No. 361.
Mr. Evarts to Mr. Foster.

No. 509.]

Sir: Since my instruction to you of the 11th instant was written, a further dispatch has been received from the commercial agent of the United States at Piedras Negras in relation to the murder of Walter Henry near Zaragoza. A perusal of the copy thereof, which is herewith transmitted to you, shows that complete evidence of the wrong-doing of the customs officers at Piedras Negras has been furnished by the admission, through a confidential and trustworthy channel, by the principal customs officer, Morel, that he had in fact received the duties from the murdered man, and by his attempt to compromise the matter on the basis of restoring to the commercial agent a portion of the duties, retaining the remainder, and also the goods as contraband.

The attempt to cover up this gross instance of misappropriation of funds, and perhaps a worse crime, failed on the firm refusal of Mr. Schuchardt to receive less than the whole amount of duties paid, the goods to be at the same time surrendered intact for re-exportation. The statements now made imply also the criminal complicity of the alcalde of Zaragoza in the fraudulent proceedings connected with the seizure of Henry’s goods. On his surrender of the merchandise to the customs officers of Piedras Negras several packages were missing, and others bore evident signs of having been opened for the purpose of robbery. It is stated besides that goods to the amount of $1,000 were sold by the authorities of Zaragoza to defray ostensibly the funeral expenses of the murdered man and the costs incurred during ten days’ custody of his effects.

On this statement of facts, there is no doubt that the case is one of the gravest character, combining, as it does, the murder of an inoffensive [Page 607] and law-abiding American citizen, robbery of his goods, and at every stage of the proceeding official peculation and fraud of the most flagrant character. Even if the duty of the Mexican Government to protect life and property within its borders were not paramount, it is at least presumed to have an interest in punishing a gross fraud on its own revenues.

You have been already instructed to demand a most searching investigation of the case, and the discovery and vigorous punishment of the offenders in this complex crime. You are now requested to bring the additional facts to the earnest attention of the Mexican Government, and to say that this case of outrage and murder is regarded as an important factor in the problem of the ability of Mexico to protect life and enforce the laws on its side of the border.

I add for your information that the murder of Henry has been reported by the commanding general of the Department of Texas, with a vigorous suggestion as to the only probable means of reaching and punishing the murderers and their abettors.

I am, &c.,

WM. M. EVARTS.
[Inclosures in No. 509.]

Mr. Schuchardt to Mr. Hunter.

No. 206.]

Sir: Yesterday (August 30) I sent the following telegram to the Hon. Secretary of State:

“Custom-house of Piedras Negras has taken from the alcalde of Zaragoza the goods of Walter Henry. Henry had paid to principal custom-officer import duties on his goods, hut he appropriated the money for his own use, not making entry in hooks of his office. Custom-house documents issued by that officer to Henry, which proved officer’s transaction and payment of duties by Henry, having been stolen by the murderers together with Henry’s money, the custom-house officer tries to cover his first crime by a second, taking Henry’s property by declaring it contraband. On my demand delivery of Henry’s goods was refused by alcalde of Zaragoza. Alcalde of Zaragoza before delivering property to custom-house sold part of it for burying and other expenses. Henry’s property can be recovered now by force only.”

Last night at twelve o’clock the custom-house officials accompanied by federal soldiers entered here with the goods of the unfortunate Walter Henry, seized as contraband. According to export entry on file at the United States custom-house at Eagle Pass, signed by Henry himself, his goods consisted of 46 packages, corresponding with the number the alcalde of Zaragoza gave me in his communication when he refused the delivery of Henry’s goods to me. I am informed by reliable persons that the authorities of Zaragoza sold of Henry’s goods to the amount of $1,000, before giving them up to the custom-house officials, to refund themselves for the burial and other expenses they had made from the 21st of this month to the time they delivered the goods to the custom-house guards. Of the 46 packages of goods only 36 were delivered at the office of this custom-house, and most of them, the carrier of the goods informed me, in a condition which admits no doubt that they have been opened and part of the contents taken out.

In view of the fact that Henry’s property within ten days had diminished in such proportions, and in order to save as much as possible of it for the rightful heirs, I repaired this evening to the custom-house and communicated to Mr. Ode Montellano, the second in office, that, in my opinion, Henry’s goods were not contraband, as facts had been developed which proved that import duties had been paid to somebody of the office, and as the matter had been carried to such an outrageous state I asked to investigate the matter before condemning the goods as contraband and divide them as such among the employés.

Yesterday a merchant, who is a friend of Morel, the principal officer of the customhouse, and an old acquaintance of mine, stated to me that he felt authorized by Morel to compromise the matter with me; admitting that Morel had received the duties from Henry, he could return so much as $500 of the money to me, but the goods he had to keep as contraband; that Morel probably had not received as his share over $100, having divided the greater part of the money received from Henry among his accomplices.

[Page 608]

My reply was, that, admitting that the importation of Henry’s goods was an unlawful one, not being entered in the books of the office, the only condition under which I felt myself authorized to enter into a compromise with Morel was that he should deliver to me the goods, in quantity and condition as found at the time Henry was murdered, and that he should return the money he had received from Henry for import duties, and that I, on my part, would see the goods exported to the United States, and then consider them as never imported to Mexico. This condition, the friend stated, his client, Morel, could never accept; that in order to shield himself against the accusation of having defrauded his government, he is bound to take the goods as contraband.

The assassins of Walter Henry have not been discovered yet, and as the authorities of Zaragoza do not hold any longer the goods, I do not expect them to make great efforts to find the culprits.

I have the honor to inclose copy of a letter relative to the disposal of Henry’s goods, and written to me by * * * a respectable American citizen living at Zaragoza, and long a resident of this district.

I am, &c.,

WM. SCHUCHARDT,
United States Commercial Agent.
[Inclosure to inclosure in No. 509.—Translation.]

— — to Mr. Schuchardt.

Dear Sir: I am very sorry that I have to say of all the d—— rascality that I ever have witnessed in my time, I have just passed, in regard to the goods of Walter Henry. They sold here about $1,000 worth of goods to pay the expenses of his burial and a great many more charges which they make, whether just or not; and while they sold that amount, I think that I am able to prove that as many more was stolen. I only say that you will not find an honest man in the whole God —— thing that passed yesterday, for I was an eye-witness to the whole concern. You know well that it would not do for me to accuse any one, as I would be a victim in less than twenty-four hours. It is all that I can do to get along here. Do the best that I can, I have to fight sometimes to keep myself from being trod upon. You heard, I suppose, that I had to cut one of the d—, rascals so that they might know it would not do to tread upon me. In a few days I will give yon the whole circumstances as to the proceeding in regard to the Walter Henry case and all the news that I may be able to find out. Keep my name still until I can find out the whole matter.

I am, &c.,

* * *

To-day the goods that were not sold nor stolen leave for your place; but I assure you if there was any examination or inquiry made you would find as many goods stolen as were sold, or more. The cask (what it contained I do not know) leaves here empty. There was nothing sold of what it contained. Oils were not sold, but they have disappeared from the bulk of goods. I see some of it going around and changing owners, which causes me to think it was ashamed to be sold at public sale, and asked some friend to dispose of it secretly, and a great many things the same way.

I only say, you deliver us from evil.

* * *