No. 55.
Mr. Logan
to Mr. Frelinghuysen.
[Extract.]
Legation of
the United States,
Santiago, June 25, 1883.
(Received August 3.)
No. 108.]
Sir: I beg leave to call your attention to the case
of certain American merchants in Lima, and in order that you may have a full
understanding of it I inclose documents marked Nos. 1, 2, 3, and 4. The last
of these, being my own communication to the persons named, will convey to
you the point I desire more particularly to bring to your notice.
As to the merits of the case itself I am not prepared at this time to form a
judgment, the whole facts of the decree complained of not being entirely
clear to me. I waited upon the minister of foreign relations in an informal
way with the express purpose of learning the reasons upon which the decree
was based. The minister had no knowledge of it, as General Lynch is vested
with full power to manage military affairs in Peru. He assured me that the
latter could not have done any act not susceptible of the fullest
justification; but when I pressed him for an investigation he courteously
informed me that unless I could say that I had received direct authorization
from my Government to represent my countrymen domiciled in Peru, in this
matter, he did not feel at liberty to establish a precedent which might
cause his Government infinite annoyance from other foreign
representatives.
* * * * * * *
If upon an examination of the inclosed papers you desire me to press
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the case of the Lima merchants
signing the complaint, all of whom I presume to be American citizens, I
shall take pleasure in doing so upon receipt of your instruction to that
effect.
I have, &c.,
[Inclosure 1 in No. 108.]
Protest of Davis Brothers and others, of
Lima.
Hon. C. A. Logan, &c., &c., &c.:
Sir: The undersigned, American citizens doing
business in Peru, beg respectfully to call your attention to the
inclosed decree of General Lynch.
The undersigned have already paid their patente or
industrial tax for the present year according to classification made by
the authorities of Chili, and in virtue of said payment are entitled to
carry on their usual business during the said year.
The decree in question, issued after said payment
was made, therefore annuls what in good faith we have already paid to
do, and therefore is evidently illegal and unjust.
Moreover, according to Chilian usage, the consignatarios or importadores are
those who receive vessels consigned directly to them, and who sign manifestos por mayor in the custom house. These
importers are divided into two classes, who pay, respectively, $2,000
and $500. Under Peruvian law no distinction is made between a consignee
of vessels and a consignee of merchandise, but importers are divided
into four classes, which admitted of small importers like ourselves
paying a tax proportional to the amount of their capital and
business.
If the present decree be carried out we shall pay neither according to
Chilian nor Peruvian usage; we therefore respectfully submit to your
consideration our contention that we have the right during the present
year to continue our usual business in virtue of the industrial tax
already paid by us, without any further payment on our part, and in
future we have the same right to be taxed according to the laws and
customs of either Chili or Peru, and not according to arbitrary
measures.
We therefore earnestly request that you will present our just claim to
the Government of Chili, to have the said decree of General Lynch
modified according to right and justice.
Very respectfully,
[Signatures of Davis Brothers and fifteen other American merchants of
Lima.]
[Inclosure 2 in No.
108.—Translation.]
Decree of General Lynch.
No. 2914.
Whereas, according to Article I of the decree of the general
headquarters, under date of the 26th of November, 1881, it is essential
to satisfy the conditions of the license law therein established,
referring to the exercise of any profession or industry in the Peruvian
territory occupied by the forces under my command, I have
Established and decreed that—
From the first of August of this year foreign merchandise can be imported
only through the custom-houses subject “to these general headquarters,
and which have satisfied the condition of the tax upon importing and
commission houses for foreign goods.
In the execution of this decree the ports of Chili shall not be
considered as foreign ports.
Note.—Communicate and publish.
- LYNCH.
- Clodomiro Mujica,
Secretary General.
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[Inclosure 3 in No. 108.]
Davis Brothers and others
to Mr. Logan.
Lima,
Peru, June 2,
1883.
Dear Sir: In answer to your communication of
May 21, we will endeavor to explain more clearly to you the cause of the
claim made by ourselves and others in Lima and Callao.
Since the occupation of Lima by the Chilian forces we have continued in
almost every respect as before under Peruvian authority. Almost every
retail merchant here imports merchandise from abroad, for which they
formerly paid an industrial tax or patente, as
importadores, which tax was divided into five
classes and permitted small importers to continue their business by
payment of an amount in proportion to same. This custom was respected by
the Chilian authorities both for the past and present years. These
authorities named the customary committee to classify all industrial
pursuits, and we have all paid the tax in conformity with their classification to carry on our usual
business during the present year; that is, to import goods from foreign
countries and sell them in this market, with the only difference that
instead of styling us importadores they now call
us almaceneros. After having paid this tax in
advance for this year, the decree in question was issued which forbids
us to continue our business as before unless we pay a further tax as
“importers,” which they divide into two classes, one to pay $500 and the
other $2,000.
We hold that as we have already paid our industrial tax for this year,
according to classification made by the Chilian authorities, and in
virtue of that payment we have the right to continue our customary
business for the time for which we have already paid, without any
further payment on our part. And, further, that as the Chilian
authorities have themselves continued Peruvian law and custom, we have
the right to continue our business in future years by payment of an
industrial tax in conformity with the amount of our business, so that
whether they style us importadores or almaceneros, we should be divided into five
classes as formerly, so that each firm will pay what is fair and
just.
The Chilian authorities have continued to make use of the Peruvian tariff
valuations for importations of merchandise, augmenting the duty from 25
to 50 per cent. ad valorem, which causes us to pay on some articles 300
per cent. on cost price, and on an average 120 per cent. on the cost of
the goods, thus making it very difficult for us to continue our
business, and if we now have to pay an additional exorbitant and
arbitrary industrial tax it will add further embarrassments to our
already difficult position.
We therefore claim that in right and justice we ought to be allowed to
continue our business for the present year without any further payment
of industrial tax, and in future that we shall be taxed according to the
amount of business done by each firm.
In procuring this we beg your kind assistance, and with great respect we
remain, & c.,
DAVIS BROTHERS,
And for others signing first
document.
[Inclosure 4 in No. 108.]
Mr. Logan to the
protesting merchants of
Lima.
Legation of the United States,
Santiago, June 23,
1883.
Gentlemen: Your additional communication of the
2d instant in relation to decree No. 2914, of General Lynch, prescribing
the payment of a commercial patente for the
present year, has been received.
In reply I have to inform you that I waited upon the minister of foreign
relations, and laid the whole case before him. He expressed great
surprise at the statements of your communications and was very confident
of there being some mistake as to the facts. He said; that General Lynch
was not only a pre-eminently just man, but that he was also an
exceedingly cautious official, and though the Government here had no
knowledge of the decree, yet he could not for a moment believe that
General Lynch had done anything not justified in the fullest manner by
the rights of the occupying power.
I then pressed the minister strongly to make an examination of the
circumstances of the case, in order that error might be righted, if any
had been committed, by the local authorities in Lima; but the minister
said, that while he was disposed to extend
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every courtesy to me and the country I represented
that might he within his power, yet that as the complainants resided in
Peru, he did not understand that my Government had given me any power to
represent them, and that, as it would he establishing a precedent for
the representatives of other powers to take advantage of, he would be
compelled to decline my request.
Thus the matter stands at present; but I do not propose letting it rest
upon that sort of basis. I shall, therefore, lay the whole case before
the Department at Washington by the next mail, and ask for an
instruction to press the Government to a decision. An express
authorization of this kind, to speak for our countrymen in Peru, cannot
be disregarded. Though a longer time will be involved in the solution of
the case by this forced mode of procedure, yet I am confident we shall
get justice at the end.
I am, &c.,
