No. 567.

Mr. Bayard to Mr. Strobel.

No. 412.]

Sir: Referring to the instruction (No. 409) sent to your legation on the 4th instant, respecting the duty collected at Barcelona on a cargo of old metal shipped from Cuba by Mr. F. B. Hamel, an American citizen, I inclose, for your further information in the case, a copy of a letter from Mr. J. B. Hamel, of Philadelphia.

I am, &c.,

T. F. BAYARD.
[Page 762]
[Inclosure in No. 412.—Extract.]

Mr. John B. Hamel to Mr. Bayard.

Sir: Your letter 6th instant received, and contents noted with thanks.

The preamble of the decree of June 30, 1882, says that in order to give further facilities to the people of Cuba, cabotage is established, and that the products of Cuba, excepting colonials, will be admitted free of duties in Spain. This does not exclude metals.

At that time the duties on old iron was 1.35 pesetas (about 27 cents) per 100 kilograms, and for many years previous it had reached as high as 2.50 pesetas (50 cents), yet they forced us to pay over $6,000 at the rate of 5 pesetas ($1) per 100 kilograms. Therefore it is not a treasury ruling, but fixing new duties that only Cortes can do. Our first shipments after June 30, 1882, were admitted free, until November, 1883, when the customs authorities discovered that Cuba was not a part of Spanish possessions, but some unknown foreign land, and therefore goods imported from Cuba ought to pay duties that had never before been paid. The minister of finance naturally sustained his employés.

Old metals are the product of the country where they become old. Here we say American or imported scrap-iron. All old metals paid duty when new and imported into Cuba, and became nationalized.

I am, &c.,

JOHN B. HAMEL.