No. 77.
Mr. Hilliard to Mr. Evarts.
Rio de Janeiro, January 23, 1880. (Received February 28.)
Sir: Before the recent close of the session of the General Assembly of Brazil, the budget presented by the minister of finance, Mr. Alfonso Celso, was discussed, and some new subjects of taxation were introduced. The wants of the treasury led to an increase of taxes, and it was thought proper to adopt some method for collecting a revenue from the prosperous companies engaged in transporting passengers over the lines of travel throughout the empire. The original plan was to tax the companies directly by requiring them to pay a small sum to the Government for each person transported over the lines. This plan, however, was not acceptable to some of the companies, as it would require them not only to increase their rates of travel, but would at the same time make them responsible for the collection of the tax, whether collected from the passengers or not.
When the bill was matured it provided that such passengers should pay a certain sum to the Government, and that the minister of finance, charged with the execution of the law, should come to an understanding with the managers of the several companies as to the method of collecting the tax.
The sum to be collected was what is known as a “vintem,” 20 reis—a small amount. But when notice was given that the law would go into effect on the 1st day of January, 1880, it produced a popular excitement in this city, which deepened every day. The law was so odious that it was denounced in some of the leading papers published here, and it was asserted that it would be impracticable to enforce it. It is estimated that within the limits of the capital 75,000 persons are transported daily over the several routes of travel by public conveyances, and the return travel being equal, made it clear that the new tax must be collected from 150,000 passengers daily.
The minister of finance called the managers of the several lines of conveyance within the city to meet in conference previous to January 1 and agree upon the best method of collecting the tax. Several meetings were held, and several plans were discussed. The manager of the Botanical Garden Railroad Company, an American enterprise, whose board of directors reside in New York, promptly proposed to pay the amount of the tax estimated to be due for the travel over its line, a sum not less than 120,000 milreis per annum (about $60,000 of our money), in monthly installments, in accordance with the terms of the law. But this offer was not acceptable to the minister of finance, as it would be impossible to induce the other companies to take the same step. The minister insisted that there must be uniformity in the method of collecting the tax, and he declined the offer of the manager of the Botanical Garden Railroad Company, which would have relieved its passengers [Page 92] from the payment of the tax, and at the same time insured to the government the payment of the amount due under the law. The minister issued his regulations, intended to be binding upon all the companies engaged in the transportation of passengers, and instructed the managers to demand and enforce the payment of the tax in every instance.
Not only was the law an injudicious one, imposing a tax upon every person who for business or pleasure took a place in the lines of travel, but the method of collecting the tax was irritating. Instead of taxing the companies upon their receipts, the law imposed a tax upon each passenger who paid his fare in a public conveyance, thus levying a tax not upon income but on expenditure.
Public meetings were held, addresses were delivered by popular citizens, remonstrances were made against the measure; so that, when the 1st of January came, the public feeling was strongly excited against the tax and the proposed method for its collection. To increase the difficulty, the 1st of January is recognized here as a holiday, and the streets were filled with people. As it had been anticipated that resistance would be made to the enforcement of the law, a body of troops was called out by the government to preserve order. The city police, aided by a small body of cavalry and One or two companies of infantry, took position at certain points where the tramways of the city had their stations, and where crowds of people were gathered.
The people were inflamed by speeches delivered in some of the neighboring squares, and some acts of violence occurred. The lines of several of the tramway companies were obstructed; the animals were detached and the cars were broken. A scene of great confusion followed, and the troops present to preserve order found themselves engaged in a conflict with the people. An order was given to disperse the crowds in the streets, and the troops fired upon the people. Some three or four persons were killed and a number were wounded. The excitement increased; attempts were made by the people to break open shops where arms were kept for sale, and the military attacked them and finally dispersed them.
The next day the scenes of violence were renewed, but the people, unable to obtain arms, were controlled by the military. Meanwhile the greatest indignation prevailed among the people. Some of the political leaders, men of both parties, met and discussed affairs. The public journals presented daily communications upon the subject. Appeals were made to the Emperor, and a large body of the people, estimated at some 4,000, proceeded to the imperial palace at San Christovão to represent their grievances to His Majesty. They were repelled at the gates of the palace by the guard on duty, and returned peaceably to the city. The manager of the Botanical Garden Railroad instructed the conductors on his line to ask for the vintem required by law, but in no case to use force to collect it. The minister of finance wrote to the manager repeatedly upon the subject, insisting that the collection of the tax must be enforced. The manager replied that he was endeavoring to collect the tax, and that if any persons failed to pay it he would make up the sum to the government; that nothing should be lost by his method, and that the books of the company would show daily an accurate statement of the number of passengers transported over the Botanical Garden Railroad line. The result was that no obstruction was offered to the service on that line’; and it was understood that the tax was generally paid by its passengers, though some declined to do so. The president of one of the important tramway lines fled from the city to escape the popular [Page 93] feeling against him. There was a rumor that the enforcement of the law would be suspended, but no decree to that effect has been issued.
Public feeling has become calm and tranquillity is restored. It is understood that the Emperor was much disturbed by the scenes of violence in the capital. But he bore himself well, and displayed the wisdom which has heretofore characterized him. He drove through the streets of the city as usual, and made no public demonstration of his feeling in regard to the disturbances.
It is supposed by some who profess to be acquainted with political affairs here that there will be a change in the ministry at an early day. To make an immediate change would be construed into a concession to the demands of the people expressed in acts of violence. Of course this is not to be expected from a sovereign so wise and self possessed as the Emperor of Brazil. It is probable that there will be a recasting of the ministry, but to what extent it is not easy to conjecture.
This is the second time during my residence here that I have seen the military called out to preserve order in the streets of the capital. There is a large population, the freedom of speech and of the press is rarely interfered with, and there is a growing influence of the people over the government. I think the people are well disposed and easily governed.
The Emperor is a man of large views and of line temper. Among the rulers of the world to-day, I do not know one who combines more of the qualities which constitute a good sovereign. He is a statesman, he has visited other countries, he is a man of generous nature, he desires to promote the happiness of his people, and he comprehends the embarrassments that surround his government. He said to me in conversation some time since that the trouble with Brazil was a want of productive industry on the part of the people; they expected too much from the government, and looked to it for succor instead of sustaining it by their energy. He said, too, that, the financial condition of the country was unsatisfactory. He spoke without reserve, and I was impressed with his statesmanlike views.
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I have, &c.,