No. 496.
Mr. Reed to Mr. Frelinghuysen.

[Extract.]
No. 221.]

Sir: Referring to my previous dispatches in regard to the so-called “Spanish consular fee” exacted by consuls of Spain in ports of the United States on the cargoesof vessels, and on cattle shipped to Spanish ports, I have now the honor to inclose herewith for your information [Page 777] a copy and translation of a note from the minister of state, dated the 20th instant, and received by me late in the evening of the 26th, in reply to the notes of the legation upon the subject, dated the 26th and 29th of September last.

The note, after undertaking to justify the so-called “cousular fee,” states that the Government of His Majesty, desiring to avoid, so far as possible, and within its power, anything which may lead to annoying discussions between the two Governments on the question, makes the following proposition, viz:

To change the form in which the state receives said fee of ten cents per ton, by ordering that instead of its being collected at the Spanish consulates established in the territory of the Union, it be exacted by the administrators of the national custom-houses at the port of the vessel’s destination.* * * This [the minister of state further says] will do away with all pretext for considering as an extra limitation of facilities the collection of said fee in the ports of the United States.

In regard to Mr. McKay’s case, the note also undertakes to explain how he was called upon to pay forty cents per head on the cattle shipped by him, but it is silent as to the request made to return the amounts which he was obliged to pay.

It would also seem by the note that the cattle-head tax was established by the royal order of the 18th October, 1876 (this order was referred to in your instruction No. 111), which suppressed Articles 48, 49, 50 and 51 of the Spanish consular tariff of July 15, 1874, and substituted for the tariff therein provided for a uniform charge of 10 cents per ton or fraction of a ton on the cargoes of vessels leaving the United States for Spanish ports.

The note farther states that in consequence of changes made at the consular agency at Key West, the subordinate officers who have had charge of that consulate have been ignorant of the order of the 18th of October, 1876, above referred to, but that in stractions have now been given to desist in the future from exacting the old fee, and to collect the fee provided for by the said royal order, viz, at the rate of 10 cents per ton. In other words, the note confesses that the fee of 40 cents per head on cattle paid by Mr. McKay was charged owing to the ignorance of the Spanish consular officers. It, therefore, goes without saying that the money thus wrongfully collected of Mr. McKay must be returned to him.

I inclose a copy of my note, dated today, to the minister of state, in which I simply informed him that I have transmitted a copy of his note to Washington for the information and consideration of my Government.

* * * * * * *

As will be perceived, the minister of state awaits your reply to the Spanish proposition before giving the necessary orders to carry it into effect.

I have, &c.,

DWIGHT T. REED.
[Inclosure 1 in No. 221.—Translation.]

Marquis de la Vega de Armijo to Mr. Reed.

My Dear Sir: I had the honor to receive the notes which the legation under your worthy charge was pleased to address me on the 23th and 29fch of September ultimo, presenting the claim of Mr. McKay, resident in the State of Florida, against the [Page 778] consular duties which he was obliged to pay in the consulate of Spain at Key West, for the exportation of live-stock to Havana and other ports of the island of Cuba; for this reason and in compliance With the instructions of your Government you insist upon the arguments adduced in the note of the legation dated 9th January ultimo (7th January, 1882?), in regard to the especial character of those duties, the collection of which, in your opinion, could not be effected in any manner in the territory of the Union because of being considered as an export duty.

The Government of the King, my august sovereign, very much regrets to have to again treat with a question which it considered terminated, by its communication dated 29th May, ultimo, in which it answered at length the remarks of the legation, showing that the Spanish Government was justified in preparing the consular tariff in the terms now in force, by the fact of the other nations having acquiesced in said duty, since none of them had protested against it in spite of the number of years which had elapsed since their publication, and expressing its surprise at the irregular interpretation which the Anglo-American commerce gave to a measure which has not the offensive character attributed to it, nor which cannot be termed as inadmissible, as it will be seen if it is borne in mind that the duties named in the consular tariffs of all nations are, in fact, an export duty, although the form may be distinct, and under this conception the fixing of 50 reals per invoice by the United States, collected in the country from whence the merchandise is shipped, is such a duty, as is also that of 10 cents per 1,000 kilograms paid in accordance with the Spanish tariff in its foreign consulates, because the difference only exists in this tariff, being of a variable and proportional nature.

I must inform you, on the other hand, that if a calculation of the duty is made upon the entire cargo, it will be found that the Anglo-American tariff is greater than that of the Spanish, and if a comparison is made between the duty paid by the same cargo, in accordance with the provisions of the new customs regulations of the provinces of ultramar with the old duty paid upon manifests (sobordos), navigation at large has obtained an important reduction of duty.

It not being possible, on the other hand, to change a fiscal system which has been established for so many years without long and mature examination, and very especially without counting beforehand with sure means of compensating with new resources those which might be made the object of reforms more or less radical, always subject to the sanction of the legislative power, the Government of the King, my august sovereign, wishing to avoid, so far as possible and within its power, anything that might be productive of an annoying discussion arising from the distinct manner of judging and construing the dispositions at issue, has no inconvenience in changing the form in which the State receives said duty of 10 cents per ton, by giving orders that instead of its being collected at the Spanish consulates established in the territory of the Union, it be exacted by the administrators of the national customhouses at the port of the ship’s destination, thereby doing away with all pretext for considering as an extra-limitation of faculties the collection of said tax in the ports of the United States.

In regard to the claim presented by Mr. McKay against the consular agent at Key West, in exacting of him 40 cents for each head of cattle exported to ports in the provinces of ultramar, I must inform you that the necessary information relating to this fact was requested, this ministry suspecting that the irregularity complained of might have arisen out of the changes made in the service of that agency during the last year, which may account for the subaltern officers who have had charge of said agency not having knowledge of the disposition of the circular of 18th October, 1876, which suppressed the duty named in Articles 48, 49, 50 and 51 of the tariff promulgated on 15th July, 1874, and substituting them by the payment of 10 cents for each ton of 1,000 kilograms or fraction of a ton, which compose the invoices delivered by the shippers, to include them in the manifests which the captain must produce at the custom-houses at the port of destination, and the information requested having been obtained, the opportune orders have been given, in order that the exaction of the old duty may cease, and the collection may be made in accordance with the above-mentioned disposition.

I flatter myself that recognizing the importance of the matter and the necessity of obtaining certain information, you will not be surprised at the delay which has occurred in answering your notes, and I beg of yon to be good enough to communicate to your Government the measures which that of Spain proposes to establish, in order to terminate the questions which have arisen, and in order to put them in execution, so soon as its answer is received.

I avail, &c.,

EL MARQUIS DE LA VEGA DE ARMIJO.
[Page 779]
[Inclosure 2 in No. 221.]

Mr. Reed to Marquis de la Vega de Armijo.

Excellency: I have the honor to acknowledge the reception of your excellency’s note of the 20th instant, in which you are good enough to inform me (in answer to the notes of this legation of the 26th and 29th of September last) of the measures which the Government of His Catholic Majesty proposes to adopt in order to do away with the collection in ports of the United States by Spanish consuls of 10 cents per ton on the cargoes of vessels bound for Spanish ports, and of 40 cents per head collected on cattle shipped to the same ports.

In compliance with the request of your excellency, I beg to state that I have transmitted a copy of your note to Washington for the information and consideration of my Government, and on the reception of its reply no time will be lost by the legation in communicating it to your excellency. I gladly avail, &c.,

DWIGHT T. REED.