No. 522.

Mr. Reed to Mr. Frelinghuysen.

No. 303.]

Sir: Mr. Scheuch, our consul at Barcelona, in two dispatches, dated the 26th November and 6th December last, invited my attention to the duties charged by the customs authorities by order of the director-general [Page 685] of customs at Madrid on a cargo of old scrap-iron and metal which had arrived at Barcelona per the Spanish bark Concepcion, and consigned to Messrs. Cibils & Rabell, of that port, by Mr. T. B. Hamel, of Havana, an American citizen resident in that city.

It appears from the documents which accompanied Mr. Scheuch’s dispatches that Mr. Hamel had sent similar cargoes to Barcelona upon which no duties were exacted, and this cargo of the Concepcion was also entered free, the question of duties upon it arising afterward; and upon being referred to the director-general of customs here, it was decided that duties must be paid, as the cargo was not the “product” of the island of Cuba, and the collector at Barcelona was consequently ordered to impose full duties upon the cargo, which amounted to 17,474.15 pesetas.

In view of the facts connected with the case, I deemed it my duty to ask that the order of the director general of customs be revoked; and I accordingly addressed two notes to the minister of state upon the subject, dated the 10th and 12th of December, 1884, copies of which I beg to inclose herewith. Not receiving any reply from the minister, and being informed by Mr. Scheuch that another cargo had arrived at Barcelona per the Spanish bark Mario, I called at the ministry of state on the 8th ultimo, and was informed by the subsecretary that my notes were referred to the minister of finance on the 19th of December, and as the matter was urgent, at his (the subsecretary’s) suggestion, I called on the director-general of customs on the same day, who informed me that both cargoes must pay duty, as they were not the product of Cuba. I undertook to convince him to the contrary, but was unsuccessful, and I consequently telegraphed Mr. Scheuch as follows:

Direction-general of customs says law will not permit free entry Mario cargo, as it is not the product of Cuba; further says full duties must he paid. Can he done under protest if desired, or cargo can go into deposit. Same decision in case of Concepcion.

On the 24th ultimo Mr. Scheuch informed me that the cargo of the Mario had been placed in deposit, and inclosed a copy of a protest in regard thereto, made before him by Mr. Rabell, of the firm of Messrs. Cibils & Rabell.

Some days since I met the minister of finance at the palace, and in the course of conversation I mentioned the case to him, and much to my surprise he told me that he knew nothing about it, and asked me to call upon him at his ministry, when he would make inquiry in regard to the matter. Accordingly, I called upon him on the 26th ultimo, and he sent for the director-general of customs who stated that a royal order had already been issued that old scrap-iron and metal proceeding from Cuba must pay duty. I then called the minister’s attention to my notes upon the subject which had been referred to him by the minister of state. He informed me that he had not seen them, and seemed very much annoyed that action had been taken without having submitted the matter to him and in my presence ordered the director-general of customs to bring my notes and all the papers in the case to him. He then promised me to examine the subject carefully, and, if possible, to revoke the royal order above referred to.

I have reported my action somewhat in detail as Mr. Hamel may bring the case to the attention of the Department.

I have, &c.,

DWIGHT T. REED.
[Page 686]
[Inclosure 1 in No. 303.]

Mr. Reed to Mr. Elduayen.

Excellency: I am in receipt of a communication from the consul of United States at Barcelona in regard to certain duties amounting to 17,474.15 pesetas, exacted by the custom authorities of that port on a cargo of old scrap iron and metal consigned to Messrs. Cibils & Rabell, a prominent firm of that city by Mr. F. B. Hamel, an American citizen residing at and doing business in Havana, Island of Cuba.

For the better information of your excellency, I beg to inclose (1) a copy in Spanish of the communication of Messrs. Cibils, & Rabell to the consul of the United States at Barcelona; (2) the declaration in English of Mr. Hamel before the consul-general of the United States at Havana, that the cargo consisted of old copper and iron, plates, rails, horseshoes, brass, and yellow-metal clippings, and scraps of such metals as had already been imported into the Island of Cuba, and had paid the corresponding duty, and that the said cargo was duly shipped and cleared at the custom-house of Havana with the certificate that the same consisted of “scraps and products of the island;” (3) a copy in Spanish of the report of the vista de aduanas at Barcelona, Senor D. Luis de Villalobas; (4) a copy in Spanish of the defense delivered to the administrator de aduanas of Barcelona by Messrs. Cibils & Rabell, to whom the cargo; was consigned; and (5) a copy, also in Spanish, of an exposition sent to his excellency the minister of hacienda by certain commercial houses of Barcelona against the order of the direccion-general de aduanas in regard to the case in question.

As these documents fully set forth the facts of the case, it is unnecessary for me, at this time, to argue the subject in detail. But your excellency will permit me to state that it seems clear that according to law of the 30th of June, 1882, no duties should be exacted upon the cargo above referred to, and especially not, as the said cargo was declared by the custom-house of Havana as consisting of “products of the Island of Cuba;” besides, Mr. Hamel had already shipped to Barcelona other cargoes of a like nature upon which no duties were exacted.

I beg, therefore, to submit the case to the attention of your excellency, and to request your excellency’s powerful intervention with his excellency the minister of hacienda, with a view to having the order of the direccion-general de aduanas canceled, and the cargo admitted free of duty, as the facts and the law of 30th June, 1882, would seem to warrant.

I gladly avail, &c.,

DWIGHT T. REED.
[Inclosure 2 in No. 303.]

Mr. Reed to Mr. Elduayen.

In addition to the note which I had the honor to address to your excellency on the 10th instant relating to the duties exacted at Barcelona on a cargo of old iron and metal consigned to Messrs. Cibils & Rabell by Mr. F. B. Hamel, an American citizen residing at Havana, I now beg to inclose a copy of the “poliza de embarque” of the said cargo, which I have just received from the consul of the United States at Barcelona, and which was furnished to him by the customs authorities of that port, and also a copy of the decision of direccion-general de aduanas as communicated to Messrs. Cibils & Rabell by the said customs authorities.

As your excellency win observe, the decision of the direccion-general de aduanas appears to have been based upon the fact that the “poliza de embarque” did not contain the necessary certificate that the iron and metal in question was the product of Cuba. But your excellency will also observe that this decision does not seem to be in accordance with the facts, as one of the copies of the “poliza de embarque,” which I have the honor to inclose, contains the following certificate of the customs officials at Havana, “Certifieo ser desechos de ferro-carriles del pais,” and the other, “Certifico ser desechos de ferro-carriles y fundiciones del pais.” These certificates of the customs authorities at Havana, together with the facts stated in my note of the 10th instant, do not seem to leave any doubt as to the claim made by Messrs. Cibils & Rabell, that the cargo of the Concepcion should be admitted free of duty; and as Mr. Hamel has another cargo on its way to Barcelona, which is expected to arrive at that port during the present month, I beg that your excellency will be good enough to give the subject early consideration, -and to use your good offices with his excellency the minister of hacienda, in the sense indicated in my note above cited, of the 10th instant.

I gladly avail,. &c.,

DWIGHT T. REED.