Mr. Hay to Mr. Tower.
Washington, April 27, 1899.
Sir: I have the honor to acknowledge the receipt of the note which the ambassador addressed to me on the 17th instant, in reference to legislation enacted or proposed to be enacted in various States of the United States unfavorable to foreign insurance companies. It is stated that the legislation already enacted by the State of Iowa and that pending in the States of Missouri and Nebraska is of a discriminatory character against British companies, not only in respect of American companies, but those of other nations.
The Department is not informed of the phraseology of the Iowa law or of the pending legislation in Missouri and Nebraska, but it assumes that Sir Julian’s reference to discrimination against British companies in favor of companies of other foreign countries is not based on any express provisions of the said act and proposed acts, but is based rather on existing treaty stipulations of the United States with Belgium and Switzerland, which provide for the equality of treatment of their citizens in the matter of imposts.
Legislation such as that enacted by the State of Iowa is beyond the control of the executive branch of the General Government, and even did this legislation contravene any existing treaty between the United States and Great Britain (which is not made to appear), the remedy would lie in an appeal to the courts of law.
This Department had, some time previous to the receipt of Sir Julian’s note, called the attention of the governors of the States in which the legislation in question is said to have been adopted, or to be pending, to the violation of certain treaty stipulations made by the [Page 347] United States with other countries, and in some instances assurances have been given that the reports of such intended legislation are unfounded.
I have, etc.,