No. 459.
Mr. Foster to Mr. Evarts.

No. 1092.]

Sir: In my No. 979, of June 28, 1879, referring to your No. 636, asking for information in regard to the suit brought by P. B. Chishem to recover a forced loan, I reported all the facts then in my possession.

I am now able to send you herewith a translation of the full record of proceedings in the suit.* From this judicial record it will be seen that a forced loan was levied in March, 1879, by a colonel commanding a force of adherents of Vice-Govera or Serna, in the revolution which ousted Governor Mariscal from the State government of Sonora. As a part of this loan, the American citizen, Peter B. Chishem, paid under protest the sum of $150. After its payment Mr. Chishem brought suit in the federal district court for the recovery of the money, and, upon a full investigation of the facts, the district judge decided in favor of Mr. Chishem, and against the legality of the forced loan. The case was taken to the federal supreme court, and this decision was unanimously confirmed and returned to Guaymas for execution.

The consul writes me that the State treasurer has replied to the demand under the decision that the forced loan be returned to Mr. Chishem, that there is no money in the treasury for such purpose, and that payment cannot be made until the State legislature by special act provides for the same.

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Under the rulings of the federal court in other cases the revenues of a State cannot be embargoed by the Federation. The case has accordingly been sent back to the supreme court for its further instructions to the district judge.

It thus appears that while the forced loan has been declared by the highest tribunals of the country to be illegal, there has as yet been found no means whereby the wrong may be remedied, and the money returned to Mr. Chishem. If American citizens resident in Mexico, who are so often the victims of such illegal exactions, are compelled to await the action of the State legislatures to secure a return of the property taken from them through illegal means by subordinate military authorities, it will in most cases amount to a virtual confiscation. Up to the present the Federal Congress has adopted no measures to repay the forced loans exacted by the authority of General Diaz in the revolution of 1871–’72, and that of 1876, which placed him in possession of the government, and if the national authorities are so reluctant or slow to make provision for these unconstitutional levies, it is not to be expected that the State legislatures will be more ready to respect the decisions of the courts.

If any further proceedings are had in the courts, or other steps taken for the recovery of Mr. Chishem’s money, I will advise you.

I am, &c.

JOHN W. FOSTER.
  1. Inclosure omitted owing to its length.