No. 419.
Mr. Bayard
to Mr. Manning.
Department
of State,
Washington, November 23,
1886.
No. 19.]
Sir: I send herewith for your information a letter
addressed to me by Messrs. F. Alexandre & Sons, of New York, complaining
of a discrimination in the form of an alleged rebate of 2 per cent. of
custom duties in favor of the importers of goods into Mexico from the United
States, by the recently established Spanish transatlantic line of
steamers.
The matter had been previously brought to the attention of the Department.
From what could then be learned it did not appear that a discriminating
favor of 2 per cent. rebate of duties was to be accorded to the goods for the benefit of the importers thereof;
but that the company was to be paid a sum equivalent to 2 per cent. of the
duties collectable on the foreign goods carried in its steamers to Mexican
ports, such payment being in part satisfaction of the subsidy stipulated
under its contract of August 21, 1886, with the Government of Mexico. The
extracts from that contract furnished to me by Messrs. Alexandre & Sons
seem to bear out this understanding of the arrangement Indeed any other is
incompatible with the proviso of Article 9, that the company is to receive
no payment on account of customs duties unless the total duties collected
upon goods imported by its steamers shall amount to at least $50,000 each
trip.
Nevertheless it is distinctly averred that there is practically a
discrimination of 2 per cent. in the duties collected from the importers by
that line, as appears from the letters addressed to Messrs. F. Alexandre
& Sons by such houses as Maitland, Phelps & Co., H. Marquardt &
Co., and M. Ecbeverria & Co.
It is desired that you will ascertain the precise nature of the arrangement
made by Mexico with the Spanish line in respect of the 2 per cent. of
customs duties; and if it shall appear that there is, in fact, a
discrimination, and that less duties are levied and collected by the Mexican
treasury from the importers of the merchandise carried by the Spanish line,
you will take an early occasion to impress upon Señor Mariscal the
unfriendly character of a measure which strikes directly at the American
carrying trade with Mexico.
It is not a question of right under treaty or international law, but of the
necessary effect of measures which, whether inimically designed or not, are
distinctly hostile in their operation to the shipping interests of the
United States. The Government of Mexico cannot fail to be aware of the
earnest desire of the United States to increase friendly and intimate
relationship with that Republic.
By the provisions of the shipping acts of 1884 and 1886 marked favors in the
interest of neighborhood have been shown. For instance, all vessels
[Page 669]
bringing goods from Mexican ports,
under whatever flag, are entitled to a considerable reduction of tonnage
dues in our ports. It was not intended, and could scarcely be permitted,
that this neighborly step on our part should be made use of to injure, if
not destroy, the carrying trade of the United States, and exclude it from
sharing in the enlarged intercourse which our legislation has created. It
would be most unfortunate were our efforts toward impartial traffic with our
neighbors to prove a failure and demand legislative change.
If such a conviction were to be forced upon the national legislature, it
could not fail injuriously to affect the many opportunities which are
continually presenting themselves for the development of our neighborly
relations with Mexico. An adverse impression once created is not easily
dispelled, and no one can be more interested in preventing any erroneous
conception in this regard than the statesman in whose hands the foreign
intercourse of Mexico rests, for Señor Mariscal has long resided in the
United States and knows their true feeling toward Mexico.
I trust, therefore, you will receive from Señor Mariscal satisfactory
explanation in relation to the subject.
For your farther information copies of Messrs. Alexandre’s first letter to me
on the subject and of my reply of November 10 are inclosed. You will
probably find the full text of the Spanish transatlantic contract in the
official journal of Mexico.
I am, etc.,
[Inclosure 1 in No. 19.]
Messrs. Alexandre &
Sons to Mr. Bayard.
New
York, November 4,
1886.
Sir: We beg to call your attention that the
discrimination by the Mexican Government on goods imported into Mexican
Gulf ports of Progreso and Vera Cruz against American and other flags,
but in favor of a certain line of steamers sailing from New-York every
ten days to above ports, is causing ours and other American vessels
great injury.
The discrimination amounts to 2 per cent. less duty ex Spanish steamers.
Are we not right in thinking that we may expect some relief from our
Government in this question? If you desire it, we will go on to see you
on this. Respectfully,
[Inclosure 2 in No. 19.]
Mr. Bayard to
Messrs. Alexandre & Sons.
Department of State,
Washington, November 10,
1886.
Gentlemen: I have received your letter of the
4th instant in relation to an alleged discrimination by the Mexican
Government on goods imported into the Mexican Gulf ports of Progreso and
Vera, Cruz, against American and other flags, and in favor of a certain
Spanish line of steamers sailing from New York.
In the absence of more definite information than that contained in your
letter and of a copy of the concession which has been made by the
Mexican Goverment to the Spanish line in question, the Department is
unable to give an opinion upon the question whether the favor shown to
that line involves discrimination against the flag of the United States,
and is of such a character as to call for representations to the Mexican
Government.
It is believed that governments whose other resources are severely taxed
or not immediately available in order to pay for special services
rendered by a steamship company in the transportation of the mails and
of troops and government property,
[Page 670]
not infrequently resort to the expedient of
mortgaging the customs revenues in part satisfaction of the stipulated
compensation, the purpose being to do this in such a manner as to favor
a line of steamers which happens to carry a certain flag, without in
fact committing any flag discrimination.
Upon the case in question, however, the Department, as at present
advised, is unable to express an opinion.
I am, etc.,
[Inclosure 3 in No. 19.]
Messrs. Alexandre &
Sons to Mr. Bayard.
New
York, November 18,
1886.
Sir: We duly received your favor of 10th
instant, in relation to the 2 per cent. discrimination in duties by
Mexico at the ports of Progreso and Vera Cruz on goods imported ex
Spanish line steamers and consequently acting to the prejudice of goods
ex American vessels.
We imagine from your minister at Mexico and consuls at Vera Cruz and at
Progreso you will have received evidence confirming our letter of the
4th instant, but in case you have not received it, we beg to hand you
clipping of Havana Boletin Comercial, wherein you will And principal
points as to the discrimination complained of, viz, Articles 3 and
9.
Also, we beg to hand you letters addressed us from the well-known houses
here, and shippers to Mexico, of Messrs. Maitland, Phelps & Co.,
Messrs. H, Marquardt & Co., Messrs. M. Echeverria & Co.,
confirming our statements, and showing the great injury American vessels
suffer now in trade” to Mexico, and particularly our line of American
steamships.
In view of the situation we and other American interests are suffering
from, may we not expect some relief from our Government?
Respectfully,
[Inclosure 4 in No. 19.—Translation.—From
the Boletin Comercial.]
the contract with the transatlantic
company.
Among the documents of an official character published by the government
of Mexico, we find in the Mexican press the contract concluded on the
21st of August between the ministry of public works of that Republic and
the Spanish Transatlantic Company.
The following are its principal bases:
- Article 1. The Spanish Transatlantic
Company binds itself to cause to arrive at Vera Cruz, after
touching at Progreso, three times a month, its steamers, which,
coming from Europe, run to Havana periodically, thus putting the
Mexican Republic in direct communication with all the ports of
the five quarters of the globe, with which its diverse lines at
present ply. Its first voyage from Europe shall take place in
the first ten days of October next, and the first voyage from
the United States in the first ten days of November next, or
sooner it practicable.
- Art. 2. The company binds itself to
establish a line from Havana to New York, in close connection
with the steamers coming from Europe, so as to combine with the
service between New York, Progreso, and Vera Cruz, as it is
already combined in the other ports, making likewise three
voyages monthly.
- Art. 3. In order to develop the
commerce of the Mexican Republic, it will pay to the Spanish
Transatlantic Company, in the custom-houses of Vera Cruz and
Progreso, by the importers, 2 per cent. of the customs duties
levied upon their goods, this amount being discounted from the
subvention which the company is to receive from those
custom-houses.
* * * * * * *
- Art. 6. Daring the existence of this
present contract the tariffs for freight and passengers shall be
as follows:
- A.
- The maximum between New York, Havana, Progreso, and
Vera Cruz shall be 10 per cent. less than that fixed by
the company of F. Alexandre & Sons, as approved by
the Federal Government.
- B.
- For the other lines the maximum shall be the same as
the last tariffs issued by the Mexican Transatlantic
Company, but those of i the Spanish Transatlantic
Company shall be adhered to if they be found more
favorable.
- C.
- National goods exported shall enjoy a reduction of
freightage to the amount of 30 per cent. of the incoming
freight tariffs to which the fore going paragraph
relates.
- D.
- National goods exported in the extra steamers, of
which paragraph A of Article 9 speaks, shall enjoy a
reduction of freightage to the amount of 40 per cent. of
the aforesaid tariff of incoming freight.
- E.
- Minerals and marbles exported in the said steamers are
to have a reduction of 50 per cent. from the aforesaid
tariff of incoming freight.
- F.
- When the Government permits the vessels of this line
to carry national goods from Vera Cruz to the Peninsula
of Yucatan such goods shall be regarded as if exported
for the collection of freightage.
- Art. 8. The company will give
notice, from time to time, of its tariffs, and always whenever
any change shall be made therein, with the understanding that
whenever the change shall be an increase—but in no case,
however, in excess of the provisions of paragraphs A and B of
Article 5 of this contract—it shall not take effect until two
months after being published.
- Art. 9. The Government will
subvention the company with the sum of five
thousand pesos fuertes in Mexican silver for each round
trip made by its vessels between Havana, Progreso, and Vera
Cruz, in connection with its lines, and with 2 per cent. of the
customs duties levied upon the goods carried in its steamers;
provided that such duties shall amount to at least $50,000 on
each voyage.
[Inclosure 5 in No. 19.]
Messrs. Maitland, Phelps &
Co. to Messrs. F. Alexandre &
Sons.
New
York, November 13,
1886.
Dear Sirs: In reply to your favor of the 12th
instant we beg leave to say that we have received instructions to ship
goods to Vera Cruz by the Spanish steamers on account of the reduction
of 2 per cent. in the duties on goods imported into Mexico by that
line.
We are, etc.,
[Inclosure 6 in No. 19.]
Messrs. Marquardt &
Co. to Messrs. Alexandre &
Sons.
New
York, November 13,
1886.
Dear Sirs: We beg to inform you, in reply to
your solicitations for freight by your line of steamers for Vera Cruz
(Mexico), that we have positive order from our correspondents in Mexico
to ship only by the steamers of the new Spanish line called the
“Compafña Transatlantic a Españala.”
Below we give you extract from letters of our friends in Mexico giving
their reason for insisting on shipment per Spanish steamers.
We are, etc.,
October 1, 1886, Messrs. F, Formento and Co., Sens., Vera Cruz,
write: “All our orders we request you to ship in Spanish steamers,
as such goods are entitled to a rebate of 2 per cent. on duties of
importation,”
October 8, 1886, Messrs. Zaldo Hermanos & Co., Vera Cruz, write:
“We wish all our goods to come by the new Spanish steamer line,
formerly the ‘Lopez Company, because we enjoy the benefit of 2 per
cent. on duties of importation.”
[Inclosure 7 in No. 19.]
Messrs. Echeverria &
Co. to Messrs. Alexandre &
Sons.
New
York, November 13,
1886.
Dear Sirs: Complying with your request, we send
you the following translation of extract of letter of October last from
one of our friends in Mexico City, referring to order for goods
therewith:
These goods I wish shipped by Spanish steamer, on account of rebate of 2
per cent. differential duty j but if freight by the Alexandre line is
cheaper by more than that
[Page 672]
difference, you will proceed accordingly; though I presume the Spanish
line; has fixed its tariff, if not lower, at least on a level with
Alexandre’s. The latter has collected from our merchants 2f cents per
pound through to Mexico; but if the freight be not fixed through to this place, we have to pay the
forwarding and at the rate of $45 per ton from Vera Cruz.”
Yours, very truly,
