions.
876. Franchises and Exemptions.
Art. 875. Concessions Conditions. The Executive is
568 COMPENDIUM! OF MEXICAN LAW.
authorized in accordance with the present Law and that of
5 June, IS 88, to grant concessions to individuals and com-
panies for the better utilization of the waters under federal
jurisdiction, for irrigation and as power adaptable to various
industries. Such concessions will be granted on the follow-
ing conditions: 1, Previous publication of the petition in
the official newspaper of the Federation and of the proper
State; 2, without prejudice of third parties, any oppositions
arising being first decided by the competent tribunals ; 3,
presentation of plans, profiles and descriptive reports for
the complete understanding of the projected works, within
the time prescribed in the concession ; 4, the admission of
an engineer appointed by the Executive and paid by the
concessionaire, as inspector of the work of planning and con-
struction of all the works ; 5, making a deposit of bonds of
the public debt to guarantee the performance of the obliga-
tions contracted by the concessionaires; 6, the submission of
the tariffs for the sale and leasing of the waters to the exam-
ination and approval of the Department of Fomento. .(Arts.
1-2.)
Art. 876. Franchises and Exemptions. The Executive
may grant to the concessionaires the following franchises and
exemptions: 1, Exemption for five years from all federal
taxes except stamp taxes, on the capital employed in laying
out, construction and repair of the works defined in the
concession ; 2, the importation at one time free of duty of
the machinery, scientific instruments and apparatus neces-
sary for the laying out, construction and operation of said
works ; o, the right to occupy without cost the public lauds
for the passage of canals, for the construction of dams or
'dikes, and for the formation of deposits ; 4, the right of ex-
propriation from private persons because of public utility,
upon indemnity and on the same terms as railroads, of the
lands necessary for the foregoing uses. The Executive may
also grant the free importation of machinery and apparatus
necessary for the utilization of water for irrigation or motive
WATERS AND WATER EIGHTS. 569
power, under concessions granted by the States for that pur-
pose, provided the concessionaires give security for carrying
out their works, and under such rules and limitations as may
be prescribed by the Executive, who will also issue regula-
tions for the utilization of waters in the Federal District
and Territories, and who may also grant concessions for con-
structing dams and forming deposits in accordance with the
principles of the Civil Code. (Arts. 3-5.)
CHAPTER 3.
STATE CONCESSIONS OF WATER RIGHTS.
(Law of IT December, 1896.)
Art. 877. Revalidation Conditions.
878. Future Concessions.
Art. 877. Revalidation Conditions. The Executive will
revalidate for this one time the concessions granted up to
this date by the State authorities to private persons to utilize
the waters of rivers or streams classified as under Federal
jurisdiction by Art. 1 of the Law of 5 June, 1888, pro-
vided that they comply with the following requisites: 1,
That the revalidation be solicited within one year from the
promulgation of this law;- (other detailed requirements of
the petitions and proceedings are omitted, as now of no con-
cern). (Arts. 1-3.)
Art. 878. Future Concessions. Where concessions are
sought from the States in respect to a water course of a
doubtful character, whether in regard to its being navigable
or floatable, or as to its situation as the probable boundary
between two or more States, the State authorities, before
granting a concession for the use of its waters, must consult
the Federal Government in respect to the definitive character
of such water course ; concessions made without observing
this requirement can hereafter under no circumstances be
confirmed. (Art. -i.)
570 COMPENDIUM OF MEXICAN LAW.
BOOK XIV.
NEW MINING LAW. 1
(Ley Minera de los Esiados Unidos Mexicanos, of 25 ISTo-
vember, 11)09, effective January 1, 1910.)
CHAPTEK 1.
MIXING PROPERTY AXD ITS CHARACTERISTICS.
Art. 879. Scope of Law Public and Private Property.
880. Mining Claims Unit and Extension.
881. Mining Rights Public Utility.
Art. 879. Scope of Law Public and Private Property.
The following are of the direct ownership (dominio) of tbe
Xation and subject to this law: 1, Deposits (criaderos} of
all inorganic substances which in veins or masses of any form
constitute deposits whose composition is distinct from that of
the rocks of the earth, such as those of gold, platinum, silver,
copper, iron, cobalt, nickel, manganese, lead, mercury, tin,
chrome, antimony, zinc and bismuth ; those of sulphur, arsenic
and tellurium ; those of rock salt and those of precious stones ;
2, placers of gold and of platinum. The following are the
exclusive property of the owner of the soil: 1, Beds or
deposits of all kinds of combustible minerals ; 2, those of
bituminous materials; 3, those of salts which show (afloren
a) on the surface; 4, springs of surface and subterranean
waters, subject to the provisions of the common law and to
i See comparison of the present with the former Mining Law, in the
Appendix, Chap. 3. p 981.
MINING LAW OF 1909. 571
the special laws of waters, and to the provisions of Art. 881 ;
5, the rocks of the earth and materials of the soil, such as
slate, porphyry, basalt and calc (caliza), and earths, sands
and clays ; 6, bog and drift iron and tin and ochres. The
Department of Fomento may enter into contracts, on such
conditions as may be proper in each case, for the exploitation
of metalic substances found in the beds of waters under Fed-
eral jurisdiction, unless otherwise provided in the special laws
of waters. The provisions of the Civil Code in regard to
ordinary property and its subdivisions are applicable to min-
ing property unless otherwise provided herein. (Arts. 1-3,
135.)
Art. 880. Mining Claims Unit and Extension. The
unit of mining property is called a " pertenencia," which is
a solid of unlimited depth, and limited on the earth by the
four vertical planes corresponding to the projection of a
horizontal square of one hundred meters on each side ; 2 it is
indivisible in all acts and contracts concerning its owner-
ship. A mining property, or " fundo minero/' is one or
more contiguous pertenencias covered by the original grant
or by conveyance thereunder. Where it is impossible, in
laying out a mining property, by reason of adjoining prop-
erties, to secure the pertenencias entire, the surplus (irre-
ducible} portion is called demasia, and is considered for all
legal purposes, as composed of as many pertenencias as there
are hectares embraced in its horizontal projection, and any
fraction of a hectare which may result will be considered as
an additional pertenencia; where such surplus portion is less
than an hectare, it is also called demasia and considered for
legal purposes as a pertenencia; the form and manner of locat-
ing pertenencias and demasias will be prescribed by the Regu-
lations. (Arts. 4-6.)
Art. 881. Mining Rights Public Utility. The owner of
a mining property has the right to extract and make use of all
" A minim: pcrtcncncia contains 10.000 square- meter?, or 1 hectare,
and i> equal to 2.47 acres.
572 COMPENDIUM OF MEXICAN LAW.
the substances above mentioned found on the surface or in
the subsoil of his property, but cannot extend his workings
beyond its limits although surrounded by free ground ; he
may also make use of the waters encountered in the work-
ings, and extract and dispose of the same with all the sub-
stances which they hold in suspension or solution, but cannot
claim indemnity where such waters are exhausted or dimin-
ished through the drainage of other mining properties.
V\'!icre the striking of waters in the interior workings causes
the exhaustion or diminution of springs belonging to an-
other owner, the latter may recover the waters belonging to
him, provided he docs not deprive the owner of the mine of
the water he needs for his own work, and the former cannot
require indemnity for the same; the conveyance or loss of a
mining property carries with it the right to the interior waters.
The mine " dumps " constitute an accession of the mining
property from which they arise; if their origin cannot be
determined, their ownership will be governed by the common
law.
The mining industry is of public utility, hence the owners
of mining property have the right of expropriation (eminent
domain) in the cases and conditions prescribed in this law.^
(Arts. 7-10, 134.)
CHAPTER 2.
ACQUISITION AND FORFEITURE OF MINING PROPERTY.
!Art. 8S2. Denouncements What subject to.
883. Form and Requisites of Denouncement.
884. Presentation Proceedings.
885. Proceedings in Department of Fomento.
880. Oppositions Procedure.
887. Issuance of Title Forfeiture.
Art. 882. Denouncements What Subject To. Mining
property is acquired originally from the Xation by means
Arts. S!ir,-S00.
MTNIXG LAW OF 1909. 573
of a Grant (titulo} issued by the Executive Power through
the Department of Fomento, after denouncement (denuncio)
and the other requisites herein prescribed. Denouncements
can only be made on free (i. e., unoccupied) ground; land is
not considered free which has already been granted or as to
which another denouncement is pending, nor, in the following
cases, until after thirty days after the date of posting the
proper declaration on the bulletin of the Mining Agency:
1, Pertencncias the title to which has been declared forfeited ;
2, paieneucias the denouncement of which has been finally
disapproved ; 3, pertcnencias declared free by the Department
of Fomento in accordance with this law. A denunciant who
has been declared in default (moroso} in respect to a pre-
vious denouncement of all or part of the same property, will
not be permitted to again denounce it within one year from
the date he was declared in default. (Arts. 11-14.)
Art. 883. Form and Requisites of Denouncement. 4 A de-
nouncement must be framed in writing and in duplicate,
and must set forth the name, age, occupation, nationality,
domicile and residence of the denunciant ; the principal sub-
stances which he expects to exploit ; the number of pertencn-
cias, and their position on the ground so indicated as to be
identified; the- description of the adjacent mining boundaries,
and the location of the pcrtenencias; the denouncement must
be accompanied by a certificate of the deposit of the value of
the stamps which, according to the Stamp Law, must be
attached to the title. y The number of pertcnenclas may be
stated approximately: 1, Where the boundaries of the prop-
erty are so clearly defined in the denouncement that they
can be readily identified on the ground ; 2, where the pcrlcncn-
clas denounced are entirely surrounded by properties already
titled (granted) or by pcrtenencias denounced and measured ;
in such cases, if the deposit for stamps is greater than re-
* See Art. 010.
> See Stamp Law, roc. " Titles," post, p. 744. and Art. 030D.
574 COMPENDIUM OF MEXICAN LAW.
quired the excess will be returned, or if less, the denunciant
must put up the difference, or his denouncement will be held
as abandoned. Each denouncement must embrace only one
pertenencia or group (con junto) of contiguous pertenencias;
the pertenencias need not be contiguous provided: 1, That
within the limits of the denouncement there are mining prop-
erties previously granted or pertenencias denounced ; 2, that
all the pertenencias denounced are located upon the same
deposit (criadero) and within the jurisdiction of the same
Mining Agency. (Arts. 15-10.)
Art. 884. Presentation Proceedings. The denounce-
ment must be presented personally by the denunciant or by
his lawful representative or by attorney-in-fact with power-
of -attorney or letter-of-attorney ; the latter must be ratified
by the principal through escritura publica or apud-acta within
sixty days after the denouncement is presented. The Min-
ing Agent will receive the denouncement and record it in his
register, n'.'iing therein and on the original and duplicate
denouncement the day and hour of presentation ; if in the
Agent's opinion it is not sufficiently definite he may request
any necessary explanations and note them in the same way,
but the denouncement will be registered in any event ; the
same rules apply in case of denouncements presented at the
same time or successively in respect to the same pertenencias;
in the latter event, one of them will be selected by lot to be
proceeded with, unless the parties agree upon one. Within
three days after presentation, the Agent will decide whether
the denouncement is to be admitted; if so, he will proceed
to make up the record (expedientc) ; if refused, he will state
in writing the reason of his decision, which, together with all
other decisions of the Agent, is reviewable by the Depart-
ment of Fomento on the petition of the denunciant. The
procedure (Iramitacion) includes the appointment of an ex-
pert, to measure, and make plans of the land, the publication
of an extract of the denouncement and of the announce-
MINING LAW OF 1900. 575
ment of the filing in the Agency of the expert report and of
any opposition which may have been presented. (Arts. 20
25, 48.)
Art. 885. Proceedings in Department of Fomento. At the
close of the proceedings before the Agency, if no opposition
has been presented to suspend their course, the Agent will
forward a copy of the record to the Department of Fomento,
which will examine the same, and if approved will fix a time
within which the dennnciant must erect the proper monu-
ments (mojoneras} and to prove their erection ; upon so doing
the title will be issued to him, which confers the legal posses-
sion of the property, without need of other formality; if he
fails to comply he will be declared in default (moroso).
The Department will disapprove the expediente where the
denouncement or proceeding is defective for failure to observe
the law or regulations through the fault of the denunciant,
and he will be declared in default ; if the Department is satis-
fied from the proofs presented that the denunciant is not at
fault, it will order any defects in the record to be amended ;
any defects not involving infraction of the law or regulations
may be ordered supplied by the person at fault ; if the denun-
ciant is at fault, and he fails to comply with the order, he
will be held to abandon the denouncement ; if the Agent or
expert is at fault the Department will enforce their liability,
and the denunciant may recover indemnity for all damages
he has incurred.
If the denunciant fails to attend the meetings or proceed-
ings provided by law or regulations he will be declared de-
sisted, but may be excused upon proof that it was due to
causes beyond his control, and the proceeding may again be
had so far as necessary, but if he again fails to attend no
excuse will be admitted. A denunciant who is not in default
(morosidad) may withdraw his denouncement before the
Department renders its final decision on the record. Failure
to provide stamps will not suspend the proceedings, the paa v es
576 COMPENDIUM OF MEXICAN LAW.
of the record being- legalized temporarily with the seal of
the Agency,, but the Department will require the stamps to
be attached before rendering its final decision ; if the denun-
ciant does not provide them within the time allowed he will
be declared desisted; the same results from failure to pay
the fees of the Mining Agent as prescribed in the regulations.
In every case of desistment, and of default, the deposit made
when, the denouncement was presented will be applied, first
to payment of the stamps due on the expediente, and second
to the fees of the Mining Agent, the denunciant remaining
liable for any deficiency. (Arts. 20-36.)
Art. 886. Oppositions Procedure. Causes of opposition
to a denouncement are: 1, Total or partial invasion of al-
ready granted pertenencias the titles of which have not been
declared forfeited (caducos) : 2, a pending denouncement of
all or part of the same pertenencias. The opposition for the
foregoing causes will be formulated before the Mining
Agency \Vithin the time fixed by the regulations; thereupon
the parties will be cited to a meeting for purposes of com-
position, under rules prescribed in the regulations; if no
agreement is reached the parties will be notified that they
may choose either administrative or judicial proceedings for
the settlement of the opposition ; if they do not at once choose
the administrative proceeding, the proceedings on the expe-
dient? will be suspended, and it will bo forwarded within
forty-eight hours to the judicial authority to be proceeded
in by suit as hereinafter provided : if they select the admin-
i-trative proceeding, the proceedings on the expediente will
In- carried forward so that in due time the Department of
Fomento, after hearing both parlies, in accordance with the
re<ruiations, will definitely decide the opposition. If the
parties choose the administrative proceeding, thev cannot
afterwards have recourse to the judicial, but if they choose
tin- latter, they may before final judgment submit the opposi-
tion to the decision of the Department.
MINIXG LAW OF 1909. 577
Any cause of opposition other than above mentioned must
be alleged before the Agency, but the proceedings on the
cxpedientc will not be suspended; the Department will, when
the record reaches it, examine the cause alleged and decide
whether or not it will be considered ; if so, it will proceed
and decide as provided above in this Article, otherwise
it will disregard the opposition without prejudice to the
rights of the oppositor. Oppositions may be presented dur-
ing revision directly to the Department, where the oppositor
proves that it was not his fault that he did not go first to
the Mining Agency; the oppositor will be held as desisted if
he fails to attend upon the proceedings, being excused if it
was not through, his fault, but no excuse will be admitted
if he fails for a second time to appear. (Arts. 3745.)
Art. 887. Issuance of Title Forfeiture. The title will
be issued to the denunciant without prejudice to the rights
of third persons ; in order to be issued to any other person,
the hitter's right must be evidenced by cscritura publica.
The Department of Fomento may refuse the issuance of a
mining title although the expedients is in legal form, for
reasons of public utility established by law justifying the re-
fusal, and upon reimbursing the denunciant for all legitimate
expenses incurred ; if such reasons cease to exist, the Depart-
ment will so declare, and publish the declaration as provided
by the regulations, in order that the denunciant may present
himself within ninety days to request the issuance of the
title ; if within that time he fails to apply, the perlenencias
will be considered as free ground.
Alining property will be forfeited by failure to pay the
tax ( linpucsto) as prescribed by the tax law. (Arts. 49-
51.)
e Sec Arts. 930D and 030E.
578 COMPENDIUM OF MEXICAN LAW.
CHAPTER 3.
SEDUCTION, RECTIFICATION AND DIVISION.
Art. 888. Reduction of Denouncements and of Pertenencias.
889. Rectification of Localization.
890. Division of Mining Properties New Titles.
Art. 888. Reduction of Denouncement and of Pertenencias.
A petition to reduce the number of pertenencias included
in a denouncement may only be presented within the first
forty days of the proceedings before the Agency; it cannot
have the effect of changing the time for the filing of plans ;
a denouncement cannot be modified by increasing the number
of pertenencias, a separate denouncement being required for
every amplification.
Where it is desired to reduce the number of pertenencias
in a mining property, the petition for reduction, accompa-
nied by the mining title, will be presented to the proper
Mining Agency, it being necessary to make new plans and
issue a new title cancelling the former one ; upon the issu-
ance of the new title being awarded, the excess of land cov-
ered by the former title will be declared free, and a time will
be fixed for the erection of ne\v monuments, observing the
same procedure as in the issuance of the original titles.
(Arts. 40-47, 52.)
Art. 889. Rectification of Localization. The localization
on the ground of pertenencias already titled may be rectified
so as to make it correspond to that shown in the denounce-
ment and title, without the issuance of a new title; but
where the localization of the perienencias, as indicated in the
title, dries not correspond with that shown by the denounce-
ment, the title will be rectified and a now one issued, although
the localization on the ground agrees with that shown by the
denouncement; also where neither the localization of the
pertenencias n the ground nor that shown by the title agrees
MIXING LAW OE 1909. 579
with that indicated in the denouncement, the localization
will be rectified and a new title issued. Such rectifications
will be made upon petition of the owner of the mining prop-
erty, of the adjoining owners interested, or ex officio by order
of the Department ; in the latter event the action of the De-
partment will not prejudice the rights of any of the parties.
In all cases of rectification of the localization of the pertenen-
cias on the land, the Department will fix a term for the erec-
tion of the proper monuments, and will not issue the new title
until the same is done ; the Department may also at the peti-
tion of the owner, and without prejudice to the rights of oth-
ers, order the administrative correction of any errors in the
title not affecting the localization of the pertencncias on the
ground, issuing in such cases a new title and cancelling the
former one ; all corrections will be made on the basis of the
data contained in the denouncement. (Arts. 53-59.)
Art. 890. Division of Mining Properties New Titles.
In order that the division of a mining property into two or
more be legally effective, new plans must be presented as
provided in the regulations, and new titles must be issued in
the same manner as originally, cancelling the former one.
(Art. 60.)
CHAPTER 4.
LEGAL MINING EASEMENTS.
Art. 891. Nature and Extent of Easements.
892. Rules for Use of Easements.
893. Establishment of Easements.
Art. 891. Nature and Extent of Easements. Common
properties are subject, in favor of mining properties, to the
legal easements (servidumltres) of passage, drainage, aque-
duct, ventilation, and transmission of electric power; mining
properties are only subject, in favor of other mining proper-
580 COMPENDIUM OF MEXICAX LAW.
ties, to the legal easements of drainage and ventilation. The
easements of passage, drainage and aqueduct are governed
by the provisions of the Federal Civil Code in respect of
the rights and obligations of the dominant and servient es-
tates, except that the easement of passage may consist not
only in the right of transit through the common properties,
but in the permanent establishment across them of lines of
transmission by cable or by any other method of transporta-
tion authorized by the regulations, intended exclusively for
the operating needs of the mining property and to establish
communication between it and the public roads, railroads or
smelting plants, such right of way not to exceed ten meters
in width unless otherwise agreed.
The easement of ventilation,, over common properties, con-
sists of the right of communication from the surface to the
interior workings of the mining properties for the sole pur-
pose of affording necessary ventilation; such casement over
mining properties, consists of the right to establish communi-
cation through them for the purpose of ventilating other min-
ing properties, and to make use of the works of the servient
estate for that purpose where not incompatible with the use
for which they are intended.
The easement of transmission of electric power over com-
mon properties consists of the right to establish overhead or
underground lines from the point of production of the power
to the mining property where it is to be utilized, across the
intervening properties, together with the right of passage for
their construction, maintenance and guarding, the rules as to
the easement of passage being applicable to this casement so
far as practicable.
The easement of drainage to which other mining proper-
ties are subject, consists of the right to establish through them
mining tunnels (socavoncs) or countermines for the purpose
of draining other mining properties, also the right to make
use of the tunnels or countermines used by the servient estate
for tin- same purpose, and the servient estate mav make usa
MIXING LAW OF 1909. 581
for its own drainage of the tunnels and countermines opened
for that purpose by the dominant estate; but this easement
does not authorize the running of such tunnels or counter-
mines through or under a shaft (tiro} of a mine. The rights
to open and exploit tunnels are ineffective where the parties
undertaking to exercise such rights fail to comply with the
requirements of the laws or concessions under which such
rights were acquired. (Arts. G1-G9, 148.)
Art. 892. Rules for Use of Easements. In making use of
the easements of drainage and ventilation above referred to,
the following rules will be observed: 1, While the work is
being done, the owner of the servient estate has the right to
have an interventor for the protection of his interests, and
as long as the easement lasts, to require that doors be put
in according to the regulations at points where his works
are intersected, also where his own works cut into those put
on his property in the exercise of the easement; 2, if during
the work any of the minerals mentioned in the first two
clauses of Art. 879 are encountered in paying quantities, the
owner of the dominant estate must bring them to the sur-
face and notify the Department of Fomento and the owner
of the servient estate, and if the latter does not dispose of
them within sixty days after such notice they will remain
on the surface at his risk; 3, if such substances are encoun-
tered while working in free ground, the o\vner of the domi-
nant estate, after notice to the Department, may dispose of
such as it is necessary to extract in order to carry on. the
work, but cannot exploit the deposit unless he obtain? a title,
for which purpose he shall have a preferential right to present
his denouncement within thirty days from the discovery,
within a zone of one hundred meters on each side of the axis
of the shaft. (Art. TO.)
Art. 893. Establishment of Easements. The casement?
herein referred to mav be established in anv <>f the following
582 COMPENDIUM OF MEXICAN LAW.
ways: 1, By consent of the owner of the servient estate
evidenced by public instrument ; 2, by resolution of the De-
partment of Fomento; 3, by judicial judgment. If the
owner of the servient estate refuses to consent, the owner of
the dominant estate may apply to the Fomento, which, after
hearing both parties, will decide whether the easement shall
be established ; if in the affirmative, the Department will fix
the use and extension of the easement, the material conditions
of its establishment and the amount of indemnity to be paid
to the owner of the servient estate, such decision being final
unless objected to within thirty days. If within that time
objection is made, the Department may authorize the work
upon giving bond for all damages and losses which may be
caused ; such resolution will be notified to the owner of the
servient estate, who may bring his action in court within
thirty days, failing to do which, the easement will be taken
as definitely established and the bond will be cancelled. If
the Department decides that the easement is not to be estab-
lished or established on different terms than as solicited, the
applicant may bring his suit within thirty days or will lose
his right.
In authorizing the establishment of easements the Depart-
ment will observe the provisions of the Federal Civil Code
so far as not otherwise provided herein ; in respect to ease-
ments of drainage and ventilation the Department will take
into account the advantages and disadvantages of the system
proposed as compared with those of other known systems.
The amplification of easements already established will con-
form to the rules for their original establishment. (Arts. 71-
78.)
MINING LAW or 1900. 583
CIIAPTEK 5.
MINING CONTRACTS. REGISTRY.
Art. 894. Acts of Commerce Lesion.
Art. 894. Acts of Commerce Lesion. All mining enter-
prises, and all contracts in regard to the transfer and exploita-
tion of mines and in regard to the products of mines, are
" acts of commerce " and governed by the provisions of the
Code of Commerce, unless otherwise specially provided herein.
The valuation placed upon mining properties and rights by
the incbrporators in organizing a mining company shall be
considered as proven, and no mining contract shall be sub-
ject to rescission on account of lesion. The offices of the
Commercial Register in the States, Territories and Federal
District will keep a special book in which they will record:
1, The titles of mining property; 2, escrituras piiblicas and
judicial and administrative decisions which transmit or affect
the ownership of mining properties or real rights concerning
the same ; 3, escrituras piiblicas concerning promises to trans-
fer mining properties or pertenencias; 4, escrituras piiblicas
and judicial decisions concerning the exploitation of min-
ing properties ; such registry will be made in the office of
the Municipality where the mining property is located;
documents concerning mining easements upon common prop-
erties will be registered in the office of the place where the
servient estate is located. The registry of documents men-
tioned in clause 3 above will be effective as to third persons
for the term stated in the contract, from the date of registry,
but not to exceed two years, although the time fixed for the
subsistence of the promise is longer. Where the document to
be registered is presented for registry within thirty days of
its date, if an escritura piiblica, or from the time the judi-
cial decision was rendered, the registry will produce its
effects from such date, but only from the time of presenta-
584: COMPENDIUM OF MEXICAN LAW.
tion if after thirty days; the registry of foreign documents
is effective from the date on which the certified copy of its
protocolization is presented at the proper registry office.
(Arts. 79-86.),
CHAPTER 6 .
ESPKOPKIATIOST.
Art. 895. Right of Expropriation.
896. Proceedings Incidents.
Art. 895. Right of Expropriation. The owner of a min-
ing property (fundo minero} has the right to occupy, within
the limits of his pertenencias., so much of the surface of the
ground as is strictly necessary for the use and exploitation of
superficial deposits, and for the huildings and works neces-
sary for mining operations, and for treating or smelting the
ores produced on the property or on its annexes belonging to
the same owner, and to occupy, within and without the lim-
its of his pertenencias, subject to the regulations, the neces-
sary land for the establishment of permanent railways for the
purposes of the enterprise. (Art. ST.)
Art. 896. Proceeding's Incidents. Where the owner of
the mining property is unable to come to an agreement with
the owner of the surface property in regard to acquiring it,
he may apply to the Department of Fomento for its expro-
priation ; after hearing the landowner, the Department will
decide whether or not the petition is to be granted, and if
in the affirmative, it will fix the extent of land to be expro-
priated and the amount of indemnity to be paid by the
mine owner; the latter may provisionally occupy the portion
of land designated upon depositing to the landowner's order,
in an office of the Treasury indicated by the Fomento, the
amount of indemnity fixed. Tf the landowner opposes the
occupation, the mine owner may apply to the competent
MINING LAW OF 1909. 585
judge for an order to put him into immediate possession
of the land designated by the Department. The landowner
may oppose the administrative order of the Department
upon notifying it of his opposition and filing his suit at law
within thirty days, failing in which he will be held to
definitely consent to the order of the Department ; the mine
owner may also bring suit within thirty days to review
the decision of the Department refusing his application for
expropriation.
If the landowner consents to or does not oppose the
administrative order as above provided, or such order is
confirmed or modified by final judicial decision, the mine
owner may apply to the competent judge requesting the
execution of an escritura publica of adjudication, which will
be signed by the judge upon failure of the landowner to
appear and sign it within a reasonable time to be fixed by
the judge. If the owner of the land is unknown or uncer-
tain, the petition for expropriation will be published for
thirty days as provided by the regulations ; if within such
time the landowner appears the foregoing procedure will be
observed, but if he does not appear, the Department of
Fomento may authorize the expropriation upon deposit of
the fixed indemnity, and the mine owner mav applv to the
i/ / t/ A L t,
judge for the escritura of adjudication; if the landowner
subsequently appears, he may receive the deposit, but cannot
contest the administrative decision decreeing the expropria-
tion. The landowner or his assignee (causahabiente} may,
however, within one year, recover the land expropriated, or
the part affected, in the event : 1, That the mine owner,
within one year, has not begun the work for which the land
was taken, or has suspended it for a like time except through
vis major; 2, that all or part of the land taken is used for
a purpose different from that for which it was expropriated ;
3, that the title of the mining property for the use of which
the land was taken has been forfeited. In such cases tlio
landowner will onlv refund the amount of indemnitv re-
586 COMPENDIUM OF MEXICAN LAW.
ccived or its proportional part, as the case may be. The suit
for recovery cannot be brought if the cause for which it lies
has ceased. (Arts. 88-96.)
CHAPTER 7.
PENAL PROVISIONS.
Art. 897. What Law Applicable Penalties.
Art. 897. What Law Applicable Penalties. Crimes
committed in violation of this law, and civil liability arising
under it, are subject to the Federal Penal Code, except as
herein provided certain fines and penalties imposed on
Mining Agents and experts for violations of the law and
regulations are omitted. Any person who without right ex-
ploits any of the substances mentioned in Art. 879, unless
through justifiable error, is subject to the following penal-
ties: 1, If the exploitation is made in free ground or
in pertenencias denounced or titled, by imprisonment from
one to two years and a fine from one to two thousand pesos;
2, if the denunciant exploits the property before obtaining
the title, by " arrest " for thirty days to eleven months, and
fine from sixteen to one thousand pesos. Disposing of ores
encountered in easement works is subject to the penalty in
clause 1 above ; the theft of ores by operatives or employes
of mining concerns is subject to two years in prison ; the
destruction or changing location of mining monuments on the
surface or inside the mines is punishable under Art. 497 of
the Penal Code: and interference by private persons with
the operations of the mining experts is subject to the penalties
of Arts. 904 to 908 of said Code. (Arts. 97-106.)
MINING LAW OF 1909. 587
CHAPTER 8.
SUITS JURISDICTION.
Art. 898. Federal and Local Courts.
Art. 898. Federal and Local Courts. The Federal Tribu-
nals have jurisdiction of suits in respect to : 1, Opposition to
denouncements or to issuance of titles ; 2, opposition to recti-
fication of titles or localization of titled pertencncias; 3,
nullity of mining titles ; 4, expropriation for mining pur-
poses ; 5, legal .mining easements; 6, crimes committed under
chapter 7 of this law ; 7, crimes endangering the safety of
mining works or the life of operatives in the interior work-
ings. (Details of determining jurisdiction are omitted.)
The Department of Fomento may bring suit to declare nullity
of a mining title for fraud or deceit within three years from
its date ; like suit may be brought by third persons inter-
ested. In all cases under this chapter the Ministerio Publico
will be heard, following instructions from the Department
of Fomento. All final judgments rendered in such suits will
be communicated to the Department.
All suits in regard to mining contracts referred to in chap-
ter 5, will be brought before competent local judges (del
ordcn comiin') in accordance with the Code of Commerce,
also all other mining suits not included in the seven clauses
above, in accordance with local legislation, the Code of Com-
merce or the Federal Civil Code, as the case may be. (Arts.
107-123.)
CHAPTER 0.
MISCELLANEOUS PROVISIONS.
Art. 899. Mining Explorations Rules.
900. Inspections Police Regulation.
901. Foreigners and Mining Rights.
588 COMPENDIUM OF MEXICAN LAW.
Art. 00"2. Payment of Mining Taxes.
903. Computation of Time.
904. Mining Agents Fees.
905. Mining Titles Loss.
906. Regulations of Mining Law.
907. Transitory Provisions.
Art. 899. Mining Explorations Rules. Mining explora-
tions are subject to the prescriptions of the Regulations of
this law and to the special police regulations, in accordance
with the following bases: 1, To determine the zone of ex-
ploration, a fixed and easily identifiable point will be taken
as the center of a circumference not to exceed five hundred
meters ; 2, explorations cannot be made on private property
without the permission of the owner; if he refuses it, the
applicant may apply to the Alining Agent, who, after hearing
the landowner, and in observance of the regulations, will
grant the required permission, if there is no legal cause to
the contrary, upon the explorer giving bond to cover any
damage caused to the owner ; 3, explorations on public lands
can only be made with the permission of the Alining Agent,
who cannot refuse it without legal cause ; 4, the period for
exploration cannot exceed sixty days, which cannot be ex-
tended, from the date of granting the permit, where granted
bv the Mining Agent, or from the date the permit from the
owner is registered in the Agency; ,">, during the period of
exploration only the explorer can present denouncements for
mining pcrtenencias within the zone; C, new permits to ex-
plore all or part of the same zone cannot be granted within
six mouths after the expiration of the former permit; 7, in
case of controversy between the explorer and the landowner
as to the limits of the zone, the former must make the proof;
8, zones of exploration cannot be granted in lands on which
mining work has been done although the pertenencias have
been abandoned, nor within a distance of two hundred meters
of a mining property. u<">r within the boundaries of towns;
!, the Minim: 1 Police Regulations will determine within
what distance from buildings, railroads and other pub-
MIXIXG LAW OF 1909. 589
lie or private constructions, mining explorations may be
carried on, also in what cases and under what conditions
mining works may be carried on in the subsoil pertaining
to buildings and public or private constructions. (Arts.
124-125.)
Art. 900. Inspections Police Regulation. The Depart-
ment of Fomento may send its inspectors to visit mining
properties and their annexed installations used directly for
mining works, for the purpose : 1, Of determining whether
the mining police regulations are duly complied with ; 2,
to obtain scientific and statistical data concerning mining;
also at the request of any interested party, or ex officio where
it suspects that free lands are being invaded, to ascertain
whether other mining properties or such free lands are being
invaded ; in no event can the inspectors inquire into the com-
mercial status of the business.
The Department of Fomento may order the suspension of
mining works which do not conform to the police regulations
if the life of the mine operatives is endangered ; such order
of suspension must be based on the reports of the inspectors
who have visted the place, or investigations made by the
local authorities, and will be limited to the point or zone of
danger, and the suspension will continue until the cause is
removed ; in grave and urgent cases the suspension may be
decreed at the instance of the Governor or Jcfe Politico
without the necessity of such report or investigation ; in such
cases the Department will order an official inspection to be
made in the shortest time possible. Coal mining works which
may endanger the life of operatives, the safety of the work-
ings or the stability of the soil are subject to the mining po-
lice regulations. (Arts. 120-133.)
Art. 901. Foreigners and Mining Rights. Without pre-
vious special permission from the Executive of the Union,
no title of mining property can be issued to foreigners who
590 COMPENDIUM OF MEXICAN LAW,
denounce pertenencias within a zone of eighty kilometers
along the boundary line with foreign countries, even when
the denouncement is made jointly by foreigners and citi-
zens ; nor without such permit can foreigners acquire by
any other title mining property or real rights in or to the
same within such zone ; foreign corporations are incapable of
denouncing or otherwise acquiring mining property or real
rights in and to the same within such zone of eighty kilo-
meters ; all acquisitions made in contravention of the fore-
going provisions are void, and the suit for nullity may be
brought by any person interested or by the Ministerio Publico
under instructions from the Department of Fomento. The
Regulations " will prescribe the time within which the per-
mits above referred to must be solicited and the conditions
under which they will be granted : if permit is refused the
land denounced will be declared free, and the money de-
posited will be applied as provided in cases of desistment.
Where a foreigner acquires mining properties or real rights
to the same, within such zone, by inheritance or through
judicial adjudication in payment of debt, he must dispose
of the same within one year, unless within that time he
obtains the permit above referred to ; where a foreign cor-
poration obtains such property or rights in the same way, it
must in all cases dispose of it within one year. The judi-
cial authorities before whom the heredity proceedings or
adjudication are conducted will give due notice to the Depart-
ment of Fomento of the existence of such proceedings. The
Executive of the Union, through the Hinisterio Publico, will
proceed to obtain the seizure of such mining property and
rights acquired or held in contravention of the foreaoinir
provisions, and the same shall be sold at public auction in
accordance with the provisions of the Federal ("'ode of Civil
Procedure; the proceeds obtained, after deduction of costs
and t;ixe>, will remain subject to the disposition of the inter-
ested parti^. (Arts. 136-144.)
MINING LAW OF 1909. 591
Art. 902. Payment of Mining Taxes. Any person may
pay the property tax on a mining property, but only one
having a legitimate interest in preventing the forfeiture of
the title has the right to require the owner to reimburse him
for what he may pay ; in the latter event the claim for re-
payment shall have preference over all other debts payable
out of the value of the mining property, including mortgage
debts. (Art. 145.)
Art. 903. Computation of Time. Unless otherwise provided
herein, the terms fixed in this law and in the regulations will
begin to run from the day after the notice is given or the act
done, and the la,st day will be counted, Sundays and national
holidays and fast-days being excluded ; but the terms for pre-
scription and for judicial proceedings are computed accord-
ing to the provisions of the respective laws on the subject.
(Arts. 146-147.)
Art. 904. Mining Agents Fees. The Department of
Fomento will determine the number of Mining Agents and
the territory within which each is to act, and will decide all
questions arising in regard to their jurisdiction; their ser-
vices will be paid according to the schedule of fees issued by
the Department. 8 (Arts. 149-150.)
Art. 905. Mining Titles Loss. ^lining titles issued by
the Fomento will be signed alone by the Secretary of the
Department. Where the loss or disappearance of a mining
title is satisfactorily proven to the Department by the mine
owner, a duplicate may be issued to him at his cost, reciting
in it the reason for its issuance. (Arts. 151152.)
Art. 906. Regulations of Mining law. The Department of
Fomento will issue the general Regulations of this law, the
special mining police regulations and other reglamentary
8 See Arts. !V20-n:!0
.592 COMPENDIUM OF MEXICAN LAW.
provisions intended to make effective the provisions of the
law. (Art. 153.)
Art. 907. Transitory Provisions. This law will go into
effect January 1, 1910; contracts for explorations will con-
tinue in force according to their provisions ; pending mining
applications will be disposed of according to the terms of
this law. Pending lawsuits will be transferred to the Fed-
eral Courts; pending cassation proceedings will proceed to
decision according to the general laws applicable. Six
months are allowed for mine owners who have not complied
with the first part of Art. 2 of the law of June, 1892, to
prove their compliance therewith to the Department, after
which time, if not complied with, their titles will be forfeited
and the land freely subject to denouncement ; one year is
allowed to mine owners in which to set up monuments ; any
one failing to comply is liable for all damages caused to a
third person, and to a fine of from one hundred to five hundred
pesos to be imposed by the Department, and if he persists for
thirty days in failure to comply he will be liable to crim-
inal proceedings, and the Department may construct the monu-
ments at his expense.
Mining titles, acts and contracts registered prior to
January 1, 1910, in accordance with existing laws or regu-
lation-, need not be registered anew; those subject to registry
under this law must be registered, and will take effect as
to third persons from the date of registry. After January
1 all laws relating to mining, mining rights and denounce-
ment-, except those of a fiscal character, which will remain in
force in so far as they arc not modified by the present law 7 ,
arc repealed. (Arts. 1-9.)
MINING REGULATIONS. 593
TITLE II.
MIXIXG REGULATIONS.
(Decreto de 15 de Dicicmlrc de 1909.)
CHAPTER 1.
MIX IX G AGEXTS.
Art. 908. Appointment and Qualifications.
909. Duties of Agents Fees.
Art. 908. Appointment and Qualifications. The Agents
of the Mining Bureau of the Department of Fomento must
be Mexicans in the exercise of their rights ; they will be
appointed by the Department, and will receive, and act upon
(tram ilar] the denouncements of mining properties filed with
them, and perform the duties assigned to them by the min-
ing law r and regulations and by the orders of the Depart-
ment, and in cases of doubt as to their application they will
consult the Department. The Department will establish the
Districts within which the Agents are to act, and besides the
principal Agent, will appoint one or more deputies
(suplentcs*) as required by the volume of business in the
mining agency, who shall have the same qualifications as the
Agent. (Details of supplying the service in case of absence
or death of the Agent are omitted.) The Agents cannot act
in case of any legal impediment, which are: 1, Having an
interest direct or indirect in the matter: 2, any such interest
on the part of any consanguineous relative in the right, line in
any degree; by collaterals within the fourth degree and by
affinity within the second degree, both inclusive: o, being the
agent, partner, clerk or administrator of any of the parties;
4, to have been an agent, lawyer, attorney or expert in the
matter under consideration; in such cases they will make a
note of the fact ami call upon the suplcnlc to act. In places
594 COMPENDIUM OF MEXICAN LAW.
not within the district of any Mining Agency, denounce-
ments of mining property, notices (avisos}, and exploration
permits (constancias de permisos) will be presented to the
Postmaster, who will endorse thereon the day and hour of
presentation, and will immediately notify the Department
of Fomento by telegraph, if there is one, and by mail. (Arts.
1-6, 8-10.)
Art. 909. Duties of Agents Fees. ^lining Agents must
observe the following requirements : 1, To affix on the exte-
rior of the Agency in a place easily visible to the public, a
sign with the words: "Agenda de Mineria de la Sccretaria
de Fomento"; 2, to keep on the outside of the Agency a
permanent announcement of the office hours, which cannot
be interrupted except on Sundays and national holidays ; 3,
to keep on the outside of the Agency, or if not possible, at
the entrance, in a place easily visible and accessible to the
public, a bulletin board on which they will make the publica-
tions required by the Law, Regulations and other legal pro-
visions ; 4, to keep inside the Agency in a visible and easily
accessible place, a clock showing the local time ; 5, to make
and keep up to date an inventory of the records (arcliivo}
of the Agency ; 6, to keep a register of denouncements, en-
tering them therein in strict order of dates and numeration
and without leaving blank lines between the entries ; 7, to
keep a register of mining explorations, entered in the same
way as above ; 8, to keep a register of licensed experts, such be-
ing those who have been received in some official establishment
of the Republic to exercise the profession of engineer, or whose
diplomas (tiiidos) have been accepted or recognized by the
Government ; 0, to forward to the Department of Fomento,
within the first ten days of each month, a detailed report of
denouncements admitted, of notices and applications for
exploration permits, or of applications for the rectification,
reduction or division of patented mining properties presented
to them during the previous month.
MIXING REGULATIONS. 595
The revision of the decisions of the Mining Agent, under
Art. 48 of the Law, does not operate to suspend the proceed-
ings in a case except where specially so provided in the Law,
Regulations or otherwise. The Mining Agents will collect
their fees in accordance with the Schedule of Fees issued by
the Department of Fomento. 1 (Arts. 11-12.)
CHAPTER 2.
DENOUNCEMENTS OF MINING PROPERTIES.
Art. 91ft. Presentation Requirements.
911. Expert Selection.
912. Appointment Proceedings.
913. Proceedings of Expert Plans.
914. Same Reports Monuments.
915. Proceedings on Report Setting Monuments.
916. Issuance of Titles Publications.
Art. 910. Presentation Requirements. Denounce-
ments must be filed with the Mining Agency of the District
in which the property denounced is located, or before the
Agency of either District where the property lies in two or
more Districts. If several denouncements of the same prop-
erty are presented before different Agencies having jurisdic-
tion, only the one filed first is valid, and it must be pro-
ceeded with before the Agency in which it was filed. Besides
the data specified in Art. 883, the denouncement must state
the fixed point from which measurements are to start, and
in order to readily identify the laud where the perfenencias
are to be measured, will mention any well known points in
the vicinity. Xo denouncement shall be admitted which does
not set out specifically the names of all the demmciants, or
which is not signed by such persons or by their legal repre-
sentatives. (Arts. 13-17.)
i See Arts. 920-930.
596 COMPENDIUM OF MEXICAN LAW.
Art. 911. Expert Selection. Within three days after the
admission of a denouncement, the Mining Agent will appoint
an expert to measure the pertenencias and demasias de-
nounced and to make a plan of the same., which shall clearly
show the points on the boundaries of the property where
monuments must be constructed, as well as all the monuments
found within a zone of one hundred meters around the same
and belonging to adjoining or neighboring mining properties.
The Agent will appoint the expert named in the denounce-
ment if he is licensed ; but if none is named in the denounce-
ment or he is unlicensed, the Agent will freely make the
appointment, giving the preference to licensed experts of the
place, and only if there are none he may appoint practical
persons of the locality if in his judgment they are com-
petent to discharge their duties satisfactorily. If the Agent
rejects the expert proposed he must state his reasons, and the
party interested may make complaint about it to the Depart-
ment within three, days after notice of the same, after which
tiiiH it is irrevocable; the Agent will forward the complaint
to the Department within three days after it is filed ; the
proceedings will be suspended from the filing of the complaint
till the Agent receives the decision of the Department; the
.Agent will make the proper entry on the record.
The expert must advise the Agent within eight days after
notice of his appointment whether he accepts it or not; if
he does not accept or reply, the Agent will notify the denun-
ciant so that lie may appoint another licensed expert, if he
had named one in the denouncement, and a new expert will
be a] (pointed as above prescribed, within the tmextendable
term of fifteen days, at the end of which, if no expert accepts,
a copy of the record will be forwarded to the Department,
which will declare the discontinuance of the denouncement,
such declaration being published for eight, days on the bul-
letin of the Agency, after which time any person may de-
nounce the properly; the Agent will enter the facts in his
record. (Art-. 1^ 1'fl.)
MIXING REGULATIONS. 597
Art. 912. Appointment Proceedings. The appointment
"being accepted by the expert and duly recorded, the Agent
will fix an unextendable term of sixty days within which he
must present in quadruplicate the plan above required, ac-
companied by an explanatory report. The ^gent will issue
in duplicate an extract which will contain: 1, An abstract
of the denouncement, showing clearlv the name and domicile
o mJ
of the dcnunciant and the serial number of the record ; 2,
the name, domicile and acceptance of the expert ; 3, the
statement that the unextendable period of one hundred and
twenty days, counted from the date of the extract, has been
assigned within, which the record in the Agency must be
made up. A copy of the extract will be posted on the bul-
letin of the Agency for thirty days ; another copy will be
delivered to the demmciant to be published at his cost three
consecutive times in the official newspaper of the respective
State, Territory or Federal District, within forty days after
the date of the extract, and within said one hundred and
twenty days the deuunciant must file copies of the papers
containing said publication, to be added to the record ; of all
which due record will be made ; such publication has the
effect of citation to all parties concerned in opposing the
denouncement of the mining property in question. A cer-
tified copy of his appointment will be given to the expert,
concluding with a warning that whoever resists the perform-
ance of the field-work to be done by the expert will be liable
to the penalties prescribed in Art. 897, and in case of re-
sistance the expert will call upon the local authorities for
assistance. (Arts. 21-23, 20.)
Art. 913. Proceedings of Expert Plans. The field work
of the expert on the land will be done in such a way as to
obtain the lengths ( longitudes} of the horizontal projections
of the boundary lines of the mining property, and the angles
formed by such lines with the astronomical meridian : and
so that one or more t the vertices oi the perimct"r shall
598 COMPENDIUM OF MEXICAN" LAW.
refer each to at least two fixed points on the ground, or to
only one fixed point if the distance thereto is also deter-
mined ; and data necessary to verify the work will be gath-
ered. The location and measurement of the property on the
land confers no right to occupy the same, but only serves to
define the boundaries of said mining property.
The plans of mining properties must be drawn on linen-
mounted paper, for their preservation, and the copies on
drawing-linen; said plans shall contain: 1, The name of
the mine ; the place where it is located ; the Municipality,
District, Partido, Canton or Department, and State, Terri-
tory or Federal District, together with other data serving
to identify the mining property; 2, the lengths (longitudes)
of the sides of the perimeter of the mining property, and the
azimuths of said sides, or their directions with respect to the
astronomical meridian; 3, the area in Jicctares comprised
within its boundaries ; 4, the scale, which must be entirely
decimal ; 5, although a compass was used, only the astronom-
ical meridian will be indicated, which will be represented
by a line parallel to the right edge of the paper of the plan
and so oriented that its upper end will indicate the astro-
nomical north ; 6, the pointers or references (visuales de
referenda) to fixed and notable points of the land; 7, the
adjoining mining boundaries; 8, the date and the signature
of the expert. (Arts. 24-25.)
Art. 914. Same Reports Monuments. The explana-
tory report in regard to the measurements of the mining prop-
erties must contain the description of the technical operations
conducted and all the data shown on the plans, so that if
necessary the plans could be reconstructed from the data of
the report, and in addition the report must show the location
of the property and the relative position of the pertenencias
comprised in it, as indicated in the denouncement, with
pertinent remarks in the event of any discrepancy. The
expert will cause solid foundations of masonry (mamposteria)
MINING REGULATIONS. 599
to be constructed at the places where monuments arc to be
set up, such foundations not to be less than fifty centimeters
high, level on top and square in shape with sides not less
than fifty centimeters, and signs will be placed thereon so
that each of the monuments may be easily recognized and
identified in accordance with their designation on the plan.
The expertswill follow the terms of the denouncement in mak-
ing the locations and measurements, and will indicate on the
plans not only the monumuents of the adjoining mining prop-
erties outside of the pcrtenencias denounced but those within
such pertenencias., and will set out all matters called to their
attention by the denunciant, the adjoining owners or by any-
one considering himself prejudiced by the expert operations.
Upon the filing of the expert's report in the Agency, notice
of the fact will be published for fifteen days on the bulletin
of the Agency. (Arts. 2C-28, 30.)
Art. 915. Proceedings on Report Setting Monuments.
At the expiration of the one hundred and twenty days above
provided, if there has been no opposition, or if it was based
on any of the causes stated in Art. 886, or where final
judgment has been rendered by the tribunals in favor of the
denunciant, the Agent, on his strictest responsibility, and
within the next fifteen days, will make up a copy of the
record and forward it, with three copies of the plan, by
registered mail to the Department of Fomento ; such copy of
the record will include a complete copy of the extract of
the denouncement. The denunciant will be notified, in
accordance with Art. 885, that a period of thirty days is
allowed him within which he must set up the monuments
and to certify that he has done so, for which purpose a copy
of the plan will be furnished him, which he must return
certified, and with exact indication of the places where the
monuments have been set and the distinctive signs placed
thereon; said certification shall show as a certain fact that
the monuments have been set up at the places on the ground
600 COMPENDIUM OF MEXICAN LAW.
indicated on the plan, and will be attested, if possible, by;
the expert who made it, and if not, by some other licensed
expert, or if there is none, by some practical expert of rec-
ognized ability.
In setting up the monuments the following requisites will
be observed : 1, Their position shall not be changed unless
the mining properties of which they mark the boundaries
are themselves changed ; they must be solidly constructed and
always maintained in good condition ; 2, they must be set up
in convenient places, in such number as may be necessary
so that from each one the next monument on either side
may be seen, and by their size, shape, color or other charac-
teristics may be distinguished from the monuments of adjoin-
ing mining properties. (Arts. 3133.)
Art. 916. Issuance of Titles Publications. Upon the
issuance of a title to mining property, it will be delivered to
the denunciant or forwarded to him in care of the Mining
Agent, together with a copy of the plan sealed by the Depart-
ment of Fomcnto, which will notify the Treasury Depart-
ment of the issuance of the title. As soon as the Mining
O
Agent receives a title for delivery to the denunciant, he will
post a notice for thirty days on the bulletin notifying the
denunciant to call for it; if the latter does not call for it
within such time, the title will be added to the record to-
gether with the notice; the title will remain in the Agency
at the disposition of the interested party until receipt by
the Agency of the notice of forfeiture of the property, in
which event the document, if not reclaimed, will be returned
to the Department of Fomento.
The publication referred to in Art. SS7 will be made for
thirty days on the bulletin of the Agency, and for ten con-
secutive times in the oilieial newspaper of the respective
State, Territory or Federal District. The notice that a min-
ing property is Free will be published for twenty davs on
the bulletin, counted from the dav and hour that the notice
MIXING REGULATIONS. 601
is posted, until the same hour of the last day, excluding
Sundays and national holidays. (Arts. 34-36.)
CHAPTER 3.
OPPOSITIONS.
Art. 917. When to be Filed Proceedings.
Art. 917. When to be Filed Proceedings. Oppositions
based on any of the grounds stated in clauses 1 and 2 of
Art. 886, can only be allowed within ninety days from the
date of publication of the extract. Upon the filing of oppo-
sition, the Agent will at once notify the denunciant by notice
posted for ten days on the bulletin, stating the names of
the oppositor and of the denunciant and the number of the
record, in which he will enter the fact of publication and
attach the original notice. On the same day of the receipt
of the expert's report and plans, the Agent will cite the
interested parties to a meeting to be held within fifteen days ;
such citation to be made by an order sent by registered mail
and posted also for three days on the bulletin, adding the reg-
istry receipt and the notice to the record ; at such meeting
the Agent will endeavor to bring the parties to an agreement
and avoid litigation, an entry of everything done being made
in the record ; if at the meeting the parties do not come to
an agreement nor choose to settle the matter through admin-
istrative proceedings, the Agent will transmit the record to
the tribunals within forty-eight hours as provided in Art.
886. If after transmitting the record to the tribunal before
the ninety days is elapsed, a new opposition is filed based on
any of the grounds stated in Art. 8S6, the Agent will not
admit the same but will refer the oppositor to the tribunal
to establish his claims; if based on any other ground- than
as above, the Agent, will retain the opposition and add it to
the record when returned from the tribunal.
002 COMPENDIUM OP MEXICAN LAW.
if at the meeting the parties choose the administrative
proceedings, a record (acia) of the same will be made and
signed by all parties, and the proceedings will be continued
until the end of the term of one hundred and twenty days.
Where the Department of Fomento decides to consider an
opposition based on any of the grounds stated in Art. 88 G, it
will order that the same be proceeded with in the Agency as
in other cases of oppositions under Art. 886. The Depart-
ment of Fomento, in deciding oppositions submitted for
administrative action, shall have entire freedom to order such
proceedings taken as it may deem advisable in order to in-
form itself, and after hearing the parties, who may submit
anything in support of their interests, will render such deci-
sion as may be just. (Arts. 37 M.)
CHAPTER 4.
PETITIONS FOR REDUCTION, EASEMENTS, ETC.
Art. 018. Reduction of Denouncements.
919. Reduction and Rectification of Portenencias.
920. Division of Mining Properties.
921. Documents Required with Petitions.
922. Easements Proceedings.
923. Exploration Permits.
924. Expropriation Proceedings.
925. Permits to Foreigners Conditions.
Art. 918. Reduction of Denouncements. Petitions for the
reduction of pending denouncements must be published for
twenty days on the bulletin board of the Agency, and one
time, during said period, in the Official Newspaper of the
State, District or Territory, at the cost of the applicant, who
must file one copy of the newspaper containing the adver-
tisement within the 120 days of the proceedings. Tf at
the time the reduction is requested, the expert has not filed
his plans, the Agent will notify him in order that he may
make new measurements and deliver his plans and report
MIXING KEGUI.ATIONS. COS
\vitliin the remaining time of the period of sixty days pro-
vided in Art. 912. At the expiration of the publication 011
the bulletin board, the Agent may admit denouncements of
the excess lands released by the reduction. (Art. 45.)
Art. 919. Reduction and Rectification of Pertenencias.
In case of reduction of pertenencias of a mining property
already titled, as provided in the Law, Art. SSS, the appoint-
ment of the expert and the delivery of the plans and report
will be made in accordance with. Arts. 911 and 912 ; and
upon their receipt by the Agent he will within fifteen days
forward a copy, of the expedients, together with the title and
its plan and the other documents hereinafter required, to the
Department of Fomento.
The proceedings for the rectification of a titled mining
property, as provided in the Law, Art, 889, will be the same
as for a new denouncement, and the monuments must be
located as hereinbefore prescribed. When the proceedings
are ended, the Agent will forward a copy of the expedient e
to the Department of Fomento, and upon its approval the
Agent will be directed to deliver to the interested party the
certified copy of the record to be added to his title papers.
(Arts. 46-48.)
Art. 920. Division of Mining Properties. Petitions in re-
gard to the division of a mining property into two or more
will be addressed to the Department of Fomento, either di-
rectly or through the proper Alining Agent, with as many
plans, in quadruplicate, as may be required by the division,
together with a report rendered by a licensed expert, or if
there is none, by a practical one of recognized ability, the
plans being authenticated by the expert. The applicant will
also forward the documents required by the following Article,
and the stamps for the issuance of the new titles. Upon the
approval of the plans by the Department, it will allow a rea-
sonable time for the erection of the monument- to mark the
004 COMPENDIUM OF MEXICAN LAW.
new mining properties, failing to comply with which during
said time the applicant will be held to have abandoned his
application. (Art. 49.)
Art. 921. Documents Required with Petitions. Petitions
for the reduction, rectification or division of mining property
the titles of which have already been issued, must be accom-
panied by the following documents: 1, The title and plan
of the property ; 2, a voucher showing that the Federal taxes
on the property are paid up to date ; 3, document showing that
the applicant is the owner of the mining property or is legally
authorized to make the application ; 4, in case of reduction, it
is also necessary to produce the certificate showing that the
property is unencumbered, or a document showing the con-
sent of any mortgage creditors to the reduction. (Art. 50.)
Art. 922. Easements Proceedings. Petitions to the De-
partment of Foment o for the establishment of easements in
accordance with the Law, Art. 893, must be accompanied by
a report of a licensed expert, or if there is none, by that of a
practical one of recognized ability, showing the necessity for
and extent of the easements. Upon filing the petition, a
citation will be issued to the owner of the servient estate,
notifying him that if he does not appear on the day fixed, the
petition will be granted; if he does not appear on said day,
or after a hearing if he does appear, and after such pro-
ceedings as it deems proper, the Department of Fomcnto will
render its decision. Petitions for easements of passage must
be accompanied by such plans and expert report- and other
data as the applicant deems material and necessary; and the
Department will allow ,-iu-li means of transportation in each
case as it may deem proper. (Arts. r>l-.~2.)
Art. 923. Explorations Permits. Petitions for explora-
tion permit- nin-t be filed in duplicate, together with a certifi-
cate i--iied by a licenced export showing that no minimi 1 works
MINING REGULATIONS. 605
have been carried on in the zone of exploration, and that the
limits of said zone are at least two hundred meters distant
from the boundaries of the nearest mining property ; the
duplicate will be returned to the applicant by the Agent after
he has noted thereon the day and hour of its presentation.
If the exploration is to be made on private property, the ex-
plorer must solicit the permission of the owner or of his repre-
sentative, and if granted, the evidence of the same will be
presented to the Mining Agent that he may take note of the
same ; the explorer must make proof that the person granting
the permit is the owner of the land or is authorized to grant it.
If the owner or his representative does not grant the per-
mission, the explorer will solicit it of the Mining Agent,
stating in his petition the residence of the owner, and the
name of the surety who is proposed by the applicant for any
damages he may cause by the works of exploration ; the
petition will be published by the Agent on the bulletin board
for fifteen days, and he will notify the owner that unless he
makes objection his consent will be taken as granted. At the
expiration of the time of publication the Agent will allow
thirty days for the execution and approval by him on his
responsibility, of the bond, upon the giving of which he will
issue the permit, which shall indicate the zone and the fixed
point to serve as its center. The Agent will publish on the
bulletin board for thirty days an extract of the permit, stat-
ing the name of the explorer, the location of the zone and its
fixed central point, the day the exploration is to begin and the
termination of the sixty day period ; and in all cases the
Agent will declare in the permit or in the proof of publi-
cation, that the exploration works must be strictly subject
to the provisions of the Mining Police Regulations. (Arts.
53-56.)
Art. 924. Expropriation Proceedings. Petitions for ex-
propriation under the Law, Art. 806, must be presented to
the Department of Fomcuto directly or through the proper
606 COMPENDIUM OF MEXICAN LAW.
Alining Agent, accompanied by a report of a licensed ex-
pert, or if there is none, by a practical one of recognized
ability, and by plans authenticated by the expert, to the end
that the Department, in view of all the data and after hear-
ing the owner of the land, may make the proper decision.
If the owner of the land is unknown or cannot be found,
notice of the petition shall be published for thirty days on
the bulletin board and in the " Diario Oficial" of the Fed-
eration. (Arts. 57-58.)
Art. 925. Permits to Foreigners Conditions. Petitions
for permits to foreigners to denounce or acquire mining prop-
erty or real rights therein, as provided in the Law, Art. 901,
shall be directed to the Department of Fomento directly or
through the Mining Agent, upon filing the denouncement
or within sixty days after its admission. Such permits will
be granted upon the condition, which shall be expressed
therein, that the mining properties remain subject in all
respects to the Mexican laws, and that no right or claim
based on foreign citizenship (extranjeria) can be urged in
respect thereof, and that the Tribunals of the Republic alone
have jurisdiction to decide all questions which may arise in
respect to such properties, to the exclusion of all foreign in-
tervention. ("Art. 59.)
CHAPTER 5.
SCHEDULE OF FEES OF MIXING AGENTS
(Issued 10 December, 1909.)
Art. 020. Exploration Denouncements.
927. Reductions, Rectification and Division.
!)2S. Expropriations Easements.
020. Oppositions Copies Searches.
930. Rjrrht to Eees Irregularities.
Art. 926. Explorations Denouncements. Upon filing
FEES OF MINING AGENTS. GOT
notice of exploration on private lauds, accompanied by permit
of the owner, or petition for permit to explore on national
lands, there will be paid, for the entire proceeding's, $1.00 ;
but where permission is refused by the owner and permit is
solicited of the Agent, $8.00. For the entire proceedings on
a denouncement, including copy of the expediente, up to the
delivery of the title, where no " incident " of opposition or
reduction of pertenencias arises, fees will be paid in the order
as follows : 1, Upon filing and registry of the denounce-
ment, $2.00 ; 2, on acceptance by the Agent of the denounce-
ment, $10.00 ; 3, upon receipt by the denunciant of the copy
of the extract of the petition for its publication, $18.00.
(Arts. -1-2.)
Art. 927. Reductions, Rectification and Division. For the
proceedings for the reduction of pertenencias of a pending
denouncement, upon filing the petition, $8.00. For the en-
tire proceedings under a petition for rectification of a titled
mining property, in any of the cases under Article 923,
where no opposition is filed, up to the delivery of the new
title or copy of the proceedings to be added to the title, fees
will be paid in the order as follows : 1, Upon filing the
petition, $10.00 ; 2, upon receipt by the applicant of copy of
extract of the petition for its publication, $18.00. For pro-
ceedings under petition for division of mining property, up
to delivery of new titles, on filing petition, $5.00. For pro-
ceedings under petition for reduction of pertenencias of titled
mining property, upon filing petition, $10.00. (Arts. 3-6.)
Art. 928. Expropriations Easements. For all proceed-
ings under petitions for expropriations or easements, where
the Agent intervenes in them, on filing petition, $. . . . (the
amount is omitted in the text.) (Art. 7.)
Art. 929. Oppositions Copies Searches. In cases of
oppositions to a denouncement, the denunciant will pay, for
COS COMPENDIUM OF MEXICAN LAW.
the proceedings before the Agency, when the meeting for
agreement is held, $10.00, which amount he may recover by
suit from the oppositor. For copies of final judgments (eje-
cutorias) rendered in suits of oppositions to mining denounce-
ments, such copy to be added to the copy of the expedients for-
warded by the Agent to the Department of Fomento, for each
sheet or fraction, $2.00. For certified copies of expert re-
ports, or of all kinds of documents issued by Mining Agents at
the instance of interested parties, for each sheet or fraction,
$2.00. For comparison and authentication of plans, $2.00.
For taking note of any document, $1.00. For searching the
expedientes or other documents in the archives, $1.00 ; and
where insufficient data are furnished for finding it, $1.00
additional for each year the records of which must be
searched. (Arts. 8-11.)
Art. 930. Right to Fees Irregularities. Mining Agents
have the right to receive only the fees fixed by this Schedule,
and in cases not covered by it, they must consult the Depart-
ment in regard to the amount to be collected. Where pro-
ceedings on an expediente are interrupted without the Agent's
fault, no fees paid to him shall be refunded. Where on ac-
count of any irregularities committed by Agents, it is neces-
sary to repeat any proceeding, it shall be done at the cost of
the Agent, who cannot collect new fees for the same. (Arts.
12-14.)
TAXES ON PRECIOUS METALS AND MINES. 609
TITLE III.
MINING TAX AND FRANCHISE LAW.
(Ley solre Impuestos y Franquicias d la Mineria, de 25
Marzo, 1905.)
CHAPTER 1.
TAXES ON PKECIOUS METALS AND MINES.
Art. 930a. Stamp Tax on Gold and Silver.
930b. Same ^Exemptions.
930c. Assay and Other Duties Franchises.
930d. Mining Stamp Tax Fixed and Annual.
930e. Payment of Tax Penalties- Forfeiture.
Art. 930A. Stamp Tax on Gold and Silver. Gold and sil-
ver produced in the Republic or coining into it from a foreign
country, shall be subject to the internal Stamp Tax, except
only as herein provided ; said tax being hereafter paid as
follows: A. At the rate of 3 1 /> r /t on the value of the
gold and silver which are not treated (beneficiados) within
the country, but are exported in any form in which they
are combined or mixed with substances not properly metals ;
B. at the rate of 2^/2 % on the value of the gold and silver
which are treated in the country up to the point where they
are not combined or mixed except with other metals, and
whatever the fineness (Icy} of the product. For the purposes
of such tax, gold will always be of the value of $1.00 for each
75 centigrams of pure gold, and the value of silver will be
fixed by taking its average cash sale price in London during
the previous month, and converting such price into Mexican
money at the rate of exchange during said month ; the " Diario
Oficial " will publish the price of silver which shall serve
each month as the basis for the payment of the tax. Smelters
which refine gold or silver up to at least 999-lOOOths fineness
shall be entitled to a rebate on the - 1 -j/r tax upon the gold
and silver so refined, the amount of such rebate to be fixed
39
610 COMPENDIUM OF MEXICAN LAW.
by a decree of the Executive after a hearing of the interested
parties. (Arts. 1-4.)
Art. 930B. Same Exemptions. But the Stamp Tax
will not be paid on : A. Refined gold presented to the mints
for coinage or to the Government offices in exchange for
silver money, at the rate of 75 centigrams of pure gold
per peso ; B. Mexican and foreign gold and silver moneys of
current coinage ; C. silver exported in the form of ore, earth
or dust, whether in their natural state or mechanically con-
centrated, and in the form of cyanides, sulphides or fur-
nace slag, where the amount of silver contained in such
substances does not exceed 250 grams per ton; D. silver and
gold imported into the Republic in any of the above forms or
with a beginning of treatment and exported within four
months in the form of cakes, disks or bars after smelting
operations in Mexican establishments ; E. gold and silver
used in national industries ; F. samples of ores in their
natural state exported under the conditions prescribed by
the Regulations. (Art. 5.)
Art. 930C. Assay and Other Duties Tax Franchises.
Assay duties are only payable where the operation is per-
formed at the request of the interested parties, or is required
by law or regulation ; the smelting duties, where on account
of want of homogeneity of the bars or pieces it is necessary
to remelt them in order to assay and appraise the same ; the
duties of refining and separation, where such operations are
performed at the request of the interested parties in the
Government offices which are disposed for such service ; the
amount of such duties will be fixed in a Tariff to be issued
by the Treasury Department, based on the cost of the re-
spective services.
Smelting establishments which through special concessions
granted by the Government and which are in force at the
time ot lliis la\v, enjoy franchises in respect, to federal and
local taxation, may avail themselves of this law provided that
TAXES ON PBECIOUS METALS AND MINES. 611
they unreservedly renounce such franchises before the Treas-
ury Department ; in the meanwhile they shall not enjoy the
benefits of this law, and shall continue subject to the terms
of their concessions, to the law and regulations of 27 March,
1897, and to the other provisions of law now in force, in-
cluding the payment of the coinage duty. Said Law of 27
March, 1897, in respect to the tax on coinage is repealed.
Upon the expiration of the aforesaid concessions, they shall
not be extended or renewed, but said establishments shall
remain subject to all the common fiscal legislation. (Arts.
6-8.)
Art. 930D. Mining Stamp Tax Fixed and Annual. The
amount of special stamps which according to present laws
must be affixed to the titles of mining properties, shall be
$5.00 for each pertenencia protected by said titles, what-
ever minerals are exploited.
The annual tax on mining properties shall be paid as fol-
lows : A. The cuota shall be six ($6.00) pesos a year per
mining pertenencia, or two pesos for each third of a year
(tercio), whatever minerals are exploited; B. if the number
of pertenencias of a single mining industry exceeds 25,
and said pertenencias are contiguous, the rate of $6.00 shall
be paid only by the first twenty-five pertenencias, and will be
reduced to $3.00 on each pertenencia in excess of twenty-five.
Petitions for concessions of mining pertenencias and de-
masias must be accompanied by the certificate issued by the
local Stamp Tax office showing that the amount of the stamps
for the title, according to the number of pertenencias solicited,
has been deposited with said office ; such certificate will be
returned to the interested parties as soon as the stamps have
been cancelled on the titles or that the denouncement has been
finally -rejected.
The maximum amount of tax which the States or the Fed-
eration shall impose on mines, under Art. 4 of the Decree of
6 June, 1887, is reduced to l 1 /-*/^. 1 (Arts. 9-12.)
i The regulations of this la\v, for the oollcc-tion of the Stamp Tax
COMPENDIUM OF MEXICAN LAW.
Art. 930E. Payment of Tax Penalties Forfeiture.
The annual mining tax shall be paid in advance by tercios in
each fiscal year, and within the first month of each iercio,
to the Offices of the Hacienda to be fixed by the Regulations,
at which the mine owner must present himself to make the
payment, without the necessity of notice or any other requisite
which might serve for delay or excuse. The tercios above
mentioned shall begin with Xovember 1st (Amendment of
31 December, 1892) ; the tax for each tercio must be paid
before Xovember 30th, March 31st, and July 31st of each
year. For this purpose, the respective principal or subaltern
Stamp Offices will deliver to each mine owner interested a
Bolcia, which shall contain : 1, The heading " Impuesto
Mincro " ; 2, the name of the State and Municipality to
which the issuing Office belongs; 3, the name of the Mine,
number of pertenencias on which the tax is paid, Municipality
in which it is located, name of the owner, company or con-
cern in whose possession it is, and ordinal number of the
registry of the title ; 4, the quota of tax to be paid each tercio ;
5, three columns in blank in which the stamps for each tercio
will be attached and duly cancelled ; such Bolctas, showing the
stamps duly cancelled, must be kept in a visible place in the
business Office of the mining concern.
Failure to pay the annual mining tax within the first
month of each tercio incurs a fine against the owner of the
mining property, equal to 50 per cent, of the amount of the
tax, if snme is paid during the second month ; if paid within
the third month the fine will be 100 per cent., or double the
amount of the tax due; if within such time the tax and penal-
ties are not paid the mining property will be forfeited ipso
farfo, without any recourse, and the declaration of forfei-
ture will l>e made by the Department of Hacienda, and pub-
lisher] in the Diario ()/icial. whereupon the property is sub-
ject to denouncement by any other person. (Law <! June,
1 *!>:>: Arts. .", -0 ; Regulation :'5n June, 1M2. Art. 22.)
c> on Precious Motal>. arc of date
FEDERAL NOTARIAL LAW. 613
BOOK XV.
NOTARIAL LAW. PUBLIC INSTRU-
MENTS.
{Ley del Notariado, of the Federal Government, 1 of
19 December, 1901.)
CHAPTER 1.
PRELIMINARY PROVISIONS.
Art. 931. Qualifications Appointments, etc.
932. Exercise of Functions Disqualifications.
933, Protocols and Records How Kept.
Art. 931. Qualifications Appointments, Etc. The pro-
fession of Notary is a public function which can only be con-
ferred, in the Federal District and Territories, by the Execu-
tive, and is incompatible with any other business or public
office. A Xotary is an official appointed for life (Art. 72),
whose acts and instruments authorized by him are entitled to
public faith and credit ; such acts and instruments must be
kept written and signed in his protocol, together with such,
documents as the parties may present, to whom he will issue
such copies as may legally be issued. Such a number of Xota-
ries may be appointed as the public interests from time to
time may require : in places where there is only one Notary,
and he is absent or disqualified, the Executive may authorize
the Minor Judges in places where there is no Xotary to act as
i The Notarial Laws of the several States are substantial copies of
this Federal Statute, and the functions of the Notaries identical.
614 COMPENDIUM OF MEXICAN LAW.
notary within the limits of their jurisdiction ; where there
are several Xotaries in a place each may act anywhere
within the jurisdiction; a Notary cannot act outside
his jurisdiction, but instruments to have effect else-
where may be authorized by him. ^Notaries receive no
public salary, but are entitled to collect the fees fixed by the
tariff (aranccl) of Xotary fees. A Council of Xotaries is
established in Mexico City, composed of a President, Secre-
tary and nine members, elected January 1st of each year,
for the purposes of assisting the Department of Justice in
overseeing the compliance with this law, and to propose any
measures for the improvement of the system. The Xotariate
is responsible to the Executive through the Department of
Justice, but the Department of Hacienda may inspect the
notarial offices for the purpose of observing compliance with
the revenue laws, or otherwise as may be provided
by law, and will notify the Department of Justice when-
ever a ISTotary is to be proceeded against. Besides the duties
prescribed in this law, Xotaries must comply with the re-
quirements of the general laws in regard to examination of
documents, execution of instruments, and issuance of certi-
fied and other copies. (The details of qualifications and
appointment of Xotaries, etc., are omitted.) A Xotary in
Mexico City must give a bond of $5,000, and outside of the
city of $2,000, deposited with the Department of Justice.
The seal of the Xotary must represent in the center the na-
tional coat of arms, and have inscribed around it his name,
number and place of residence. (Arts. 1-20.)
Art. 932. Exercise of Functions Disqualifications. A
Xotary must reside in the place wherein he acts, and cannot
leave for longer than thirty days without leave from the
Department of Justice. The Xotary's office is called " N<>-
lar'tn Pi'thlica," and must be kept open at least from nine
till one o'clock and from three till six, and over the door,
which must be of easy access from the public street, there
FEDERAL NOTARIAL LAW. 615
must be a sign with the name, official designation and number
of the Xotary. The Xotary is obliged to exercise his func-
tions whenever required, but must refuse: 1, If the act
required is prohibited by law or is manifestly contrary to
good morals, or is one which should only be performed by
some other official ; 2, where any of the parties is his wife,
relation by consanguinity or affinity in any degree, or collat-
eral within the fourth degree inclusive ; 3, where the Xotary,
his wife, or any relation as above prohibited, is interested in
the act or in any of its stipulations, or is attorney or legal
representative of any party thereto. lie may also refuse to
act if the parties do not advance the charges and fees, except
in urgent cases 'of last wills he can only require advance
payment for the necessary stamps. lie cannot act while
another is filling his place during leave of absence. (Arts.
30-35.)
Art. 933. Protocols and Records How Kept. All jurid-
ical acts of a Xotary must be recorded in his protocol, which
he may keep in one or more books, not to exceed five, accord-
ing to the needs of the business of his office, and which must
be numbered and kept in strict numerical order of his notarial
acts, and special authorization of the Department must be
had to keep more than one. In connection with the protocols
he must also keep a portfolio (carpet a} or " Appendix " in
which to tile all documents relating to his notarial acts, which
will be arranged in bundles numbered to correspond with the
acts, and each document specified with an alphabetical letter.
He will also keep a special book in which Powers of Attorney
(Poderes} only will be recorded, each page of which will
contain a proper printed form, with blanks to be filled accord-
ing to the requirements of the parties, and printed certified
copies of which, with corresponding number, will be deliv-
ered to the parties, who may either use such forms, or execute
their powers of attorney in the same way as other contracts.
The Xotary will also keep an " Abstract Book " (Libro do
610 COMPENDIUM OF MEXICAN LAW.
Exiractos) which will contain a brief synopsis of the act,
its number and date, the names of the parties, witnesses and
interpreters, with their signatures, and that of the Notary
and his seal, and will be always preserved in the office of the
Notary. (Other details of keeping these books, which are
merely of administrative concern, are omitted.) When a
book is closed, or a Notary dies or goes out of office, all his
protocols and records, except the " Abstract," are deposited
and kept in the " Arcliivo General de Noiarias," in the De-
partment of Justice of the Nation, or of the several States.
The Notary will also keep an index of all acts, in duplicate,
one to be kept in his office, the other delivered to the General
Archives. The protocols cannot be taken out of the office,
except as herein expressly provided for the purpose of having
it signed by parties unable to come to the office, and the
records must be inspected, even by official inspectors, in the
office and in the presence of the Notary. (Arts. 36 iS.)
CIIAPTEE 2.
NOTARIAL INSTRUMENTS AND COPIES.
Art. 934. Form and Manner of Execution.
935. Same Original Contracts.
930. Foreign Documents Protocolization.
937. Other Documents and Records Form.
93S. Failure to Sign FiYects.
939. Minutes of Contracts "Blotter."
940. Compelling Signature Minutas.
941. Certified Copies of Notarial Acts.
942. Legal Eil'ect of Notarial Ads Authentication.
943. Wills Special Records.
944. Nullity of Fscrituras Liability of Notary.
94.1. Responsibilities of Notaries.
940. .1 /<// irn (inirrtil Functions.
947. Tariil 1 of Notarial Fees.
Art. 934. Form and Manner of Execution. The Notary
must himself compose or reduce to written form his notarial
FEDERAL NOTARIAL LAW. 617
acts or instruments (this original form being called the
matriz}, and record them in the proper book of his protocol,
attended by his assistant, or if none, by two unexceptionable
witnesses who can read and write, who are over twenty-one
years of age and residents of the town where the act is
executed, and he must issue the proper copies. Every no-
tarial act must be " extended " in conformity with the
following rules: 1, It must be composed in the Spanish
language and be written with indelible ink, in clear hand-
writing, without abbreviations, arithmetical figures, erasures,
corrections or blanks ; 2, the Notary must state his name and
surname and the place of execution ; 3, the date of execution,
name and surname, age, status, business or occupation and
residence of the parties, of his assistant or of the witnesses
to the instrument, and of any other witnesses required by
law ; 4, he must certify that he knows the parties and their
legal capacity, or that these matters are vouched for by two
witnesses whom he knows ; if there are no such witnesses or
they are not qualified to attest, the instrument cannot be
executed, except in grave and urgent cases, the reason for
which must be recited, and if any document is presented in
proof of the identity of any of the parties, it will also be
entered ; the assistant or instrumental witnesses can in no
event act as witnesses to identity ; 5, the act or contract must
be set forth in clear and concise clauses, avoiding all useless
and antiquated formulas ; 6, the subject-matter of the contract
must be distinctly stated so as not to be confounded with any-
thing else, and if it be real estate, its nature, location in its
proper municipality, district and State, its boundaries, and
as far as possible its topographical limits and superficial area
must be stated; 7, any document presented will be literallv
transcribed, compared, sealed and rubricated, and in the
proper case filed in the Appendix ; 8, the renouncement or
waiver by the parties of any law, which is not prohibitive,
or affecting the public interests, rights, or good morals, must
be precisely stated, observing the provisions of the law on the
618 COMPENDIUM OF MEXICAN LAW.
subject; 9, it must appear that the force and effect of the
several clauses were explained to the parties ; 10, the hour
must be stated where required by law; 11, the Xotary must
certify that the instrument was read to the parties and wit-
nesses ; if any party is deaf he must himself read it, and the
fact be recited ; if he cannot read it, he will designate some
one to read it in his name, and the fact will be certified ; 12,
if any party does not know the Spanish language, he will
select an interpreter, who must " protest " before the Xotary
that lie will faithfully perform his duty; the other party
who knows the language may also have an interpreter; the
interpreters will be named and described in the act and will
sign it, and all the circumstances will be recited; 13, at the
end of the instrument all words crossed out or interlined
will be mentioned and their number stated : words must be
so crossed out as to remain legible ; 14, the parties and wit-
nesses of identity will sign, if they can, if not, the circum-
stance will be recited ; the instrumental witnesses or the
assistant will then sign, and finally the Xotary, who will
also affix his seal; 15, if the parties wish to make any addi-
tion or alteration before the Xotary signs, it will be written
in without leaving any bl ank spaces, with the statement that
it was read, and all will sign and the seal be affixed as above
provided. (Arts. 49-50.)
Art. 935. Same Original Contracts. An escritura pub-
llca may also be extended in respect to any contract already
made between the parties, where the original is presented, in
writing, signed by the parties and properly stamped ; but for
such escrituras to be valid, it is necessary, besides the condi-
tions required by law: 1, That the parties are present in
person or by attorney with special power; 2, that the written
contract comply with the requirements of clauses 1, 5, 6, 8,
13 and 14 fas to signatures of the parties) of the preced-
ing Article; 3, that the Xotary extend in his procotol an
act fxjMiiiuing brieflv in abstract the nature of the contract.
FEDEKAL NOTARIAL LAW.
and complying with the requirements of clauses 1, 2, 3, 4,
7, 9, 10, 11, 12, 13, 14 and 15 of the preceding Article, and
reciting moreover that the original contract, read and ex-
plained to the contracting parties, agreed to and ratified by
them, signed and sealed on the margin of each of its pages
by the Xotary and signed in the same way by the parties,
remains added to the Appendix under its proper number
and stating the number of pages it contains ; 4, that he shall
send within three days to the Archive General de Notarias a
notice of the execution of the contract, noting that fact on
the margin of the act, which he will sign and seal. The
paper and writing of said original contract must be, like
the pages of tne protocol, 35 centimeters in length by 24
in width in their utilizable part, and contain not more than
forty lines of writing, at equal distance apart, leaving a
blank space of one-third part to the left of the writing ; fail-
ure to observe these requirements does not affect the validity
of the contract, but is subject to the penalties fixed by the
Stamp Law, besides a fine against the Xotary of from $25
to $100 ; Xotaries must conform as far as possible to the
same forms in respect to judicial documents which they are
required to protocolize. (Arts. 51-52.)
Art. 936. Foreign Documents Protocolization. Foreign
public instruments may be protocolized in Mexico upon order
of the judge, who will first cause the document to be trans-
lated into Spanish, and require the legalization of signatures,
and will see that it complies with the requirements of Art.
145, unless otherwise provided by treaties with the foreign
country from which it comes. (Art, 53.)
Art. 937. Other Documents and Records Form. Every
escntura will be numbered on the margin in progressive
order, with the names of the parties and the nature of the in-
strument ; no space shall be left between one escritura and an-
other than is necessarv for signatures and seal. Instruments
620 COMPENDIUM OF MEXICAN LA\V.
other than contracts and wills, which the laws permit or
require a Xotary to authorize, will be extended under their
proper number in the protocol, and observing the require-
ments and form which such laws prescribe, and those
of clauses 1, 2, 4, 7, 10, 13 and 15, and the material por-
tions of clauses 3, 5, 6, 11, 12 and 1-i, of Art. 934. (Arts.
54-55.)
Art. 938. Failure to Sign Effects. Xotaries are prohib-
ited to authorize an escritura unless the parties sign it within
the unalterable term of thirty days from its date ; where
the signatures are collected by separate acts on different
days, the day and hour of signing must be stated, on the
Notary's responsibility ; those acts which according to law
may be protocolized without the appearance and express
consent before the Notary of all the parties, can only be
reduced to escritura piiblica by judicial order. In the urgent
cases stated in clause 4 of Art. 934, the escritura and its cer-
tified copies will be valid, if the identity of the maker is
afterwards proven. (Arts. 5G 58.)
Art. 939. Minutes of Contracts " Blotter." Xotaries are
not required to keep a " Blotter " or Minute-book of escri-
turas, but they must accept all minutes presented by the
parties, and certify that they were signed in their presence
or proceed to verify the signatures ; the minutes will be
kept on file, and when the notarial instrument is signed
will be cancelled; minutes of contracts have no other effect
than to require the parties to execute the corresponding
escritura or make compensation in damages. (Art. 59.)
Art. 940. Compelling Signature Minutas. Wherever it
is required by law or by the agreement of the parties, that
a contract be executed in escritura piiblica, and one of them
refuses to >iin it, the other may compel him to sim or to
pay all damages caused. For this purpose Xotaries shall
FEDERAL NOTARIAL LAW.
extend no instrument in their protocols without first requir-
ing' the interested parties to sign the minute or blotter
(iniiiuta 6 borrador) of it before him, or if they cannot
write, to express their consent before the Kotary and two
witnesses, which fact will be recited in the instrument.
Where the foregoing requirements have been complied with,
and the party refusing to sign fails to justify his refusal,
the judge will sign, and such fact will be stated in the
escrliura, which will be considered perfect upon the judg-
ment becoming final. (Code Civil Proc., Arts. 9-10.)
Art. 941. Certified Copies of Notarial Acts. The Notary
must issue under liis signature and seal the first copy (testi-
monio) of any act, upon compliance with the requirements
of the Stamp Law and payment of all other taxes, indicat-
ing at its close and on the margin of the matrix, the number
of sheets of paper it is on, the name of the party to whom
issued and for what reason, and the date of issuance, and
must deliver it to the party ordering it within three days
if of not more than five sheets and within six days if con-
taining more ; each sheet of the copy must be sealed by the
Xotary, and all words crossed out or interlined will be
mentioned at the end the same as on the record ; the proper
amount of stamps must be affixed to the copy, except where
the copy is ordered by authority for use in criminal or reve-
nue matters, in which cases he will authorize it with his seal
on each page and his signature at the end, and it can be used
for no other purpose. Second and other copies (capias^
may be issued at the request of the proper parties where it
docs not prejudice third persons, such copies being num-
bered in order; the paper used for all copies must be of the
size required by law, eacli page containing at most forty lines,
and having on each side a margin of one-eight the width of
the page. Xo other contract, including assignments, sub-
rogations, and substitutions of powers of attorney, can bo ex-
tended at the end of the certified copy of another cwriiura,
622 COMPENDIUM OF MEXICAN LAW.
but only in the protocol, making the corresponding notation
on the matrix and on the copy of it, and a copy of the new
contract must also be issued ; nor can any notarial act be
revoked or modified by simple notation on the margin, but
a new escritura must be made and notation of it made on
the old, unless otherwise provided by law ; and such annota-
tion must be made on all earlier records in the protocols when
later ones are made referring to the former. (Arts. 60-65.)
Art. 942. legal Effect of Notarial Acts Authentication.
All public instruments issued by the proper Xotary in
conformity with this law are full proof in and out of court ;
in order to have such effect outside the Federal District, or
Territory wherein extended, the signature and seal of the
Xotary must be legalized, without charge, by the Depart-
ment of Justice in the Federal District, and by the proper
Jefe Politico in the Territories (and in the States, for the
same purpose, the signature of the Xotary will be legalized
by the President of the Supreme Court, and that of the
latter by the Governor of the State). Xotaries as such are
prohibited from issuing certifications of any act or fact not
appearing in their protocols, and they are only entitled to
public faith in respect to the exercise of their proper func-
tions. (Arts. 60-67.)
Art. 943. Wills Special Records. Xotaries will imme-
diately advise the Arclilro General of the execution of all pub-
lic wills, giving the name of the maker and the date of its
execution, and if it is closed, the name of the person or
place where it is deposited; said Archivo will keep a special
book for such matters, and judges before whom cases of
intestate succession are brought will at once inquire from
the Arcliiro if there is any record in said book of a will
made by the deceased. (Art. 6^.)
Art. 944. Nullity of Escrituras Liability of Notary.
FEDERAL NOTARIAL LAW. G23
An escrltura is void: 1, If the Xotary authorizing it is not
at the time duly in the exercise of his functions ; 2, if written
in a foreign language ; 3, if the Xotary fails to certify that
the act was read to the parties ; 4, or where any party is
deaf or deaf-mute, that he read it for himself or ascertained
its contents by other legal means ; 5, if the signature of any
party, witness or interpreter is missing, if he could sign,
or if he could not, that fact is not recited ; likewise if the sig-
nature or seal of the Xotary is wanting, or the signature
of the assistant, when he acts instead of instrumental wit-
nesses ; 6, if the place and date of its execution are not stated ;
7, if the act was authorized by the Xotary outside the district
for whrcli he was appointed; 8, if the Xotary is disqualified
by reason of relationship, as provided in Art. 932, but if his
fault relates to clause 3, only the forbidden clause or stipula-
tion is void ; 9, wherever any internal or external requisite is
wanting which makes it void under this or any other law.
In all other cases the document is not void, although the
Xotary who violates any legal requirement may be liable
according to law ; where any notarial act must be corrected on
account of the error or default of the Xotary, he is liable for
the costs. 1 (Arts. 09-70.)
Art. 945. Responsibilities of Notaries. Xotaries are lia-
ble for crimes and defaults committed in the discharge of
their duties, in both civil and criminal proceedings, at the
instance of the injured party, and to administrative pen-
alties for the infraction of any provisions of this law not
involving penal liability ; the latter are inflicted by the
Department of Justice, which may consist of warnings, fines
from $25 to $500, or suspension not to exceed one month,
according to the gravity of the offense, a record of all such
offenses being kept in the Department; where the punish-
1 Articles 71 to S4 and 123 to 132 inclusive, in regard to resignation,
death, etc. of Notaries, of "Complementary" provisions, and the
" Transitory '' provisions, of no general concern, are omitted.
G24 COMPENDIUM OF MEXICAN LAW.
ment involves loss of office the penalty must be imposed by
the proper judicial authority. (Arts. 85-90.)
Art. 946. Archive General Functions. An Archive
General de Notarias of the Federal District is established
in Mexico City, dependent upon the Department of Justice,
and may be extended to the Territories, with a Keeper or
Archlv cro appointed by the Department. (In the several
States like Arch I cos are established also in connection with
the Department of Justice, and with similar functions.) In
such Archicos will be kept: The documents which the Vota-
ries are required to remit to the Archives ; the closed pro-
tocols and annexed documents, which must be remitted
within six months ; the archives of suspended [Votaries, and
other documents belonging to the General Archive ; the seals
of Votaries which must be deposited or rendered useless as
required by law. Details of organization and internal ad-
ministration arc omitted, only these of public interest being
stated; among the duties of the Directors of the Archivo
are : To keep a register of the seals and signatures of
-Votaries within the jurisdiction; to keep all the records of
the Office properly classified ; not to allow the protocols and
annexed documents to remain out of their proper place, and
to allow only the Votaries to take, in their presence, mem-
oranda necessary for the preparation of any new escritura
which they may have to make; to obtain from the Depart-
ment cf Justice the new books which the Votaries require
for their business; to issue, in proper cases, to the interested
parties, certified copies of escrituras and notarial acts reg-
istered in the protocols deposited, and to issue such copies
as are required by judicial decree, "which will be inserted
in the copy; to keep general indexes according to the rules
pr<-crilied by the Department. The Director will use on
-uch copies and on oiher official documents a seal, reading
in the- ((nter " Estados Unidos ^Ic.ricanos," and on its cir-
FEDEEAL NOTARIAL LAW. 625
cumference, " Archive General de Notarias del Distrito
Federal Mexico." (Arts. 91-102.)
Art. 947. Tariff of Notarial Fees. Notaries in the Fed-
eral District and Territories will receive the fees (Jionorarios}
prescribed in the following Arancel, which varies in the sev-
eral States : For the preparation or simple authorization
of escrituras and notarial acts of ascertained value, not
otherwise taxed herein: Where the value does not exceed
$500, $5 ; not exceeding $2,000, $10 ; not exceeding $5,000,
$20 ; not exceeding $7,500, $30 ; not exceeding $10,000, $35 ;
not exceeding $20,000, $40 ; from $20,000 to $50,000, $40
for the first $213,000 and $2 per thousand of the excess;
from $50,000 upwards, the above rates on the first $50,000,
and $1 per thousand on the excess, but the total fees arc not
to exceed $200 in any case. Where the principal amount is
determined, interest or other periodical return is not counted ;
in leases for an indefinite period, the amount of three an-
nual payments will be taken as the basis ; in case of life
annuities in which the capital is not fixed, the basis will be
the amount of capital which at six per cent, a year would
produce the same income for a time not to exceed five years.
Where the escritura or notarial act contains several correla-
tive contracts, the full fees will be paid on the amount of
the principal contract and one-half on each of the acces-
sories, according to their pecuniary value. Where it is not
possible to determine the money value of the act or contract,
there will be paid for its redaction and authorization the sum
of $8 for each sheet.
Powers of Attorney: For the preparation and authori-
ization of a power of attorney for collections or lawsuit or
both, $5; special powers for a particular matter, $8; gen-
eral powers for suits, collections, compromises and accounts,
without clauses for administration or alienation of property,
$12; unlimited powers, $15: for all such powers where
printed forms are used the only fee will be $5.
626 COMPENDIUM OF MEXICAN LAW.
Protests : For protest of mercantile documents required
by law : If the amount does not exceed $250, $4 ; from
$250 to $1,000, $5; up to $10,000, $10; up to $20,000,
$20; over $20,000 to any amount, $30; none of the fore-
going amounts is to be added to the preceding, but each is
subject only to the fee fixed.
Wills: For open public wills and codicils of the same
kind, if executed during business hours in the Xotary's
office, $20 ; if at the testator's house on account of his ina-
bility to go to the Xotary, $25 ; if because he does not want
to go, $50 ; if out of business hours, up till eleven o'clock at
night, $10 for each hour employed will be added to the
above amounts ; if the testator has an infectious disease,
$100 will be added to the foregoing amounts; for notation
and authorization on the wrapper of closed wills, $10, apply-
ing the foregoing rules in the respective cases.
Protocolization : For the protocolization of a power of
attorney, $5, and for that of a will, document or legal pro-
ceedings, $10; and in addition to said charges, for the mat-
ter written and compared in the protocol or copies, $1 per
double sheet (pliego^), and if amounts are stated in the copy
which must be summed up on the front or turn of the page,
$2 for each sum.
Miscellaneous Acts: For taking signatures outside the
office, $3 for one signature, and $1 for each additional if in
the same house and in the City, and double the amount if
outside the City. For the examination of every document
not exceeding ten sheets (fojas], $3, and lOcts. for each ad-
ditional sheet, and if made for good cause outside his Office,
double rates. For communications which they are required
to direct to any office, $1 each. For the authorization of
copies and certifications, and rubrication of the corresponding
documents, $1 each. For annotations placed on or in re-
gard to instruments, $2.50 each. For the preparation and
authorization of every escritura of cancellation, extinction
of obligation?, or redemption of ccnsos, where the amount is
FEDERAL NOTARIAL LAW. 627
less than $1,000, $5; if over $1,000, the fee will be one-
half the amount of the tax on the said escritura, not to
exceed $30. For the simple search for escrituras or other
documents or records in his Archives, for the current year,
or a specified past year, 50cts. ; if not of the current year
and the party does not designate the year, for each year up to
five, $1, and for each additional year, 50cts. For the author-
ization and deposit of a minute of contract, $5. The pre-
scribed fees cannot be doubled in any case.
The entire amount of fees in bilateral contracts will be
paid by the party agreed upon when the escritura is extended,
or pro rata by all if no one is agreed on ; the total amount
of fees will be stated in the note of " Taxes and Fees " on
the margin of the matrix and at the foot of the certified copy
issued. (Arts. 103-122.)
628 COMPENDIUM OF MEXICAN LAW.
BOOK XVI.
REGISTERS AND REGISTRY. 1
CHAPTER 1.
THE PUBLIC EEGISTER. (EEGISTEO PUBLICO.)
(Codigo Civil Arts. 3184-3226.)
Art. 948. General Provisions.
949. Foreign Instruments.
950. Instruments Subject to Registry.
9.51. Manner of Making Registry.
952. Extinction of Inscriptions.
Art. 948. General Provisions. In every place where there
is a court of first instance there shall be an office called
" Rerjlstro Publico"; it shall be composed of four sections:
1, Register of Conveyances of real estate and real rights,
other than mortgages ; 2, Register of Mortgages ; 3, Register
of Leases ; 4, Register of Judgments ; also an Index of pri-
vate documents of sales of real estate under five hundred
pesos, of which a special record will be kept; the section of
mortgages and their registry is governed by the provisions of
Arts. 415-418.
The registry must be made in the office of the district
where the land is located, and if located in several districts,
the rcgi-rry must be made in each. .Xo registry can be made
unless it appears that the person requesting it is the actual
i Sec Arts. ]')(]. cf net/., in regard to the Register of Civil Status;
Ar1<. 41."> --11S in regard to the Re^i>try of Mortgages, and Arts. 859-
8G3 for tiie (.Jraiul Register of Property.
THE PUBLIC REGISTER. 629
owner of the property or his lawful attorney-in-fact, or has
legal right to demand the registry. Only instruments con-
stituted by escritura publica, and duly certified judgments
and judicial records,, can be registered. Acts and contracts
required by law to be registered are of no effect against
third persons unless they are registered in the proper office.
(Arts. 3184-3191, 3193.)
Art. 949. Foreign Instruments. Acts and contracts exe-
cuted and judgments rendered in a foreign country can only
be registered under the following circumstances: 1, When
they would require registry if executed or rendered in
in Mexico ; 2, when they are duly legalized as required by the
Code of Civil Procedure; 3, where the judgments are such
that their execution would be ordered by the Superior Tri-
bunal of the Federal District. (Art. 3192.)
Art. 950. Instruments Subject to Registry. All the follow-
ing acts, contracts, instruments and documents must be
registered :
All acts and contracts between living persons which trans-
mit or modify the ownership, possession or enjoyment of
real property or of real rights imposed upon it, except where
the value docs not exceed five hundred pesos ; leases for more
than six years or in which the rent is paid in advance for
more than three; last wills and testaments, after the testa-
tor's death, which transfer real property or rights, and in
cases of intestacy the judicial declaration of heirship and
deeds of partition, the fact of the death being noted on the
register; instruments constituting usufruct, use, habitation,
easements, concessions of mines, quarries, beds of miuer.il
substances, and others of similar nature; matrimonial and
dowry capitulations, in which community of real property
is established between husband and wife, or one of them
acquires such property by way of dowry, antenuptinl dona-
tion or otherwise; compromises, reservations, (".'iiditions,
030 COMPENDIUM OF MEXICAN LAW.
novations, and every other instrument of the character above
mentioned affecting real property and rights; final judg-
ments, including awards of arbiters and arbitrators when they
have the same effect; appointments of the representatives
of absentees and judgments declaring absence and the pre-
sumption of death: judgments decreeing separation of prop-
erty on account of necessary divorce and approving that
in cases of voluntary or consent divorce; judgments declar-
ing bankruptcy or permitting an assignment of property ;
judgments or decrees ordering the posting of mortgage no-
tices, attachments, sequestros, receivership (intervention) or
expropriation. (Arts. 3104-3207.)
Art. 951. Manner of Making Registry. The interested
party must present to the proper section of the registry
office the instrument or certified copy of judgment, together
with his power of attorney if he represents another person ;
if the registrar does not find such documents in due form,
he will advise the party and require the judicial declaration.
The register must contain: 1, The names, ages, resi-
dence and business of the contracting parties, " moral per-
sons " being designated by their official name and compa-
nies by their firm name; 2, the date and nature of the
instrument registered, the authority or notary authorizing
it, and the day and hour when it is presented ; 3, the nature
and value of the property or rights transferred or modified,
stating exactly its location, and all facts in regard to in-
come, encumbrances, rents, annuities, terms and other cir-
cumstances concerning the instrument. In the Index above
mentioned must appear the names of the parties, the location
and boundaries of the property, the price and date of the
sale, and the date of registry.
When the document has been registered, it will be re-
turned to the party presenting it, with an endorsement of
its registration on the date and at the number and page of
the register when and where it is registered. Contracts
THE PUBLIC REGISTER. G31
registered within fifteen days after their date are effective
as against third persons from their date, but if registered after
fifteen days they are only effective as to third persons from
the time of registry ;' the documents required to be entered
in the Index 2 are only effective as to third persons from the
time they are presented in the office. If the act registered
is annulled or rescinded by judgment, it must be noted on
the margin of the register within thirty days after it becomes
final, otherwise it will only be effective as to third persons
from the time it is noted.
The rights and obligations of registrars, and the forms
and manner of keeping the registers, will be fixed by a spe-
cial Eegulation. ' (Arts. 3208-3218.)
Art. 952. Extinction of Inscriptions. Inscriptions are
only extinguished as to third parties by their cancellation or
by the registry of the transfer of the property or right to
another person.
Cancellation may be total or partial ; total cancellation
may be required and must be ordered : When the estate or
right affected by it is extinguished ; when the title which it
concerns, or its inscription, is declared void ; when the prop-
erty encumbered is judicially sold ; 3 when in the case of a no-
tice (cedilla) of mortgage or of attachment, three years have
elapsed from date of registry. Partial cancellation may be
required and must be decreed, when the estate or right affected
is reduced. The cancellation may be made by consent of the
rightful parties where they are capable of contracting and
clearly indicate their intention ; if any condition is attached
to the cancellation, it must be performed.
When the title of the purchaser is registered that of the
grantor will be cancelled; upon the registry of a judgment
declaring ineffective a former one registered, the former reg-
istry will be cancelled. (Arts. 3219-3226.)
- See Art. 948.
s See Art. 803.
632 COMPENDIUM OF MEXICAN LAW.
CHAPTER 2.
THE COMMEKCIAL KEGISTEK.
(Codigo de Comercio, Arts. 18-32.)
Art. 953. Where and How Kept.
954. What Kegister must Contain.
955. Double Registry.
956. Registry of Foreign Corporations.
957. How Registered.
958. Failure to Register Effects.
959. Effects of Registry.
960. Are Public Records.
061. Correcting Entries.
Art. 953. Where and How Kept. A Eegistro de Comercio
shall be kept in the principal town of each judicial district, by
the official having charge of the Public Register of Property,
as provided by Art. 948, or if there be none, by the Recorder
of Mortgages, or by the ordinary judges of first instance.
Inscription in the Register is optional for individuals en-
gaged in commerce, who are considered as inscribed upon
registering any document subject to be recorded ; but is obliga-
tory for commercial companies and ships. The Register must
be kept in the chronological order of the presentation of
documents. (Arts. 18-20.)
Art. 954. What Register Must Contain. The inscription
of each merchant or company must contain: 1, The name
of the person, firm or corporation ; 2, the kind of business
in which engaged ; 3, the date of beginning business ; 4, its
domicile; with that of any branches, which must also be
inscribed in their own district; .">, the articles of associa-
tion of mercantile companies of every kind, as well as all
amendment-, and the dissolution of said companies; 0, in
case of -toek companies formed by public subscription, the rec-
ord of the fhvt general meeiing, with all annexed documents;
7, tin- general powers of attorney and appointment-, with
THE COMMERCIAL REGISTER. G33
their revocations, if any, conferred upon managers and other
employes ; 8, the documents emancipating minors and author-
izing them to engage in commerce ; 9, marital licenses and
other documents authorizing women to engage in commerce,
and revocations of the same; 10, the documents relating to
dowry, marriage settlements, paraphernalia, etc., of the wives
of merchants, to separation of interests between married per-
sons, and any modifications in the same; 11, documents
in regard to the estate or patrimony of children or
wards who are subject to the patria potestad or guar-
dianship of persons engaged in commerce; 12, the increase
or diminution of the capital of sociedades anonimas or en
comandita por acciones; 13, the titles of industrial property,
patents and trade-marks ;* 14, the issue of shares, bonds and
obligations of all kinds of companies., as well as individuals,
stating the series and number of certificates of each issue,
their interest and time of maturity, the total amount of the
issue, and the property, rights or mortgages charged with
their payment ; 15, the issues of bank-notes, stating their
date, kinds, series, denomination, and amount of each issue ;
16, ships, stating their name, class, kind and power, and
date of construction ; principal dimensions ; and names and
residences of the owners; IT, all changes in the ownership
of ships or in the other particulars specified; 18, the creation,
modification and cancellation of any kind of encumbrances
upon ships; the bonds of brokers. (Art. 21.)
Art. 955. Double Registry. When any of the foregoing
matters or contracts are also required by law to be registered
in the Public Register of Property or of Mortgages, their
inscription in such Register shall be sufficient for all legal
purposes of the commercial law, provided that a note of
such other entry is made in the special Register of ( 'on>
merce. All such inscriptions should bo made in the judicial
district of (he merchant's domicile, except when real property
i IN'poalfil liy Palmt ami Trade-mark Laws of 25 An^ii-t. 100:',. re-
quiring registration in Ilic I'alont Otlico.
634 COMPENDIUM OF MEXICAN LAW.
or real rights are concerned, when they shall also be recorded
in the district where the land is situated. (Arts. 22-23.)
Art. 956. Registry of Foreign Corporations. Foreign cor-
porations desiring to locate or establish branches in the Re-
public, must present and record in the Commercial Register,
in addition to the certified copy of the protocolization of their
by-laws, contracts and other documents in regard to their
charter, their inventory or last balance sheet, if any, and a
certificate of their being constituted and authorized according
to the laws of their respective countries, issued by the minister
of Mexico in such country, if there be one, or by the Mex-
ican consul. (Art. 24.)
Art. 957. How Registered. The registration must be made
upon presentation of a certified copy of a public document,
or of the written document or declaration of the merchant
when the document is not required to be public. All docu-
ments subject to registration, coming from a foreign coun-
try, must first be protocolized in Mexico. (Art. 25.)
Art. 958. Failure to Register Effects. Documents re-
quired to be registered, which are not registered, are only
effective between the parties to them, but cannot prejudice
a third person, who may avail himself of them so far as
favorable to him. Documents relating to real property and
rights will affect third persons, although not registered in
the Commercial Register, if they are registered in the proper
Register of Property or of Mortgages. Failure to register
documents raises the presumption of fraud in case of bank-
ruptcy, in the absence of proof to the contrary. If a mer-
chant fails to register the documents requiring registry, hn
wife, her parents or ascendants who have exercised the />n!ri/i
pofcxtad over her, or her guardian, may demand their reg-
istry. (Arts. 26-28.)
Art. 959. Effects of Begistry. Registered documents
THE COMMERCIAL REGISTER. 635
produce their effects from the date of their registration, 4 and
cannot be invalidated by prior or subsequent unregistered
documents. (Art. 29.)
Art. 960. Are Public Records. The Commercial Eegister
is a public record, and the registrar must furnish informa-
tion of its entries to all who request it, and must issue cer-
tified copies of all inscriptions to those who apply for them.
They cannot refuse under any pretext to register all commer-
cial documents presented for registry. (Arts. 3031.)
Art. 961. Correcting 1 Entries. Any corrections of form or
substance may be made summarily by the judge of the mer-
chant's domicije, according to the proofs adduced, the reg-
istrar being in the position of defendant. (Art. 32.)
* See Art. 951 as to civil documenls.
636 COMPENDIUM OF MEXICAN LAW.
BOOK XVII.
PATENTS, TRADEMAKKS AND
COPYRIGHTS.
TITLE I.
PATENTS AND PECULATIONS.
CHAPTER 1.
PATENTS OF INVENTION.
(New Patent Law of 25 August, 1903.)
Art. 962. What is and is not Patentable.
963. Novelty Exceptions.
964. Rights of Patentee.
965. Application and Granting of Patents.
966. Duration of Patent Fees.
967. Exploitation of Patents.
968. Rights and Duties of Parties.
969. Issuance of Patent Mark.
970. Examination Assignment of Eights.
971. Expropriation of Patents.
972. Expiration and Nullity of Patents.
973. Oflicial Publications -Museum.
Art. 962. What is and is not Patentable. All persons,
making now inventions of any industrial character, may ac-
quire the exclusive right, by virtue of Arts. 28 and 85 of the
Constitution, to exploit them for their own benefit, during a
certain time, subject, to the rules and conditions contained in
this law, it being first necessary to obtain a patent of inven-
tion. The following are patentable: A new industrial prod-
uct ; the application of ne\v means, or the new application of
known means, to obtain an industrial product or result: also
PATENT LAW. 637
every new form of an industrial product, piece of machinery,
tool, statue, bust, high or low relief, which by reason of its
new artistic arrangement or novel arrangement of its mate-
rials, forms a new and original industrial product; also every
new design or drawing used for purposes of industrial orna-
mentation in any substance and applied thereto by any
mechanical, physical or chemical process, so that it gives to
such industrial products on which such designs are used a
peculiar and distinctive appearance. The following are not
patentable: A discovery or invention consisting simply in
making known 01* evident something already existing in
nature, although previously unknown to men ; scientific prin-
ciples or discoveries of a purely speculative nature ; inven-
tions, or discoveries the use of which is contrary to prohibitive
laws, to public safety or health, and to good customs or mor-
als ; chemical products, except new methods of obtaining or
new industrial applications of the same. (Arts. 1-3, 102.)
Art. 962. Novelty Exceptions. An invention cannot be
considered new which prior to the application for patent,
whether in Mexico or abroad, has been used for commercial
or industrial purposes, or through any printed publication
ha< received sufficient publicity to enable it to be used, it
being in such cases considered public property ; but this rule
does not apply to the inventor or owner of the patent ob-
tained in a foreign country: 1, Where such publicity arises
from the exhibition of the invention in some official or offi-
cially recognized exposition, provided that prior to its exhibi-
tion the documents required by the regulations are filed i:i
the Patent Office and that the proper application is presented
to said Oflicc within three months after the official closure of
such exposition; 2, where the owner of the foreign patent
file's his application for a Mexican patent within three months
from the day that said invention was made public accord-
ing to the law of the country where the patent was issued,
or where there are several foreign patents, within three
638 COMPENDIUM OF MEXICAN LAW.
months after the first was made public ; 3, where such appli-
cation is made within the time provided by international
treaties on the subject, or within the twelve months referred
to in Art. 965 ; such treaty provisions supersede those herein
prescribed, and the interested party is entitled to the full
time therein provided ; if the publicity arises in more than
one of the ways mentioned, the application must be filed
within the shortest period. (Arts. 4-5.)
Art. 964. Rights of Patentee. The owner of a patent has
the exclusive right to exploit it himself, or through others
with his permission, during the time herein granted; to
prosecute in the Courts those who infringe his rights, either
by the industrial manufacture of the patented article, by
the industrial use of the patented process or method, or by
having in their possession, selling, offering for sale, or bring-
ing into the country any of the manufactured articles with-
out his consent ; a fraudulent intention is not requisite to
criminal liability in case of industrial manufacture, but is
in the other cases mentioned. But such patent is not effect-
ive against similar articles in transit through the country
or remaining in its territorial waters; or against a third
person who exploited such patented articles in the country
prior to the filing of the application for patent, or had made
necessary preparations for doing so, or who for purposes of
experiment or study makes an article or adopts a process
similar to the one patented. A patent may be issued in the
name of two or more persons jointly if they jointly npplv
fur it. (Arts. 0-8.)
Art. 965. Application and Granting of Patents. Kvervmie
wishing to obtain a patent must tile in the Patent Office an
application accompanied by two copies of a description, a
claim (reivindicacion), and drawings if he thinks them nec-
essary; and in case of models or industrial designs, will also
present a copy or model, or where it is difficult or costly to
PATENT LAW. 639
do so, a photograph may be permitted, or dispensed \vith
entirely where the design itself gives a clear idea. The
Patent Office will make a purely administrative examina-
tion of the documents presented for the purpose of ascer-
taining whether they are complete and in the form required
by the regulations, but in no way concerning the novelty or
utility of the thing proposed to be patented nor as to the
sufficiency of said documents; if such documents are not in
due form or the article proposed is such as is forbidden to
be patented, the documents will be considered as not pre-
sented, and the applicant will be notified, and if not satisfied
he may have recourse to the courts as hereinafter provided ;
if the documents are found in due form the applicant will
likewise be notified.
The legal date of a patent is that of the filing of the
application and accompanying documents, or depositing the
documents in case of an article on exhibition as above pro-
vided, from which times the patent is presumed to be granted
and produces its legal effects ; but where a patent is solicited in
Mexico and the same person has already made application
in one or more foreign countries, the legal date will be that
of the foreign patent, provided that the application in Mex-
ico is made within twelve months from the first foreign
application in case of invention, or within four months in
case of a drawing or industrial model, and that such foreign
country concedes the same right to citizens of Mexico; and
patents applied for in Mexico on such conditions shall have
absolutely the same force and legal effect as if they had
been applied for on the day and hour of their legal date.
Patents shall be issued without prejudice to the rights of
third persons, and without guaranty of their novelty or
utility, such qualities and the rights of the patentee being
only presumed until proof to the contrary. One not the in-
ventor applying for a patent must establish his right as
representative by letter of attorney (carla-poder] signed by
the inventor and t\vo witnesses, but the patent office may
640 COMPENDIUM OF MEXICAN LAW.
require ratification of the signatures if deemed necessary.
(Arts. 9-14, 103.)
Art. 966. Duration of Patent Fees. Patents of inven-
tion are granted for twenty years from their legal date;
this period is divided into two, the first for one year and
the second for nineteen years ; the fees for the first period
are five pesos, for the second thirty-five pesos ; the regula-
tions will fix the fees for copies, certificates, replacing the
patent papers, etc. All charges will be paid by means of
Federal revenue stamps as prescribed by the regulations.
The twenty year period may be extended for five years, at the
discretion of the Executive, upon the payment of such addi-
tional fees as he may require ; application for such extension
must be addressed to the Patent Office within the next to
the last six months of the original period, accompanied by
proof that the patent has been in uninterrupted use in the
national territory during at least the last two years pre-
vious to the date of said application. Patents for models
or industrial designs will be granted for five or ten years, at
the election of the applicant, and the term cannot be ex-
tended : for five-year patents the fee is $5 and for ten years
$10 : all rights expire at the end of said term. (Arts. 15-
is. 104-106.)
Art. 967. Exploitation of Patents. The exploitation of a
patent is not obligatory,, but if within three years from its
legal date it is not industrially used in the national territory,
or if after such time its use is suspended for more than
three consecutive months, the Patent Office may grant to a
third person license to exploit it as herein provided. Any
person wishing to obtain such license will make application
to the Patent Office stating the grounds of his petition,
copy of which will be served upon the owner of the patent,
and ;i period of one month, which cannot be extended, will
be fixed within which both parties must present their proofs
PATENT LAW. 641
to said Office, and within that time the Office may call for
reports, appoint inspectors and take such other administra-
tive steps as it may deem proper to ascertain the truth of
the facts. If the owner of such patent shall not have made
proof of having begun the industrial exploitation of the same
within the 15 days hereinafter provided for that purpose,
he will not be permitted to make any proof, and the said
license will be forthwith granted to the petitioner. \\ T ithin
fifteen days after the said time for offering proofs, or within
eight days after the presentation of the petition for license
in the event the original proofs of user have not been pre-
sented, the Office will decide whether or not the requested
license shall be granted ; if the interested party is not satis-
fied with such decision, he may apply to any of the District
Judges of the City of Mexico for the revocation of such
decision, he taking the part of plaintiff and the other party
that of defendant; the former must file his suit within the
fixed period of eight days after notice of the administrative
decision, and if he does not, he will be held to have abandoned
his claim and to accept the decision ; such suit will be con-
ducted as provided in this law ; the effects of the admin-
istrative decision granting the license are not suspended by
the suit brought by the owner of the patent, but the licensee
has the right to the immediate user of the patent without
giving bond or any other requisite ; but he must begin to
exploit the patent within two months after the decision of
the Patent Office or of the Court respectively, and must not
suspend such user for more than, two consecutive months.
(Arts. 19-24.)
Art. 968. Rights and Duties of Parties. One-half of the
net profits obtained by the licensee from such exploitation
shall belong to the owner of the patent, and he lias the
right to keep a watch on the user of the patent and to sue
for his half of the proceeds, unless the parties otherwise
agree about the matter. If the owner of the patent is ab-ent
41
642 COMPENDIUM OF MEXICAN LAW.
or does not appear to exercise his rights, the licensee must
deposit said one-half of the profits every two months in a
bank or institution of credit to be designated by the Patent
Office for that purpose, and must also file with the Patent
Office bi-monthly reports of the proceeds and net profits
of said exploitation, and upon failure to comply with these
requirements the Patent Office shall revoke said license at
the request of the owner of the patent ; the above notices
will be published in the Gazeta Oficial de Patentcs; if the
licensee makes a false report to the Office he will be liable
to the penalty of major arrest, and a fine of the second
class, or either such penalty, at the discretion of the Judge,
and for all damages and losses caused to the owner of the
patent. Such license granted by the Patent Office does not
deprive the owner of the patent of the right to exploit his
invention himself and to issue such licenses as he may desire.
The owner of the patent may request the revocation of the
license granted by the Patent Office after two years if he or
some one else in his name is exploiting it industrially, pro-
vided he has made the proof of user as herein required,
otherwise his petition will be rejected without recourse ; the
licensee must also have made like proof of having begun
exploitation within two months, or no evidence will be ad-
mitted on his part ; in other respects the proceeding to revoke
the license will be conducted in the same way as the pro-
ceeding for granting it. If the licensee does not begin the
exploitation within two months, or has suspended the same
for more than two months, unless in case of accident or
force, and continues to exploit it, the owner of the patent
may prosecute him in the courts as an infringer or illegal
exploiter of his patent. Both the owner of the patent and
the person licensed by the Patent Office to use it, must
within fifteen days after beginning to exploit it, make proof
of that fact to the Patent Office by some legal means. (Arts.
25-30.)
PATENT LAW. 643
Art. 969. Issuance of Patent Mark. Patents will be
issued in the name of the President by the Patent Office and
be countersigned by the Secretary of Fomento, and will
recite: The number of the patent, the name of the person
or persons to whom it is granted, its duration, the purpose
for which it is granted, its legal date and the date of issu-
ance, and will be sealed with the special seal of the Patent
Office, to be kept for the purpose; such patent, together with
a copy of the description, claim and drawings, if any, will
constitute the title evidencing the rights of the patentee ;
the patent is effective only as to the subject-matter covered
by the claim, the description and drawings, if any, only
serving as explanatory of the claim. Every patented article
must bear a maVk stating the fact that it is patented and
the number and date of the patent. (Arts. 31-34.)
Art. 970. Examination Assignment of Rights. The
Patent Office will make an examination, without guaranty, in
the manner provided by the regulations, at the request of the
interested party, as to the novelty of a proposed patent, and
on behalf of any person, to ascertain if any thing is already
patented or is public property in Mexico, the result of such
examination being reported in writing to the party requesting
it. The rights conferred by a patent may be transferred in
whole or part in the same way as other rights, but to be
effective as to third parties such assignment must be regis-
tered in the Patent Office, upon payment of a fee not to
exceed $20 to be fixed by the regulations. (Arts. 3G-3T.)
Art. 971. Expropriation of Patents. A patent of inven-
tion may be expropriated for public use by the Federal
Executive, the invention becoming public property, upon
proper indemnity to the inventor., and observing as near as
may be the procedure relating to expropriation of real prop-
erty. Where the invention is a new or improved weapon, ex-
plosive, or other material of war adaptable to public defense,
644 COMPENDIUM OF MEXICAN LAW.
and which in the judgment of the Executive should be kept
secret, the patent, and the invention even before being
patented, may be taken over in the same way, becoming the
exclusive property of the Government and not public prop-
erty, and in such case the Patent Office will not give pub-
licity to the patent. (Arts. 38-39.)
Art. 972. Expiration and Nullity of Patents. Patents
expire: 1, At the end of the first one-year period unless the
fees for the second period have been paid : 2, at the end of the
second nineteen-year period ; or, 3, at the end of the five-
year extension if any was granted ; the name and number of
each patent expiring will be published in the " Gazette."
Patents are void: 1, Where issued on a nou-patentable ar-
ticle, or one wanting in novelty; 2, where the claim is not
sufficiently clear and explicit to ascertain from it what is
claimed as new; 3, where the description and drawings are
not sufficiently clear, in the judgment of experts, to enable
the thing described to be constructed or produced therefrom ;
4, where the purpose for which the patent is obtained is
different from that for which it was solicited ; 5, where a
similar patent has been previously granted in Mexico or
abroad, although it has expired. A patent can be declared
void only b\* judicial authority, and for one of the foregoing
causes ; the action may be brought by any one prejudiced by
it, or by the Ministerio Piiblico where the Federal interest is
concerned ; the District Judges of Mexico City have jurisdic-
tion of such causes, except that where the nullity or expiration
is urged as a defense, and in criminal proceedings hereunder,
the judge before whom the suit or prosecution is pending
will decide upon the nullity, expiration or ownership of
the patent, and the final judgment or sentence will be noti-
fied to the Patent Office, published in the " Diarlo Oficial "
and " Gaccta de Patentes," and entered in the Register of
Patent-, with annotation of all references to the patent.
(Ai-N. -10 17, 02.)
PATENT REGULATIONS. 045
Art. 973. Official Publications Museum. The Patent
Office will publish a periodical called " Gaceta Oficial de Pat-
entes y Marcas," in which, at least every two months, will be
published a list of the patents and trade-marks granted, arid
everything concerning them, together with indexes, memorials,
and other matter on the subject, and at least annually will pub-
lish a special book containing the claim and one or more draw-
ings of every patent ; and will establish a Public Museum in
which will be deposited all models, plans, drawings, etc., relat-
ing to all patents granted. (Arts. 35, 101.)
Articles 48 to 100, relating entirely to penalties for in-
fringement, administrative, civil and penal procedure, and
Articles 108 to 121, which are " transitory " administrative
regulations, are .omitted as of no practical purpose in this
\vork.
CHAPTER 2.
REGULATIONS OF PATENT LAW.
(Issued 24 September, 1903.)
Art. 974. Application Requisites.
975. Description and Claim Contents.
976. Drawings Requisites.
977. Rules for Particular Inventions.
978. Issuance of Patents and Marks Stamp Tax.
979. Extension of Patents Proceedings.
980. Lost Patents Sundry Documents.
Art. 974. Application Requisites. Every one wishino-
to obtain a patent must present to the Patent Office, in per-
son or by attorney, a petition (solicitud) accompanied by
the following documents: 1, A description; 2, a claim; 3,
a drawing or drawings, if necessary; 4, two copies of the
foregoing documents. The applicant will be given a receipt
showing the date and hour of their filing, their filing number,
and the terms within which the applicant must appear at
G46 COMPENDIUM OF MEXICAN LAW.
the Office to be notified of the result of the examination
and to pay the fiscal dues ; failure to comply with the require-
ments indicated in the receipt will be considered as an aban-
donment of the case. The application must be in the form
shown by the model; where the patent is solicited by several
persons jointly, the name of the one who is to represent the
others will be stated first in the application and so noted in
the description. (Arts. 1-3.)
Art. 975. Description and Claim Contents. The de-
scription must begin: (a), with the name of the inventor
or inventors, their occupation, nationality, residence, and
place in Mexico City for the receipt of notifications; (b),
next the name, nature and object of the invention, with an
enumeration of the drawings; (c), the invention must next
be described completely, clearly, exactly and as concisely as
possible, and omitting all mathematical, philosophical or
other demonstration?; (d), after the description will follow
the claim; (e), the claim must be signed by the inventor
or his representative; (f), the forms annexed to the Regula-
tions must be strictly followed.
The Claim (Eeivindicacion) must define and express
clearly and precisely the process, combination or product
which constitutes the invention, or the article (organo} or
piece which forms the essential part of the invention, and
indicate its relations with other organs or elements which
are not the direct object of the patent. (Arts. 4-5.)
Art. 976. Drawings Requisites. The drawings (Dibu-
joff] must be made on white paper of the thickness of three
sheets of Bristol paper, of smooth and pressed surface, ap-
proximately 3SO mm. in length by 254 mm. in width; a
heavy line 25 mm. from the margin of the paper will form a
square within which the drawing must be made; in the upper
part of the square must be left a blank of about
25 min. in which the Patent Office will put the name of
PATENT EEGULATlOlSrS. 647
the invention, its number, etc. ; the inventor must write with
a soft pencil on the back of the sheet the title which he gives
to his invention ; in the lower part of the square towards the
right the inventor will sign his name. If possible the paper
should be used lengthwise, its narrow ends being top and
bottom, but if considered best it may be used sidewise, with
the long sides at top and bottom ; if one sheet is not sufficient,
several may be used, but the complete invention must appear
on at least one of them. Only China ink and grafio must be
used, the ink being perfectly black; shading should be
avoided as far as possible, but if absolutely necessary, it
should be done with as few lines as possible; the light will
be supposed as coming from the upper left corner of the
paper at 45 degrees, so that the lines on the side of the
shadow should be heavier than those on the side of the light.
It is preferable and is expressly recommended, that the inven-
tion should be presented in a single drawing of the largest
size possible, in conventional and free perspective, without
the necessity of adhering to any scale, even between the parts
of the same figure, as clearness is desired above everything
else. Pieces represented in cross-section (en cortc) should
be marked with oblique lines at not less than 1.5 mm. apart.
Reference signs should be letters or figures not smaller than
3 mm. ; if at places there is not room for them or they may
cause confusion, they should be placed as near as possible and
connected with the point which they indicate by a straight or
curved line ; if notwithstanding it should be necessary to
place a sign or letter in a space marked with oblique lines,
a small circle in blank should be left in which to put it. If
there are pieces or details which in the general figure appear
too small, they should be marked with a single letter or
sign, and represented sufficiently enlarged in special figures
with the same sign.
Duplicates should be made on drawing-linen with China
ink. Where photographs are admissible instead of drawings,
they and their duplicates should be on blue paper, sepia, or
648 COMPENDIUM OF MEXICAN LAW.
other inalterable heliograph, of the size above indicated;
the negative, which should be on a thick film, will also bo pre-
sented. The drawings must not be folded but presented ex-
tended between two heavy cardboards. All the particulars
of drawings annexed to the Regulations should be followed.
(Arts. 6-10.)
Art. 977. Rules for Particular Inventions. A person wish-
ing to obtain the rights granted by the law under clause 1 of
Art. 002, must forward to the Patent Office a description,
claim and drawings of the article to be exhibited, in the form
and manner as above provided, and which may be used in
the application for the patent. Two or more independent
inventions cannot be patented in a single patent, but where
several distinct inventions are related to each other, in a
single machine or process and mutually contribute to produce
a single result, they may be included in a single patent. In
general every organ or combination of organs susceptible of
separate exploitation, and the use of which in connection with
the machine in which they are used is not absolutely neces-
sary, forms the object of an individual patent. Individual
patents are required for: A machine and its product: a
machine and the process in which it is used; an industrial
drawing and the process by which it is obtained; an indus-
trial model and the process for obtaining it; a process in
which one substance or organ requires other processes in
order to obtain it, but if the substance results as a necessary
consequence of the process itself, a single patent is sufficient;
also a process and its product may be covered by a single
[latent : in all doubtful cases two or more patents should he
-olicited. (Arts. ll-L'O.)
Art. 978. Issuance of Patents and Marks Stamp Tax.
If the result of the examination is favorable, the partv inter-
e-t<-d must present, at. the Patent Office within the time
indicated in the receipt for the documents filed, a stamp for
TATKXT REGULATIONS.
$5.00, surcharged " Patentes," for the fiscal dues for the
first period of one year, and attach and cancel the same as
directed ; on any business day within the first year he may
request the issuance of the definitive patent, presenting to
the Patent Office three stamps of $10.00 and one of $5.00,
all surcharged as above, which he will also attach and cancel,
and the Patent Office will issue the Patent Title. The same
will be observed in respect to patents for industrial Models
or Drawings, paying a stamp of $5.00 if issued for five years
and $10.00 if issued for ten years. Patents will be regis-
tered in a special register. (Arts. 21-23, 31.)
Art. 979. Extension of Patents Proceedings. Anyone
wishing to obtain the extension granted by Art. 9GG, must
address a petition to the Patent Office, on any business day
during the six months next before the last six months of
the natural period of the patent which he wishes to renew,
together with all documents deemed necessary to prove that
the patent has been exploited for at least two years uninter-
ruptedly in the country, and stating any other reason? in
support of his petition. The Patent Office will transmit
the petition and documents to the Department of Fomento,
with such report as it may make; if the Department finds
the documents or proofs insufficient in any way, it will grant
the applicant, through the Patent Office, not less than eight
days or more than one month in which to supply the defi-
ciency, after which time, whether or not the applicant avails
of it, the Department will definitely decide whether the
extension shall be granted. The Patent Office will n<>tifv
the applicant of the decision; if favorable, the applicant will
attach and cancel on the document indicated to him the
number of surcharged stamps required to cover the tax tix'.'d
by the Executive; the notice and stamps must be presented
to the Patent Office within one month from its date, together
with the Patent Title on which to annotate the extension;
650 COMPENDIUM OF MEXICAN LAW.
failing in this requirement the right of extension will be
lost.
Under no circumstances will any documents or any taxes
paid be returned in case of forfeiture, nullity, or other de-
fault, nor any copy or model filed in the Patent Office.
(Arts. 24-25, 29.)
Art. 980. Lost Patents Sundry Documents. If the Pat-
ent Title is lost or destroyed, it may be replaced at the in-
stance of the interested party, who at his cost will have made
a copy of the description, claim and drawings, and will pay
$15.00 in surcharged stamps, attached and cancelled as indi-
cated ; the new Title will be marked duplicate.
To secure the examination mentioned in the Law, Art.
970, a petition stating clearly the applicant's domicile, and
with a 50ct. stamp, must be presented, and the applicant will
attach and cancel on the document indicated two surcharged
stamps of $10.00 each, and the Patent Office will send to the
applicant a document stating the number and date of any
patents which it deems like or similar to the one applied for,
or such references or indications as it deems material. A
like stamp for $5.00 will be attached to the petition for the
registry of any other instrument mentioned in said Article.
The petition, description and claim, with their duplicates,
and all other documents and papers presented to the Patent
Office must be typewritten on one side only of paper 330
nun. by 215 mm., in blue or dark violet ink, non-copying, or
well printed. The Patent Office will fix the prices at which
printed copies of patents granted may be sold to the public.
(Arts. 2G-28, 30, 32.)
TRADEMARK LAW. 651
TITLE II.
TKADEMARKS, NAMES AND ADVERTISEMENTS.
(Law of 25 August, 1903.)
CHAPTER 1.
INDUSTRIAL AND COMMERCIAL TRADEMARKS.
Art. 981. Defined \Yhat May Be Registered.
982. Who May Obtain Ho\v Registered.
983. Issuance of Trademarks Effects.
984. Assignment Effect.
985. Nullity Actions.
Art. 981. Defined What May Be Registered. A trade-
mark is a peculiar and characteristic sign or name used by
manufacturers, agriculturists, or merchants on the articles
which they produce or sell, for the purpose of identifying
them and indicating their origin ; but the following cannot
be registered as trademarks : 1, Generic names or denomi-
nations, when the trademark covers objects embraced within
the genus or species to which the name or denomination
refers, for the mark must necessarily distinguish the articles
protected by it from all others of the same species or class ;
2, everything contrary to morals, good manners or prohibitive
laws, or which tends to ridicule persons, ideas or objects
worthy of consideration; 3, coats of arms, escutcheons and
emblems, of Mexico, or of foreign countries, or of Mexican
or foreign States or cities, without their consent ; 4, the names,
signatures, seals or pictures of individuals, without their
consent. (Arts. 1, 5.)
Art. 982. Who May Obtain How Registered. Any Mex-
ican or foreigner, including companies, corporation? and all
moral persons, may register a trademark, upon applica-
tion to the Office of Patents and Trademarks in person or
652 COMPEXDIUM OF MEXICAX LAW.
by attorney, appointed by simple letter of attorney signed"
before two witnesses, but the Office may require ratifica-
tion of the signatures. To obtain the exclusive right to
use a mark it must be registered as provided in this law and
in the regulations ; the person wishing to register such trade-
mark must present to the Office t\vo copies of a petition,
which must contain a description of the mark, with such
reservations as may be made of it ; the name of the owner,
and of his factory or business place, if it has a name, its
location, and a statement of the objects or products on
which the mark is to be used ; he must also present a
cliche " or " cut " of the mark, and twelve copies of the
mark as it is to be used. The registry will be made without
examination of its novelty, on the exclusive responsibil-
ity of the applicant and without prejudice to third per-
sons; the examination made will be simply to determine
whether the documents are complete and in due form : if not
in proper form, or wanting in any other requirement, they
will be considered as not filed; whether approved or not,
the applicant will be notified, and if not satisfied with the
finding he may have it reviewed by the court as hereinafter
provided. (Arts. 2-4, 10.)
Art. 983. Issuance of Trademarks Effect. The certifi-
cate of registry of a mark will be issued by the Office, and
together with the annexed documents, will be the title evi-
dencing the exclusive right to use it ; the right relates back
to the date of presenting the application and documents;
where the application is made in Mexico within four months
after like application in foreign countries, the registry re-
lates back to the date of the first foreign application granted,
provided such foreign country grants similar rights to "Mex-
icans, and produces full force and effect from such time.
Registered trademarks must bear visible inscriptions as
follows: Those used by manufacturers, industries, ac'ricul-
turi-ts, etc., " Marcu Industrial Hcyixlrada," or simply " M.
TRADEMARK LAW. 653
Jnd. Ilgtrda," with number and date ; those used by mer-
chants, " Marca de Comercio Registrada " or M. de C.
Rgtnla," with number arid date ; marks consisting of names,
denominations, legends, signs connected with names, etc.,
initial letters or abbreviations, must display the name of the
owner of the business, the name of the establishment or fac-
tory, if any, and its location ; any change of location or
new establishment must also be registered, and indicated
on the mark. The registry of a trademark must be renewed
every twenty years ; delay in renewing docs riot forfeit the
right to its exclusive use, but incurs extra tax charges as
fixed by the regulations, and prevents any penal action on
account of infringements during the lapsed time. (Arts.
0-0, 11, U.) .
Art. 984. Assignment Effect. Registered marks may
be transmitted or assigned as any other right, but such
assignment must be registered arid the name of the new
owner indicated on the mark as above provided; the new
owner acquires all the rights secured by the trademark.
(Arts. 12-13.)
Art. 985. Nullity Actions. Registration of a trade-
mark is void where made in contravention of this law or its
regulations, or where it has been registered by another more
than two years previously, or for less time with better right;
the action of nullity may be brought by anyone prejudiced,
or by the Minister to I J t'il>1ico in cases of general interest.
Final judgment declaring a trademark void must be notified
by the judge to the Patent Office and published in the official
" Gazette." (Arts. 15-17.)
654 COMPENDIUM OF MEXICAN LAW.
CHAPTER 2.
TRADE NAMES AND ADVERTISEMENTS.
Art. 986. Trade Names Incidents.
987. Commercial Advertisements.
988. Revenue Taxes.
Art. 986. Trade Names Incidents. The owner of a
trade name has the exclusive right to use it, without regis-
tration or other requisite, and he, or any one who is injured
thereby, may recover damages and have penal action against
any one appropriating or imitating it ; but any native or
foreign merchant may nevertheless publish his trade name
in the " Official Gazette," renewing the publication every
ten years ; such publication creates the presumption of fraud
against any person wrongfully using or imitating such trade
name, and dispenses with proof of fraud which must other-
wise be made in cases of infringement. Any one who in
any way makes use of a trade name not belonging to him,
or who imitates it in such way as to produce confusion, is
subject to minor arrest or to second class fine, or both, at the
discretion of the judge, besides the penalty prescribed in
case the trade name is improperly used in connection with
and as part of a trademark, where the use of the latter is
made a crime by this law, and cumulative penalties may
be imposed as provided in the Penal Code. (Arts. 73-78.)
Art. 987. Commercial Advertisements. Any person mak-
ing use of any distinctive or original advertisement of his
business or goods, may acquire the exclusive right to use it
;md prevent any one else from using anything similar which at
first sight is likely to cause confusion, upon compliance as
nearly as may be with the provision of this law applicable
to trademark-, for a term <>f five or ten years, as he may
elect, subject to other extensions for like periods, by applying
for them before the expiration of the time, and publishing
TRADEMARK REGULATIONS. 655
same in the " Official Gazette," and may have civil action
for damages against any infringer, who is also liable to
criminal punishment, with first class fine, as provided in the
preceding Article. The printers or other makers of falsified
commercial advertisements which are improperly used, and
all who sell or put them in circulation, are guilty as principals
or accomplices according to circumstances, and liable to pun-
ishment as prescribed in the Penal Code ; the civil and crim-
inal proceedings herein prescribed in regard to falsification
of trademarks are also applicable to trade names and adver-
tisements. (Arts. 79-84.)
Art. 988. Revenue Taxes. The registration or exten-
sion of a trademark is subject to a tax of $5 ; the publication
of a trade name, $1 ; the registration of a commercial adver-
tisement will pay : For five years, $2 ; for ten years, $4 ; for
each extension of five years, $4 ; all such taxes are payable
in Federal Revenue Stamps as provided in the regulations,
which will also fix the charge for other acts of the Patent
and Trademark Office. (Art. 85.)
CHAPTER 3.
REGULATIONS OF TRADE MARK LAW.
(Issued 24 September, 1903.)
Art. 989. Application Requisites.
990. Registry Certificates.
991. Transfer Renewals.
992. Advertisements Registry.
993. Sundry Provisions.
Art. 989. Applications Requisites. Commercial trade-
marks and advertisements will be registered in the Office of
Patents and Trademark* at the instance of the interested
partv, a separate petition in the prescribed form being pre-
sented for each device to bo registered ; a receipt will be issued
656 COMPENDIUM OF MEXICAN LAW.
for all documents and cuts, showing the date and hour of filing
and the corresponding number. The Office will make an
administrative examination of the documents, in accordance
with the Law, Art. 982, and if favorable, the applicant must
present to the Office, within the time indicated in the re-
ceipt, a stamp surcharged " Marcas," to cover the amount
of tax, which he will attach and cancel on the document indi-
cated to him, failing to do which within the time allowed the
case will be held as abandoned. If the documents pre-
sented are not in proper form, the applicant will be notified
so that he may replace them or proceed as provided in the
Law.
The descriptions of the trademark must be authenticated
by the signature of the applicant or his attorney, and if com-
prising more than one page, each page will be rubricated on
the margin. All petitions and other documents must be
typewritten, on only one side of the paper, with black, blue
or dark violet non-copying ink ; the paper must be 330 mm.
long, 215 mm. wide, and have a margin of 5-4- mm. on the
left hand side. The length or breadth of the " cliche "
cannot be less than 15 nun. nor more than 100 mm., and its
height 24 mm. If the trademark consists of several separate
part-, a " cliche " for each part must be furnished, the colors
being indicated as far as possible as indicated in the pre-
scribed form. The twelve copies of the mark required to be
filed must not have any erasures, corrections or modifica-
tions. (Arts. 1-9.)
Art. 990. Registry Certificates. If a trademark or
part of it is of metal or other substance, or is to be affixed by
means of seals in lead by fire or otherwise, twelve copies of
its impression on paper must also be filed. Although several
rcgisirics are sought in the name of the same person, the
applicant must accredit his personality on each application.
A prrsun presenting himself as the agent or representa-
tive of a company, corporation or moral person must be
TRADEMARK REGULATIONS. 657
accredited in the manner required by law; if the applicant
acts as mandatary under a general power of attorney, he
need only present a certified copy of the material part
thereof.
The certificate of registry of a trademark must contain,
in addition to the matters required by law: The number of
the trademark; the date and hour of the filing of the peti-
tion and other documents ; the name of the person to whom
issued (fitular) ; the seal of the Office of Patents and Marks;
a copy of the registered trademark; a description of the
trademark. If the certificate of registry should be lost or
destroyed, it may be replaced at the cost of the grantee, upon
his filing a petition with a surcharged stamp for $3.00, which
he will^attach and cancel on the document indicated ; the new
certificate will be marked duplicate. (Arts. 10-13.)
Art. 991. Transfers Renewals. To obtain the registry
of a transfer of a trademark, a petition must be presented
to the Office stating: The number of the registered trade-
mark; the name of the former owner; the name of the mark,
if any; the article or product which it covers; the name of the
new owner ; together with a copy of the trademark, and
surcharged stamps for $3.00, which must be attached and
cancelled as indicated. To prove the acquisition of the
trademark or advertisement, the original and a copy of the
cscriiura of assignment must be presented, the original being
returned and the copy forming a part of the expediente.
To obtain the renewal of registry of a trademark or com-
mercial advertisement, a petition must be presented, accom-
panied by surcharged stamps covering the amount of tax,
and a copy of the mark or advertisement, within the first six
months of the last year for the which the registry was
granted; if the renewal is solicited after the expiration of
such time, in addition to the stamps covering the tax, as
many other like stamps must be paid as there are years or
42
658 COMPENDIUM OF MEXICAN LAW.
fractions of a year elapsed after the expiration of such time.
(Arts. 14-16.)
Art. 992. Advertisements Registry. To obtain the reg-
istry of a commercial advertisement, a petition must be pre-
sented to the Office, accompanied by: A "cliche" of the
advertisement ; twelve copies of the advertisement as it is to
be used ; twelve copies of said advertisement, printed on
paper, where such advertisement is to circulate, made on
crystal, plates, leather, card-board, etc. The petition must
be in the prescribed form, and accompanied by surcharged
stamps for $2 if the registry is for five years and for $-1 if
for ten years, and attached and cancelled as indicated. Ap-
plication for the extension of the registry must be made
within the next to the last six months of the period for which
the registry was granted, and accompanied by a printed copy
of the advertisement, and surcharged stamps for $4 for each
extension of five years. For the publication of a commercial
or trade name, the applicant will present a petition in the
prescribed form, accompanied by a surcharged stamp for $1,
to be attached and cancelled as indicated. (Arts. 17-20.)
Art. 993. Sundry Provisions. The number of the trade-
mark or registered advertisement must always be stated in
every document relating to the same. Parties wishing the
publication of any judgment rendered in regard to trade-
marks or advertisements must personally present a petition
to the Office, accompanied by surcharged stamp for $1 to
be cancelled as indicated. The Office will fix the prices at
which printed copies of marks and advertisements and de-
scriptions may be sold to the public. All documents which
do not comply with the requirements of the Law and Regula-
tions must be replaced at the cost of the interested party.
On no account will any documents or stamps be returned.
The public may examine registered trademarks and adver-
tisements at such hours as the Office may allow.
INTERNATIONAL TRADEMARKS. 650
Trademarks registered under previous laws remain valid,
but in order to avail of the penal actions provided by the
present law the owner of the marks must renew their registry
every twenty years as provided in Art. 980. The provi-
sions of the Code of Commerce, Art. 958, and clause 1-3 of
Art. 954, no longer apply to the registry of trademarks, but
the same must hereafter be registered in the Patent and
Trademark Office ; inscriptions made in the latter office
shall have preference over those made in the Commercial
Registry although of earlier date. Articles 700, 701, 702
and 708 of the Federal Penal Code, so far as concerns
crimes in respect to trademarks, are repealed. (Arts. 21-
27, 87, 91-92.)
TITLE III.
REGULATIONS FOR REGISTRY OF
INTERNATIONAL TRADEMARKS.
(Issued 9 November, 1909.)
CHAPTER 1.
INTERNATIONAL REGULATIONS.
Art. 993a. Requirements for Registration.
993b. Registry Notices Publications.
993c. Changes Nullity.
Art. 993A. Requirements for Registration. Every person
or corporation domiciled in Mexico, owning a manufactur-
ing or commercial trademark (marca de fdbrica 6 de comer-
do), registered in accordance with the laws of 28 November,
1889, (repealed by the following) or of 25 August, 1903,
who wishes to secure protection for said trademark in the
countries which have or shall hereafter adhere to the Conven-
tion (Arreglo) signed in Madrid on 14 April, 1891, relat-
GOO COMPENDIUM OF MEXICAN LAW.
ing to the international registry of such trademarks, will
forward to the Office of Patents and Trademarks, in Mexico
City, D. F. : 1, A petition for registry, in duplicate, made
on the official form, which shall contain the name and
address of the owner of the trademark, its number, the date
of its issuance, and the articles which it protects; 2, three
facsimiles of the trademark, separate from the petition, and
authenticated by the signature of the petitioner, said fac-
similes not to be larger than ten centimeters each side; 3,
a dlclie or cut of the trademark to be published in the
publication of the International Office in Berne; such cliche
must be an exact reproduction of the trademark registered
in Mexico, showing clearly all its details; it must not be
less than fifteen millimeters nor more than ten centi-
meters in width or length, and must be exactly 2-i
millimeters in thickness, which is the height of the
printing types; such diclie will be preserved in the
International Office; 4, a sight draft in favor of the
" Bureau International dc la Propiete Indusirielle," payable
in .Berne, for the amount of the international emolument,
which is 100 francs for the first trademark and 50 francs
for each additional one in cases where several are filed at the
same time by the same owner; f, a letter-of- Attorney (cfiiia-
podcr\ if the petition for registry is made through an attor-
ney in fact. The Patent and Trademark Office will furnish
gratuitously the necessary forms for registry to any person
applying for same in writing. Any incomplete or irregu-
lar petitions will be returned immediately to the interested
party.
The international registry of a trademark can only protect
articles identical to those for which the trademark was
issued in Mexico. The petition must not contain either a
description or reservation of the trademark, as the facsimile
will suffice to make it known, except when a description is
necessary in case that a color or combination of colors is
claimed as a distinctive feature of it: in such event the de-
INTERNATIONAL. TRADEMARKS. 661
scription shall be brief and will only state what is in rela-
tion to the color, and the interested party will remit forty-
two examples (etiquetas^ of the trademark printed in the
color or combination of colors claimed. The renewal of reg-
istry is subject to the same requirements as a new registry
except as to sending cliches. (Arts. 1-3, 11.)
Art. 993B. Registry Notices Publications. As soon
as the Office in Mexico admits an application for interna-
tional registry, it will enter the same in a special book and
will forward it to the International Office, and will
notify the applicant of such fact. The legal date of the inter-
national trademark will be that of its registry in Berne.
Upon receiving advices from the International Office of the
registry of the trademark, the Mexican Office will make 'a
record of the same and will send to the owner a certified
copy of the official certificate issued by the International
Office. All documents relating to the international registry
of trademarks will be separately classified according to
their nature in numerical order. An album containing them
will be open to the public in the Patent Office during business
hours, and a supplement containing all international trade-
marks registered will be published in the Diario Oficial.
(Arts. 4-6, 9-10.)
Art. 993C. Changes Nullity. At the request of the
owner of an international trademark, the Patent Office will
notify the International Office of any changes made in the
ownership of the trademark or in the firm-name of the
owner, upon compliance with the requirements of the present
trademark law in regard to such changes ; the petition request-
ing such notification must bear a duly cancelled internal
revenue stamps for SOcts., and a similar stamp for $1.00 with
the surcharge " ^[ areas."
All renunciations or decrees of nullity affecting trademarks
registered in the International Registry must be notified to
662 COMPENDIUM OF MEXICAN LAW.
it by the Patent office ex officio and without charge ; and will
give like notice of the institution of any suit of nullity
against a Mexican registry of trademark, arising from an
international registry, so that the International Office may
notify the interested party. Whenever the Patent Office
has notice of the international registry of a trademark which
is in violation of the provisions of clauses 2 and 3 of Art.
980 of the Trademark Law, said Office will within one year
send to the International Office a declaration that protec-
tion cannot be given to such trademark in Mexico. (Arts.
7-8, 12-13.)
TITLE IV.
COPYRIGHT LAW.
(Civil Code, Arts. 1130-12T1.)
CHAPTER 1.
LITERARY PROPERTY.
Art. 994. A Constitutional Right.
995. Scope of Right.
99G. Duration of Copyright.
997. Assignment of Copyright.
998. Joint Authorship.
999. Translations.
1000. Unauthorized Reproduction.
1001. Anonymous and Posthumous Works.
1002. Newspapers Laws.
1003. Dramatic and Artistic Copyright.
Art. 994. A Constitutional Right. The Mexican Consti-
tution, Art. IV, secures every man in the enjoyment of the
products of his labor; this right is governed by the ordinary
laws in respect to ownership of property, with the exception
of the special rules on the subject of literary, artistic and
COPYRIGHT LAW. 663
dramatic property, or the special Copyright Law, established
by the Civil Code. (Arts. 1130-1131.)
Art. 995. Scope of Right. The inhabitants of the Ke-
public, native as well as foreign, have the exclusive right
to publish and reproduce their original works as often as
they wish, in whole or in part, by manuscript copies, printing,
lithograph or any other like means, in conformity with the
laws regulating the exercise of the freedom of the press. The
right includes manuscript works, and oral and written les-
sons and all kinds of public speeches ; but speeches delivered
in political Assemblies are only subject to copyright when
collections of them are intended. Private correspondence
can only be published by consent of both correspondents or
their heirs, except when necessary for the proof or defense of
legal rights, or when required by the public interests or the
advancement of the sciences. Dramatic authors also have
the sole right of production of their work on the stage.
Authors of all kinds of maps, plans and drawings; archi-
tects, painters, engravers, lithographers, photographers,
sculptors, both as to completed works and models and molds,
musicians, and calligraphists, enjoy the same exclusive
rights to reproduce their original works. (Arts. 1133-
1137, 1168, 1101.)
Art. 996. Duration of Copyright. Copyright of all liter-
ary, artistic and dramatic works continues during the life of
the author, and on his death passes to his heirs according to
law ; in the case of dramatic works, the author also has the
sole right of stage representation of the work during his life,
and his heirs shall enjoy it for thirty years afterwards ; as-
signees shall have this right during the author's life and for
thirty years afterwards. Non-residents of the Republic pub-
lishing their works abroad, may reserve the right of transla-
tion for ten years. The editor of a work which is already
public property, may have copyright while his edition is
COMPENDIUM OF MEXICAN LAW.
being published and for one year afterwards, but this will not
prevent the publication of editions in other countries. Scien-
tific and literary organizations are entitled to copyright of
their publications for twenty-five years. The terms which in
these cases are indicated for the duration of copyright are to
be counted from the date of the work, or if the date does not
appear, from the first of January of the year following the
publication of the work or of its last volume or part. (Arts.
1138, 1150, 11G2, 1167, 1169, 1192.)
Art. 997. Assignment of Copyright. The author or his
heirs may assign the copyright, the assignee acquiring all the
rights of the author according to the terms of the assign-
ment. If the assignment be for a shorter term than the
o
copyright, the author regains his rights at the expiration of
the assignment. If after the assignment the author makes
substantial changes in the work, the assignee cannot prevent
it from being also published or assigned. (Arts. 1139
1140, 1115.)
Art. 998. Joint Authorship. In case of a cyclopedia or
other work composed by different known authors, but the
part contributed by each one can not be indicated, the copy-
right belongs to all jointly, and on the death of any without
heirs or assigns, his interest goes to the others. If the
portions contributed by each can be designated, each owns
his portion, but the consent of the majority must be given to
its re-publication. If such work be undertaken or published
by a single person or corporation, the latter owns the copy-
right of the entire work, but each author has the right to
republish his parts, singly or collectively ; and such parts
cannot be published singly without consent of their authors.
Either of the joint authors of a dramatic work, or his heirs
or assignees, may authorize its representation unless cither-
wise stipulated ; if there are several heirs or assignees, their
COPYRIGHT LAW. 665
vote is only counted as that o the author whom they repre-
sent. (Arts. 1148-1152, 1184-1185.)
Art. 999. Translations. An author may reserve the right
to publish translations of his works, but should state whether
the reservation is limited to a certain language or extends to
all languages. If the author does not make such reserva-
tion, or has granted the right of translation, the translator
has all the rights of an author in regard to his translation,
but cannot prevent other translations, unless the author also
grants that power. The judge will decide all disputes after
hearing the opinions of experts. (Arts. 1154-1157.)
Art. 1000. Unauthorized Reproduction. Xo one may re-
produce the work of another, under the pretext of annotating,
commenting upon, or enlarging it or improving the edition,
without the permission of the author, but such commentaries
or additions may be published separately by their author
and copyrighted. Like permission is also necessary to make
an abridgment or compendium of a work ; but if the former
is of such merit or importance as to constitute a new work
or one of general utility, the government may authorize its
publication, after hearing the parties and experts. In such
event, the author or owner of the original work shall receive
as indemnity of from fifteen to thirty per cent, of the net
proceeds of all editions of such compendium. (Arts. 1158
1160.)
Art. 1001. Anonymous and Posthumous Works. Anony-
mous and pseudononymous works are within the terms of
the copyright law, upon their authorship being proven; if
the author is unknown, the editor of such a work has all the
rights of an author. Heirs and assignees will have the same
rights in respect to posthumous works as the author. The
first publisher of an old manuscript (codice^) of which he is
the legitimate possessor, is entitled to its copyright during his
666 COMPENDIUM OF MEXICAN LAW.
life. Posthumous dramatic works cannot be represented ex-
cept by consent of heirs or assignees ; the copyright is for
twenty years for dramatic and thirty years for literary works ;
that of anonymous dramatic works is for thirty years. (Arts.
1142-1144; 1163-1165; 11S1-11S3.)
Art. 1002. Newspapers Laws. Political periodicals are
not subject to copyright, except as to scientific, literary or
artistic articles ; but any person publishing parts of the free
matter must cite the name and number of the paper from
which it is taken. Laws, regulations, and decisions of the
courts may be published by any one after they are officially
published, the editor using the authentic text ; but collections
of the same cannot be published without consent of the gen-
eral or state governments respectively. (Arts. 1153, 1166.)
Art. 1003. Dramatic and Artistic Copyright. These di-
visions of the copyright law are in the most part entirely
covered by the principles already stated in regard to literary
copyright, the few minor exceptions being of no importance
to our treatment ; they are to be found scattered between Ar-
ticles 1168 and 1200, most of which have been cited above.
CHAPTER 2.
INFRINGEMENT OF COPYRIGHT.
(Falsificacion.}
Art. 1004. What is Infringement.
1005. What is not Infringement.
1006. Penalties for Infringement.
Art. 1004. What is Infringement. Infringement takes
place when anyone, without the consent of the lawful owner,
publishes any copyrighted literary matter or translations of
it, and represents, executes or reproduce? dramatic, musical
COPYRIGHT LAW. 667
or artistic matter or objects, whether by the same or a differ-
ent process than that employed in the original ; omits the name
of the author or translator; changes the title of a work or
suppresses or varies any part of it, or publishes a greater
number of copies than stipulated ; reproduces a piece of
architecture to do which it is necessary to enter a private
house ; publishes or executes a piece of music made up of
extracts from others, or arranges a musical composition for
separate instruments. Also when works are published, repro-
duced or represented in violation of the provisions of the copy-
right law. Also the advertisement of a dramatic or musical
work without consent of the owner, although the author is not
named and the representation never takes place. The deal-
ing in infringed works, either within or without the country,
is also an infringement. So likewise is the publication of a
work contrary to the law regulating the liberty of the press ;
together with every publication or reproduction which is not
literally embraced in the next following Article. (Arts.
1201-120G.)
Art. 1005. What is not Infringement. The following are
not infringements : Literal quotation or insertion of extracts
or passages from published works ; the reproduction or
abridgment of articles in reviews, dictionaries, periodicals
and works of this class, provided the work from which taken
is cited, and that the part reproduced is not excessive in the
judgment of experts; the reproduction of poems, reminis-
cences, addresses, etc., in works of literary criticism, of the
history of literature, in periodicals, and in books for educa-
tional establishments; the publication of a collection of liter-
ary compositions taken from other works; that of additions
and changes of the work of another, made separately: that
of uncopyrighted works, and those of a dead author without
heirs or assignees, and anonymous and pseudononymous
works, except as stated in Art. 1001 ; the reproduction of dra-
matic or musical works, without stage effect^, in private houses
GGS COMPENDIUM OF MEXICAN LAW.
or in public concerts where there is no paid attendance, or the
proceeds of which are intended for charity ; the publication
of librettos of operas and the words of other musical com-
positions, unless the owner has reversed that right ; the
translation of works already published, except as provided
in Article 999; the reproduction of sculptural works,
if the difference between the copy and the original is such
that it may be considered a new work in the judgment of ex-
perts, or of those found in public places ; the reproduction
of works of painting, engraving or lithography made by
moulding (en phistica), and of works of this class made by
those processes ; that of a model already sold, if there are sub-
stantial differences; that of architectural works on public
braidings or on the outside of private houses ; the use of ar-
tistic works as models for manufactured products. (Art.
1207.)
Art. 1006. Penalties for Infringement. The infringer of
a copyright forfeits to the owner of the work all copies of the
infringement and the price of any sold, or must pay the
price of all at the owner's option; and all plates, molds,
and matrices used in the fraudulent edition, except the
types themselves, shall be destroyed. The infringer of mu-
sical or dramatic Avorks shall pay the owner all the pro-
ceeds which he has derived, without deduction for expenses :
and the owner may attach the receipts at any time and may
prevent the rendition of the work; and all copies of the
work distributed to those taking part shall be destroyed, and
the owner may also recover damages; besides all which, the
infringer is subject to the penalties prescribed for fraud by
the Penal Code. The details of estimating and enforcing
the damages are omitted. (Arts. 1208-1233.)
COPYRIGHT LAW. 669
CHAPTER 3.
PROCEEDINGS FOR COPYRIGHT.
Art. 1007. How Acquired.
100S. General Provisions.
1009. Foreigners.
Art. 1007. Copyright How Acquired. To secure copy-
right, the author, translator or editor, as the case may be,
must file in person, or by his attorney having due power of
attorney, with the Department of Public Instruction and
Fine. Arts, 1 his declaration of the reservation of his rights,
and must deposit two copies of every printed book, musical
work, "engraving, and similar work, or one copy of the draw-
ing, design or plan of works of architecture, painting, sculp-
ture 1 , and similar works, stating the dimensions and all other
circumstances which characterize the original, such copies be-
ing for the Xational Library, the National Conservatory, the
School of Fine Arts and the General Archives, as the case may
be ; a like deposit will be made for each new edition or issue
of every work. If the work is published without the name
of the author, he must, in order to secure its copyright,
present with the required copies of the work, a sealed packet,
marked as he may deem desirable, containing his name.
i/ / o
The author, translator or editor must also place on the
title page of books and musical compositions, at the bottom
of prints, and at the base or other visible part of other
artistic works, his name, the date of publication, the notice
that he has secured copyright through having made the
deposit of copies required by law, with such other legal con-
ditions and notifications as lie deems advisable. Failure to
make such announcement, destroys the copyright. Copy-
right in regard to the representation of dramatic and musical
1 As amended bv Decree of 10 Mav, 1905; See Art. 135.
670 COMPENDIUM OF MEXICAN LAW.
works is an incident of the literary copyright to the authors.
(Arts. 1234-1249.)
Art. 1008. General Provisions. Contracts in regard to
publication of a work should stipulate the number of copies,
otherwise infringement will not lie on that ground (1247).
One directing a "work to be made at his expense is considered
its author unless otherwise agreed (1253). If the author,
translator or editor of a work which has been given to the
public, dies without securing copyright, his heirs cannot se-
cure it (12G1). Literary and artistic copyright prescribes
in ten years, computed as provided in Art. 990; dramatic
copyright in four years from the first representation or pro-
duction of the work (1203). Copyright under this law is
personal property, unless the law otherwise provides in spe-
cial instances (1204). When it is desirable to reproduce
any work, and its owner will not do it, the government may
order it done either at its expense or through public bid-
ding, after payment of indemnity and on the other conditions
prescribed for the taking of property for public uses (1205).
Copyright cannot be had in works prohibited by law or with-
drawn from circulation by judicial decree (1200).
Art. 1009. Foreigners. There is no distinction of legal
rights between Mexicans and foreigners when the work is
published in the Republic. If the work is published abroad
by a Mexican or a resident foreigner, he may secure copy-
right upon riling the declaration and making the deposit of
copies required by law. The translator of a work written
iu a foreign language is considered as its author in respect
of his translation. Foreign authors residing in other coun-
tries enjoy the same rights as Mexicans, if in the country
where the work is published Mexicans enjoy the same rights
as the former. (Art-. 1207-1271.)
CIVIL RKSPONSIUII.ITY. 671
BOOK XVIII.
CIVIL RESPONSIBILITY IN TORTS
AND CRIMES. 1
TITLE I.
GENERAL PRINCIPLES OF LIABILITY.
(Codigo Penal Reforrnado, of 7 December, 1871; Arts.
301-3(37.)
CHAPTER 1.
EXTENT AND REQUISITES OF CIVIL RESPONSIBILITY.
Art. 1010. Nature and Extent of Liability.
1011. Suits for Damages Survival of Action.
Art. 1010. Nature and Extent of Liability. Civil respon-
sibility arising from an act or omission contrary to a penal
i AMERICAN COURT DECISIONS CONSTRUING MEXICAN
PENAL CODE.
The provisions of this Chapter in respect to the civil responsibility
of railroads for death and personal injuries have several times been
before the American Courts in damage suits brought to recover dam-
ages for injuries received in Mexico, resulting in a flagrant conflict
of authority. The Mexican laws have been given effect in Evey vs. Mex-
ican Central Ey. Co. (C. C. A.) 81 Fed. Rep. 294; 26 C. C. A., 407;
38 L. R. A., 387; Mexican Cent. Ry. Co. vs. Marshall (C. C. A.). 01
Eed. Rep., 933; 34 C. C. A., 133; Mex. Cent. Ry. Co. vs. Mitten, 13
Tex. Civ. App., 653; Mex. Cent. Ry. Co. vs. Gehr, 66 111. App. 173.
Other Courts, including the Supreme Court of the United States, in
Slater vs. Mexican Cent. Ry. Co., 194 U. S. 120; (S. C. 115 Fed. Rep.
5!):> and 53 C. C. A. 230), have refused to give them effect because of the
peculiar method of assessing damages; in this class also are: Mex-
ican Cent. Ry. Co. vs. Chantry. 136 Fed. Rep. (C. C. A.) 316; Mexi-
can National R. R. Co. vs. Jackson. SO Tex. 107: 31 L. R. A. 276; 59
Am. St. Reps. 2S. A number of other Articles of the Mexican Codes
and statutes are cited and some of them construed in the above cases.
672 COMPENDIUM OF MEXICAN LAW.
law. consists in the obligation of the party responsible, to
make: 1, Restitution; 2, reparation; 3, indemnization ; 4,
payment of judicial costs.
Restitution consists in the return of the thing wrongfully
taken (cosa usurpada), together, in cases where required by
the civil law, with its existing " fruits " ; if the thing has
passed into the possession of a third person, although he
acquired it by just title and in good faith, he must restore it
to its owner, if it is not yet prescribed, but he has the right
to recover indemnity from the person from whom he ac-
quired it.
Reparation embraces the payment of all damages (dailos)
caused to the injured party, to his family or to a third person,
by the violation of a substantial right (derecho formal), exist-
ent and not simply possible, provided such damages are actual
and result directly and immediately from the act or omis-
sion in question, or there is a certainty that they will result
as a proximate and inevitable consequence thereof. Tf the
damage consists in the loss or serious injury (grave deterioro)
of a thing, its owner is entitled to recover its full value, but
if the injury is slight, its estimated amount will be paid
and the thing restored.
Endemnization involves the payment of losses (perjuicios),
that is, of what the injured party is deprived of gaining
(dcja <le lucrar) as the direct and immediate consequence
of an act or omission which violates a substantial right
(d'Ti ch<j formal), existent and not simply possible, and of
the value of the already consumed " fruits '' of the thing
wrongfully taken, where the same must be accounted for
according to the civil law. The foregoing requirement that
the " daiios y perjuicios '" must be actual, does not prevent
recovery by a new action of those afterwards accruing, where
they result directly and as a necessary consequence from
the same act of omission.
I he payment of judicial costs is limited to those absolutely
nece-sary incurred by the injured party in the investigation
CIVIL RESPONSIBILITY. 673
of the act or omission which gives rise to the criminal pro-
ceeding, and in asserting his rights in it and in the civil suit.
(Arts. 301-307.)
Art. 1011. Suits for Damages Survival of Action. Civil
responsihility can only be enforced at the instance of a law-
ful party (paric legitima). In deciding upon such liability,
the judges will follow the provisions of this Title on all
points herein treated; in all other respects they will observe
the provisions, according to the nature of the case, of the
civil or commercial laws in force at the time of the act or
omission which gives rise to the civil responsibility. The right
to recover damages forms part of the estate of the deceased
and passes to his heirs and successors, except as below pro-
vided in respect to alimenlos, or where it arises from defama-
tion (injuria 6 difamacion), and the injured party did not
during his lifetime, if he had the opportunity, bring a suit
nor direct his heirs to do so, the offense being thereby re-
mitted. The action to demand support (aliment os) from a
murderer is personal, and belongs exclusively to the persons
mentioned in Article 1013, as directly injured; hence such
action is no part of the estate of the deceased, nor is it
extinguished although the latter during his lifetime par-
doned the offense. In cases of rape or seduction, the woman
cannot require, as a reparation to her honor, that the man
shall marry or endow her. (Arts. 308-312.)
CHAPTER 2.
COMPUTATION OF DAMAGES.
Art. 1012. Loss or Injury of Property.
1013. Death by Wrongful Act " Alimentos " as Damages.
1014. Personal Injuries Disabilities.
Art. 1012. Loss or Injury of Property. The judge who
tries a suit for civil responsibility will endeavor to have
43
674 COMPENDIUM OF MEXICAN LAW.
the parties agree upon the amount of damages and the terms
of payment ; if they do not agree, the rules herein prescribed
will be observed.
In cases of loss or injury of a thing, for which any of the
persons mentioned in clause II of Art. 1017 is liable by rea-
son of its having been formally delivered to him as pro-
vided in clause III of Art. 1018, if the person so delivering
it fixed a value on it at the time, such valuation shall be
taken as its legitimate value, provided that a copy of the
entry required by said Art. 1018 was issued at the time;
otherwise the ordinary value of the thing at the time when
it should have been delivered to its owner, shall be paid,
whether greater or less than it had before, and disregarding
any " value of affection " which its owner may set upon it ;
and where the injury to the thing is slight, it shall be esti-
mated in the same way, and the thing returned to its owner.
But if it is proven that the thing was purposely destroyed
or injured with the intention of hurting the owner in his
affection for it, the foregoing rules will not apply, and the
" estimative " value put upon it by the owner will be as-
sessed, but not in excess of one-third of its ordinary value.
(Arts. 313-317.)
Art. 1013. Death by Wrongful Act " Alimentos " as Dam-
ages. Civil responsibility arising from death by wrongful
act (homicidio ejecutado sin derecJio), embraces: The pay-
ment of necessary burial expenses ; of the necessary costs
and expenses of medical care to the deceased ; of the dam-
ages (danos) occasioned by the person causing the death
(homicida} to the property of the deceased; and the pay-
ment of support (alimentos) not only to the widow, de-
scendants and ascendents of the deceased whom he \vas sup-
porting under legal obligation, hut also to anv posthumous
descendants lie may leave 1 . The obligation to provide -ndi
alimcnloK shall continue for the whole time that the dceca-ed
should have lived if he had not been killed; such time will
CIVIL RESPONSIBILITY. 675
be calculated by the judge according to the Table of Life
Expectancy hereto annexed, but taking into consideration
the state of health of the deceased previous to the homicide.
In order to determine the amount of the alimentos which
must be provided, the means or ability (los posibles) of the
party liable, and the necessities and circumstances of the
persons who are to receive them, will be taken into consid-
eration. The obligation to provide support shall cease: 1,
At any time when it is not absolutely necessary for the sub-
sistence of those receiving it ; 2, when they marry ; 3, when
male children attain their majority; 4, in any other event,
in which, according to law, the duty of the deceased to pro-
vide it, if alive, would have ceased. (Arts. 318-320.)
TABLE OF LIFE EXPECTANCY,
ACCORDING "TO AGE.
Years of Age. Expectancy of Life.
10 ............................... 40.80
15 ............................... 37.40
20 ............................... 34.26
25 ............................... 31.34
30 ............................... 28.52
35 ............................... 25.72
40 ............................... 22.89
45 ............................... 20.05
50 ............................... 17.23
60
11 05
65
9.63
70
7.58
75
5.87
80 ...
4.60
85 .
2.00
Art. 1014. Personal Injuries Disabilities. Tu case of
blows or wounds from which th' 1 injured party is not crip-
670 COMPENDIUM OF MEXICAN LAW.
pled, lamed or deformed, he may recover from the person
inflicting the same the expenses of treatment, the damages
(danos) which he has suffered, and whatever he has been pre-
vented from gaining while, in the judgment of medical experts
(facuHativos) , unable to engage in his work of livelihood, but
such disability to work must be the direct result of his in-
juries or of a cause which is the immediate effect thereof.
If such disability to follow his habitual work is permanent,
but upon the healing of his wounds he can engage in a dif-
ferent work, which is lucrative and adequate to his educa-
tion, habits, social position and physical constitution, the
amount of damages will be reduced to the difference between
what he can earn in such work and what he earned daily in
the work in which he was formerly engaged. If the blows
or wounds cause the loss of some member not indispensable
for his work, or the injured party is otherwise crippled,
lamed or deformed (baldado, lisiado 6 dcfonne), he may
by reason of such circumstance recover not only his " danos
'II perjuicios" but also such amount as extraordinary iu-
demnization as the judge may award him, taking into con-
sideration the social position and sex of the injured person
and the part of the body in which he is so injured. The
amount of earnings (lucro) which the injured party was
prevented from receiving while disabled from working, will
be computed by multiplying the amount which he was earning
daily by the number of days lie was disabled. The foregoing
rules lor computing the amount of damages for wounds or
blows will be applied in all other cases where, through the
violation of a penal law, one person causes to another any sick-
ness or disability to work. (Arts. 1321-325.)
CIVIL RESPONSIBILITY. 677
CHAPTER 3.
PERSONS CIVILLY RESPONSIBLE.
>
Art. 1015. -Essential Grounds of Liability.
1016. Persons Liable In Loco Parcntis.
1017. Master and Servant Carriers Innkeepers, etc.
1018. Inn-Keepers and Carriers Valuables.
1019. Liability for Costs Avoiding Injuries.
1020. Damages by Animals and Things Telegraphs.
1021. Damages to Persons Acquitted or Wrongfully Accused.
1022. Same Liability of Judges and Officials.
1023. Transmission of Liability.
Art. 1015. Essential Grounds of Liability. Xo one can be
declared, civilly responsible for an act or omission contrary
to a penal law, unless it is proven : That be wrongfully took
(sc usurpo) tbe property of another; that by himself or
through another he wrongfully (sin dereclio} caused damage
and loss (danos y pcrjuicios} to the plaintiff; or that, being
able to prevent it, the damage and loss were caused by an-
other person under his control. Where any of the foregoing
conditions exist, the defendant is civilly responsible, whether
he is convicted or acquitted of criminal responsibility. This
rule applies not only to the principals in a duel which re-
sults in wounds or killing, but also to the seconds or wit-
nesses, but not to the physicians or surgeons who attended
the combat in such capacity. But the rule does not apply to
persons who fail to use all the lawful means in their power
to prevent the commission of crime, or to aid in its inves-
tigation and in pursuit of the criminals, as required by
Article 1 of the Penal Code 1 , as such persons do not thereby
incur civil responsibility. (Arts. O^H-.'J^S.)
Art. 1016. Persons Liable In Loco Parentis. In accord-
ance with the preceding Article, the following are civilly,
but not criminally, responsible for acN and omissions: 1,
The 1 father, mother and other ascendants, for the descend-
678 COMPENDIUM OF MEXICAN LAW.
ants under their patria potestad, in their company, or under
their immediate care, except in cases where their teachers or
masters are responsible as below provided ; 2, guardians
for the acts or omissions of insane wards or minors who live
with them under their authority, with the above exception
in respect of minors; 3, school and shop masters who receive
scholars or apprentices under eighteen years of age, who are
responsible for their acts or omissions committed during
the time they are under their care; but the persons mentioned
in the three foregoing clauses will not be responsible if
they prove that they were without fault (culpa}, and could
not prevent the act or omission complained of, and in order
to determine whether they were at fault the circumstances
of the act or omission and of the persons mentioned and of
those for whom they are responsible, will be taken into con-
sideration ; 4, the husband will be responsible for his wife
only in the event that the plaintiff proves two things :
(a), That the husband had previous knowledge that his wife
was going to commit the crime in question, or that he saw
her commit it; (b), that he had the actual ability to pre-
vent it, or that if he did not have, it was for his own fault.
(Arts. 329, 333.)
Art. 1017. Master and Servant Carriers Innkeepers,
etc. In order that masters shall be responsible for their
clerks and servants it is precisely necessary that the acts or
omissions of the latter, which give rise to the responsibility,
be committed in the service for which they are employed
(a (JUG Itan sido destinados). Upon the above conditions,
the following arc responsible:
1, Members of a company, for the acts or omission? of its
managing members, on the same terms as, according to the
civil or commercial law, they are liable for other obligations
contracted by them: married women are excepted from this
rule, as she is in no event responsible for the crime of her
husband.
CIVIL RESPONSIBILITY. 679
2, Owners of stages, coaches, carts and all kinds of vehi-
cles, for their own use or for hire ; the owners or drivers
of pack-trains ; railroad companies ; the managers or con-
tractors of mails and posts ; the owners, outfitters and cap-
tains of canoes, boats and vessels of all kinds ; the owners and
keepers of hotels, inns, boarding-houses, or any kind of house
engaged in whole or part in constantly receiving guests for
pay, and of cafes, eating-houses, baths and livery-stables, for
the acts or omissions of their clerks or servants ; liability in
all the cases hereinbefore mentioned being subject to the rules
stated in the succeeding Articles.
3, The State, for its public officials, employes and clerks,
but such obligation is subsidiary and will be paid out of the
indemnization funds.
4, Municipal Councils (Ayuntamientos^) , out of their funds,
on the same terms as the State, for their employes and
clerks, provided : That said employes or clerks caused the
damage or loss in the discharge of their duty, that they
are appointed and paid by the Ayuntamienios, and are un-
der their orders and subject to be removed by them.
The civil responsibility of all the persons above mentioned
in this Article does not relieve those on account of whom
they incur it, and the injured party may enforce the liabil-
ity in the terms prescribed in Arts. 1024-1025 ; but this
rule does not apply to the case where the person causing
the injury acts in the name and by the order of another,
doing in good faith an act not criminal in itself, and in
excusable ignorance of the circumstances which constitute
it a crime ; in such event the agent is not responsible either
to the injured person or to the person in whose name he
acted. (Arts. 330-')3:>.)
Art. 1018. Inn-keepers and Carriers Valuables. The
owners and keepers of inns and houses of all kinds destined in
whole or part to constantly receive guests for pay, do not incur
civil responsibility in the following cases: ], Where they
680 COMPENDIUM OF MEXICAX LAW.
prove that the damage was due to accident (caso fortuito}, or
that without their fault or that of their clerks or servants,
it was caused by armed force or by other vis major which
they could not resist; 2, where it concerns effects left out-
side of the establishment ; 3, where the loss is of money,
precious jewels, bank notes, or other securities which the
passenger carries with him, and which should not prudently
be a part of his traveling baggage, and are not necessary for
his expenses, considering his social position, the object of
the trip and other circumstances, unless he delivered such
valuables in detail, for safekeeping, to the keeper of the
establishment, and the latter issued to him a copy of the
entry below mentioned ; 4, where the damage is caused to
one passenger by another, or by a person not in the service of
the establishment, if the keeper or his clerks or servants
were not at fault, or if the person injured is himself at
fault. Persons living regularly (que vivan de pie) in such
establishment, and not as passengers, are bound by the pro-
visions of clause 3 above, except that they may keep in their
rooms such amount of cash as is absolutely necessary for
their expenses for one month.
The keepers of all such establishment must keep a reg-
ister in which they must enter: The money, securities,
jewels and other effects delivered to them for safekeeping,
stating the value put on them by the owner if he wishes
to state it ; if he does so and the parties agree upon it, it
will be so stated in the entry, and the innkeeper will be
responsible for such price ; but if they disagree about it, or
it is not fixed, he will be liable for the value assessed by the
judge upon the testimony of experts. A copy of the fore-
going entry will lie given to the owner of the objects de-
posited. This requirement, and those of clauses 1, 3 and
4 above, are applicable to all carriers mentioned in clause 2
of the preceding Article. (Arts. 334-337.)
Art. 1019. Liability for Costs Avoiding Injuries. Onlv
CIVIL RESPONSIBILITY. GS1
those are responsible for costs against whom a criminal ac-
tion or suit for civil responsibility has been prosecuted and
who have been adjudged liable by final judgment, in which
event the following rules will be observed: 1, If all have
been convicted of the same offense they are jointly and
severally liable for the costs; 2, if besides of the offense
common to all, some one is convicted of a different offense,
the costs thereby accrued will be borne by him.
One who upon a valuable consideration (a titulo lucrative)
and in good faith shares in the effects or products of a
crime or misdemeanor (delito 6 falta), is obliged to respond
for the damage and loss only to the extent of the value which
he has received.
Where damage or loss has been caused to the property of
one person in order to save the property of others, the latter
are civilly responsible pro rata, in the opinion of the judge,
in proportion to the damage from which each has been saved ;
but if the injury was not avoided only the person who com-
mitted or ordered the damage will be responsible. AY here
the damage has been caused in averting damage to an entire
district or town, the town or towns from which the damage
has been averted will make indemnity in the terms pre-
scribed in the Civil Code ; but if the damage is not averted,
the indemnity will be paid by the public Treasury and not
from the common indemnity fund. (Arts. 339-342.)
Art. 1020. Damage by Animals and Things Telegraphs.
For loss and damage caused by an animal or thing, the
person who was making use of the same when the damage
was caused is responsible, unless he proves that ho was with-
out any fault ; the injured person may take possession of or
even kill the animal which injured him, in cases where the
law gives him such right.
Telegraph companies and their employes are civillv liable
only in the cases and terms which will be prescribed in a
special law concerning telegraphs. (Arts. 338, 3! 3.)
COMPENDIUM OF MEXICAN LAW.
Art. 1021. Damages to Persons Acquitted or Wrongfully
Accused. Where a person accused ex officio is acquitted,
not for failure of proof, but by having established his com-
plete innocence of the crime of which he was accused, and
his former conduct was not such as to induce the belief that
he was guilty, it will be so declared ex officio in the final
judgment ; and if the accused so requests, and after hearing
the representative of the Ministerio Publico, the judgment
will fix the amount of " danos y perjuicios " which he has
suffered by the prosecution ; in such event, the damages will
be paid from the common indemnization fund, if the offi-
cials mentioned in the following Article are not responsible
or are unable to pay.
The acquitted party has a like right against the person
who complained or informed against him, subject to the
fallowing rules: 1, lie will be entitled to the costs of the
criminal process only when the complainant or informer
has acted as assistant to the Ministerio Publico or Promoter
Fiscal, and the complaint or denouncement has given place
to the prosecution, or where, without becoming assistant to
the prosecution, his complaint or denouncement was calum-
nious or rash ; 2, the costs incurred by him in a suit for civil
responsibility, if he is successful, will be repaid to him by
the party who made the complaint or denouncement; 3, the
complainant or informer will be liable to him for " danos
y perjuicios " only when the complaint or denouncement was
calumnious or rash. The amount of judicial costs will be
precisely fixed in the judgment which orders their payment.
(Arts. 344-34G.)
Art. 1022. Same Liability of Judges and Officials. The
provisions of the preceding Article apply to public officials
\vho, in the exercise of their office, rashly or calumniously
make an accusation or denouncement, or give notice of a
crime. .Indues and every other public authority, employe
or official, shall be civilly responsible: For arbitrary cle-
CIVIL RESPONSIBILITY. 683
tentions made by them by improperly ordering the arrest of
a person; for detaining a person in prison longer than the
law permits ; for the damages (perjuicios} caused by
their want of skill or knowledge (unpericia) or by their
delay (rnorosidad) in the dispatch of business; and for
every other misdemeanor or crime (falta 6 deli(o) committed
in the exercise of their functions, by which they cause
" danos 6 pcrjulcios" to others. (Arts. 347-348.)
Art. 1023. Transmission of Liability. Upon the death of
the party responsible, to his heirs is transmitted the obliga-
tion to satisfy the civil responsibility, to the extent of the
property inherited, which shall pass to them subject to this
encumbrance. -(Art. 349.)
CHAPTER 4.
DIVISION AND ENFORCEMENT OF LIABILITY.
Art. 1024. Joint and Several Liability Contribution.
102.3. Same Exceptions.
1026. Enforcing Liability Property Subject
1027. Extinction of Liability and Actions
Art. 1024. Joint and Several Liability Contribution.
Where various persons are condemned for the same act or
omission, all and each of them will be liable for the whole
amount of damages, and the plaintiff may sue them all
jointly or any one or more of them, as he pleases ; but if
he does not sue all, those who pay may recover of the others
the share which they should pay in accordance with the fol-
lowing rules: If the law does not establish the share of
liability of each party, the criminal judges will fix it in
proportion to the penalties they impose, and the civil judges
in proportion to the penalties imposed by the former, or
which should be imposed if not yet decreed ; if no penalty
is to be imposed because they are acquitted of any criminal
COMPENDIUM OF MEXICAN LAW.
offense, but they are nevertheless civilly liable, it will be
divided among them pro rata. Such division of liability
among themselves does not affect their joint and several lia-
bilitv to the plaintiff as above provided, but only concerns
their contribution where one pays more than his share.
(Arts. 350-352.)
Art. 1025. Same Exceptions. In cases of restitution
suit can be brought only against the party in possession of
the thing or its fruits, but if he is not the wrongful taker,
he may recover from the person from whom he acquired it.
The rule of joint and several liability does not apply to
those receiving stolen property (encubridores^) except in
respect to the damages and losses resulting with regard to
the property received.
The provisions of the preceding Article do not apply to
minors or insane persons who are under pat r la potestad or
guardianship, nor to masters or employers, in respect to all
of whom the following rules will be observed : Those de-
prived of reason and minors without discernment, will only
be responsible when the persons having them in charge are
not civilly responsible or have no property to satisfy it ;
but if they are not under guardianship or patna potestad
they alone will be responsible ; 2, where the minor acts with
discernment, neither he nor his guardian can recover from
the other more than one-half of the amount of damages,
where one of them has paid the entire amount ; 3, where
clerks or servants act against the orders of their master, or
without exactly complying with them, the latter may recover
from the former all damages and losses which he may have
paid. But if such damages and losses are caused as the
necessary consequence of the master's orders, and the clerk
or servant acts in good faith in doing an act which is not
criminal in itself, and in ignorance of the circumstances
which make it a crime, he does not incur civil responsibility
CIVIL RESPONSIBILITY. 685
to the injured party, nor can the master recover of him any
damages he may have had to pay. (Arts. 353-355.)
Art. 1026. Enforcing Liability Property Subject. The
entire property of the party responsible is subject to the
satisfaction of the damages, with the exception of the reserve
fund created by Art. 85 of the Penal Code, the wearing
apparel of himself and family, his household furniture, and
instruments, tools or books used in his trade or profession,
together with all other property exempt from embargo by
the laws, and without prejudice to the " benefit of compe-
tency " allowed to insane persons and to minors and deaf-
mutes acting without discernment. If such property is not
sufficient to satisfy the damages, the balance will be taken
from the twenty-five per cent, fund provided for that pur-
pose by clause 1 of Art. 85 of the Penal Code ; if the amount
is not yet satisfied, and the defendant has served out his term
of punishment, the judge will compel him to pay the entire
balance in monthly payments such as, in his judgment, he
is able to pay after the necessary living expenses of himself
and family; or if he afterwards acquires property sufficient
to satisfy the damages, the injured party may require him
to pay in a lump sum all that is due him.
Where a party adjudged to make restitution, reparation,
indemni/ation, the payment of judicial costs, and a fine,
has not sufficient property to satisfy all these liabilities, they
shall have preference of payment in the order named. (Arts.
350-300.)
Art. 1027. Extinction of Liability and Actions. The sev-
eral actions for the enforcement of civil responsibility, or
for obtaining execution against the defendant adjudged by
final judgment to be liable therefor, shall be extinguished
within the terms and in the manner prescribed by the Civil
or Commercial Codes according to the nature of the case,
subject to the following limitations: Civil responsibility,
686 COMPENDIUM OF MEXICAN LAW.
nor the actions for its recovery, nor the lawful rights ac-
quired by third persons, are not extinguished by amnesty;
but where the responsibility has not yet been made effective,
and the object is not restitution but the reparation of dam-
ages (c/a/lo-s), the indenmization of losses (pcrjuicios), or
the payment of judicial costs, the defendant is discharged
from these obligations only where it is so declared in the
amnesty and it is expressly left to the charge of the Treas-
ury; nor are such liability, actions and rights extinguished
by a pardon (indulto). Prescription is interrupted by the
criminal proceeding until final judgment is pronounced,
whereupon its term will begin to run anew (de nueuo).
The right to civil responsibility is extinguished by set-off
(compensacion), except where the thing wrongfully taken
(cosa usurpada) exists in the possession of the party respon-
sible and he is sued for its restitution. (Arts. 303-367.)
TITLE II.
CRBIIXAL BASIS OF CIVIL RESPONSIBILITY.
(Codigo Penal Reformado.)
CHAPTER 1.
CRIMES AND MISDEMEANORS IN GENERAL.
Art. 102S. General Rules Definitions.
102!). Clas-es of " TH//X/ " Intent.
Art. 1028. General Rules Definitions. A crime (dclito)
is the voluntary infraction of a penal law, by doing what
it prohibits or failing to do what it command-. A misde-
meanor ( ffilffi ) '}< the infraction of the regulations or edicts
(bnndox) of police and irood government. There are inten-
tional crime- and crime- of negligence (df'li/os r/c cu.ljft.
CIVIL KESrONSIBILITY. 687
An intentional crime is that committed with the knowledge
that the act or omission of which it consists is punishable.
Crimes of negligence (de culpa} arise:
1, When an act or omission is done, which although law-
ful in itself, is not so by reason of its consequences, if the
culpable party did not avert them because of want of fore-
sight (imprevision) j negligence (negligencia), by want of re-
flexion or of care, because of not making the proper investi-
gations, by reason of not taking the necessary precautions, or
on account of want of skill or knowledge (impericia) in an
art or science, the knowledge of which is necessary so that the
act shall produce no damage ; but the " impericia " is not pun-
ishable where the person doing the act does not profess the art
or science which it is necessary to know, and acted under pres-
sure of the gravity and urgency of the case.
2, By violation of the provisions of the Code requiring
every person to use all means in his power to prevent the
commission of crime and to aid in their investigation and
in the pursuit of criminals, except in cases that it cannot
be done without danger to the person or interests of the cul-
pable party or of some near relative.
3, Where the act is only punishable on account of the cir-
cumstances under which it was done, or por alguna persona
(sic) of the injured party, if the culpable party was ignorant
of them because of not having previously made the investiga-
tions which the duty of his profession or the importance of
the case required.
4, When the defendant infringes a penal law while in a
state of complete drunkenness, if he is in the habit of be-
coming intoxicated, or has previously committed some pun-
ishable infraction while drunk.
5, Where there is excess in legitimate defense. (Arts. 4-
7, 11.)
Art. 1029. Classes of " Culpa "- Intent. For the crime
of negligence (dclito d<- n;'j,<t} to be punishable, it is neces-
<588 COMPENDIUM OF MEXICAN LAW.
sary : 1, That it shall be consummated ; 2, that it is not
so light (leve) that, if it were intentional, it would only
be punished by one month of arrest, or by a first-class fine. 1
Culpa is of two classes: Grave or light. In the above cases
of preventing crime it is always light ; in all other cases it
is left to the prudent discretion of the judges to decide
whether the " c til pa " committed is grave or light, and in so
deciding they will take into consideration: The greater or
lesser facility to foresee and avert the damage ; whether for
such purpose ordinary reflexion or attention and common
knowledge in some art or science would be sufficient ; the
sex, age, education, intelligence and social position of the
culpable parties ; whether they have previously been delin-
quent in similar circumstances; and whether they had time
to act with the necessary reflexion and care. Misdemeanors
(faltas*) are punished only when they are consummated,
without regard except to the material fact, and regardless of
intention or negligence (culpa~). (Arts. 12, 1417.)
TITLE III.
LIABILITY OF RAILROAD COMPANIES.
(Railroad Law, of 29 April, 1899.)
CHAPTER 1.
GENERAL FREIGHT AND BAGGAGE PROVISIONS.
Art. 10'29u. Railroad Kates Regulation.
1030. Duty to Receive and Transport Condition.
i Fines (mulla*) are of three classes: 1st. from $1 to $15; 2nd,
from slti to si. 000; 3rd, of amount fixed in the law, or basis fixed for
determining the amount of the fine. " Arrcsto," which is distinguished
from " i>ris!6n.'' is " minor," or from 3 to 30 days, and " major,'' from
I to 1 1 months. Where by accumulation of penalties the time exceeds
II months, it is converted into " jirision." Codigo Penal. Arts. 112, 124.
CIVIL RESPONSIBILITY RAILROADS. 680
Art. 1031. Bills of Lading Limiting Liability.
1032. Exceptions from Liability Freight.
1033. Exceptions from Liability Baggage.
1034. Connecting Carriers Liability.
1035. Foreign Shipments Liability.
1036. Loss of Goods -Measure of Damages.
103". Delays in Shipment -Weighing Freight.
1038. Change of Shipping Directions.
Art. 1029 A. Railroad Rates Regulation. Kailroads
have only the right, under their concessions, to receive the
rates fixed in the tariffs, and to enforce the conditions of
transportation legally established by the Companies, after the
same are duly approved by the Department of Communica-
tions and Public Works and published as herein provided.
Therefore are prohibited: 1, All contracts by which one
or more persons are granted a rate of passage or carriage
lower than that authorized by the tariff approved and pub-
lished ; 2, the refund of all or any part of the price of car-
riage or passage collected when the contract is made, for the
purpose of rebating or reducing the tariff rates ; 3, rebates
of passage or freight rates made out of their commissions by
agents who are paid commissions on sales of tickets or con-
tracts for transportation; all such agents will be considered
for all legal purposes as agents of the Companies, and such
sales or contracts are embraced under clause 1 of this Article;
4, every act or contract, the effect of which is to decrease or
rebate directly or indirectly the rates of passage or carriage
prescribed in the respective tariffs ; all contracts made in viola-
tion of this law are void, except as expressly herein excepted.
The Company, as well as its agent or employe, in their re-
spective cases, will pay as " dnnos y perjuicios " double the
amount of the difference of rates, to all those who, within
two months before and two months after the shipment made
at reduced rates, have made like shipments of goods between
tli*' places where said shipment was made. (Arts. 00, K>3.)
44
000 COMPENDIUM OF MEXTCAX T.AW.
Art. 1030. Duty to Receive and Transport Conditions.
From the moment that a railroad and its rates have been
approved by the Department of Communications and Public
Works, it cannot refuse, except as expressly herein pro-
vided, to transport merchandise to another station on its own
line: 1, If the goods, considering their class and nature, are
proper to be transported, if they are properly packed, and if
their handling does not require special appliances which the
railroad does not and is not required to possess; 2, if the
shipper conforms to the tariffs and to the rules in respect
to delivery of goods and other conditions which the railroad
has the right to fix; 3, if the normal means of the railroad
are sufficient to make the transportation.
Railroads are not obliged to accept goods for transporta-
tion before it can be done; but in the stations which the
Department, after a hearing of the company, may designate,
it is bound, within the time fixed by the Department, to have
and maintain sheds or other kinds of shelter, as it may elect,
in which, under the vigilance and responsibility of the owner,
goods may be protected against the dampness of the soil
and rain, until their turn conies and they are received by
the railroad for transportation; for the use of such shelter
the company may collect a compensation according to its
tariff approved by the Department. Xo shipment shall be
given preference over another in the order of transportation,
except for reasons connected with the installation and repair
of the road, with the circumstances of the transportation or
with the public interests. The infraction of the foregoing
rules renders the company responsible for damages and losses
thereby occasioned. (Arts. 100-110.)
Art. 1031. Bills of Lading Limiting Liability. The bill
of lading, besides the requirements of Art. 01)0, must con-
tain the following: 1, The declared value, if the railroad
company guarantees a fixed sum in case of re-p.onsibilirv :
2, the conditions under which the goods are transported,
CIVIL RESPONSIBILITY KAIT.KOADS. 691
whether according to those of the general tariff or to those
of a special tariff, stating which, whether with full or lim-
ited liability, and any other particular stipulations in such
cases as the law permits them ; 3, the number of the car or
cars, where they are taken whole, and the numbers of their
seals.
Railroad companies have not the right, except in cases
where specially authorized by law, to limit, in their regula-
tions, bills of lading or other documents issued by them, the
responsibility and obligations in respect to transportation,
imposed upon them by law, or to relieve themselves there-
from ; all rules, clauses or conditions inserted in any of
said instruments in violation of this Article are void.
The liability of railroad companies will be limited in
the following cases : 1, The liability will be fixed on the
basis of the goods declared for the issuance of the bill of
lading, where the shipper declares goods subject to a lower
rate than those actually contained in the shipment ; 2, the
liability shall be based on the merchandise really contained
in the shipment where the shipper declares different goods
or of a higher value than the shipment contains ; 3, where
it is stipulated that the liability, or loss, shortage or damage
shall not exceed a certain sum, but the railroad will never-
theless be liable for the full value of the shipment in case of
fraud, bad faith or culpability of the company or its em-
ployes ; 4, where the company is released of liability for
delay in delivery imputable to the railroad, or such liability
is limited to a certain sum, except in the instances in clause
3 stated. (Arts. Ill, 119, 123.)
Art. 1032. Exceptions from Liability Freight. Rail-
road companies, unless otherwise contracted, and except in
cases of fraud, bad faith or negligence (en caso de dnlo, mala
fe 6 cn!/i(i\ are not responsible for the loss, shortage (c/c'.v-
falcos) or injury (arericix}, or risks to which on the trip
are exposed: 1, Live animals; 2, merchandise, which at
692 COMPENDIUM OF MEXICAN LAW.
the written request of the shipper, is transported in open
cars in casts where the nature of the goods requires for
its protection to be transported in a closed or covered car ;
3, {roods shipped unpacked or with defective packing, which
by their nature should be properly packed, the want or defect
of packing to be stated in the bill of lading; 4, goods which
from their particular nature, from the fact of their trans-
portation by railroad, from their inevitable exposure to bad
weather, or on account of heat or other natural causes, are
exposed to special risks of total or partial loss or injury,
and particularly to breakage, oxidation, internal deteriora-
tion, waste (merma}, etc., the following rules being ob-
served :
A. The Department of Communications and Public Works
will form a table of merchandises subject to waste, taking
into consideration the duration of the trip and the seasons,
fixing for each article the proportion of waste to which the
liability of the company shall be limited ; B. such normal waste
so fi::ed shall be counted separately for each package included
in the same bill of lading, where the weight or dimensions of
each package is stated therein; C. the railroads may reserve,
with the approbation of the Department, the right of non-
liability, although the waste exceeds the normal limit, in
case the goods are loaded by the shipper or unloaded by the
consignee-; I), such non-liability shall not be allowed when
the losses, shortage or damage are due to stealage, or when
they do not arise from the nature of the goods, or if the
normal waste is not in keeping with their nature or with the
circumstances: K. in case of total loss the railroad is not
entitled to reduction on account of waste; ,">, explosive-, in-
flammable substances and all other articles of a dangerous
character, a list of all such articles being formulated by the
Department : (>, articles placed in coaches or other vehicles
transported by the railroad: 7. merchandise transported
under the care of a person placed in charge for that purpose
by the shipper with the consent of the railroad; ^, merchaii-
CIVIL RESPONSIBILITY RAILROADS. G93
dise which by the tariff or agreement with the shipper is
loaded or unloaded by him or by the consignee, provided the
car has no external lesion which may have caused the loss OT
damage; the shipper under this paragraph has the following
rights :
A. To load the car at the point of shipment; B. to seal
the car with his own seal or that it be sealed in his presence
with the company's seals ; C. to have the car unloaded at its
final destination by the person authorized to receive the
freight ; 1). to have the car unloaded in the presence of such
person, or in his absence in the presence of the Treasury
employe in charge of the fiscal inspection, or if .neither is
present, in the presence of any judicial authority ; the com-
pany has the right to require that such person, employe or
authority, before the seals are broken, issue to it a document
without stamps or other formality, showing the state of the
seals.
Where in accordance with the fiscal laws a car must be
opened in transit, the Treasury employe in charge of fiscal
inspection will examine the state of the seals before they
are broken, making a note of their number, and after the
inspection the car will be again sealed in his presence, and
he will issue to the conductor of the train a document stating
the number and condition of the seals before being broken
and the number of the new seals put on in his presence. The
company, in such case, does not guarantee the number of
packages stated in the bill of lading. (Art. 120.)
Art. 1033. Exceptions from Liability Baggage. X ei-
ther are railroad companies liable, unless otherwise con-
tracted, and except in cases of fraud, bad faith or negligence
("/(. CY/.VO dc dolo, mala fc n ru!j>a}, for the Kiss, shortage or
injury (pcrdida, desfalcos n arrrin*} of baircaire: 1, When
it is not delivered at the oth'ee of the railroad to be trans-
ported, but is kept by the passenger in the coach : 2, although
it has been delivered at the o trice, if the passenger docs not
C94 COMPENDIUM Or MEXICAN LAW.
claim the ba>'>'a;e within fifteen (lavs, in case of interior pas-
~O O v f A
sage, and within thirty clays in case of international passage,
such terms being counted from the day after the arrival of the
train on which the baggage should be carried.
In the cases of this and the preceding Article the pre-
sumption is in favor of the railroad company until it is
proven to the contrary, that the loss or injury was caused by
the fraud, bad faith or culpability of the management of
the railroad or its empolyes. The Department of Commun-
ications and Public Works will fix by Regulations the limit
of the responsibility of railroad companies for the loss or
damage of baggage the value of which has not been declared ;
where the value has been declared, the company has the right
to require that the packages with declared value shall not be
included in the baggage which the passenger is allowed to
carry free, but that such packages shall be sent by express
with the obligations and rights thereto annexed. The free
baggage shall include all packages of undeclared value, what-
ever the contents may be, whicli the passenger presents as
baggage, up to the limit of weight fixed by the concession, or
by the regulations of the company if they allow a greater
weight than the concession, but merchandise intended for
traffic or other commercial purposes cannot be included in
the free baggage.
The provisions of Art. ICKJG apply, with the exceptions in
this law contained, to the loss, shortage or damage to bag-
gage, but the time after which the same shall be considered
lost is fifteen days in interior passage and thirty days in
international, counted from the day following the arrival of
the train on which it ought to be carried. (Arts. 121-1 22,
124-125, 137.)
Art. 1034. Connecting Carriers Liability. In case of
connecting line- of railroads, or of connections between a
railroad and water transportation companies, the last carrier
is bound to deliver the freight, \vhieli shall be done as pre-
CIVIL RESPONSIBILITY RAILROADS. 095
scribed by hi\v in accordance with the bill of lading; issued
by the first carrier, and with the responsibility fixed by the
law, but with the following restrictions: 1, If the bill of
lading 1 fixes a charge based 011 a different rale than that
fixed by the tariff, the last carrier will nevertheless collect
the rate according to the legal tariff; 2, the liability of the
last carrier begins when it receives the freight; <>, the liabil-
ity includes the loss of packages and shortages or damages
occurring on the last or any of the connecting lines, saving the
right, of the last carrier against the company on whose line the
act or omission occurred out of which the liability arises, and
against any other line afterwards receiving the goods ; the
same applies in cases of connection between a railroad and
a ship line making voyages between Mexican ports, in re-
spect of hauls made from one of said ports to another in the
national territory partly by ship and partly by rail. The
same rules apply where a railroad receives goods to be shipped
under a bill of lading designating as the place of delivery a
point not on its own line nor on any of its connecting lines,
but the liability of the railroad ends at the point where the
transportation by rail terminates. In delivering freight
or baggage from one line to another, the roads will exchange
documents, the one showing receipt and the other delivery,
and stating the date, number and conditions of seals or
number and marks of packages, no stamps or other special
formalities being required; such documents raise a legal pre-
sumption against which no evidence is admissible, in re-
spect to the date of the receipt of the goods, their condition
and the number of packages of which they consist, at the
time of their delivery to the respective carrier. (Arts. 120-
130.)
Art. 1035. Foreign Shipments Liability. In shipments
of merchandise coming from a foreign country into Mexico,
and which are transported from a port or the frontier to the
interior bv railroad, the Mexican road or roads shall be
696 COMPENDIUM OF MEXICAN LAW.
liable for losses, shortages and injuries in the following terms
and cases : 1, The responsibility is governed by the laws
of the country where the bill of lading was issued, if it is so
provided in the document, but even in such event, if the exist-
ence of the foreign law and its applicability to the case is
not proven, the rights and liability of the last carrier making
a haul on 'Mexican territory will be governed, in respect
to delivery, by the preceding Article ; 2, the same rule
applies where the bill of lading does not state to what law
the rights and obligations arising from the contract are sub-
ject. The Mexican line, whether or not the last carrier, to
which freight is delivered by a connecting line, national or
foreign, by land, sea or river, shall have the right, in case
of loss, shortage or injury, at its election: 1, To refuse the
freight, notifying the consignee, if his name and address
are known, so that he may give instructions regarding the
transportation, whereupon the Mexican line shall be exempt
from all liability on account of such loss, shortage or injury
on other lines ; 2, to receive the freight, issuing for it a bill
of lading stating the condition of the freight, the liability of
the last carrier, in such case, being limited to delivering the
freight according to said bill of lading, except as provided in
Art. 1032. In the transportation of merchandise from
Mexico to a foreign country., over lines connected with the
Mexican line which issued the bill of lading, the latter is
liable according to the Mexican laws before the competent
Mexican tribunals, for losses, shortages and injuries, saving
its right, where the same occurred on another line, to re-
cover indemnization from it; but the shipper or holder of
the bill of lading may if he prefers have recourse to the
courts of such other country to assert such rights as their
laws afford him. (Arts. 131-133.)
Art. 1036. Loss of Goods Measure of Damages. The
freight or baggage is considered lost: if it is not delivered, in
CIVII. RESPONSIBILITY RAILROADS. 097
case of freight, within the mouth after the end of the term
in which delivery should be made, and in case of baggage
within fifteen days in interior, and thirty days in interna-
tional passages, after the day following the arrival of the
train on which it should arrive ; but if it is found
after such time, the party entitled to receive it has
the right to require, within eight days after notice,
that the freight or baggage be delivered to him
without costs at the shipping point or at its orig-
inal destination as shown by the bill of lading; upon
delivery of the goods he must repay without interest any
indemnity he has received. Where the railroad is not liable
for the loss, shortage or injury, it may require payment of
the full freight charges for the transportation made by it.
The responsibility of railroads, in cases of loss, shortage
or injury, includes the obligation to pay the commercial
value of the merchandise at the place and time of delivery,
according to the terms of clause 9 of Art. 60S, less customs
duties, other expenses not due to the loss, and any unpaid
freight charges, together with interest on the amount of
indemnity at the rate of six per cent, per annum from the
day on which delivery should have been made. Where the
liability is due to the fault of several roads, the amount of
indemnity will be divided among the roads responsible in
proportion to the length of haul on each ; the last carrier is
in all cases bound to pay the indemnity to the holder of the
bill of lading, but it has the right to have the other lines
cited in any suit brought by the holder, and to require them
to contribute their proportion of what it may have paid.
(Arts. 134-137, 14i>.)
Art. 1037. Delays in Shipment Weighing Freight. The
consignee or person entitled to receive freight may require it
to be weighed in his presence upon delivery, and at the cost
of the railroad if the weight is less than stated in the bill of
G98 coMPKXDir.M OF MEXICAX LAW.
hiding;; otherwise the cost will be paid by him according to a
tariff to be approved by the Department and duly pub-
lished.
In eases of delay for which the carrier is liable, the
party entitled to receive the freight must prove the real and
effective damages and losses which have been caused by the
delay ; in default of such proof the railroad will not pay
other damages than a fraction of the freight charges, which
will be fixed in the Regulations by the Department of Com-
munications and Public Works. In such Regulations the
time of duration of the trip, after which the delay begins,
will be fixed on the basis of a certain number of kilometers
daily, and the time shall begin to run from the day after
the freight was delivered to the railroad. In no case shall
indemnity for losses and damages for delay exceed the whole
amount of freight charges, except in case of fraud, bad faith
or grave negligence of the railroad management or its em-
ployes, in which case all damages and losses proven shall be
paid. (Arts. i;J8-141.)
Art. 1038. Change of Shipping Directions. The shipper
having possession of the bill of lading, or the lawful holder
of the same, may order that the freight be delivered or stored
at a point on the line of the original or some connecting
carrier other than the destination stated in the bill of lading.
O
In such case the holder will endorse on the bill of lading the
new point of delivery or storage, and will present it to the
office of the road making the transportation, to which he will
also give written notice of the change; and the railroad also
has the right to note such change on the bill of lading; and
if there are several carriers, the bill of lading' and notice will
be communicated to the railroad on which is the final des-
tination shown in the bill of lading and to the railroad on
winch the newly designated point is located. In all ease.-?
the entire amount agreed in the bill of lading will he paid,
mile-- bv the term-; of this hi\v a higher rate is charged for
CIVIL KKSI'OrVSIBII.ITY KAII.KOADS. 699
transportation to the new point ; the railroad will endorse on
the bill of lading the amount which is to be paid. 1 (Art.
143.)
CHAPTER 2.
BAGGAGE REGULATIONS.
(Regulations for the Construction, ^Maintenance and Opera-
tion of Railroads, of 1 June, 1883.)
Art. 1039. Free Baggage Checking.
1040. Loss of Baggage Limit of Liability.
Art 1039. Free Baggage Checking. Every passenger
may retain in his possession, without submitting them for
checking (a registro), such packages as by their size or
nature cannot molest or cause damage to other passengers,
provided the weight of such packages does not exceed fifteen
kilograms. The company shall not be responsible for pack-
ages of baggage which have not been duly checked (regis-
frados) in its office. The checking of baggage shall be
effected by presenting the passenger ticket, in view of which
a baggage check (resgnardo) will be issued to the passenger,
showing the name of the stations of departure and desti-
nation, the number of packages composing the baggage,
their corresponding number, their total weight, and the
amount of excess paid, if any; this check will serve the pas-
senger for claiming his baggage on arrival at its destination,
where it shall be delivered to him with only the delay neces-
sary for removing it from the baggage car; if left in the
station for more than forty-eight hours, the passenger must
pay storage charges.
1 Tlip oniittod Articles of the Railroad Ln\v and "Regulations treat
of concessions, construction, maintenance, operation, and similar tech-
nical matters, not of concern to the shipper, passenger or business pub-
lic, nil provision* of general interest being herein staled.
700 COMPENDIUM OF MKXICAX LAW.
If the passenger cannot present the check, he can only
obtain his baggage upon fully proving that it belongs to him,
Avhich must be done by presenting the keys and precisely
describing the external marks on the packages and some
of the articles contained in each, and paying any costs occa-
sioned thereby. If any of the packages of baggage stated
in the check is missing upon the arrival of the train, the
passenger will notify the station master, giving him the de-
scription and all details which may facilitate finding it, and
in exchange for the check will require a document stating
the kind of package missing, its weight, initial station, and
the agreement of the company to deliver it on a train leaving
there within twenty-four hours after the claim is made, the
company being obliged to indemnify the claimant for any
damages and losses caused by the delay in delivering the
baggage. (Arts. 138-141.)
Art. 1040. Loss of Baggage Limit of Liability. In case
of the loss (extra c to') of packages delivered as baggage, the
company will be responsible to pay for it, according to the
following classification, unless proved to the contrary : For
each large trunk (Laul mundo}, $200; for each trunk or
chest (pc/aca), according to its size, from $50 to $100; for
each traveling grip or valise (maleta), $25; for each hat
box, $5. The traveler who carries in his baggage jewelry,
bank notes, money, corporate stock, public bonds, or other
objects of value, must make it known by exhibiting them
before the baggage is checked, and state the total value of
the same, either their sale value or the value in which he
esteems them; failure to complv with this requirement re-
leases the company from responsibility in case of theft or loss
(sustraccion 6 cxtravLO~), and it will be bound to pay only
the amount corresponding to the above classification. The
declaration made by the traveler in regard to the contents of
the packages may bo accepted by the company, unless from
special circumstances it appears to be incorrect; in which
CIVIL RESPONSIBILITY RAILEOADS. 701
event the same will be inspected, and if there is disagree-
ment between the parties, the company may cause a record
thereof to be made by an administrative or judicial official,
who will set forth the differences between the parties, stating
the contents, condition and value given by each party, to
the end that such record may be used for the proper pur-
poses in case of loss or otherwise. (Arts. 142-144.)
702 COMPENDIUM OF MEXICAN LAW.
BOOK XIX.
INSURANCE LAW. 1
TITLE I.
THE CIVIL CONTRACT.
(Codigo Civil Arts. 2705 to 2771.)
CHAPTER 1.
GENERAL PROVISIONS.
Art. 1041. Definitions Incidents.
1042. Insurers and Insured.
1043. Settlement of Indemnity.
1044. Loss Proof of Fault.
1045. Premiums.
104G. Life Insurance Incidents.
1047. Insurance of Eights and Actions.
1048. Fire Insurance.
1049. Insurance of Transportation.
Art. 1041. Definitions Incidents. The contract of in-
surance is that by which one party undertake?, for a certain
price, to indemnify another for damages caused by some
accident which may Ix'fall him ; the former is called the
insurer, the latter the insured, the price charged is the pre-
mium, and the \vritingcontaining the contract is the insurance
policy; the contract is void if not in \vriting. Insurance
1 There i- no\v pending before the Mexican ("ongress a thorough re-
vision of the general In-uraiiee Law. which renders useless the inser-
tion of the several existing enactment*, other than the Codes.
INSURAXCK LAW. 703
may cover life, rights and actions, real and personal prop-
erty, and may be effected by the owner or any one having
an interest in the property, and for the insured personally
or for his heirs or other persons, who must be expressly
named in the policy; either party may require collateral se-
curities. Insurance must be for a definite time expressly
stated or determined by an event limiting it; the policy must
specify the premium and amount of indemnity, the property
insured, and the events insured against, and only covers the
property and risks stated, and may cover its total loss or
damages to it only ; in the latter event only the specified
damage shall be indemnified although the loss is total. The
right to the indemnity is assignable. (Arts. 2707-2715,
2732, 2749.) .
Art. 1042. Insurers and Insured. Any person or company
able to contract may be an insurer; an administrator of an-
other's property cannot insure it in the hitter's name without
special authority ; guardians, even with judicial authority,
cannot make their wards insurers, but may insure them with-
out such authority. If there are several insurers, each is lia-
ble for his own obligation, and cannot be subrogated to the
insured's rights against the others ; if they are severally
liable, the rules of mancommunity apply; two or more owners
may insure each other against the accidental loss of their
property; in mutual insurance each party is liable in pro-
portion to his own property insured. Accident does not
embrace superior force (vis major) unless expressly stipu-
lated. The insurer must pay the agreed indemnity, which
neither party can alter, whether greater or less than the
value of the property lost. (Arts. 2710-2724.)
Art. 1043. Settlement of Indemnity. Tf so authorized by
the contract, the insurer may replace the thing lost, where
its kind and value are undisputed, by another of the same
kind ; if he undertakes to replace, he must do so what-
704 COMPENDIUM OF MEXICAN LAW.
ever tl*e cost; the judge may award a reasonable time for
the work if necessary. Upon payment of the value or
agreed indemnity of the thing lost, the insurer is entitled to
any remains of it ; if the property is wholly or partly saved,
both parties will pay any costs of salvage pro rata unless the
insurer prefers to pay the insurance. Where the property is
consumed or its form changed by the insured, the liability of
the insurer ceases. Where the property is insured by a
third person having an interest in it, the indemnity will
be paid to the insured, but he can only retain sufficient to
cover his interest, paying the balance to the owner. (Arts.
2725-2728, 2730-2734.)
Art. 1044. Loss Proof of Fault. Within six days after
loss the insured must give notice to the insurer or he loses
his right of action ; he must prove that the loss occurred by
accident and without his fault. Besides ordinary cases of
negligence, the insured is at fault where he makes an undue
use of the thing insured, or makes no effort to avoid or di-
minish the loss where he might do so. Any action against
a third party on account of the loss must be brought by the
insured and insurer jointly, the amount realized being first
applied to reimburse the insurer ; but he cannot delay or di-
minish the payment by reason of such action.
The policy is void if the insured knew at the time it was
made that the damage insured against has happened, and if
the insurer knew that the property insured has escaped the
damage ; if both acted in good faith the contract is valid
although at the time the damage had occurred or the prop-
erly had been saved. (Art?. 2729, 2735-2741.)
Art. 1045. Premiums. The policy must, state the pre-
mium and amount of indemnity; if the latter covers deterior-
ation, it- extent will be fixed by experts unless otherwise
agreed. The premium may lie fixed freely by the panic-,
and may be paid whole or in installments; if paid in a lump
INSUEANCE LAW. 705
sum, the insured cannot require the repayment of any part
of it ; if paid in installments, the insurer may deduct any
unpaid installments to accrue until the end of the term, from
the amount of indemnity he must pay in case of loss, unless
otherwise agreed in the policy. Where payable in install-
ments during the term of the policy, the insurer is not liable
for a loss occurring during a period for which the installment
is unpaid, and the insured can only claim indemnity for loss
occurring before the end of the period. (Arts. 2742-2748.)
Art. 1046. life Insurance Incidents. Life insurance
may cover natural death only or death in any form even by
violence, except by suicide ; in case of suicide, the heirs may
demand the return of the premiums paid. Life insurance
can only be effected by the person whose life is insured ; upon
his death the insurance money becomes a part of the de-
ceased's estate and is distributed according to law. A person
procuring the death of the insured can never take the insur-
ance money even where expressly made payable to him ;
any stipulation to the contrary is void. Where the term of
the insurance has expired the insurer is released although
the insured was at the point of death and died immediately
afterwards. (Arts, 2750-2755.)
Art. 1047. Insurance of Eights and Actions. Eights and
actions, except in future inheritances, may be insured, and
although they are in litigation, but the insurer in such case
is only bound by a final judgment on the merits not rendered
by default or upon compromise. (Arts. 27562759.)
Art. 1048. Fire Insurance. A person conducting business
in premises belonging to another, cannot insure his own
effects without insuring the premises in favor of the owner,
the indemnity in case of loss to be paid to the insured and di-
vided according to their interests. Where combustible or in-
flammable material is kept in a storehouse in a town, the
45
700 COMPENDIUM OF MEXICAN LAW.
policy must contain a certificate from the police authority of
the cine observance of the regulations, and one showing that
the adjoining owners have been notified and acknowledged
receipt of such notice ; the insurer may reserve the right to
inspect the premises and said materials at any time. The in-
surance of consumable (fungible) goods is void unless they
are clearly described. (Arts. 27602763.)
Art. 1049. Insurance of Transportation. Insurance of
transportation is void if the goods are shipped in a different
manner or route from that specified, or through accident or
force are not shipped ; in the latter event the insurer will
return the premium received, and if the failure to ship is due
to his fault he is liable for damages; where for any other
cause the. shipment is not made the insurer is only entitled
to ten per cent, of the premium agreed. If the shipment is
begun but abandoned, the contract is valid, but if the insurer
is at fault he must return the premium and pay damages.
If the insured property is lost, but after payment of indem-
nity is found, the insured may elect between keeping the
money or the property ; if found before payment, the in-
surer is only liable for any injury to the property. Mari-
time insurance is governed by the Commercial Code. (Arts.
2704-2771.)
TITLE II.
THE COMMERCIAL CONTRACT.
(Codigo de Comercio, Arts. 392 to 448.)
CHAPTER 1.
INSURANCE CONTRACTS IN GENERAL.
Art. 10f)0. Xsitnro mid Form of Contract.
Art. 1050. Nature and Form of Contract. All contracts of
I:\SURA.\CE LAW. 707
insurance, when made by companies, are mercantile. Insur-
ance contracts are rendered void by the bad faith of either
party in making them ; where the assured, even in good faith,
makes any untrue declaration which affects the risks, or
omits or conceals any facts or circumstances which might
affect the execution of the contract.
The contract of insurance must be in writing, in a policy
or other public or private document, and signed by the con-
tracting parties; the contract must contain: 1, The names
of the insurer and the assured; 2, the terms and conditions
under which the insurance is given; 3, the description and
valuation of the property insured, and such indications as
may be necessary to determine the nature of the risks; 4,
the amount in which the objects insured are valued, appor-
tioning the amount, if required, to the several classes of ar-
ticles; 5, the amount of premium and the form, manner and
place of its payment; 0, the duration of the insurance; 7, the
day and hour when the contract takes effect ; 8, the amount of
insurance already on the same property: 9, any other terms
upon which the parties have agreed. 1 Any changes which
may be made in the contract during its term must be precisely
written on the policy of insurance. The contract of insur-
ance will be governed by the lawful terms contained in it,
and in the absence of such by the provisions of this title ;
and may cover all classes of risks arising from natural acci-
dents or mishaps. (Arts. 392-307, 448.)
CHAPTER 2.
FIRE INSURANCE.
Art. 1051. Objects Incurable Identity.
lCf>2. Premiums.
lOoM. Effect and Extent of Contract.
10.">4. Incidents of .Insurance.
lO.Vt. Adjn-lii'.ent of Losses.
708 COMPENDIUM OF MEXICAN LAW.
Art. 1051. Objects In&urable Identity. Every species
of movable and immovable property subject to destruction or
injury by lire is insurable, including, where so stipulated,
all kinds of public, private and corporate securities, bank
notes, precious stones and metals, and objects of art, tbe
value and circumstances of the same being stated in the
policy. The subetitution or change of objects insured for
others of different kind not embraced in the contract, renders
it void from the moment such change is made ; if such change
is made by accident, or by a third person, either party has
the right to rescind the contract. (Arts. 398-399, 403-
404.)
Art. 1052. Premiums. For the contract of fire insurance
to be binding, the premium must be received by the insurer,
in advance, either by a single whole payment or in such in-
stallments as may be agreed, which become upon payment the
property of the insurer, whatever be the duration of the insur-
ance. If not paid, the insurer may rescind the contract
within the first forty-eight hours, notifying the assured ; if he
does not exercise this right, he may sue in executive action
to recover the premiums due, first obtaining the acknowl-
edgment of the signature to the policy. Movables are
charged with a lien for the payment of the premium, immov-
ables being only liable as at common law. (Arts. 400-401,
415.)
Art. 1053. Effect and Extent of Contract. In cases of
total loss by fire, the amounts at which the objects insured are
valued, the premiums paid by the assured, the descriptions
and valuations contained in the policy, constitute the proof
of the existence of the goods insured at the time and place
of the fire, in the absence of proof to the contrary; in cases
of partial loss, the assured must adduce additional proof
to ascertain Ihc yet remaining value of the objects.
The contract of insurance shall embrace indemnity for
LPTSUBAIVCE LAW. 709
all material losses and damages caused by th direct action
of the fire and its inevitable consequences, and particularly,
the expenses incurred by the assured in removing goods in
the attempt to save them, and the injuries sustained by sueli
goods, together with damages caused to the insured goods
by the authorities in efforts to limit or extinguish the fire;
but it does not embrace, unless otherwise stipulated, losses
to the assured through the suspension of his work or business,
loss of rents of the burned property, and other similar losses
or injuries. The insurer is liable although the fire is caused
by accident, wrongful act of a third person, or by the negli-
gence of the assured or of those for whom he is civilly respon-
sible ; but unless otherwise stipulated, he is not liable where
the fire is caused by the crime of the assured, by military
forces in time of war, by popular tumults, nor as the result of
eruptions, volcanoes and earthquakes. In insurance against
meteorological accidents, explosions of gas or of steam ap-
paratus, the insurer is only liable for the consequences of
the resulting fire, if any, unless otherwise stipulated.
The liability only extends to the objects insured in the
place where they were, and in no case shall exceed the
amount in which the property was valued or the risks esti-
mated. (Arts. 402, 405-409.)
Art. 1054. Incidents of Insurance Rescission. The as-
sured must notify the insurer of all other insurance taken and
of any modifications of that contained in the policy, and of
any changes in the condition of the property insured which
may affect the risks. Property insured for its full value
cannot be further insured during the term of the first policy,
except by way of guaranty of the first contract. If the same
property is covered by several policies each for a part of the
value, the insurers will pay any losses pro rata. The in-
surer may assign part of the insurance to other insurers, but
remains directly or exclusively liable to the assured: in such
cases of assignment of part of the insurance, or of reiusur-
710 COMPENDIUM OF MEXICAN LAW.
a net-, the assignor's receiving part of the premium are liable
to the first insurer to contribute equally to the losses sus-
tained, and assume responsibility for the arrangements and
compromises made between the assured and the first insurer.
The insurance will not be increased by the death, liquida-
tion or bankruptcy of the assured, or by the sale or transfer of
the insured property, if it is real property; but if personal
property, factory or store, the insurer may in such events
rescind the contract, upon giving notice to the assured or
his representatives within the certain term of fifteen days.
If the assured or his representatives should not notify the
insurer within like time of the circumstances above men-
tioned in cases concerning personal property, the contract
will be void as of the time such event occurred. (Arts. 410-
414.)
Art. 1055. Adjustment of Losses. In case of loss, the
assured must immediately notify the insurer, and at the same
time make a comprehensive statement before the competent
judge, of the property existing at the time of the fire, and of
the effects saved, together with his estimate of the amount
of the loss suffered. The appraisement of the damages sus-
tained will be made by experts as provided in the policy or
by agreement between the parties, or in default of these, in
accordance with the Code of Civil Procedure. The experts
will determine: The cause of the fire; the actual value
of the properly insured on the day of the fire before it oc-
curred ; its value after the fire, and all other matters sub-
mitted to them. Their decision has the effect of an u exec-
utive title" against the insurer, when it is rendered before
a notary, or is established by the judicial declaration of the
exports, and the recognition of their signatures and of the
truth of their report.
Tlic insurer must pav in cash the loss fixed by the experts
within ten duvs after their deei-ion is agreed upon, with
inlori-.-t th.T'iii' 1 "! 1 on the amount due in ca-o of default in
INSURANCE LAW. 711
payment; or, if the parties so agree, he may repair, rebuild
or replace wholly or in part, as the case may be, the property
insured and destroyed by the fire. The insurer may acquire
the effects saved upon paying the insured their actual value
as fixed by the experts ; and is subrogated fully to all rights
and actions of the assured against anyone responsible for the
loss; he may also cancel the policy as to future losses, and
any other policies he may have with the same party, upon
giving him fifteen days notice and returning the unearned
part of the premium.
The costs of adjustment and settlement shall be equally
divided between the insurer and assured, unless the latter
has manifestly exaggerated the loss, in which event he must
pay alLthe expenses. (Arts. 416-425.)
CHAPTER 3.
LIFE INSURANCE.
Art. 1056. Nature and Form of Contract.
10o". Premiums Incidents of Contract.
Art. 1056. Nature and Form of Contract. Life insurance
embraces all combinations which may be made, stipulating
for payment of premiums or capital in exchange for annui-
ties for life or until a certain age, or the receipt of money
upon the death of a certain person, in favor of the assured,
his assignee (causahabiente) or of a third person; or any
like combination ; it may be taken upon the life of one or
more persons, irrespective of age, condition, sex or state of
health. Where in favor of a third person, the policy shall
name or otherwise identify the beneficiary, the person taking
out the insurance being obliged to comply with all conditions
of the insurance and the provisions of the next Article, and
to pay premiums, but the beneficiary shall have the right to
enforce the contract against the insurance' company.
712 COMPENDIUM OF MEXICAN LAW.
Besides the contents required by Article 1050, the policy
of life insurance must state the amount, in capital or in-
come, assured, and the decreases or increases to which such
amount is subject, and the date when they take effect.
Only such risks as are clearly specified in the policy are
covered by it; but it shall not cover death as the result of
a duel, suicide, or capital punishment for common crimes;
nor, unless specially stipulated and an extra premium paid,
does it cover death occurring when traveling in foreign coun-
tries, in the military service on land or sea in time of war,
or as the result of some extraordinary undertaking (em-
presa), or act notoriously dangerous or imprudent. (Arts.
426-434.)
Art. 1057. Premiums Incidents of Contract. Failure to
pay the premiums or other amounts due deprives the assured
of all rights under the policy if the contingency occurs
while he is in default. If the assured is unable to con-
tinue, after making several payments, he may so notify the
insurer, and may receive a paid-up policy for an amount in
just proportion to the premiums paid, in accordance with
the Company's schedule of rates, considering the risks as-
sumed, unless otherwise agreed. The assured must notify
the insurer of all other insurance effected by him, or the
policy is void except as to its paid-up value. The insol-
vency of the assured does not avoid the policy, but it may
be reduced at the instance of his representatives to its paid-
up value.
The proceeds of life insurance belong to the beneficiary
and his heirs and are exempt from all claims of the heirs or
creditors of the assured. Life insurance policies may be
assigned after payment of premiums, by written endorse-
ment on the policy, authentic notice of such fact being given
to the insurance company by the endorser and endorsee.
The life insurance policy gives rise to the " executive
action " in favor of both parties ; where the assured is in
I3SSUEANCE LAW. 713
arrears of premiums, the insurer may sue to recover the
amount due, or may rescind the contract upon giving him
notice within twenty days after default and returning any
amounts received. (Arts. 435-441.)
CHAPTER 4.
INSUBAISrCE OF FEEIGHT IKT TRANSIT.
Art. 1058. Nature and Form of Contract.
Art. 1058. Nature and Form of Contract. All property
transportable by land carriage may be insured, by the owners
or by anyone having an interest in it, the nature of the
interest being stated in the policy. Besides the contents
required in Art. 1050, the policy shall contain the name
of the carrier, an exact description of the property in-
sured, stating the number of packages and any marks on
them; and the place where the property insured is to be
received and delivered.
The policy may cover all kinds of risks however arising;
but the insurer is not liable, unless otherwise provided, for
injuries due to inherent defects in the goods or by lapse of
time ; in such cases the insurer must judicially establish the
condition of the insured property within twenty-four hours
after its arrival at the place of delivery ; if he fails to do
this he cannot relieve himself of his liability as insurer.
The insurer is subrogated to all the rights of the assured
to recover damages for which the carrier is liable under the
Code. (Arts. 442-447.)
714 COMPENDIUM OF MEXICAN LAW.
BOOK XX.
THE FEDERAL STAMP TAX.
(Ley de la Eenta Federal del Timbre, of 1 June, 1906,
with all Amendments.)
CHAPTER 1.
GENERAL PROVISIONS.
Art. 1059. \Yhat Subject to Stamp Tax.
1060. Issuance of Stamps Kinds.
Art. 1059. What Subject to Stamp Tax. The Federal
Stamp Tax (Impuesto del Timbre^) is payable, by means of
stamp? :
I. On all acts, contracts and documents, specified in the
law, which are executed or issued in the Republic, although
they are to be used or take effect in a foreign country.
II. On like acts, contracts and documents which are exe-
cuted or issued in a foreign country, when they are to be
used or have any effect in Mexico, with such exceptions as
the law prescribes. 1 Also such other taxes and dues as may
be imposed by special laws to be paid by stamps.
All contracts and documents subject to the Stamp Tax
mu.-t be in writing so that the stamps may be affixed to and
i Although a contract is made and is to be performed in a foreign
country, it niu-t be '"validated" by attaching the corresponding value
of stamp--, before suit can be broupht on it. or other legal effect be
Lfivf-n t" it. in Mexico. This is true of notes, bills and all other forms
<if contnu-T. Sre ]>r>.<<t. Arts. 10H7-1090. as to "validating"' such docu-
ment-, and Art. 1000.
STAMP TAX LAW. 715
cancelled on the paper, except where the execution of a
writing is optional under the Stamp Law ; failure to do so is
punishable as in case of omission to attach stamps. (Arts.
1-3.)
Art. 1060. Issuance of Stamps Kinds. Stamps can only
be issued by the Federal Government ; no other authority
can issue or use them nor issue receipts for payment in the
form of stamps ; nor can the Federal Government sell stamps
at a discount or on credit, or use them to make payment, ad-
vances or otherwise. The Department of Hacienda will
annually authorize the issue, and fix the value, form and
denominations of the stamps, which shall be of three classes :
1, Common stamps of the General Stamp Tax; 2, stamps of
the Federal Tax ; 3, stamps for special taxes ; the common
stamps may be used for some special taxes or dues, as may
be provided, in which event they must bear a special restamp
designating -their object. The Treasury may authorize the
Stamp Printing Office to print stamps directly upon stock
certificates, bank notes, bonds, checks, cigarette wrappers,
titles and other documents, upon payment of the value of the
stamps such documents should bear and the cost of the work,
on such terms as said Department may prescribe.
The stamps can only be used during the fiscal year for
which they are issued, except as provided in regard to man-
ufactured tobacco and yarns and cotton good? ; but the Exec-
utive may under special circumstances legalize the use of
the stamps for a longer time, and may authorize their issu-
ance for two fiscal years. All common stamps and those of
the Federal taxes will boar the restamp of the ]\Fain Office
(Administracion Principal) which sells them, and they can
only be used on documents executed in the respective DH-
trict : they must bear the restamp of the Principal Office
(Dii't'fcion del Ramo) when sold by it. The stamp tax
may be paid by one or more stamps of the required das-
equaling the amount to be paid ; documents bearing stamps
716 COMPENDIUM OF MEXICAN LAW.
of a different class from that of the tax, or with the restamp
of the Main Office of another District than that in which
they are executed, will be revalidated upon payment of a
fine as herein provided. (Arts. 4-12.)
CHAPTER. 2.
STAMP TARIFF.
TAXES IN FORM OF COMMON STAMPS. 2
Art. 1061. Amounts of Tax Required.
Art. 1061. Amounts of Tax Required. The acts, docu-
ments and contracts herein mentioned are subject to the
payment in common stamps of the rates prescribed, on the
following basis: 1, A rate on each sheet of the document;
2, a rate in proportion to the value stated in the document ;
3, a fixed rate, irrespective of the number of sheets or the
value stated. The rates of Taxes will be as specified in the
following: (Arts. 13-14.)
TARIFF.
33. ACCOUNTS, of Division and Partition. (See
" Inheritances and Legacies.")
34. ACCOUNTS, (Cucnias} of every other kind, which
serve as receipts or are presented for collection, for
each $20 or fraction, 2 cts.
2 N. B. In order to arrange the subjects of stamp taxation as trans-
lated in the following schedules, in alphabetical order to facilitate
reference, as they are in the Spanish text, it is of course necessary
to change the original numerical sequence of the paragraphs; but their
original numbering is retained for purposes of reference to the original
text. Some of the "Special Rules for Application of the Tax." where
they are brief, are inserted in the following table, others follow in
their regular place in the Articles referred to in parentheses after the
subject-heading in the Taritl'. All sums are stated in current Mexican
PESOS, equal to 40.8 cts., U. S. currency.
STAMP TAX LAW. 717
18. ACCOUNTS, Statements of (C arta-cuenta) , for each
$20 or fraction, 2 cts.
56. ACCOUNT BOOKS. (See " Books of Account ").
5. ADJUDICATION of Property in Payment, or to the
Bidder at Auctions ; pays the same rate as " Compra-
vcnia," on the price bid. Includes adjudication of
pledges not sold at auction, made by interventors in
favor of pawnshop owners. The tax will be paid on
the minute or document evidencing the adjudication,
unless an escritura publica is required, in which event
it will be paid as provided for the latter instruments.
(Art. 3G.)
22. ANNUITIES. (Censos.) 1, The consignativo, for
each $100 or fraction of the capital, 50 cts. ; 2, the
enfiteutico, on the amount of the annuity capitalized
at the agreed rate or at six per cent, if not stipulated,
for each $100 or fraction, 50 cts. If the amount is
payable in a certain portion of products, the rules in
clause V under " Leases " are applicable. (Art. 54.)
94. ANNUITIES, Life, Contract of (Ilenta Yitalicia).
1, Where the consideration is cash or property, on
the amount resulting from capitalization at ten per
cent, a year, for each $100 or fraction, 50 cts. ; 2, if
the product of the capitalization is less than the
amount of capital or value of the property delivered,
the above rate will be paid, and on the difference,
the rate applicable to Donations ; 3, those created
gratuitously will pay the rate on Donations, on the
amount resulting from capitalization of the annuity
at ten per cent, a year.
37, 05 & 73. APPOINTMENTS and Commissions to
Public Office or Employment. (Despaclios, Nom-
bramientos y Patentee. See Arts. 131 to 135 of
Stamp Law.) Where the salary, emoluments or an-
nual pension is between $500 and $1,000, $1 ; from
$1,000 to $2.000, $2; from $2,000 to $1,000, $5;
718 COMPENDIUM OF MEXICAN LAW.
$4,000 and over, $10; if the amount is uncertain, $5.
Exempt from tax : Those under $500 ; offices of
popular election ; appointments of Secretaries of
State and of diplomatic representatives resident in
the Republic; military and naval appointments,
minor employes, etc.
10. APPRAISEMENTS. (Avah'io.) Those made to be
presented to any public authority or office, 50 cts. per
sheet ; where presented together with the inventory of
the property appraised a single rate of 50 cts. per
sheet is paid. (Art. 40.) Exempt from Tax:
Those made by tax officers for the collection of taxes,
unless made at the request of interested parties, or
made necessary by their objection to the tax.
20. ASSIGNMENTS. (CWo'/i.) 1, Upon onerous ti-
tle: a, Of real rights, same rate as Compraventa;
b, of personal rights, for each $10 or fraction, 2
cts. ; 2, gratuitous : Of rights of any kind, same as
Donations. Exempt from tax : The sale of shares
of stock or titles to bearer. (See "Endorsements,"
40.) For taxing purposes an assignment in which no
consideration is expressed is presumed gratuitous ; if
made subject to encumbrances estimable in money it
is considered gratuitous only as to any excess of
value over encumbrances, and the above rates are
payable ; where the assignee makes a subsequent dec-
laration that he holds the property in trust for an-
other who furnished the money or on whose behalf
the property was acquired, it is considered an a-sign-
ment upon consideration and will pay the above rate-.
(Arts. 59-01.)
72. Al.TTIOX BIDS. (Papel de Abono.) Wliere the
valuation serving as basis, of the auction is from $200
to $1,000, 50 cts.; from $1,000 to $5,000, $2: over
$5.000, $5. Kxempt from tax: Did- where the
ha-i- of salt 1 does not exceed $200-
STAMP TAX LAW.
719
11. BALANCES. (Balance.} Copies made by judicial
or administrative order or to be presented before any
public authority or office in matters of private interest,
50 cts. per sheet.
13. BANK NOTES. (Billctcs de Banco.) Up to $20,
2 cts. ; over that amount, for each $50 or fraction,
5 cts. ; except banks having franchises in regard to
stamp tax in their concessions, which will govern.
54. BILLS OF EXCHANGE. (Letras de Cambio. See
Art. 10S8.) Up to $100, 2 cts. ; from $100 to $500,
5 cts.; from $500 to $1,000, 10 cts.; over $1,000,
for each $1,000 or fraction, 10 cts. Exempt: Bills
of exchange drawn by public offices.
Duplicates and triplicates of bills and drafts may be
legalized by presenting them, with the original prop-
erly stamped, to the Stamp Office of the place, where
the seal of the office will be impressed on them, with
a memorandum of the fact ; if the original is not
presented properly stamped, the copies must bear
stamps; but the drawer may use coupon-stamps, put-
ting the stamp on the original and the coupon or
stub on the duplicate, any other copies being legal-
ized by the official seal ; brokers intervening in the
transaction must take care that the stamps are at-
tached and the foregoing rules observed, and in case
of neglect are liable to the same penalties as rhc
drawer and taker of the bill. (Arts. 1G5-1 fifi. )
30. BILLS OF LADING. (Conocimienfos de fat ?/
de porics. See Art. 1074.) On the amount of freight
charges: From 50 cts. to $2, 1 ct. ; from $2 to
$10, for each $2 or fraction, 1 ct. ; from $10 up,
for each $10 or fraction, 5 cts. Exempt from tax:
a. Bills of lading for freight from a ^Mexican port
to a foreign country; b, documents issued by mari-
time transportation concerns for charges for carrvin^
freight between wharves and vessels, or from one
720 COMPENDIUM OF MEXICAN LAW.
Mexican port to another, which documents will pay
same as receipts ; c, bills of lading on account of the
Federal Government.
68. BILLS OF SALE. (JVo/a.) Bills or memoranda of
sale, if signed and taking the place of receipts or
invoices, will pay same as " Receipts " or " In-
voices." Exempt from tax: Xotas of merchandise
sent to buyers for the sole purpose of proving the
delivery and receipt of merchandise.
15. BOXDS. (Bonos.-) Those evidencing indebtedness
of any company or business concern : 1, If issued by
virtue of a contract on which stamps have already
been paid, on each bond not exceeding $100 par
value, for each $20 or fraction, 1 ct. ; if over $100,
for each $100 or fraction, 5 cts. ; 2, if not issued
under such contract already stamped, on the par
value of the bonds, for each $10 or fraction, 5 cts. ;
3, the several kinds of bonds issued by Institutions
of Credit will pay in accordance with the special laws
and concessions. Bonds must be stamped although
isstied in exchange for others previously stamped
which are to be retired, but if the original issue have
been stamped at the rate provided in clause 2 above,
the reissue will only pay as provided in clause 1.
Exempt from tax are the bonds, obligations and cer-
tificates of credit of the Federal, State and Municipal
governments.
45. BOXDS, Surety. (Fianzas.) 1, Where the amount
is stated: a, If executed in cscritura publica, for
each $100 or fraction, 20 cts.; b, if executed in
any other form, for each $20 or fraction, 2 cts. ;
2, where the amount is not ascertained when the
contract is made: a, If by escritura publica, $2 per
shoot; b, if otherwise, $1 por sheet; 3, bonds given to
carriers to obtain delivery of freight when the bill of
lading is missing, or to pawnbrokers when the ticket
STAMP TAX LAW. 721
is lost, where the amount is not stated, 25 cts. ; 4, those
executed, although bv mortgage, to insure the respon-
sibility of public employes, except as provided in favor
of bonding companies, for each $20 or fraction, 2 cts.
Exempt from tax : a, Bonds executed in the same in-
strument with the principal obligation ; b, bail and
prison bonds.
56. BOOKS OF ACCOUNT. (See Art. 1080.) Ac-
count books, Journal, Ledger, Inventory and Balance
Books, required by mercantile law to be kept by mer-
chants, where the assets of the business amount to
$2,000 or more, 5 cts. per sheet ; 2, sales books re-
quired by the Stamp Law to be kept by those habit-
ually engaged in making sales by retail or whole-
sale, 1 ct. per sheet ; 3, books required to be kept by
pawnbrokers, of whatever capital, towit : Books of
valuation, reception and disposition of pledges, jour-
nal, ledger, inventories and balances, 5 cts. per sheet ;
4, Brokers' Registers ; stock certificate books and
minute books of companies ; books of private corpo-
rations or associations organized for profit ; books
kept in railroad stations for entering their daily
operations ; books of carriers for recording receipts
from freight and passenger tolls, where they are not
required to keep all the books of account named in
clause 1, 5 cts. per sheet. Exempt from tax: a, The
books of Monies de Piedad and other establishments
of public charity and instruction, or of private char-
ity under the patronage or supervision of the Federal
or State governments; b, account books of industrial
establishments dependent upon the Federal, State or
Municipal governments, although such establish-
ments sell their own products.
f>5. BOOKS of Deposit or Pass-books. (Lilretas.}
Books of deposits, with or without interest, issued by
institutions of credit, savings banks, and banking and
4G
722 COMPENDIUM OF MEXICAN LAW.
business houses, on the understanding that the debit
and credit accounts therein are not subject to the
stamp tax, 25 cts. per book.
63 & 80. BROKERS' Minutes or Policy of Contracts,
will pay same rate as that corresponding to the con-
tract.
69. BUILDING CONTRACTS. (Contmto de Obras.)
1, Contracts for work on real estate, by the job: a,
Where the contractor is to do the work and furnish
materials for a lixed price, upon the contract price,
for each $10 or fraction, 1 ct. ; b, where he only gives
his work or skill for a fixed fee, upon the amount of
the fee, for each .$10 or fraction, 1 ct. ; 3, contracts for
work on personal property are governed by the rules
of compra-venta where the contractor furnishes the
materials, unless they are only accessories and not
the principal element of the transaction, or are sim-
ply for repairs, and by the rules as to " unspecified
contracts." (Arts. 107, 129.)
1C. CANCELLATIONS. Of mortgages or real encum-
brances, only where made on account of payment, for
each $20 or fraction, 2 cts. Exempt from tax: The
cancellation of a mortgage made in the same escritura
in which the mortgaged property is sold or otherwise
disposed of, upon which a higher rate is paid than
for cancellation. The stamps representing the tax
on cancellation may be affixed either to the receipt
which is to be protocolized, or to the minute sent
to the stamp office when a special cscrilura is to IH>
executed, or on the margin of the protocol entry ot
the cancellation, wherever such cancellation need n<>;
be by carritura publica. (Art. 52.)
23. CERTIFICATES or CERTIFICATION. (See
Art. 10<;:;.) Those of any kind issued by a public au-
thority, official or office, or by a private person to be
presented to a public authority, officer or office, 50
STAMP TAX LAW. 723
cts. per sheet. Exempt from tax : a, Medical cer-
tificates for use in the offices of the Civil Register or
to show compliance with some sanitary regulation;
b, acts of civil status; c, those concerning military
and police matters ; d, those issued to show the closing
of any establishment or other exemption from taxa-
tion ; e, those concerning the survival of public pen-
sioners ; f, those issued by military commanders in
regard to billeting of troops ; g, all certificates issued
ex officio by public offices in compliance with any
law or regulation of general observance ; h, those is-
sued by public offices in regard to fines and other
fiscal matters ; i, those issued by primary schools in
- regard fo educational matters ; j, those relating to ex-
cuses from jury service; k, those issued to ships sail-
ing in ballast.
24. CERTIFICATES, Provisional, of Stocks or Bonds.
These will pay a tax of ten per cent, of the rate for
Stocks and Bonds under Sections 1 and 15 of the
Tariff, on the total par value represented by the same,
but in no case to be less than one cent nor more than
five pesos on each certificate. Such provisional cer-
tificates can only be legalized at the above ten per
cent, rate if they are exchanged within one year from
their date for the stocks or bonds which they rep-
resent ; if not exchanged within that time, they must
be invalidated with the stamps corresponding to the
stocks or bonds, which if not done within the fixed
term of fifteen days, the holders as well as the com-
pany issuing them will be subject to the penalties
herein prescribed. (Art. 58.)
25. CERTIFICATES OF DEPOSIT. Where the de-
posit is of a specific chattel or of cash in chest or
sack closed and sealed: 1, On the amount of the
bailee's fee or compensation, for each $20 or fraction,
2 cts. ; 2, if the deposit is gratuitous, 50 cts. per
724 COMPENDIUM OF MEXICAN LAW.
sheet, except as otherwise provided by the conces-
sions of Institutions of Credit. Exempt from tax:
a, Those issued by public offices; b, those issued un-
der Art. 5 of the Decree of 23 Xovember, 1905, and
Art. 3 of that of 22 December, 1905.
32. CERTIFIED COPIES (of Documents other than
" public," as provided for in Section 100, below) :
1, Except as herein provided, the rules in Section
23 as to " Certificates and Certification " are applica-
ble ; 2, those issued under Section 37 in regard to
"Appointments," for use in paying offices, 10 cts.
per sheet ; 3, those issued for use in legal proceedings
to parties authorized to plead as " poor persons," 5
cts. per sheet, but the balance of the rate of 50 cts.
per sheet must be paid when the record is completed
and the charges paid. Exempt from tax: a, Those
issued in applications for pardon, commutation of
sentence or release on bail; b, those issued in criminal
cases at the instance of the defendant or his attorney
for the purpose of applying for amparo or to present
as proof of said action ; c, those of original docu-
ments accompanying reports forming military rec-
ords, or made for a like purpose because of the loss
of the originals, from other copies or minutes in
the archives ; d, those of military documents in re-
gard to grades in the Army; e, those of appointments
and commissions which are exempt from stamp tax,
for use in the pay offices; f, those issued for use in
court in matters involving less than one hundred
pesos.
100. CKKTITIF.D COPIES. (Tcstimonws.) Those of
any protocolized document, escritura piiblica, will, or
minute entered in the protocol, por sheet, $1, The
sheet added to siu-h copy for recording legalization of
siirnatures. entries from the Public Register and other
STAMP TAX LAW. 725
proceedings, will only pay 50 cts., besides the tax on
the legalization. (Art. 208.)
9. CHARITABLE ASSOCIATIONS or Foundations,
Private. Their Constitutions and the protocolization
of their By-laws are exempt from tax where such
institutions are duly authorized by law ; if they do
not obtain such authorization within six months, or
an extension not to exceed six months granted by
the Department of Hacienda, they are subject to the
same rates as civil and commercial companies under
Sec. 96, in case of Associations, and to the rates
applicable to " Donations " under Sec. 39 or to " Leg-
acies and Inheritances " under Sec. 48, in cases of
foundations. (Art. 48.)
35. CHECKS. Those issued in conformity with the pro-
visions of the Code of Commerce: L^p to $100, 2
cts. ; over $100, 5 cts.
96. COMPANIES AND CORPORATIONS. (Socie-
dades. See Art. 1089.) Civil and Commercial
Companies will pay upon the capital stated in the
Contract : 1, a, When the capital does not exceed
$500,000, for each $1,000 or fraction, $1 ; b, between
$500,000 and $1,000,000, for the first $500,000, at
the rate of $1 per thousand, and for the balance, for
each $1,000 or fraction, 50 cts. ; c, where the capital
exceeds $1,000,000, the first million will pay accord-
ing to clauses " a " and "' b," and on the excess, for
each $1,000 or fraction, 10 cts. ; 2, where from the
nature of the company's object there is no capital,
or the company is formed for profits only, or the con-
tributions do not belong to the company, $2 per sheet;
3, by-laws which are protocolized separately from the
articles of association, $2 per sheet.
38. COMPANIES AND CORPORATIONS, Dissolu-
tion of. Upon the dissolution of a company either be-
fore or at the expiration of the term fixed for its
726 COMPENDIUM OF MEXICAN I. AW.
duration, the tax will be paid only on the amuont re-
ceived by the partners in excess of their share of cap-
ital contributed and profits obtained, in whatever form
such excess is realized: For each $1,000 or frac-
tion, $2. Where one partner pays the others with
his own money the amount of their respective shares,
the tax corresponding to " onerous " assignments of
personal property will be paid although real estate
forms part of the company capital ; this rule also
applies where, without dissolution, one partner with-
draws and the others pay him the amount of his
interest or an agreed sum in lieu thereof; in the divi-
sion of community property, of that acquired pro
indiriso (undivided), or in which the owners rep-
resent aliquot parts, the rules as to dissolution of com-
panies apply and the above rate will be paid. (Arts.
136-139.)
28. COMPEA-YEXTA. (Purchase and Sale Contracts.
See Arts. 1064 to 1073.) I. When the price is less
than $20, and the transactions are by merchants or
mercantile, industrial, agricultural or mining con-
cerns, subject to Arts. 1064 to 1069, in regard to
sales by retail, the tax will be paid as therein pro-
vided at the rate of !/_> per cent.
II. Where the price is less than $20 and the
transactions are not of the kind stated above, for each
$2 or fraction, 1 ct.
III. When the price is $20 or more: a, If the
contract is in escritura publica, for each $100 or
fraction, 70 cts. ; b, in other cases, for each $10 or
fraction, 5 cts.
IV. Where from the nature or conditions of the
contract, the amount involved cannot be determined
when the contract is made, the rates above specified
in I, IT and III will be paid as provided in Art.
107o. and in addition, there will be paid at the time
STAMP TAX LAW.
the contract is made: a, Jf in escritura piiblica, $2
per sheet ; b, in other cases, 50 cts. per sheet.
Exempt from Tax : a, Sales by retail amounting
altogether to less than $100 a month ; 1), sales made
in stalls or booths in public markets, streets and
other places for which a daily floor-rent is paid ; c,
sales effected within club-houses or private meeting-
places, provided such sales are for the immediate
and direct account of the association, and not for that
of third persons, contractors or lessees; d, supplies
of seeds made to peons and workmen on account of
wages ; e, sales of periodical publications ; f, sales of
their own products made by industrial schools, offices
and establishments maintained by the Federal, State
or Municipal governments, or by the Public Benefi-
cence ; g, sales of the products of animals killed in
slaughter-houses, provided the sales are made with-
in said places ; h, the first-hand sales of articles sub-
ject to the special tax on cotton yarns and fabrics.
The sales referred to in clauses g and h are also ex-
empt from the tax on sales by wholesale.
29. COXCESSIOXS. 1, Those for utilization of water
for Motive Power, $5 per sheet ; and, in addition
thereto, for each horse-power effective in the place
where the plant is installed, according to the previous
calculation of the authority granting the concession,
which estimate must be recited in the concession for
the purpose of determining the tax: a, If the con-
cession is for thirty years or more, $2 ; b, if for less
than thirty years, $1.
2, Those for Use of Water for Irrigation, $5 per
sheet ; and, in addition thereto, in respect to the vol-
ume of water granted, calculated and stated as above;
for each cubic meter or fraction per minute: a, If
the concession is for thirty years or more, $5 ; b, if
for less than thirty years, $2.50.
728 COMPENDIUM OF MEXICAN LAW.
3, Those for the construction and operation of rail-
roads of any kind, $5 per sheet; and, in addition
thereto, for each kilometer of main line or branches,
whether of obligatory or optional construction, the
estimated number of which kilometers must be stated
in the concession, $10.
4, All others issued as authorizations or permits
by the Federal or State government or by political
authorities or Municipal Councils, for any kind of
enterprise or industry, except such as are embraced
under " Licenses " in Sec. 57 or " Permits " in Sec.
76 of this tariff, $5 per sheet; and, in addition there-
to : a, Upon the capital to be invested in such enter-
prise, or where this is not stated, upon the amount of
cash paid by the concessionaire, or if such amount is
to be paid in installments for more than a year, then
only on the amount payable in one year, for each
$100 or fraction, 50 cts. ; b, where the capital or
cash payment is not stated, in case of concessions
granted by the Federal or State governments, $5 per
sheet ; if granted by political authorities or municipal
councils, $1 per sheet.
5, Concessions for the use and exploitation of for-
ests, ierrcnos baldios, salt beds and other national
properties, and, generally, all concessions dependent
upon any contract specially rated in this Tariff, will
pay the rate corresponding to such contract.
62. CON TRACTS, Minutes of. (See " Minutes of Con-
tracts.")
28. CONTRACTS, of Purchase and Sale. (See " Com-
praventa."')
92. CONTRACTS, Rescission of. (See " Rescission.")
09. CONTRACTS, for Work. (See "Building Con-
tracts.")
31. CONTRACTS, Unspecified. (See Art. 1075.) 1,
Where the amount involved is stated : a, If the con-
STAMP TAX LAW. 729
tract involves the transfer of real property or rights,
it will pay the rates of Compra-ventaj b, if it does not
involve such transfers, and is in escritura publica,
for each $100 or fraction, 20 cts. ; if in a document
other than escritura publica, for each $10 or frac-
tion, 1 ct. ; 2, where the amount is not stated : a, If
the contract is in escritura publica, $2 per sheet ; b, if
not in escritura publica, 50 cts. per sheet. Exempt
from tax : a, Contracts of enlistment or reenlist-
ment in the army, navy or police forces ; b, con-
tracts of affreightment made outside the Republic,
which foreign merchant vessels have to present to
Mexican port officers on arriving or clearing.
86. COXTRACTS, Extensions of. (See Arts. 1085 and
1D89.) The simple extension of time, without alter-
ing other substantial conditions of the contract, and
unless otherwise provided in this law: Upon the
amount of the obligation extended, for each $20 or
fraction, 2 cts.
74. CUSTOMS HOUSE PETITIONS. T. For the
loading or unloading of sea-going vessels : a, For
ships of 10 gross tons burden or less, $1 ; b, from
10 to 50 tons, $2; c, from 50 to 100 ton?, $4; d,
ships of more than 100 gross tons burden, $8. II.
For loading or unloading coasting vessels : Those
of up to 50 gross tons burden, 50 cents ; b, those of
more than 50 gross tons, $2. III. Petitions for the
dispatch of foreign merchandise ; for its transit
through the national territory; for shipment for ex-
portation ; for reshipment of foreign merchandise
unloaded on account of landing under stress ; for the
clearing of vessels put in under stress; for loading
at uninhabited places along the coast ; for the deposit
of foreign merchandise, or its transportation from
one warehouse to another; for the final shipment of
such warehoused merchandise, and for taking of sam-
730 COMPENDIUM OF MEXICAN LAW.
pies from the deposit, each 50 cts. per sheet. IV. Pe-
titions for shipment of national goods in the coasting
trade ; for shipment of samples or articles of com-
merce carried l>y passengers in their baggage; and
those presented by Express companies for the ship-
ment of goods, 25 cts. per sheet. V. For transship-
ment of merchandise, $1.
Exempt from tax: A. Petitions for shipment of
effects by express for diplomatic representatives in
Mexico; ]>. for transshipment of effects brought into
Mexican ports for warships of a friendly nation ;
C. for the shipment of snch effects which have been
unloaded ; D. for transit through foreign territory
of national or nationalized merchandise to be reim-
ported through another Mexican customhouse ; E.
for shipment of provisions for use on coastwise ves-
sels.
50. DEPOSITIONS. (Informacioncs ad pcrpeluain.)
Pay the same rate as " legal documents," although
intended to prove title to real estate.
38. DISSOLUTION OF COMPANY. See "Com-
panies and Corporations, Dissolution."
39. DONATIONS. (See Art. 107G.) Upon the net
amount of the gift : I. When in favor of ascendants,
descendants or husband or wife, \% ; II. when
in favor of collateral relations from the sec-
ond to the eighth degree, 2 c /c ; III. when in
favor of other relations or of strangers, 3% ;
IV. where the amount of the gift cannot at all
be determined: in the case of clause I, $2.50 per
sheet ; in case of clause II, $5 per sheet ; in the case
of clause III, $10 per sheet. V. where the amount
cannot be determined when the contract is made,
but may be afterwards: a, on the document in which
the gift is made, $2 per sheet ; b, on the document
or receipt which necessarily must be executed upon
STAMP TAX LAW. T31
ascertaining the amount or receiving tlie donation,
the tax will be paid according to clauses I, 11 and
III above respectively. VI. Ante-nuptial gifts made
by one of the parties to the other, pay as in clause I.
Exempt from tax: A. Gifts to the Nation; B.
gifts to public charitable or educational establish-
ments or private ones recognized by law and under
the supervision of the Federal or State governments;
C. gifts of less than $200, but where repeated or pe-
riodical between the same persons, they must pay the
proper rate when their amount reaches $200 or more ;
D. ante-nuptial gifts consisting of wearing apparel,
jewelry and furniture.
54 Hs t DRAFTS. (Libranzas. See Arts, 165-166
under " Bills of Exchange," No. 54.) 1, Those
drawn at sight or at not to exceed thirty days sight
(same as checks), np to $100, 2 cts. ; for more than
$100, 5 cts. ; 2, those drawn for over thirty days sight
(same as notes), for each $100 or fraction, 2 cts.
102. DUE-BILLS: "I. 0. U." (Yaks.} Those issued
under the Code of Commerce pay same as " Notes."
Those referred to herein only include those issued by
one merchant obligating himself to deliver to the order
of another named a certain amount of money or
goods ; snch goods, for the purpose of determining the
tax, will be taken at the valuation put on them by
the parties in executing the document, and if no
value is fixed, at the current market price at the
time and place of issuing the due-bill. (Arts. 209-
210.)
40. ENDORSEMENTS. (Endoso.) The irregular en-
dorsement of documents which according to law are
not endorsable, will pay, when in fact effect is given
to them, the same as the '' onerous " assignment of
personal rights, for each $10 or fraction, 2 cts. (See
"Assignment-," 26, I, b.) Exempt from tax: The
732 COMPENDIUM OF MEXICAN LAW.
endorsement of shares of stock, bills of exchange,
drafts and other instruments which according to law
may be transferred by endorsement.
41. ESCPJTURA PUBLIC A. (See Art. 1077.)
These will pay the rate corresponding to the act or
contract contained in them, provided that the tax on
such act or contract has not already been paid on
another document, in which event the rules stated in
Art. 1077 will be observed.
77. EXCHANGES. (Permuta.) Pay same rate as
" Compraventa." In contracts having for object the
reciprocal transfer of property, the tax will be com-
puted only on the property of greater value delivered
by either of the parties, without including any cash
money which he may pay or promise to pay to the
other party or to a third person for him. (Art. 118.)
80. EXTENSIONS OF CONTRACTS. (See "Con-
tracts, Extensions of.")
39. GIFTS. (See " Donations.")
93. INCOME OR PENSION, Temporary. (Eenta 6
pension temporal.") I. If for an indefinite time, will
pay same as " Life Annuities." II. If for a definite
time and gratuitous, the annual amount will he multi-
plied by the number of years it has to run, and on
the amount obtained the same rates will be paid as for
" Donations " ; but if such amount is greater than a
life annuity would be, it will be taxed the same rate
as a life annuity. III. If for a definite time and
upon "' onerous title," it will be taxed as " corn/rra-
venta."
48. "JXIIERITAXCES AND LEGACIES. (See Art.
107 ( ..) On the net amount of the estate inherited:
I. On the shares by inheritance or legacy in favor of
ascendants, descendants or lm-band and wife, \' '< ;
II. on such shares of collateral relation-, hv consan-
guinity, from the second to the eighth degree, 2 r r, ;
STAMP TAX J.AW.
733
III. on the shares of other relations or of strangers,
3%. Exempt from tax: Inheritances and legacies
in favor of the Federal, State, or Municipal treasury,
and of public charity and education, or of private
charities recognized by law and under the supervision
of the Federal or State governments.
52. 1XVEXTORIES. Those which have to be presented
before any public authorit}* or office, 50 cts. per sheet.
42. INVOICES, Wholesale. (Factura.) Pay same as
" Comprar enta," and must be issued in the form
prescribed in Arts. 1070-1 071. Exempt from tax:
Those relative to transactions of comprarenta for
which the tax has been paid on the document con-
taning the contract, but this fact must be stated in
them.
43. IXVOICE-PETITIOXS. (Factura-Pedimento.)
Those accompanying foreign merchandise imported
through frontier customs-houses, whatever the size of
the sheets, 50 cts. per sheet.
7. LEASES AXD SUB-LEASES. (See Art. 1062A.)
I. Those made for a definite time not exceeding five
years: Upon the amount of rents during the term,
for each $10 or fraction, 5 cts; II. if made for more
than five years, up to fifteen, which is the limit for
paying the tax, although made for a longer term, the
above rate will be paid for the first five years, and
upon the remaining, for each $10 or fraction, 1 ct. ;
III. if the amount of rents for the first five years
exceeds one million pesos, there will be paid upon
the million the rate of $5 a thousand, and on the
excess, for each $10 or fraction, 1 ct., and in addi-
tion the rate prescribed in clause II for the time
beyond five years.
IV. If the contract is for an indefinite time:
Upon ihe rent for one year, for each $10 or fraction,
5 cis. ; V. where the amount of rent cannot be de-
734 COMPENDIUM OF MEXICAX LAW.
tcrmined Avhcn the contract is made, and a basis only
is established for afterwards ascertaining it, whatever
the term of the lease or if it is indefinite : a, on the
the document containing the contract : if escritura
puNica, $2 per sheet; if not, 50 cts. per sheet; b,
on the receipt which must be given on payment of
the rent, for each $10 or fraction, 5 cts. ; VI. the
renting or hiring of personal property is subject to
the rates above prescribed respectively.
Exempt from tax: A. The renting of real estate
for less than $100 yearly; B. that of personal prop-
erty where the amount, whether paid in one or more
installments, is less than $20.
3. LEGAL PROCEEDINGS. (Aduaciones. See
Arts. 2S-34.) I. Administrative and judicial doc-
uments, as provided in Arts. 17-27, 50 cts. per sheet;
II. those issued at the instance of persons judicially
habilitated on account of poverty, 5 cts. per sheet.
The tax on administrative proceedings is payable only
on those had in regard to adjudication of laldios and
properties of the Ayuntamicntos, the denouncement
of mines, treasures and of vacant and unclaimed
properties ; and, in general, in all tho=e brought by
private parties in regard to matters of purely private
interest and which must be conducted in accordance
with the procedure established by law. (Art. 17,
as amended 25 October, 1009.)
Exempt from tax : A. All judicial documents in
which the amount involved is less than $100 ; B. ad-
ministrative documents in controversies over the ap-
plication of fiscal laws, the distribution of communal
lands and those belonging to the town common lauds
(cjidofi}\ C. all kinds of criminal proceedings; D.
proceedings brought by defendants for " amparo "
against criminal procedure or sentences; E. proceed-
ings in respect to release on bail or to obtain pardon;
STAMP TAX I. AW.
F. writs (oficios) directed, although at the instance
of a party, by any tribunal, court or public official to
a public authority or private person ; G. memoranda
of reports of hearings or oral arguments before judges
or tribunals ; II. reports with the proofs and exhibits
attached, rendered by the authorities in proceedings
for " am par o."
27. LEGAL SUMMONS. (Citas judiciales.) Those
issued to summon the defendant in cases only where
the amount involved equals or exceeds $100, 25 cts.
53. LEGALIZATIONS, of Signatures. Of officials,
chiefs of offices, notaries, public employes, and of pri-
vate persons : same rate as " Certifications."
21. LETTERS OF ATTORNEY. (Carta-podcr. See
Art. 1083 relating to Powers of Attorney.)
Whether the amount involved is stated or not : I.
Where signed by only one person in favor of one
other, 5 cts. ; II. where there are three parties either
principal or agent, 10 cts. ; III. if four parties as
above, 15 cts. ; IV. if five or more parties, 20 cts. ;
V. substitutions pay the same rates as above respec-
tively.
19. LETTERS OF CREDIT AND LETTER-OR-
DERS. (Cart a de Credito y Carta-orden.} Up to
$100, 2 cts. ; for more than $100, or uncertain sum,
5 cts.
20. LETTERS OF PAYMENT. (Carta de Pago.}
For each $20 or fraction, 2 cts.
57. LICENSES. Those for carrying weapons, and all
others issued in matters of police by the political and
municipal authorities, and for their renewal, 10 cts.
84 & 04. LOANS OF MONEY. (See Art. 1085.) I.
Where executed in cscritura pnljlica, for each $100
or fraction, 50 cts.; II. when in other kind of doc-
ument, for each $20 or fraction, 2 cts. Loan con-
tracts made by or in favor of institutions of credit
COMPENDIUM OF MEXICAN LAW.
or general warehouses, pay such rates as are provided
in their franchises.
58. LOTTERIES OR RAFFLES. Those which issue
tickets: On the value of the prizes including the
reintegros, 5%.
4 & 59. .MANIFESTS, of Customshouses, Additions, Cor-
rections, etc. The principal copy, 50 cts.
IT. MARRIAGE SETTLEMENTS. (Capitulaciones
Matrimoniales.} I. Those made for the purpose of
regulating voluntary conjugal partnerships: LTpon
the net value of the property brought in by the couple :
a, If not exceeding $500,000, for each $1,000 or frac-
tion, $1 ; b, from $500,000 to $1,000,000, on the first
$500,000, the above rate, and on the balance, for
each $1,000 or fraction, 50 cts. ; c, if exceeding one
million pesos, the above rates on the first million,
and on the excess, for each $1,000 or fraction, 10 cts.
II. Those made for the purpose of terminating
the voluntary or legal partnership, will pay the same
rates as " Dissolution of Companies."
III. Those made before marriage for the purpose
of regulating the separation of properties, $2 per
sheet.
60. MEMORIALS. (See Art. 1081.) I. Memorials,
petitions and other written applications presented
to any authority or chief of office of the Federation,
States or Municipalities, 50 cts. per sheet; II. those
presented by soldiers and by " poor persons," 5 cts.
per sheet. Exempt from tax: A. Pleadings, briefs
and other documents of prisoners or their attorneys,
and by the prosecutor or complainant in all criminal
proceedings, and petitions for pardon, commutation
and bail ; B. those in civil proceedings where the
amount is loss than $100; C. resignations of public
officials and employes; 1). those presented by private
persons in matters of public administration, in the
STAMP TAX LAW. 737
capacity of agents of the Government or commis-
sioners, but not as contractors ; E. memorials pre-
sented to the Board of Private Beneficence in
regard to creating charitable institutions, although
they are not established ; F. manifestations pre-
sented to any public authority or office in compli-
ance with law or regulations; G. memorials pre-
sented by owners or possessors to the proper officials
in regard to taxation of real estate.
61. MIXES. (See " Titles.")
2. MIXUTES. (A etas. See Art. 1062.) I. Those
executed before any authority, official or public em-
ploye, or between private persons, besides the rate
payable on the act or contract therein contained, 50
cts. per sheet ; II. company or corporate minutes en-
tered in their books ; See " Books of Account,''
Exempt from tax : A. Those not relating to
lucrative matters ; B. those relating to matters under
$100 ; C. those kept by public officials and relating
to public affairs ; I), those entered in duly stamped
protocols; E. the second and later copies of those
executed before any public official, and issued in
compliance with some law or regulation, provided the
originals were duly stamped.
62. MLXUTES, of Contracts. (Hinutas. See Art.
1082.) Those executed before or deposited with
Xotaries, Escribajios or judges acting as such, 10 cts.
per sheet.
47. MOXEY ORDERS. (Giros posMes.} For what-
ever amount, 3 cts.
49. MORTGAGES. I. On the amount of the obligation
secured, same rate as " Bonds, Surety," Xo. 45 ; II.
extensions of mortgages, same rate as above ; III.
those given to secure loans of money, where tax is not
already paid on the loan (See " Loans," I), for each
$100 or fraction, 50 cts. Exempt from tax : A. mort-
47
738 COMPENDIUM OF MEXICAN LAW.
gages and extensions executed in the same in.-trument
in which the original obligation is created or ex-
tended, already duly stamped ; B. extensions granted
to new owners of mortgaged property, where granted
in the instrument under which the property is ac-
quired; C. mortgages constituted in the same deed
of purchase in favor of a third person who lends the
money to make the purchase, the tax in such case being
only imposed on the sale, and not on the mortgage or
loan.
71. XOTES, Promissory. (Pagare.} For each $20 or
fraction, 2 cts. Exempt from tax : Those given in
transactions between institutions of credit and the Fed-
eral, State or Municipal governments.
70. OPTIOXS. (See " Promise of Sale," Xo. 85.)
8. PARTNERSHIPS. (See Xo. 90, " Companies and
Corporations.")
6. PARTXERSHIPS, Rural. (Aparceria.) I. On
the document containing the contract, 50 cts. per
sheet; II. on the receipt which the owner must give
for the products received under the contract, for each
$10 or fraction, 5 cts. ; III. on the document issued
by the owner for part of the products received on any
other account, same as II. Exempt : A. In cases
of I and II above where the area of the ground does
not exceed four hectares ; B. in cattle partnerships, of
not exceeding 100 head of " ganado manor" (smaller
animals), or 20 head of " ganado mayor" (larger
cattle).
14. PAWX TICKETS. On pawn tickets, or memoran-
dum of renewal : for loans less than $1, 1 ct. ; from $1
to $20, 2 cts. ; over $20, for each $20 or fraction, 2 cts.
Exempt: Those of public or private charitable insti-
tution-, the latter if authorized by law.
36. PAYMENT, by Delivery of Property. ( Dacion en
Pago). Same rate as " comprauenta."
STAMP TAX LAW. 739
67. PAY-ROLLS. (Xomina.) Will pay the same rate
as " Receipts " for each item of salary, fees or pen-
sion, except where covered by a separate voucher
properly stamped. Exempt from tax : A. Those
of soldiers in active service under rank of sergeant,
and military musicians ; B. those of auxiliary forces,
police, etc., whose daily pay does not exceed $1.50;
C. those of the daily allowance from the Federal
Treasury to prisoners ; D. those of day laborers and
operatives.
76. PERMITS. For sales in Pawnshops, $1.
83. PLEDGES AXD AXTICRES1S. Same rules as
" Bonds, Surety," Xo. 45. Warehouses and insti-
tutions of credit enjoy their special franchises in re-
spect to these contracts.
79. POLICY. (Poliza). That issued by private per-
sons to public offices pay the same rates as " Re-
ceipts." Exempt : That to which a duly stamped
receipt or pay-roll is attached ; the policy or receipt
issued to evidence the return of advances and loans
without interest, of amounts improperly entered, and
of deposits made to secure public interests.
81. POLICY, of Insurance. I. Of life insurance, 10
cts. ; II. of fire or other risk, upon the value insured,
for each $100 or fraction, 1 ct. Exempt from tax:
Fire insurance and other risks for less than six
months.
78. POWERS OF ATTORXEY. (Poder jundico.
See " Letters of Attorney," Xo. 21. See Art. 1083.)
Whether or not any amount is stated and although a
fixed compensation is stipulated: I. If only one
principal and one attorney, $2 per sheet; II. if three
parties, either principal or attorney, $4 per shoot ; 1 1 1.
if four parties as above, $6 per sheet; TV. if five or
more parties, $8 per sheet; Y. substitutions of powers
740 COMPENDIUM OF MEXICAN LAW.
pay same rates as above respectively. Exempt from
tax: Invocations of powers of attorney.
12._ POWERS OF ATTORNEY, Inspection of. (Bas-
tantco dc Poder). 50 cts.
82. PREMIUMS OE IXSURAXCE. (See Art. 1084.)
I. Premiums received by Insurance Companies on
all kinds of policies issued before December 16, 1892,
'2 ( /c ; II. those on policies issued since above date,
and not included in clause III, 3 c /c ; III. those re-
ceived on policies other than life, for less than six
months, 5> r /c.
85. PROMISE OF SALE or Purchase; Options. I.
On the amount paid for the promise or option, for each
$10 or fraction, 2 cts; II. if no payment is agreed :
a, in cscrHura piillica, $2 per sheet; b, in other doc-
ument, 50 cts. per sheet.
87. PROTESTS. The protest of bills of exchange and
other commercial paper, when made in a document
not in protocol, 50 cts. per sheet.
88. PROTOCOLS. (See Art. 10SG.) Those kept by
notaries, escribanos piibllcos, or judges acting as such,
$1 per sheet.
89. PROTOCOLIZATIOX. (See Arts. 1087 and
1092.) I. The protocolization of all instruments,
whether executed in Mexico or abroad, will pay the
rate prescribed for the act or contract therein con-
tained, except as herein provided :
II. The protocolization of documents in relation
to the organization of foreign companies which wish
to do business or establish agencies or branches in
Mexico, will pay on the amount of capital, when not
exceeding $1,000,000, the same rates as prescribed
for '"' Companies and Corporations " (Xo. 90) ; if
exceeding that amount, the above rates will be paid
on the first million pesos, and on the excess, for each
$1,000 or fraction, 5 cts.
STAMP TAX LAW. 741
III. Where such companies have no capital, the
tax will be paid on the difference between the assets
and liabilities as shown by the last annual balance.
IV. The protocolization of documents already
stamped, or which are exempt from tax, will only
pay the protocol tax on the number of sheets con-
tained.
28. PURCHASE AND SALE, Contracts of. (See
" Compraventa" 2so. 28.)
44. "RAILROADS AXD OTHER CARRIERS OF
PASSEXGERS. (See Art. 1078.) I. On the
gross receipts from passenger fares on railroads within
the Republic, 2^c ; II. on like receipts from street-
'cars, diligences and other vehicles for land transpor-
tation of passengers, with regular service and fixed
itinerary, 1%. Exempt: Eares chargeable to the
Government.
90. RECEIPTS. (Recilos. See Art. 10SS.) Every
kind of document issued to evidence the delivery of
a sum of money or a payment in cash or effects,
where such document is not taxed otherwise in this
Tariff, for each $20 or fraction, 2 cts.
Exempt from tax: A. to E. all kinds of receipts
and vouchers in regard to governmental and public
transactions; F. those receipts which are contained
in all kinds of commercial paper, invoices and nomi-
native titles, although such instruments are exempt
from tax, but in such cases the provisions of Art.
1088 referring to clause " IT," will be observed ;
G. those for installments of the purchase price of
shares of stock, endorsed thereon or on the provi-
sional certificates, as well as those entered in deposit
books legalized under Sec. 55; IT. those cnntainrd in
correspondence by letter or telegram sent from one
place to another; I. those given to carriers to evi-
dence receipt of packages containing money or val-
742 COMI'KXDIUM OF MEXICAN LAW.
uables ; J. those given for domestic wages ; K. those
of a routine nature passing between employes of the
same establishment covering delivery of funds for
expanses of the different departments, proper re-
ceipts being required upon the ultimate paying out
of the money ; L. those recited in the document evi-
dencing the original contract ; LL. statements,
invoices or receipts presented upon payment of
coupons, stock, bonds and other securities payable to
bearer ; M. duplicates, where the originals are duly
stamped, observing the provisions on this point in
Art. 10SS ; X. those issued for subscriptions for
relief in cases of public calamities; XX. those for
amounts not exceeding $5 issued by charitable, mu-
tual and savings institutions having such authoriza-
tion from the Treasury Department; O. those for
alms and gifts of all kinds less than $20.
51. REGISTRY. (Inscription.} In the books of the
Public Register of Property, Commerce and others
of the kind: I. For each inscription, 25 cts. ; II.
for each entry in the index of private instruments
which under the civil law must be filed in the Public
Registry, 10 cts. Exempt from tax: Entries or
annotations of simple reference or explanation.
46. RELEASES. (Flniquito.} Those between pri-
vate persons: I. Where the amount is stated, same
rate as receipts: II. where no amount stated, 50 cts.
per sheet.
01. REMISSIOX OF DEBT BY COXTRACT. I.
Where the amount of debt is determined, for each
$20 or fraction. 2 cts. ; II. where amount not deter-
minable when contract is made, 50 cts. per sheet;
III. if the remission is gratuitous, it will pay the rate
corresponding to the contract in which it is stip-
ulated. Exempt from tax: Releases granted by
STAMP TAX LAW. 743
creditors to a common debtor, or reductions made
in favor of the debtor.
95. RESALES, (lietrorcnta}. Pay same rate as
Rescission of Contracts.
92. RESCISSION OF CONTRACTS : $2 per sheet.
28. SALE AND PURCHASE, Contract of. (See
" Compraventa/')
85. SALE, Promise of. (See " Promise of Sale.")
1. STOCK, SHARES OF. Certificates of Stock, nom-
inative or to bearer, evidencing and representing a part
of the capital of any concern or company : I. Where
the amount is stated, for each $20 or fraction of par
value, 2 cts. ; II. where amount is not stated, $1 ; III.
stock or bonds issued to promoters, and any other
document which, without representing capital in-
vested, evidences rights to share in the profits, will
pay the above rates. Certificates of stock are sub-
ject to the above tax although they are issued in ex-
change for others already stamped which are retired
and cancelled (liayan de amort izarse"). (Art. 15.)
97. SUBROGATION, Conventional. Pay same rate
as assignments upon onerous title, on the amount
paid to the creditor by the party subrogated.
98. TELEGRAMS. I. On the original, not containing
a petition to any public official, 1 ct. ; II. if the tele-
gram contains such petition, on the original copy,
50 cts.
Telegraph operators must require the original
messages filed to be properly stamped ; if a telegram
contains a petition to a public official, they must state
on transmitting it that the stamps are affixed to the
original; when the stamp is paid on the original,
further tax is not required on copies received by
intermediate offices for forwarding where the trans-
mission is not direct. (Arts. 206-207.)
744 COMPENDIUM OF MEXICAN LAW.
101. TITLES. I. Of ownership of Mines of any kind:
For each pcrtenencia, or fraction of one-half or more,
$5 ; II. professional titles, $1 ; III. those of
tcrrenos Italdws, demasias and excedencias, pay the
same rates as " compraventa." Exempt : Pxofes-
sional titles of primary instruction.
66 & 75. VESSELS. Original copy of appointment of
consignees made by ship-captains under customs
regulations, 5 cts. Petitions to port or naval author-
ities for permit to sail: I. Vessels of ten gross tons
or less, 50 cts. ; II. of from ten to thirty tons, $1 ; III.
from thirty to fifty tons, $2 ; IV. vessels of over fifty
tons, $4. Exempt : War vessels, fishing boats, and
launches and other minor craft which ply about the
port, and ships sailing in ballast.
99. WILLS. (Ti'stamcntos.} I. Public closed wills,
executed in Mexico, on the wrapper, $5 ; II. public
open, private, military and maritime wills, and wills
executed abroad to take effect in Mexico, pay only the
protocol tax.
CHAPTER 3.
SPECIAL RULES FOR APPLICATION OF SOME TAXES.
Art. 1062. " Adas " Minutes.
10G2a. Leases and Subleases.
10G3. Certilieates or Certifications.
1004. Retail Sales Statements.
10G5. Approving or Proving Statements.
1006. Tax Receipts " Bolcta*."
1007. Correction of Returns False Returns.
1008. Payment of Taxes Loss of lioleta.
100!). Opening. Close or Transfer of Business.
107(1. \\holesale Invoices.
1071. Same -Notes.
STAMP TAX LAW. 745
Art. 1072. Special Sales Books.
1073. Sales What so Considered.
1074. Bills of Lading.
1075. Contracts When Subject to Tax.
1076. Donations How Taxable.
1077. Escritura Publiea -When and How Stamped.
1078. Eailroads.
1079. Inheritances and Legacies.
1080. Stamped Books By Whom and How Kept.
1081. Memorials.
1082. Minutes of Contracts.
1083. Powers of Attorney.
1084. Insurance Premiums.
1085. Loans of Money.
1086. Protocol.
1087. Protocolization.
1088. Receipts.
1089. Companies and Corporations.
Art. 1062. " Actas " Minutes. The tax payable on the
minute or contract executed before a public functionary or
employe, besides the rate per sheet, must be paid by affixing
and cancelling the stamps before the act is authorized or
judicially approved, as the case may be, where escritura pub-
lica is not required for its validity, in the latter event, the
tax will be paid in the form and manner prescribed for such
instruments. (Art. 16.)
Art. 1062A. Leases and Sub-leases. J n order to compute
the tax on leases for a definite time, in the cases under frac-
tion 7 of the Tariff, the time fixed for the duration of the
contract will always be taken into consideration, although
the contract is obligatory on only one of the parties. The
tax will be paid upon the rent stipulated, and also on the
amount of the real-property tax according to the laws 111
force at the time the contract was made, when the payment of
this tax, or of all others to which the estate is subject, is
chargeable to the lessee. The value of improvements other
than those of mere preservation of the leased property, made
by the lessee by virtue of the contract, is also considered as
a part of the rent, provided that the amount so expended on
746 COMPENDIUM OF MEXICAN LAW.
the same is determined, and also upon such amount the tax
will be paid at the rate of 5 cents, or of 1 cent, for each
ton pesos or fraction, according to the time when the im-
provements are to be made. Where the value of such im-
provements is not determined in the contract, there will be
paid, in addition to the rate prescribed for the respective
cases stated in fraction 7, that of $2.00 per sheet if the con-
tract is in escritura publica, or of 50 cts. per sheet if in pri-
vate document. If for any reason the lessee continues in
the use and enjoyment of the leased premises after the ex-
piration of the term, without executing a new contract duly
legalized, the lessor must, after two months from the ex-
piration of the term, re-stamp the former contract in accord-
ance with clause IV of fraction 7 of the Tariff.
Contracts of lease for an indefinite time do not need to
be renewed although the year for which they have been
stamped has expired. If the contract was for a definite time,
with a provision that after the end of the term the lessee
should continue at will of the parties, there will be paid, in
addition to the rate for the fixed term, the rate provided in
fraction 7 on leases for indefinite time. Where the parties
do not expressly fix the duration of the contract, but make
reference to the legal term, and some term is fixed by the
civil law, the contract will be considered as for a definite
time, and will be stamped for such legal term.
Where the lessee, under the terms of the contract, assigns
it to a third person, a new tax will not be paid; but where
the lessee, without such authorization, assigns the contract
with the consent of the lessor, and in general wherever there
is a novation of contract, either by increase or decrease of
the rental or by substitution of lessee, the corresponding tax
will be paid anew. The tax will also be paid in case of an
expressed extension, such extension being considered as a new
contract: but the stamps will be attached to the original docu-
ment on \vhich the renewal will be- noted. The provision by
hich tii" lessee agrees to injure the premises in favor of the
STAMP TAX LAW. 747
owner, is not subject to tax where it is made at the same
time as the lease. Where the rent is not paid in money but
in specific things agreed upon, such articles will be appraised
at the current market price at the time and place of deliv-
ery. Contracts in regard to the exploitation of forests, quar-
ries, and other natural products, whether periodical or not,
for an amount expressly determined, will pay the same
rates as leases in the respective cases ; but if there is only
fixed a basis of price with relation to a determined portion
of the products to be obtained, the contract will be rated as
a compra-venta. (Arts. 38-47.)
Art. 1063. Certificates or Certifications. These are sub-
ject to -a single 'rate although several parties join in them;
for taxing purposes a certificate is any document issued to
prove facts or declare any thing or circumstance, in what-
ever form and although the word " certify " is not used.
Certificates of any kind contained in a document otherwise
stamped, must nevertheless be stamped as provided in sec-
tion 23 of the Tariff, except such as are made in judicial
decrees, which pay the rate for legal proceedings. Assay
certificates procured by private persons at the federal assay
offices will be legalized with the matrix of coupon stamps and
the stub will be attached to the copy forwarded with the
accounts to the general Treasury. (Arts. 55-57.)
COMPRAVEXTA BY RETAIL.
Art. 1064. Retail Sales Statements. For the pur-
poses of taxation, a retail sale (venta al por menor),
is one made for an amount less than $20 ; whether
for cash or on time, they will pay the rate pre-
scribed by clause I of sec. 28 of the Tariff, in the man-
ner herein provided. All merchants, and in general, the
owners or managers of any commercial, industrial, agri-
cultural or mining business or establishment, habitually mak-
ing sales by retail, and not embraced in the exceptions B to II
748 COMPENDIUM OF MEXICAN LAW.
inclusive of said sec. 28, must present to the proper Stamp
Tax office, within the first fifteen days of June of each year,
a statement of the amount of retail sales effected between
June 1st and May 31st of the immediately preceding year.
(Arts. 62-63.)
Art. 1065. Approving or Proving Statements. The Stamp
Tax officials will pass upon such statements of sales, taking
into consideration the extent and importance of the business
and the conditions of the market, and be governed by the
following rules :
A. Statements showing an increase over the previous
year, and which in the opinion of the Administrador are
unobjectionable, will be finally approved forthwith, and the
statement so approved cannot be afterwards impeached ex-
cept as provided in Art. 1067.
B. Although showing such increase, if the Administrador
deems the statement too low, he will fix the amount which in
his judgment should serve as the basis of the tax, and if
the interested party is agreed, he will sign the return, and its
correctness cannot be inquired into as above provided ; but if
he objects to such estimate, and does not make the proofs pre-
scribed in sec. D, his statement will be accepted, reserving
the right to require proof upon an official visitation to the
establishment, which cannot be made until after six month?,
during which time the party making the return may rectify
his statement by declaring the true amount of sales, with-
out any punishment, upon payment of the balance of the
taxes due.
C. Statements showing an equal or decreased amount of
sales over the last year, and apparently unobjectionable,
will be approved with reservation of the right of visitation,
as above provided, and voluntary corrections may likewise
be made within the six months.
D. Where the statement shows an equal or decreased
amount, and the Administrador deems it too low, he will
STAMP TAX LAW. 749
fix the amount and proceed as provided in B. If the inter-
ested party objects, and produces all his books of account
and of sales in proof of the correctness of his statement, it
will be finally approved as it stands, and cannot be ques-
tioned as provided in clause A. If the interested party does
not make such proof, he must provisionally pay the tax on
the average amount between his return and the amount
fixed by the Administrador, until an official investigation
is made of the exact amount of sales ; if upon such
examination the statement is found correct, the amount
overpaid will be refunded ; if found incorrect, the full
amount of tax will be exacted and the prescribed punish-
ment inflicted. Merchants not required to keep stamped
books of account, may prove their returns by their special
book of sales or any other they may have although not
stamped; if there is no special book of sales, the amount will
be estimated by experts appointed under the regulations.
(Arts. 64-65, as amended 27 May, 1907.)
Art. 1066. Tax Receipts " Boletas." Upon the approval
as above of the tax returns, the Stamp Office will issue to the
interested party, before July 1st, a printed " Boleta," bear-
ing its corresponding number, and reciting the amount of
sales, and whether definitely approved or accepted subject to
proof, and also stating the annual bi-monthly amount of
the tax assessed; and stamps equal to the bi-monthly quota
will be attached to the Lolcta and cancelled bi-monthly in
advance. (Art. 00, as amended 27 May, 1907.)
Art. 1067. Correction of Returns False Returns. Be-
fore the buleia is issued, any party may correct his return
without penalty ; but after the boleta is issued no claims will
be allowed and the tax assessed must be paid, subject only
to be amended during the year, if as provided in the law,
or by admission as in Art. 1065, it appears that sales were
concealed, or when sales of some separate department are
750 COMPENDIUM OF MEXICAN LAW.
discontinued, in which events, in the first case, the boleta
will be corrected upon payment of the omitted taxes, with
or without penalty as circumstances may warrant, and in
the second, the provisions of Art. 1069 will be observed.
Xeither the approval by the Stamp Office of the return
filed, even when it conforms to the books, nor the amount
fixed by the Administrador as the basis of the tax, relieves
the taxpayer from the penalties incurred, if within the
period of prescription it is discovered that he made a false
return to defraud the revenue or failed to enter in his books
all the sales really made; but in the cases mentioned in Art.
1066 no visitation will be made for the purposes of investi-
gation, unless formal complaint is made, or official instruc-
tions received, or positive information is had of concealment
of sales, or an extraordinary general visitation is ordered ;
in such cases the concealment may be investigated and pun-
ished even within the six months above allowed for volun-
tary corrections. (Arts. 67-68, as amended 27 May, 1907.)
Art. 1068. Payment of Taxes Loss of Boleta. If the
sales do not amount to $100 a month, a certificate of exemp-
tion will be issued to the interested party, which will be
exposed in a visible place in the establishment. Merchants,
owners or managers of establishments must procure their
boletas in due time, and attach thereon and cancel the proper
stamps within the first ten business days of each bi-monthly
period. The stamps must be cancelled by hand or with seal,
stating the date and place and the name of the person or
establishment making the cancellation, or it may be by
perforator, but always showing the date of cancellation. If
the bold a is lost, or destroyed totally or partially, it cannot
be replaced except upon payment anew of the tax for the
bi-monthly periods elapsed, and the issuance of a new Ijolcta
by the Stamp Office, which will affix the proper amount of
stamps for the tax due for such period; only the Depart-
ment of Hacienda can remit such second payment upon
STAMP TAX LAW. 751
proof that the boleta contained all the stamps for the time
elapsed and that they were destroyed or rendered entirely
useless; if within the fiscal year the tax-payer should pre-
sent the missing Itoleta, the value of the stamps will be repaid
him in cash less the fees paid to the Stamp Office.
With the statement previously mentioned, the tax-payer
will present the boleta for the last past year for the purpose
only of proving payment of the last year's tax; but failure
to present it does not affect proceedings on the current re-
turns, or the separate proceeding to impose the penalty for
failure to pay the former tax, which will be presumed in
the absence of the last boleta., except upon proof to the con-
trary. The Tax Office will examine the boletas immediately
upon receiving them, and if found correct will issue to the
interested parties a receipt to that effect ; but if found that
all taxes have not been paid or the stamps not properly
cancelled, the penalties prescribed will be imposed ; such
receipt exempts the tax-payer from all liabilities, and if
upon revision any stamps are found missing, the employe
who issued the receipt must make the amount good. (Arts.
69-74.)
Art. 1069. Opening 1 , Close or Transfer of Business. Upon
the opening of any retail establishment, shop or business
house of any kind, written notice must be given the Stamp
Office within three days, and within the first fifteen days
of the fourth month after such opening a statement of the
sales made within the first three months must be filed, which
if approved will be taken as a basis for calculating the sales
for one year, and the tax wall be paid on the amount of
the statement from the date of opening business ; in the case
of pawnshops, the statement will be made within the above
time after the first auction sale. (Art. 75, as amended
27 May, 1907.) If the business is transferred to another
person or company, the latter will notify the Stamp Office
in writing 1 , and the boh'ta must be presented to show that the
752 COMPENDIUM OF MEXICAN LAW.
current taxes have been paid, and it will be returned to the
new owner who will pay the subsequent taxes ; failure to
give notice and present the boleta will subject the new owner
to the payment of any taxes in arrears and any penalties
incurred by the former owner. If the establishment is
closed during the fiscal year, the interested party will give
written notice to the Stamp Office, stating the date of
closure, and the proper political or municipal official will
certify 011 the same document that said establishment was
actually closed on the date mentioned, and the Ijoleta will
also be presented for examination and receipt as provided
in the preceding Article. If the stamps for the current
bi-monthly period have already been attached to the boleta,
no part of the tax will be refunded, but if they have not yet
been attached, the bi-monthly period will be divided into
four parts, and the tax will only be paid for the fifteen days
current when the establishment was closed, and no penalty
will be imposed for the failure to attach the stamps within
the proper time. If notice of closure is not given, the
establishment will be reputed open, and the taxes must be
paid until such notice is given although the place was actu-
ally closed.
If any new establishment is opened during the year, the
provisions of Art. 75 herein above will be observed, but a
new statement must be made for the current fiscal year if
the establishment was opened more than three months be-
fore the first of June ; such statement shall state the amount
of retail sales effected between the day of opening and May
thirty-first, and if the statement is approved, the sales for
one year will be calculated upon the amount shown, and a
lidb'ia issued for the amount calculated. The rate estab-
lished for the year will not generally be diminished or in-
creased by the discontinuance or addition of any article to
those usually sold in an establishment; but if a house should
cease to sell articles of a certain kind, opening an entirely
separate branch or department for their sale, it must pre-
STAMP TAX LAW. 753
sent a statement of the sales made by the latter within the
time fixed by Article 75 above, and the main house may
request the reduction from its boleta of the amount upon
which the branch house is paying, such reduction being
effective from the date of the opening of the branch.
If the closure of a mercantile establishment is only tem-
porary, it will continue upon reopening to pay the same rate
which it paid at closing; but if on reopening it has not the
same stock of goods, or if the capital has been increased or
diminished, the provisions in regard to new establishments
must be observed; the change of ownership or removal to
the different location is not considered as opening a new
business, but notice of such change must be given to the
Stamp Office. ^W nere an establishment is closed within
three months after it is opened, a statement of its sales must
be presented with the notice of closure, and if approved by
the Stamp Office a special ~boleta with the proper stamps
duly cancelled will be issued, the settlement being made
on the fifteen-day basis above provided, and the lolcta will
be taken up and a receipt issued to the interested party;
the same procedure will be followed in case of an establish-
ment opened during a fair or by others beginning a retail
business, who must notify the Stamp Office within three days,
and upon closure within three months,, unless exempt from
tax because of sales of less than $100 a month, will pay
on the basis above provided.
Where retail sales are made by persons not habitually
engaged in making them, and who are therefore not required
to observe the foregoing requirements, the tax provided by
clause II of Section 28 of the Tariff is only payable where
the parties voluntarily execute some document, invoice or
receipt evidencing the sale, and which it is optional with
them to do or not. (Arts. 75-85.)
48
754- COMPENDIUM OF MEXICAN LAW.
COMPRAVEXTA BY WHOLESALE.
Art. 1070. Wholesale Invoices. For the purposes of
taxation, a sale by wholesale (venta al por mayor), is one
made in a single transaction with the same buyer for a
price of $20 or more, or the aggregation in a single receipt,
invoice or document of several transactions made on the
same day and amounting together to $20 or more; the
omission of the dates of several items joined in the same
document raises the presumption that they were had on the
same day unless proven to the contrary.
In every sale by wholesale effected by merchants or in
any mercantile, industrial, agricultural or mining business
or establishment habitually making such sales, the seller,
whether on his own account or on commission, must issue
an invoice (factura) evidencing the sale and legalized with
coupon stamps for the proper tax on the amount of the sale
in accordance witli clause III of Section 28 of the Tariff;
the buyer must require such invoice, and if refused, he must
notify the proper Stamp Office within eight business days
after such invoice should have been issued, and if he fails
to give such notice he is subject to the same penalties as
the seller for failure to pay the tax. Such invoice must be
issued at latest within fifteen business days after the sale
if the parties live in the same place or within one month
if they live in different places. Where the price cannot
be fixed when the contract is made, the invoice will be
issued, as provided in Art. 1073, upon receipt of payment,
but the stamp per sheet required by clause IV of Section 28
must be attached to legalize the document. All such mer-
chants, owners of estates, establishments or business-con-
cerns as above, must keep one or more stub-books of in-
voices, which will be legalized gratis by the Stamp Office,
which legalization is good till the books are used up ; such
books must be kept although the sales are only made period-
ically. (Arts. 80-80.)
STAMP TAX LAW. 755
Art. 1071. Same Notes. The invoices must be issued
within the time above provided, although the goods have not
been delivered, or the sale is on time ; in the latter event the
seller must require, and the buyer execute promissory notes,
which must be stamped as required for notes ; such notes
must be delivered within three days after the sale is ef-
fected, to the seller or broker making the sale, where both
parties reside in the same place ; if residing in different
places, the seller must send the notes already duly stamped
and cancelled, to the buyer to be signed, the buyer being
obliged to repay the value of the stamps unless otherwise
agreed ; the entire transaction must be completed within one
month. If a broker conducted the sale, he must see that
these requirements are complied with, but neither he nor
the seller is subject to the penalties if they prove that the
notes were remitted duly stamped to the buyer.
Where sales by wholesale are made by persons not re-
quired to keep the stub-book of inventories, the seller may
issue an inventory or any kind of document to which to affix
and cancel the stamps, which may be either stub-stamps
or without stubs ; if the former they must be affixed en-
tire. If the contract of sale is evidenced by broker's policy,
minute deposited with notary, or by escritura public a, the
provisions of the law applicable to those cases will be ob-
served ; if sales on time are evidenced by any of the fore-
going documents or by other than inventory, the execution
of notes is not obligatory. Where the proper tax is already
paid on any such document, the invoices issued by the seller
need not be again stamped, but an annotation referring to
such document will be made on the invoice, and on dupli-
cates of them if taken from the stub-book. (Arts. 90-96.)
COMPRAVEXTA GENERAL PROVISIONS.
Art. 1072. Special Sales Books. Every mercantile, indus-
trial, agricultural or mining establishment, shop, sales-
office or business place, together with their separate branches.
756 COMPENDIUM OF MEXICAN LAW.
doing habitually either a wholesale or retail business, also
all merchants having no fixed establishment, and all those
doing retail business who are not exempt under Section 28
of the Tariff, must keep, in addition to the books of ac-
count required by law, one or more special sales books, as
their business may require, and keeping separate books for
wholesale transactions, if they prefer, which must be author-
ized by the Stamp Office and stamped as required by clause
II of Section 56 ; in case the interested party should re-
quest a new book because of the claimed loss or theft of
the former, it shall be authorized, but he is subject to the
penalty for not keeping such book unless he proves the actual
loss or theft of the former one.
In such special sales book must be entered daily, or at
the latest within seven days, the total amount of sales of
each day, and in a separate column, unless a separate sales-
book is kept for the purpose, an abstract of all sales by
wholesale must be entered within seven business days from
the issuance of the respective invoices. Any one failing to
observe these requirements, or who omits sales or makes false
entries, is subject to the penalties of law and to continual
inspection of all his books and correspondence so far as
deemed necessary to detect all violations for the past five
years. (Arts. 97-101.)
Art. 1073. Sales What So Considered. For the pur-
poses of taxation every instance of goods going out of the
establishment or place is considered a sale, unless the inter-
ested }>arty proves to the satisfaction of the Stamp Office
that it was only for the purpose of removal from one place
to another of the same owner, or was sent out as a sample,
or on commission for sale, or ?nnio other operation not sub-,
ject to taxation ; also the supplying of materials by mining
concerns to laborers for the working of mines, where the
same arc charged even at cost against their wages, is taken
as a sale for the purposes of taxation. Also the acquisition
STAMP TAX LAW. 75 T
of ores by smelting concerns for treatment on their own
account, and although for sale abroad, and whether to be
paid for before or after sale, or according to the value after
assay or on any other conditions; the Executive may make
arrangements with such smelters and exporters by which the
taxes may be paid in cash, at the reduced rate of $2 011
the thousand, taking as the basis for computing the tax the
total amount of metals or ore brought into the establishment
or exported during the previous year, whether on own ac-
count or that of others, or on commission or otherwise ; but
smelting concerns, whether or not they have made such
arrangements in regard to payment, have the right granted
by the decree of 24 November, 1905, and other like regula-
tions, 'to the refund of three-fourths of the tax paid on
metals.
The making or manufacture of articles, for an agreed
price, where the workman or contractor furnishes the mate-
rials, is considered a sale and subject to all the rules of
compraventa, unless such materials are the accessories and
not the prinicpal feature, and excepting work of mere repair.
The costs of insurance, cartage, freight, packing, etc., paid
by the seller for the purpose of shipping goods from one
place to another, do not form part of the price, and if in-
cluded in the invoice for the purpose of collection or other-
wise are only subject to tax as a receipt. The transfer of
personal property made after a number of periodical pay-
ments in the nature of rent or hire, does not require a stamped
invoice where the original contract is duly legalized. Tn
cases under clause 4 of Section 28 of the Tariff, as soon as
the price is ascertained, the parties must execute a supple-
mentary document in the same form as the original con-
tract and pay the tax for the sale on the same; if the deter-
mination of the price depends upon periodical deliveries or
upon the number, weight or measure of the thing- sold, the
seller, upon receiving the price either in one or several pay-
ments, must upon each payment issue an invoice or receipt
758 COMPENDIUM OF MEXICAN LAW.
duly stamped at the rate prescribed in clause 3, according
to the kind of instrument evidencing the contract; where at
the time of sale part of the price is determined, the corre-
sponding part of the tax will be then paid, and the foregoing
provisions will be observed as to the undetermined balance.
Orders of goods for third persons made to factories or
commercial houses in Mexico are considered made on com-
mission only when such goods pass to the purchaser at the
same price paid for them by the person placing the order,
irrespective of any commission he may receive ; in such cases
the sale is legalized by an invoice issued by the seller to either
the purchaser or his agent ; if the transfer is made for a
different price, the purchaser must issue and stamp a new
invoice. Orders placed abroad for third persons are not
subject to tax where the seller issues and sends the invoice
and shipping-bill directly to the buyer, and only the receipt
for the agent's commission will be stamped ; but if the seller
issues such documents in the name of the agent, he must
stamp the foreign invoice if he presents it for collection to
the person ordering the goods, or he must issue to him a new
invoice duly stamped, besides the stamps on his receipt for
commissions. If the agent contracts personal obligations
with the buyer in regard to the transaction, it will be con-
sidered as a compreventa between the two unless satisfactorily
proven that such obligations were contracted by authority
and on account of the seller of the goods.
Sales made bv traveling; agents of Mexican or foreign
c O O
houses are subject to tax when the house accepts the orders
and ships the goods; but where the agents themselves deliver
the goods, or in case of sales made on their own account by
persons having no fixed place who travel about selling their
wares, the tax must be paid and all formalities complied
with as soon as the sale is made : such persons must comply
with the requirements in regard to statements and stub-
book^ and sale- books in whatever place they may be, and
before beginning business in each place must give written
STAMP TAX LAW. 759
notice to the Stamp Office, stating at what house or hotel
they are stopping, as well as of any change of address ; and
they must go in person to the Stamp Office every eight days
of their stay with their loleta and book of sales and settle
accounts for the preceding eight days, being subject to the
oversight and inspection of the officials at any time.
The transfer of a business is subject to the tax on com-
praventa, and the stamps will be affixed to the document or
invoice issued, or to the inventory of stock or balance taken
upon which the purchase price is determined. In the trans-
fer of estates subject to encumbrance which is assumed by
the purchaser, the amount of encumbrance is taken as part
of the price on which the tax must be paid ; in case of
exchange of properties, the tax is computed only on the one
of greater value delivered by one of the parties, without
regard to any amount of cash paid or to be paid by the other
or by any one for him.
As a general rule the tax on compraventa is payable by
the seller, subject to reimbursement by the buyer if so agreed ;
but in sales by wholesale made by Government offices or
establishments, the tax must always be paid by the buyer.
(Arts. 102-119.)
BILLS OF LADIXG.
Art. 1074. Bills of lading as herein provided must be
issued in all cases by carriers and persons habitually en-
gaged in transportation, for the public; those who only
occasionally make such contracts need only issue and stamp
bills of lading when the amount of charges is $20 or more ;
but if they do issue a bill of lading it must be stamped ;
the tax will be paid by the person paying the freight unless
otherwise agreed. Railroad, express, and street car com-
panies may, if they prefer, with the authorization of the
Department of Hacienda, make their payments in cash
directly to the Treasury, which will fix the amount to be
paid upon the basis of verified returns, but reserving the
760 COMPENDIUM OF MEXICAN LAW.
right to require the rate on each document under Section
30 of the Tariff; the rate on such cash payment will be $7
per thousand, payable bi-monthly in advance within the
first ten business days of each period, and deducting any
amounts of freight paid by the Federal Government, or
occasioned by carrying materials owned by the company, and
the value of any stamps charged to the shippers.
Where a new carrier begins business, or a new section of
railroad is opened during the fiscal year, and wishes to-
make payment of taxes in cash as above, it must notify the
Principal Tax Office and secure the authorization of the
Department of Hacienda, if not already obtained for exist-
ing lines, and must within the first fortnight of the fourth
month file a statement of its receipts for the first three
months, upon the basis of which the Department will fix
the tax to be paid, from the time of opening business.
In cases where the direct carriage corresponds in part to
national and in part to foreign lines, and in those where the
freight charges are partly within the exemptions of clauses
A. and B. of Section 30, the amount of carriage or freight
subject to the tax will be stated in the bill of lading or
receipt, and the tax must be paid on one-half the total amount,
although the proportion is less.
The tax must be paid on freight carried in street-cars or
by any other means of transportation, where carried by con-
tract with and under the responsibility of the carrier, but
not where it is carried at the owner's risk in vehicles hired
for the purpose, in which event only the tax on the con-
tract itself is required. Small carriers not required to keep
stamped books of account must however keep the book re-
quired by clause 4 of Section 56 of the Tariff. (See
" Books of Account.") (Arts. 120-127.)
CONTRACTS.
Art. 1075. When Subject to Tax. It is optional with
the parties to execute in writing or not the contracts not
STAMP TAX LAW. 761
specified in the Tariff, provided they do not involve the
transfer of real property or rights, so that the rates pre-
scribed in Section 31 are only payable when the parties vol-
untarily reduce such contracts to writing in whatever form;
said Section including contracts in regard to the temporary
use of waters, the creation of easements, the furnishing of
electric light and power, including the necessary work of
connections; the execution of lithographic, typographic and
photographic works and of book-binding; dentistry work,
works of all kinds subject to payment of toll, lodging, and
generally all kinds of contracts not specified in the Tariff;
but if the houses, establishments or shops doing such kinds
of work also sell merchandise whether of their own line of
business or otherwise, such sales are subject to the rules in
respect to compraventa. (Arts. 128-130.)
Art. 1076. Donations How Taxable. Donations subject
to " resolutory " conditions pay the same as if uncondi-
tional ; where the condition is " suspensive," one-half the
tax is payable when the donation is made and the balance
when the condition is fulfilled ; no part of the tax paid is
refundable upon the revocation or reduction of the donation
for any cause. If the gift is of the bare title with reserva-
tion of the usufruct, the donee will pay one-half the tax
when the gift is made and the balance when the usufruct is
extinguished; if the gift is of the usufruct with reserva-
tion of the title, the tax is payable only on one-half the value
of the property; if the title is given to one person and the
usufruct to another, each will pay one-half the tax. (Arts.
140-143.)
ESCRITURA PfJBLICA.
Art. 1077. When and How Stamped. Whenever a con-
tract is made by escritura publica, the stamps for which have
not been affixed on the minute of the contract or other docu-
ment, as provided by law, the proper tax will be paid by
affixing the stamps on the liquidation-note which the notary,
762 COMPENDIUM OF MEXICAX LAW.
escriLano or judge acting as such remits to the Stamp Office;
if the tax has already been paid in whole or part, the notary
will certify the fact at the foot of the escritura, stating the
document on which the stamps are affixed and their amount ;
if such amount is insufficient, the difference must be paid
on the liquidation-note. Xotaries and other officials must
cause their instruments to be properly stamped under their
responsibility, and in cases of doubt must submit the ques-
tion of rate to the Hacienda. The liquidation-note sent to
the Stamp Office must contain the statement of the amount
of tax payable, stating the number of the escritura in its
proper order, its date, the kind of contract and the amount
involved, the number of sheets it occupies in the protocol,
the Section of the Tariff applicable to the case, the names
of the contracting parties, and the amount to be paid for
tax. The Stamp Office will limit itself to receiving the
payment made by the parties and to affixing and cancelling
the corresponding amount of stamps on the nota, returning
it at once duly receipted ; if it should be of opinion that a
higher rate should be paid it will notify the Hacienda.
Tf less stamps than the contract requires have been can-
celled on the minute, the nota will be issued for the differ-
ence between the amount paid and that required by the
Tariff, also in cases where in an escritura of partition a
greater value is put on the property than in the inventory or
accounts, or a higher value is put on property for the pay-
ment of annuities under wills or donations, than that taken
as the basis for payment of the tax; in the latter cases if
the greater value of the property is determined after the
escritura is authorized, the proper rectification will be made
in the same protocol and a supplemental nota containing the
balance of the tax will be sent to the Stamp Office.
Payment must be made within one month after the instru-
ment is begun to be extended in the protocol, regardless of
the time when it is signed by the parties, and it cannot be
authorized by the notary until the nota with the stamps and
STAMP TAX LAW.
YG3
voucher of payment are returned ; if the payment is not
made within the month, except only where the question of
proper rate is pending in the Hacienda, it cannot be, after-
ward received, and the notary must, under penalty of five
hundred pesos, mark the escritura " Xot passed " (No paso},
and it can in no event be revalidated, but the protocol tax
must be paid on it; if the parties wish to proceed with the
contract they must execute a new escritura. Within the
time allowed for payment the notary may issue a supple-
mental nota or rectify the one previously issued if erroneous,
without being subject to penalty, but after that time he cannot
do so except in the cases of overvaluation above mentioned,
or when because of error in the rate he is required to reval-
idate the escritura.
When the nota and voucher of payment are returned, they
will be protocolized along with the escritura, or added to the
appendix where the protocol is kept in books already bound
and paged, in which case the notary will note in the escri-
turas the page where they are recorded ; the nota and voucher
will be copied in full in all certified copies of the escritura
issued. Simple ratifications, rectifications and explanations
of an escritura already stamped, only pay the protocol tax ;
also an acceptance made separately from the original contract
duly stamped. (Arts. 144-154.)
RAILROADS.
Art. 1078. Railroads and other carriers must file with
the proper Stamp Office a statement of their receipts for pas-
senger service during the previous civil year, indicat-
ing any amounts paid by the Federal Government; and
the Department of Hacienda, upon verification of its
correctness, will fix the amount on which tax must be paid,
which payment must be in cash by bi-monthly periods in
advance within the first fifteen days of each period. Where
any now carrier begins business or opens a new branch within
the fiscal year, it must at once notify the Stamp Office, and
764 COMPENDIUM OF MEXICAN LAW.
within the first fifteen days of the fourth month it must file
a statement of its receipts for the first three months, as the
basis upon which the Hacienda will fix the proportional
amount upon which taxes will be paid during the remainder
of the year. If the traffic is suspended, notice will be given
the Stamp Office so that it may fix the proportion of tax
which will be paid, as in the case of retail sales ; if such
notice is not given the company must continue paying the
tax although the traffic was suspended. (Arts. 155-157.)
IXIIEKITAXCES AXD LEGACIES.
Art. 1079. The tax will be paid by the executors or
those making the distribution and charged against the sev-
eral shares, the stamps being affixed and cancelled by the
parties on the partition account, before its approval by the
judge, who will require it to be done ; in cases where heirs
may withdraw from the probate proceedings, the judge
will not permit their withdrawal until the inventory is ap-
proved and the tax paid on the true net value of the estate,
which will be done by affixing the stamps to the copy of the
inventory which is on file in the proceedings, as also in
cases where there is no partition account ; the judges before
whom any probate proceeding is brought must give notice
to the proper Stamp Office within eight days. For the pur-
pose of taxation the heirs must make an inventory although
the testator otherwise provides ; likewise in regard to real
estate in Mexico although the proceedings are had in a
foreign country. The tax will be paid on the net value
of the estate, that is, after deduction of debts and three per
cent, for expenses ; if not paid within three years after the
death of the deceased, the date of which must always be
stated, a penalty of ten per cent, for each subsequent year
or fraction of a year will be imposed. The Executive may
appoint special commissioners who, without the consent of
the, local authorities, may inspect the court records and
take proper steps to insure payment of the tax. Conditional
STAMP TAX LAW. 765
inheritances and legacies, and those of the bare title or of
the usufruct, are subject to the rules regarding donations.
A legacy of a life annuity will be capitalized at ten per
cent, a year, and the tax will be imposed on the resultant
amount as provided in Section 48, and the amount will be
deducted on computing the rate to be paid by the heir or
legatee charged with the payment of the annuity. Where
the taxes have been paid as therein provided, on the inven-
tory or partition account, no other tax will be paid upon
executing the escritura of partition than the protocol tax,
except as provided in Art. 1077 in respect to the overvalu-
ation of the property of the estate. (Arts. 158-164.)
J3OOKS OF ACCOUNT.
Art. 1080. Stamped Books By Whom and How Kept.
In order to determine whether a merchant must keep
stamped books as provided in Section 50, the assets of his
commercial business and not his other property will be con-
sidered, but if he has several establishments whose com-
bined capital is $2,000 or more, although separately less,
he must keep stamped books. If the Stamp Officials have
data indicating that any one ought to have stamped books,
and the latter claims exemption, they may require from the
local tax office a statement of the amount of taxes paid to
the State or municipal government, and if the amount of
assets cannot be determined in this way, they may have re-
course to the evidence of experts in the juicio pencial, or
expert inquest, and if the party interested fails to appear in
the proceeding, he will be bound without further recourse
to keep stamped books, although the capital which he uses
belongs to other persons. The branches of any establish-
ment which keeps stamped books are required to keep only
the special sales book when they are engaged in making
sales at retail or wholesale. Farmers, artisans and in
general all who have a 'store or shop in town for the sale of
the products of these country estates or of their industry or
766 COMPENDIUM OF MEXICAN LAW.
work, must keep the books required by law, but are exempt
if they do not maintain such store or shop.
The account and sales books must be presented in blank
to the Stamp Office to be authorized ; the authorization must
be written and stamps for the amount of the tax must be
affixed and cancelled on the first page, and the seal of the
Office impressed on the other pages ; when new books are
brought in to be authorized, the former ones must be pre-
sented to show that they are filled up or nearly so with the
proper entries. All books must be kept in Spanish, and
always at hand in -the office, store or shop, and the princi-
pal Stamp officials are empowered to impose the penalties
and enforce the requirements provided in the Code of Com-
merce (Art. 571). Uooks once authorized may continue to be
used after the time fixed for the currency of the stamps used
in them, provided there has been no total suspension of
entries during the year, in which event they must be reval-
idated by payment of the quota corresponding to the blank
pages, or new books must be authorized ; in respect to bal-
ances and inventories the suspension may extend to two
years. If the books are not used during the legal term of
the stamps, except where authorized within the last three
months of the fiscal year and which may be used during the
next year without invalidation, they are considered as not
stamped, and their owners are subject to the duties and
penalties prescribed by law. Where an establishment is
removed, although into another revenue district, or changes
owners or business-name, the books already authorized may
continue to be used. (Arts. 107-175.)
Art. 1081. Memorials. Officials and employes making
petitions in private matters must do so by memorial prop-
erly stamped, but consular petitions presented to customs-
houses are considered official and not subject to stamp;
memorials sent from foreign countries by mail directly TO
public authorities will be admitted without stamps, but if
STAMP TAX LAW. 767
presented by some one authorized for the purpose or after-
wards appointed to represent the petitioner in the matter,
he must pay the proper tax. (Arts. 178-179.)
Art. 1082. Minutes of Contracts. Only minutes executed
before or deposited with notaries, where the contract is
required to be in escritura piiblica, are subject to the tax; if a
public instrument is not necessary under the civil law, and
the contract is contained in the minute so deposited, the tax
corresponding to the private contract will be paid at the time
upon the minute, and if afterwards it is transferred to escri-
tura puUica, the requirements in such cases provided in
Art. 1077 will be observed. (Art. ISO.)
Art. 1083. Powers of Attorney. To determine the rate
to be paid where there are more than two parties to a power,
the capacity in which a party appears will be taken into
consideration, so that if one person executes it for himself
and as the representative of another, he will be considered as
two parties, except where by virtue of law he represents
various persons, in which event, and in cases of joint agency,
he is considered as a single party. The tax on substitutions
made in accordance with law on the foot of the certified
copy of the power, will be paid by attaching the stamps
to the page on which it is written, or in the legal proceedings
in which it may be made, and all subsequent substitutions
will pay the same rate. (Arts. 181-183.)
Art. 1084. Insurance Premiums. Premiums and policies
of reinsurance pay the same rate as those of insurance, pen-
alties (recargos~) being considered as premiums for taxing-
purposes. Companies and individuals engaged in insur-
ance must pay each six months the tax upon the amount
of receipts during the past six months, affixing the stamps
to the statement filed, which will be verified by the Stamp
officials from the account books of the tax-payer; insurance
768 COMPENDIUM OF MEXICAN LAW.
companies may pay their policy and premium taxes directly
in cash if so authorized by the Hacienda. Business houses
not engaged in the insurance business, but which with the
permission of the Hacienda insure specified merchandise
against maritime risks for their regular customers, will pay
the tax by means of coupon stamps which must be attached
in all cases to receipts taken from stub-books, the principal
part of the stamp being cancelled on the receipt and the
coupon on the stub in the book. (Arts. 184-187.)
Art. 1085. Loans of Money. The renewal of loans evi-
denced by cscritura publica, made before maturity without
alterations of the terms of the original contract, are not con-
sidered for taxing purposes as a new loan and will only pay
the rate of 20 cts. per $100 or fraction as provided in clause
1 of Section 31 of the Tariff, although the debt is secured
by mortgage. The rate provided by Section 84 must be
paid on escrituras piiblicas providing for the issuance of
bonds and on documents authorizing the issuance of obliga-
tions against any company or concern, besides the rate pro-
vided by clause 1 of Section 15 when the same are put into
circulation. (Arts. 188-189.)
Art. 1086. Protocol. When a page of the protocol is once
legalized it may be used throughout, whether for one or more
escrituras, and although the period of legal currency of the
stamp is expired, provided that some instrument was entered
in it during the currency of the stamp. (Art. 190.)
Art. 1087. Protocolization. The provisions of Art. 1077
in regard to cscritura p'liblica are applicable to protocoli-
zation. Foreign corporations wishing to protocolize their
by-laws and documents, must prove to the satisfaction of the
Hacienda, in order to enjoy the privileges of clause 2 of
Section 89, that their principal place of business is in the
STAMP TAX LAW. 701)
foreign country and that they are conducting business there.
(Arts. 191-192.)
Art. 1088. Eeceipts. A receipt must be demanded arid
issued, duly stamped, for every delivery of money or payment
in cash or securities, subject to tax under Section 90; but
private persons and those not required to keep a book of
sales, need not issue receipts for payments less than $20, nor
merchants who do keep such books, for like sales when the
payment is made in the store or shop at the time of the
purchase ; but if a receipt in any form is issued it must pay
the tax unless within some of the exemptions of said Sec-
tion 90. .Notwithstanding the provisions of clause II of said
Section, if the payment or delivery of money or securities
is made by a third person, on account and order of a house
or person domiciled in another place, the letter, receipt or doc-
ument which must necessarily be issued as a voucher for such
third person making the payment, must be stamped at the
rate prescribed for bills of exchange. To determine the tax
on receipts issued for payments made in securities, the latter
will be taken at the valuation given them by the parties in
the contract out of which the payment arose, and if no such
valuation was made, then at their par value. When original
receipts must be sent away, or it is wished for any reason
to keep copies, they must be presented at the Stamp Office,
and upon it appearing that the original is properly stamped,
the copies will be legalized by the seal of the office, a note
being made on them of the fact. (Arts. 193-196.)
COMPANIES AXD CORPORATIONS.
Art. 1089. The tax on companies is only payable on the
net capital contributed by the members, and when once paid
on the escritura of association, those by which the members
make their contributions, even of real estate, are only subject
to the protocol tax. Escrituras of association which provide
for future increase of capital, pay upon the original capital,
4!)
770 COMPENDIUM OF MEXICAN LAW.
and when the increase is made pay the corresponding tax
on the escritura or documents protocolized in relation thereto;
the tax will be paid on the increase, with the proper reduc-
tions in view of the amount of the old and new capital ;
reorganization is only subject to tax in case increase of cap-
ital results, and then only on the increase, except where other
taxable operations are involved. In partnerships between
capitalist and industrial partners, only the capital contrib-
uted by the former is subject to tax, the right of the latter
to participate in the profits not being figured in the firm
assets. The consolidation or fusion of two or more com-
panies is not subject to tax, whether a new company results
or one of the former ones absorbs the others, except where
increase of capital or other taxable operation results, in
which event the corresponding tax must be paid ; likewise in
cases of the coming in or retiring of members, which does
not necessitate a ne\v company, but in proper cases the pro-
visions in regard to dissolution of companies will be ob-
served. The simple extension of the company existence,
agreed upon before the time has expired, is only subject to
the protocol tax ; but if agreed on afterwards, or if the mem-
bers are changed or the terms of the original contract sub-
stantially modified, it will be considered a new company and
the corresponding taxes must be paid. (Arts. 11)7-205.)
CHAPTER 4.
CF.XKKAL nn.ES IX IJEGAKI) TO THE COMMOX STAMP TAX.
Art. 1090. Foreign Documents Revalidation.
lO'll. Who Must Pay Tax.
100-2. Methods of Detonninin-- Values.
Art. 1090. Foreign Documents Revalidation. 'Notwith-
standing the provisions of clause -2 of Art. 10.">9, contracts
made abroad and documents in regard to payments made
STAMP TAX LAW. 771
abroad on account of the Federal Government, and intended
to have only administrative effects in the Republic, are
exempt from tax, as also are contracts and documents which
have paid consular fees as provided by law ; as to memorials,
see Art. 1081. Foreign documents produce effect in Mexico,
for purposes of taxation, when they must be presentee! be-
fore any public office or authority, when they must be pro-
tocolized or registered, or are presented for acceptance or
collection ; also whenever they are to be performed wholly
or partly in Mexico ; such documents must be stamped by
the person making use of them. Where the form and
denomination of such foreign contracts are not clearly defined
in Mexican law, they must be submitted to the Department of
Hacienda for its decision as to the rate of tax to which it
is subject by analogy to the contracts embraced in the Tariff.
(Arts. 211-213, 215.)
Art. 1091. Who Must Pay Tax. Concessions and con-
tracts entered into between official authorities or bodies of
the Republic are not subject to tax, but those between the
Government and private persons are subject to the tax,
which must be paid in every case by the private contracting
party. As a general rule the tax must be paid by the party
issuing the document, unless otherwise provided by law
or agreed between the parties, but such agreements cannot
relieve the parties from their several liability to the govern-
ment for the payment of the tax ; the tax on foreign docu-
ments must be paid by the person making use of them.
(Arts. 214-215.)
Art. 1092. Methods of Determining Values. In transac-
tion- for which the Tariff fixes the rate only for determined
values, tin 1 parties must, express in the instrument the value
and other circumstances of the transaction affecting the tax
so that it may be properly taxed, and if such valuation appears
to he fictitious the parties are subject to the penalties pro-
772 COMPENDIUM OF MEXICAN LAW.
vided for partial failure to pay the tax. Contracts involv-
ing not to exceed one million pesos will pay the full rates
fixed by the Tariff; if in excess of one million but not ex-
ceeding five million, the Tariff rates will be paid on the first
million, and half such rates on the excess ; and if exceeding
five millions, the first five million will be taxed in the fore-
going proportion, and on the excess at the rate of ten per
cent, of the rate on the first million ; this rule applies also
to the concessions embraced in clause 4 of Section 29, but
not to leases, articles of association and matrimonial capitu-
lations, which in all cases will pay the Tariff rates. In
contracts not specified in the Tariff, providing for periodical
payments which must be taken as the basis for the payment
of the tax, the amount of such payments for not exceeding
five years will be taken as the basis, but where the time
is indefinite the tax will be paid on one annual payment.
Interest will not be considered in computing the tax unless
where past due interest is compounded or is the principal
object of the contract. Except as provided in Art. 1070 in
case of donations, the tax must be paid on conditional con-
tracts as if they were unconditional and taxes paid will not
be refunded upon failure of the condition. Where a con-
tract states both determined and undetermined values, the
proper rate will be paid on the former, and one peso fur
each sheet of the document if in escritura piiblica or fifty
cents if not, unless the Tariff also fixes the rate for indeter-
minate values. Except as provided for surety contracts,
where several transactions or contracts intimately related
and subject to tax are contained in one document, the tax
will be paid only on the one causing the highest rate or on
one of them if several pay the same rate; if they are not inti-
mately related the tax will be paid on the total amount
involved in the document; among other instances of such
intimate relation with the principal contract are provisions
relating to the subject-matter of the contract itself, or mod-
ifvinir its natural conditions, or in regard to such incidental
STAMP TAX LAW. i t o
conditions as retroventa, penal clauses, liquidated damages,
the dereclio del ianio, and similar matters; like rules apply
to the protocolization in the same act of foreign documents
relating to contracts and transactions intimately connected,
although appearing in different documents executed on dif-
ferent dates. (Arts. 216-223.)
CHAPTER 5.
USE AND CANCELLATION OF STAMPS.
Art. 1093. Tax per Sheet Sixe of Paper.
1094. Coupon and Common Stamps.
1Q95. Cancellation of Stamps How and By Whom.
1096. Neglect to Cancel Defective Cancellation.
Art. 1093. Tax Per Sheet Size of Paper. The sheet of
paper for documents taxable by the sheet,, including protocols,
must not exceed 35 centimeters in length by 24 in width,
regardless of the dimensions of the written part, and the
number of written and printed lines on both sides
cannot exceed eighty ; sheets of greater size or num-
ber of lines will pay double the rate; excepted from
these requirements are account books and other books author-
ized under Section 50, customs-house documents and others
permitted by law to have other dimensions, balances, and
statistical documents in tabulated form, all which pay the
single rate per sheet of whatever dimensions and number of
lines. In determining the amount of tax payable on acts
and contracts taxed per sheet, the number of sheets on which
they are written will be counted, although not fully covered
and although the tax has been already paid on another act
or contract written partly on the same sheet, but not count-
ing the words usually written at the bottom of a page to
connect it with the following; the full rate will be paid on
all copies of such document, except copies required by law
to be made for use in public offices, those which under this
774: COMPENDIUM OF MEXICAN LAW.
law may be legalized by the use of coupon-stamps, and dupli-
cates to be presented before some public authority or office,
the originals of which are duly stamped. (Arts. 224227.)
Art. 1094. Coupon and Common Stamps. On contracts and
concessions executed in duplicate in documents other than
escritura publica, and subject to tax on the value, coupon-
stamps must be used, affixing the principal part of the stamp
on one copy and the stub on the other, such fact being noted
at the foot of the document, other copies if any being legal-
ized as provided in Sec. 54 of the Tariff; but duplicates
and other copies of documents issued to be presented with
the originals duly stamped ad valorem before public offi-
cials for proving accounts do not need to be stamped or
otherwise legalized ; with the exceptions herein provided,
all duplicates must pay the same rate as the originals.
Common stamps with or without coupons may be used indis-
criminately, but the former must be affixed entire except
in cases where this law requires them to be divided for use
on duplicates or stub-books ; coupon-stamps may be used on
receipts, drafts, notes, etc., where the parties wish to keep
stub-books bound and paged, affixing the principal part of
the stamp on the document and the coupon on the stub,
which must contain a statement of the transaction. If by
mistake of the parties or notary a greater amount of stamps
than required is cancelled on an instrument, the excess cannot
be refunded, but the notary may be required to reimburse it
if he is at fault. (Arts. 228-233.)
Art. 1095. Cancellation of Stamps How and By Whom.
Stamps and coupons used separately must be cancelled In-
hand or seal, or may be by perforating seal, which form
must be used by the federal revenue offices ; expressing in
all cases the date and place, and the name of the person,
concern or office making the cancellation, which must cover
all the stamps and extend on both sides on the paper to
STAMP TAX LAW. 775
which they are affixed. Except as otherwise provided,
the cancellation must be made : 1, On private documents,
by the party executing them ; 2, on drafts and bills of ex-
change, by the drawers ; 3, on notes given for sales on time,
by either buyer or seller; 4, on the pages of the protocol,
by the notary or judge acting as such ; 5, in other cases
herein provided, by the judges, notaries or chiefs of office
charged with the legalization or invalidation of proceedings
or documents ; G, on the boletus issued for retail sales, by
the seal of the firm or the name of the owner, with the
other requirements above specified. Stamps imprinted by
the Printing Office under authority of the Department of
Hacienda, directly upon the documents enumerated in Art.
10GO, do not need to be cancelled. (Arts. 234-236, 239.)
Art. 1096. Neglect to Cancel Defective Cancellation.
Where a document is properly stamped, but one or more
stamps are not cancelled or are defectively cancelled, without
any indication of fraud, the office receiving the document
will cancel such stamps without imposing any penalty,
except in case of bolctas of sale, the stamps on which
must be cancelled in strict observance of the manner herein
prescribed, and every failure to cancel or irregular cancella-
tion of which is subject to penalty. Where a document
appears without stamps, but it is evident that it had been
properly stamped and cancelled, and no indication of fraud
appears, the official to whom the document is presented
may record the fact and the circumstances proving it, and
affix his seal in the place where the stamps had been affixed,
without imposing penalty. (Arts. 237-238.)
776 COMPENDIUM OF MEXICAN LAW.
CHAPTER 6.
EEVALIDATION OF UNSTAMPED DOCUMENTS.
Art. 1097. When Revalidated Double and Triple Rates.
1098. How Revalidated.
1099. Effects of Failure to Stamp and of Revalidation.
Art. 1097. When Kevalidated Double and Triple Rates.
Any book or document, except escrituras publicas, wanting
any or all the stamps it should have, may be voluntarily pre-
sented within eight days after its date to the Stamp Office,
which will revalidate it by affixing and cancelling stamps in
double the amount missing, upon receipt of their value,
the usual time required for the mails being added to the
eight days where the document is presented at a place other
than where it was executed ; if presented after such time,
but within one year from its date or that of the first entry
in the book, it will be revalidated upon payment of three
times the rate. In the above cases no penalty w r ill be im-
posed provided that the presentation is voluntary, that the
omission had not previously been discovered by any official
or empolye, nor reported, and that no official visit of inspec-
tion against the delinquent had been undertaken or announced,
in all which cases the invalidation will be made through the
recovery of the taxes omitted and the imposition of the
prescribed penalties. Documents executed prior to the law
of 1 December, 1874, on unstamped paper, are regarded
as validated by law, and those executed since may be reval-
idated as above provided on the terms herein prescribed ; if
the document were not taxed it need not be revalidated.
(Arts. 240-243.)
Art. 1098. How Revalidated. In all cases of invalidation
the proper stamps will be affixed to the document and can-
celled by the Office, a statement to that effect will be re-
STAMP TAX LAW.
777
corded on the document and signed by the Stamp Agent
under the seal of the Office ; such invalidation may be made at
any office, although the document comes from another revenue
district ; in case of escritura publica the stamps will be
affixed to the supplemental nota. If there are no stamps at
any place the document or book will be presented to the Stamp
Office and will be legalized upon the payment of the amount
due, and an order of legalization signed by the chief of the
Office, who will issue to the interested party a certificate
of payment in cash because of want of stamps; such legali-
zation will only be effective for two months, after which
time the document or book will be considered as unstamped
unless the proper stamps are affixed to it ; for this purpose
the parties must go within the two months to the Stamp
Office and exchange the said certificate for stamps which will
be supplied without other payment and will be affixed and
cancelled by the Office to the document or book ; if it is not
in possession of the party asking its legalization, he will
get the stamps in exchange for the certificate and send them
to the person holding the document that they may be affixed
and cancelled in legal form. (Arts. 244, 246247.)
Art. 1099. Effects of Failure to Stamp and of Revalidation.
Xo instrument or book not legally stamped, or which in-
volves an infraction punishable under this law, shall be
evidence for any purpose in or out of court, nor be given any
effect, nor can it be registered or admitted by any public
authority, office or employe ; but upon payment of the omitted
taxes it will be held as revalidated and be given effect,
although fines which might be imposed have not been paid ;
but escrituras publicas marked " Xot Passed " are not sub-
ject to invalidation. The revalidation of any document only
implies the recovery of the stamp tax and does not in any
wise affect its character and validity in law as the basis of
any action or defense. (Arts. 245, 248.)
78 COMPENDIUM OF MEXICAN JLAW.
CHAPTER 7.
FEDERAL CONTRIBUTION".
Art. 1100. What Subject to Kate.
1101. Exempt from Federal Contribution.
1102. Payment of Federal Contribution.
Art. 1100. What Subject to Rate. On every payment
made on any account whatever into the revenue offices of
the States and Municipalities, there will be paid in addi-
tion, for the use of the Federation, twenty (20^/r) per cent,
of its amount, which must be paid in special stamps called
" Federal Contribution Stamps." When such payments
arise from fines, abandoned property, escheats, treasure-trove
or anything other than the payment of a tax or duty in some
form, the federal contribution is included in such payments,
of which amounts sixteen and two-thirds per cent, will be paid
in the above stamps. In cases where the State or Municipal
government farms out or contracts the collection of any
of its taxes, the twenty per cent, of federal contribution
will be collected in addition upon the sum stipulated in the
contract, as the payments are made, without the separate
collection of the same from the taxpayer by the contractor,
nor is he required to cancel stamps for each collection of
local revenue which he makes, although he is considered
subrogated to the attributes of the revenue office. (Arts.
240-251, as amended 27 May, 1907.)
Art. 1101. Exempt from Federal Contribution : Revenues
belonging to the Federation and to the municipalities of the
Federal District and Territories ; deposits not on account or
in guaranty of payments which may in some way be subject
to the contribution according to the preceding Article; pay-
ments for the part of the price of baldios which is applied
to the States according to law; payments arising from mili-
STAMP TAX LAW. 779
tary or civil rooms in hospitals; reimbursements; payments
made on account of records of the Civil Register ; the tuition
of students in establishments of public instruction, and the
income from funds of such establishments and those of public
charity ; income received by States and Municipalities from
their property or lands, the proceeds of its sale or of the
products of its establishments, or arising from its financial
operations ; gifts to any official work of charity of the States
or for objects of public interest in the opinion of the Depart-
ment of Hacienda; ground rent not exceeding 75 cts. daily
in public markets ; receipts from fees for authorizing and
verifying weights and measures; receipts from distribu-
tion of water and for use of woods and pastures ; penalties
or surcharges for default in payment of local taxes ; pay-
ments of four cents or under ; all capitation or poll-taxes
amounting to less than 25 cts. a month, subject to the
detailed provisions which are omitted as of negligible im-
portance. (Arts. 252-255.)
Art. 1102. Payment of Federal Contribution. The federal
contribution must be paid immediately that the local payment
is made, in whatever form or portion it is made, and in all
cases must be paid by special coupon-stamps, resealed by
the Principal Administrators of the Revenue, the matrix
of the stamps being affixed to the voucher of payment, and
the coupons remitted to the Principal Stamp Offices, both
matrix and coupon being cancelled with perforating seal
or that of the office receiving the payment. (Art. 25G;
the remaining Articles up to 2(55 are omitted as containing
only administrative features of accounting in the Stamp
Offices.)
780 COMPENDIUM OF MEXICAN LAW.
CHAPTER 8.
SPECIAL TAXES AND DUES PAYABLE IN STAMPS.
Art. 1103. Special Stamp Taxes.
Art. 1103. Special Stamp Taxes. The following taxes and
dues will be paid in accordance with the laws on the subject
at present in force, and those which may be promulgated
in the future, by means of special stamps or common stamps
bearing a special seal:
I. Annual mining tax. (Law of March 25, 1905.)
II. Tax on gold and silver. (Law of March 25, 1905,
and decrees of November 23 and 24 of the same year.)
III. Tax on yarn and cotton fabrics. (Law of November
17, 1893, and decree of October 30, 1902.)
IV. Tax on manufactured tobacco. (Law of December
10, 1892, and decrees of May 12, 1896, May 7, 1903, and
May 20, 1904.)
V. Tax on alcoholic liquors manufactured by the dis-
tilling process. (Law of May 4, 1895, amended by Art.
3 of the law of June 20, 1905, and decrees of May 7, 1903,
and .May 11, 1905.)
VI. Tax on dynamite and explosives. (Decree of Feb-
ruary 21, 1905.)
VII. Dues on patents of invention. (Law of August 25,
1903, issued by the Department of Fomento, and Regulations
of September 24, 1903.)
VIII. Dues on trademarks. Law of August 25, 1903,
issued by the Department of Fomento, and Regulations of
September 24, 1903.)
IX. Dues on weights and measures. (Regulations of the
law of June G, 1905, issued by the Department of Fomento
on November 10 of the same year.)
In cases not provided for by the laws and Regulations in
regard to the taxes and dues above enumerated, the provisions
of this law will be observed whenever applicable. (Arts.
2 HO L'07.)
STAMP TAX LAW. 781
CHAPTER 9.
VIOLATIONS, FRAUDS AND PUNISHMENTS.
Art. 1104. Classification Simple Infractions.
1105. Same Sections II and 111.
1106. Uncurrent Stamps Invalidation.
1107. Infractions with Criminal Liability.
1108. Repeated Offenses Prescription.
Art. 1104. Classification Simple Infractions. Liabili-
ties for failure to comply with the provisions of the Stamp
Law are of two kinds: 1, Simple infractions; 2, infrac-
tions with criminal liability. Simple infractions are com-
mitted r I, By' failure to observe the formalities and
requisites of this law ; II, by lack of vigilance in compliance
therewith ; III, by failure to pay the tax. Liability under
Section I is incurred by : 1, Those failing to properly cancel
the stamps on boletas f books and documents, except as pro-
vided in Art. 1096 ; 2, those using stamps of a different kind
than required by law or with the re-stamp of another revenue
district ; 3, those presenting inaccurate statements, where
the error is discovered before the boleta is issued or before
the tax is payable, except as provided in Art. 10GT; 4,
those failing to give notices or to present books, boletas or
documents within the required time ; 5, those failing to make
proper entries in their books in the time and manner re-
quired ; C, those failing to keep their boleta or certificate
of exemption in a visible place ; 7, those failing to keep the
required books accessible in their establishments ; 8, those
failing to comply with any other requisite or formality not
above specified ; the foregoing infractions are punishable
by a fine of from one to one hundred pesos for each violation.
(Arts. 2G8-271.)
Art. 1105. Same Sections II and III. Simple infrac-
tions under Section II are committed by public oiticials and
782 COMPENDIUM OF MEXICAN LAW.
employes who admit or give effect to any documents or books
not properly stamped, or permit same to be registered, or fail
to cancel stamps, or pay out public money or transmit tele-
grams, on unstamped documents, or fail to give the notices
required by law, or fail to require stamps on foreign docu-
ments, and by judges who fail to require the proper stamps
in matters of inheritance ; the penalty for such infractions
under Section II is a fine of five times the value of the
stamps omitted where their value can be determined, pro-
vided such fine is not less than one peso nor exceeds five
hundred, and where the amount of stamps cannot be deter-
mined, the fine will be from one to five hundred pesos.
Under Section III simple infractions are committed by:
1, Those who fail wholly or in part to purchase the stamps
required for any document ; 2, those who fail to execute any
receipt, invoice or other document subject to tax which they
are required to issue, and those who fail to demand the
same when it is their duty to require it ; 3, those who
execute any document subject to tax, although its execution
is optional, and fail to stamp it : 4, those who fail to file
returns and pay the tax, or who file returns for less than
their sales books show, where the tax is assessed on that
basis, except in cases of retail boletas issued as provided in
Art. 1005, and those who fail to affix and cancel the proper
stamps on such bolcfas within the legal time: 5, those who
make entries of retail or wholesale sales in less than their
actual amount, unless they correct the same as provided in
said Art. 100."): (Clauses 4 and 5 are as amended 27 May,
I'.'OT): 0, those who fail to revalidate within ten business
lays from the expiration of a year of suspension: 7, those
who fail to secure their bolcta-s and to return them properly
stamped within the times required : S, those who use on
their boletas, documents and books stamps which are not
current at the time they should have been stamped ; 0, those
who fail to keep books or keep them \vithout stamps, con-
trary TO this law, or destroy them to prevent official inspection ;
STAMP TAX LAW. 783
10, carriers of passengers and freight who do not pay the
tax within the legal time; 11, officials, employes and pen-
sioners who collect their salaries or pensions without the
proper stamped documents. Likewise included under said
Section III of the preceding Article are : 1, Professional per-
sons received in official schools who exercise their profession
without properly stamped diploma ; 2, notaries, brokers and
commission-merchants intervening in any transaction without
requiring payment of the proper tax ; also notaries, escribanos
and judges acting as such who fail to exact the correct rate
prescribed by law, and brokers who authorize minutes of
contracts, issue copies of same, or offer them for registration
without the proper stamps ; 3, officials or employes violating
any of- the provisions of law in regard to the federal contri-
bution ; 4, those who retain in their possession uucancelled
stamps of an old issue after the time when they can be
exchanged for stamps of the new issue; 5, those who while
not personally bound to stamp a document, receive or retain
the same not properly stamped. The penalty for all viola-
tions under Section III is a fine of ten times the amount of
the omitted stamps, but not to be less than one nor more than
five hundred pesos where the value of the stamps is deter-
minable, and where the amount cannot be determined, then
from five to three hundred pesos. (Arts. 272-276.)
Art. 1106. Uncurrent Stamps Revalidation. Documents
bearing stamps of a different class from that required for the
tax, may be invalidated upon payment of a fine in amount
to be determined by the following proportions: 1, If the
stamps do not exceed $1, by paying double their amount;
2, if from $1 to $4, by a fine of $1 ; 3, if exceeding $4, by a
fine equal to 25*/c of their value up to $100; if exceeding
$100, the tine will be $100; where the stamps have the
restamp of a different revenue district than that in which
the document was executed, it will be invalidated upon pay-
784 COMPENDIUM OF MEXICAN LAW.
rnent of like fines, except without the maximum limit of
amount. (Arts. 277-278.)
Art. 1107. Infractions with Criminal Liability. Are com-
mitted by: 1, Those who keep two or more sets of books,
including sales books, whether authorized or not, for the same
business, with different entries in them; 2, officials or em-
ployes who having received stamps for a document or book
fail to affix and cancel them, or remove those affixed to
documents in their possesion by reason of their official posi-
tion ; 3, those who sell or use stamps which have been used
on other documents or books, by washing, scraping or alter-
ing them ; 4, those who fraudulently and by reason of their
official position, affix to boletus or other documents incom-
plete stamps of a different value than is due ; 5, escribanos
who falsely certify to the proper stamping of any contract
or document ; 6, those who defraud or assist in defrauding
the revenue through any of the acts punished by the Penal
Code ; 7, officials or employes charged with the collection of
the federal contribution who fail to require its payment.
The foregoing violations will be punished by a fine of
twenty times the amount defrauded, provided the fine be not
less than one nor more than five hundred pesos, or from five
to fifty pesos where the amount defrauded cannot be deter-
mined, without prejudice to criminal liability under the
Penal Code and irrespective of the judgment rendered.
(Arts. 279-280.)
Art. 1108. Repeated Offenses Prescription. Administra-
tive rules for the application of the foregoing penalties are
omitted. Reincidence, or the second or repeated commission
of the offense, is punished as follows: For the second
offense 25 r /r more than the fine for the first offense, oO^o
more for the third, and so successively, provided the total
of a single fine does not exceed $.">00 ; the commission of
any offense equal to the first one, by the same person during
STAMP TAX LAW. 785
two years after the imposition of the penalty is considered
reincidence for the purposes of this law. Administrative
action for the punishment of every such offense prescribes
by the lapse of five years from the day after its commission,
or if it were continuous, from the day after it ceased; but
at no time can effect be given to instruments, documents or
books not properly stamped until they have been presented
to the Stamp Office and the proper stamps affixed and can-
celled, except where improper stamps have been used it
is not necessary to affix new ones ; where it is not consid-
ered necessary by the parties to issue the document which
should have been executed, the value of the stamps it should
have borne may be collected in cash. The falsification of
stamps is punishable the same as forgery of sealed paper
under the Penal Code. The Department of Hacienda may
reduce the penalties imposed or pardon any offense com-
mitted under this law where in the interest of justice. (Arts.
282-287.) l
i Articles 288 to 371, dealing entirely with administrative procedure,
administration of the stamp offices and official inspections, are omitted
as beyond the practical purposes of this work.
50
786 COMPENDIUM OF MEXICAN LAW.
BOOK XXI.
WEIGHTS, MEASURES AND COINAGE
TITLE I.
WEIGHTS AXD MEASURES.
(Laws of 19 June, 1805, and G June, 1905.)
CHAPTER 1.
THE MKTRIC SYSTEM.
Art. 1109. Metric System Adopted Standards.
1110. Old System Equivalents.
Art. 1109. Metric System Adopted Standards. From
and after the 1C September, 1890, the International Decimal
Metric System of Weights and Measures shall be the only
legal system in the Mexican United States. (Law 1895.)
The system of weights and measures already , established,
derived from the international standards of length and
mass and from the second of medium time, constitutes the
national system of weights and measures, and is the only
legal system, and its use is obligatory in the .Mexican United
States. (Law 1905.) The fundamental units of said sys-
tem are as follows: 1, The unit of length called the Meter,
is equal to the length of the meter recognized and adopted
as the international prototype; 2, the unit of mass called
the Kilogram, is equal in weight to the weight of the kilo-
gram recognized and adopted as the international prototype
OLD MEXICAN LAND MEASURES. 787
of mass ; 3, the unit of time is the second of medium time.
The Department of Fomento will designate the. derived
units intended for common use, specifying the conditions
with which they must comply, and will also designate the
derived units of the national system of weights and measures
which are not of common use. ( Law 1905, Arts. 1-3.)
Art. 1110. Old System Equivalents. The national
standards of the new system are those furnished by the Inter-
national Committee of Weights and Measures, the scientific
details of which, being common knowledge, are omitted,
(Arts. 45) ; also the details of organization of the Bureau
of Weights and Measures of the Department of Fomento,
and fhe provisions for the propagation and conservation of
the system, (Arts. G-1G), and the penal provisions, (Arts.
17-21.)
The legal equivalents between the units of the national
metric system now in force and those used in the Republic
previous to 10 September, 1800, will be those shown in the
tables heretofore published by the Department of Fomento
and attached to the Regulations of this Law. The teaching
of the metric system of weights and measures will continue
to be obligatory in all public and private educational estab-
lishments. The Executive will issue regulations and orders
to secure its strict observance. All former laws on weights
and measures are repealed. (Arts. 22-26.)
CHAPTER 2.
OLD MEXICAN LAND AND WATER MEASURES.
Art. 1111. (Jeneral Definitions.
1112. tiitio dc Canada Mayor.
1113. Silio de Ganado Mcnor and Caballeria.
1114. Old Water Measures Terms Defined.
((ialvaifs Ordenanzas dc Ticrras // Af/uux. Chap. X.)
788 COMPENDIUM OF MEXICAN* LAW.
Art. 1111. General Definitions. In order to more intelli-
gently understand the measurement of land, it is necessary
first to explain the Mexican linear measurement as it is
to-day used, and that used formerly.
The Mexican vara is the unit of all the measurements of
length, the standard of which is the Castillian vara of the
" Marc of Burgos," and is the legal vara which is used in
the Mexican Republic.
The Mexican vara is divided into tw r o halves, three-
thirds or feet, four quarters, six-sixths and thirty-six
pulgadas, or inches. One pulgada is divided into 12 lines,
(lineas) and one line is considered as divided into 12
puntos. We have another division of the legal Mexican
vara conforming with the division of the ancient vara of
Toledo, which was used by surveyors and miners. Said
division consisted in making two halves of the vara, three-
thirds or feet, four-quarters, or palmos (palms or spans),
six-sixths, eighth-eighths and forty-eight dedos, or fingers.
The dedo is divided into three pajas or straws, or into four
granos.
Fifty Mexican varas is the measurement denominated
the cordel, which instrument is used for the meaurement of
land.
The legal league contains 100 cordcles or 5000 varas,
and is divided into two halves or into four quarters, or fourths,
the latter being; the onlv subdivision of the same.
O t/
The half league has 2500 varas, and one-fourth 1250
varas.
Formerly the Mexican league was divided into three miles
(millas), each mile into one thousand paces of Solomon,
and one of these paces (pasos) was equal to five-thirds of
the Mexican rara; consequently the league contained 3000
paces of Solomon. This was recognized as the legal division,
but it has not for a long time been in use.
The same which was understood to be the pace of Solo-
OLD MEXICAN LAND MEASURES. 789
mon was at that epoch termed the vara, and served for
the measurement of land.
The marco is a measure which is equivalent to 2~/%
varas, that is, 8 mar cos made 23 varas, and was used for
land measurement.
According to the more ancient Ordinances whenever any
titles to land w r ere sold, they should mention the paces
of Solomon and the number of marcos, and the distances
expressed were to be reduced to varas in said measurements.
For example, if it were measured by the paces of Solomon,
it had to be reduced to varas, and was written with the
number of paces stated and the result was calculated by
dividing by six, or that which was equivalent to its sixth
part, and the number of varas equivalent to the said paces
was obtained. By this rule it was found that 2000 paces
were equivalent to 3333 1 / 3 raras.
In order to reduce the marcos to varas,, the number was
multiplied by 23, and the production divided by 8, or that
which was equivalent to its eighth part. By this rule it
was found that 384 marcos were equivalent to 1104 varas.
The cordel of 69 varas was formerly used for the measure-
ment of the sides of a caballeria.
Art. 1112. Sitio de Ganado Mayor. The figure of a
rancho or sitio of the extent of a ganado mayor is that of a
square, the four sides of which each measures 5000 varas.
Two of these sides should be laid out in the direction of
east to west, consequently the others must be from north
to south. The distance from the center of said sitio to each
of its sides, should be measured directly to the cardinal
points of the horizon, and should be 2500 varas. The
measurement should be then made from the center of said
sitio to each one of its four right angles, and should be
3535 Y> varas, and the measurement from the right angles
to the opposite should be 7071 varas. Tf for this meas-
urement should be used the cordel of fifty varas , each of
700 "-COMPENDIUM OF MEXICAN LAW.
the sides of the sitio bounding the ganado mayor should
be 100 cordcles, from the center to each one of said sides
the measurement should be fifty cordcles, from the center
of the same, to each one of the angles should be measured
seventy cordcles and SS 1 /^ varas, and from one angle to the
opposite, it should be one hundred and forty-one cordeles and
twenty-one varas.
The area or superficie of a sitio de ganado mayor is
25,000,000 square raras. The criadcro dc ganado mayor is
a square equal to the fourth part of one sitio de ganado mayor,
each of the sides of which measures 2500 varas, and the
area of which is 6,250,000 square varas. Formerly the
measurement was made by the unit denominated the pace of
Solomon, 3000 of which were equal to the league of 5000
varas.
Art. 1113. Sitio de Ganado Menor and Caballeria. The
figure of the small-stock ranch or sitio of the extent of a
ganado mcnor, is that of a square, each of its sides meas-
uring 3333 { / 3 varas. This sitio is measured in the same
manner as the sitio de ganado mayor. The distance from
the center of this sitio to each of its sides should be 1673 2 / 3
varas, from the center to each of its angles it should be
2357 varas, and from each angle to the opposite it should
be 4714 varas.
If the measurement is made by the cordcl of fifty varas,
each of the sides should measure 76 cordeles and 32 1 / '..
varas. From the center to each of its sides, it should be
33 cordcles, and 16 2 / :! varas; from the center to each of
its angles it should contain 47 cordcles and 7 varas, and
from each angle to the opposite 94 cordcles and 14 varas.
The criadero de ganado mcnor is square, equal to the
fourth part of the sitio de ganado mcnor, and measures on
each side 1676 2 /., varas, and the area of which is 2,777,777
and 7 / !( tlis square varas.
The figure of a caballeria dc ticrra is a parallelogram of
OLD MEXICAN LAND MEASURES.. 791
right angles, the longest sides of which are 1104 varan, or
22 cordeles and 4 varas, and the smaller sides of which
measure 552 varas, or 11 cordeles and 2 varas. The figure
most common is that of a parallelogram with one of its
longest sides of greater length than the other. The length
and width of the right angled caballeria, or the length of its
sides when uniform, is the amount hefore given, the area
of said caballeria heing 609,498 square varas. One-half a
caballeria is a square of 552 varas on each side; area
304,704 square varas.
The suerte of land, or fourth part of the cdballeria of
land, is a figure corresponding to the one-fourth part of said
caballeria, the area of which is 152,352 square varas. and
measures 11 cordeles and 2 varas by 5 cordeles and 26 raras.
The caballeria of land is also divided into 12 Castillian
fane gas, for the planting of corn (sembradura de maiz}, and
the area of the fanega is 50,784 square varas. The caba-
llcria of land is also divided into 69 fanegas for the sowing
of wheat (trigo), each fanega occupying a superficial exten-
sion or area of 8832 square varas.
The solar of land is a name given to any portion of land,
the area of which is less than a suerte of land or less than
one-fourth part of the area of a caballeria .
The solares for houses, mills and stores (niolinos y ventas)
should be square lots measuring 50 varas on each side, the
area of which, is 2,500 square varas (50 vara lots.)
The sitto de ganado mayor contains a little over 41 caba-
llerias of land (41.023) or 41 caballerias and a square solar,
the side of which is 119 2 /.-, varas ; the sitio de ganado mcnor
contains a little over 18 caballerias, and one solar, the sides
of which are 376% varas. Measuring the caballeria of
land with the* cordel of 50 varas it must measure 22 cordeles,
and 4 varas on the longest sides and 11 cordeles and 2 rams
on the shorter; each side of the square which composes one-
half of the caballeria, should measure 11 cordeles and 2
varas. the distance from the center of said square (half a
792 COMPENDIUM OF MEXICAN LAW.
caballeria*) to each of its sides should measure 5 cordeles
and 26 varas. The fundo legal or town site, for pueblos, is
a square, measuring on each side 1,200 varas, the area of
which, is 1,440,000 square varas. The square should be
laid out with the angles corresponding to the cardinal points.
Art. 1114. Old Water Measures Terms Defined. A
buey of water is a volume of water passing through a square
aperture each side of which measures one vara, the area or
superficie is one square vara, hence one vara is equivalent
to 48 dedos or 36 pulgadas, the said superficies being 2,304
square dedos, or 1,296 square pulgadas.
The surco is the volume of water delivered through an
aperture of rectangular shape, which has for its base or
horizontal width eight dedos or six pulgadas in measurement,
and measuring from the base perpendicularly, six dedos
or four and one-half pulgadas. The superficie of a surco
is 48 square dedos or 27 square pulgadas, (each pulgada
equals ll-12ths of an English inch); 48 surcos make one
buey or 2,304 square dedos. Forty-eight surcos make one
buey.
The naranja is the measurement of the volume of water
delivered through a rectangular aperture of eight dedos in
width and two in height, the superficie of which is 16
square dedos or 9 square pulgadas. Three naranjas make
one surco or 48 square dedos.
A real of water is the volume delivered through a rectan-
gular aperture, two dedos in width and one dedo in height,
superficie two square dedos or l 1 /^ square pulgadas. Eight
realcs of water make one naranja, and the area of one real
is two square dedos, therefore the area of a naranja is 16
square dedos.
A paja of w r ater is the measurement of the volume passing
through a square aperture, each side of which measures 1 / s
of a dedo, the area of which is 1 / 9 th of a square dedo or
1 / lc th of a square pulgada. The paja of water is also one
MONETARY AND COINAGE LAWS. 793
square paja, and is equivalent to one and 7 / ths of a square
grano.
From the foregoing divisions anTl subdivisions of a bueij
of water, it results, that one buey is composed of 48 surcos
or 144 naranjas, or equal to 1,152 reales or 20,736 pajas.
TITLE II.
MONETARY LAWS AND COINAGE.
CHAPTER 1.
NEW MONETARY LEGISLATION.
Art. 1115. Gold Standard Adopted.
1116. Coins 'Weight and Fineness.
1117. Coinage and Circulation.
1118. Legal Tender and Currency of Money.
1110. Withdrawal of Coins- Prohibition of Tokens.
1120. "Regulatory Fund" Value of Old Coinage.
1121. Value of "Peso" in Foreign Moneys.
Art. 1115. Gold Standard Adopted. By the Law of 25
March, 1905, in effect from 1 May, 1905, Mexico passed from
its historic championship of the patron de plata, or silver
standard, and joined the concert of nations under the regime
of the patron de oro, or gold standard of monetary legislation.
The principal provisions of this and other kindred laws
carrying into effect the new r system, are stated in this
Chapter.
Art. 1116. Coins Weight and Fineness. The theoretic
unity of the monetary system of the Mexican United States
is represented by seventy-five centigrams of pure gold, and is
denominated " peso." The " peso " of silver heretofore
coined, and containing 24.4388 grams of pure silver, shall
have under the conditions prescribed in this law a legal
value equal to the said 75 centigrams of pure gold. The
794 COMPENDIUM OF MEXICAN LAW.
'' peso " is divided into one hundred " centavos." The co 
