Mr. Plumb to Mr. Seward.
Sir: With my dispatch No. 47, of the 13th of December, I transmitted to the department a copy of the decree issued by this government on the 27th of November last, revalidating the rights of the company engaged in the construction of the railroad from Vera Cruz to this capital, which, it was alleged, had been impaired by the obtaining of a prior concession from the so-called imperial government, and I remarked that the greatest public importance of this decree was in showing that capital invested in the vitally important work of railroad building in this country would be respected under all the changes of government that could possibly occur.
Referring to that decree, I have now to state that on the 18th instant, in the Mexican congress, by a vote of seventy-four against forty, a report of a special committee appointed to consider that concession was adopted, which report is accompanied by a resolution declaring the said decree suspended until it shall be revised by congress.
This action, which is the most important that has been taken by the Mexican congress since it assembled, cannot but be attended with serious consequences, both at home and abroad.
The discussion of the report consumed nearly two weeks of the time of congress, of which only about another month remains of the present session, and was very bitter, both against foreigners and against the government.
One prominent speaker concluded his remarks by offering a project of law that the concession should not only be declared null, but that the government should take possession of the road already completed, and that the parties interested be prohibited from applying for this or any other concession whatever.
A prominent journal of this capital, also, since this vote was declared, in eulogizing congress for its action urges that hereafter no contract of any kind be made with foreigners.
Thus a work that is of more practical importance to this country than any political question that can now be agitated is paralyzed, capital is frightened from the country, irritating foreign questions are raised, and steps are taken backward rather than forward by this people.
The action that has been taken by congress with reference to this decree resolves in the affirmative a question that had been supposed to have been fully decided in the negative, that is, as to whether the acts of the government of President Juarez during the exercise of his extraordinary powers were open to revision by congress or not.
The uncertainty to which this will give rise cannot but be unfortunate for this country.
I have the honor to be, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.