No. 423.
Mr. Manning to Mr. Bayard.
Legation of
the United States,
Mexico, December 6, 1886.
(Received December 15.)
No. 29.]
Sir: I have the honor to acknowledge your No. 19,
of 23d ultimo, with inclosures, relative to the complaint of Messrs. F.
Alexandre & Sons of an alleged discrimination by the Mexican Government
in favor of the Spanish Transatlantic Company, in a rebate of 2 per cent.
customs duties, accorded that line, to the detriment of Messrs. Alexandres
line of steamers.
It is apparent, as observed by you, that the 2 per. cent, rebate of duties is
not accorded to the goods for the benefit of the importers thereof, but that
the Spanish company is to be paid a sum equivalent to that rebate
collectable on the foreign goods carried in its steamers to Mexican ports,
which payment is to be in part satisfaction of the subvention [Page 679] granted by the Mexican Government
in its contract of August 1, 1886. But it is equally apparent that while
this advantage given to the Spanish steamers is not put in the form of a
discrimination, it amounts to one practically.
I shall at once ascertain from Señor Mariscal what is the construction put by
his Government upon the contract with the Spanish company, and what is the
action of his Government under that contract; but I presume I shall receive
for answer that, so far as the Mexican Government is concerned, it is not a
discrimination, either in form or substance, but that they do actually
collect the whole of the duties that are properly chargeable upon the goods,
and that the owners of the steamers, by a private arrangement with shippers,
return to them 2 per cent. of the duties they have paid. Should such be the
answer of Señor Mariscal, I do not see what relief can be afforded the
complainants in this case, but that shall not prevent me from using every
effort in my power for their relief.
I inclose to you a copy of a note I have just written to Señor Mariscal upon
the subject.
I am, etc.,
[Inclosmre in No. 29.]
Mr. Manning to Mr.
Mariscal.
Legation of the United States,
Mexico, December 6,
1886.
Sir: Mr. Bayard, under date of 23d ultimo, has
transmitted me a complaint of Messrs. F. Alexandre & Sons, of New
York, of a discrimination they allege to be made by the Government of
Mexico in favor of the recently established Spanish line of
transatlantic steamers, this discrimination being in form of a rebate of
2 per cent. of customs duties in favor of the importers of goods into
Mexico through that line. Of course such discrimination operates greatly
to the detriment of the Alexandre line of steamers, and if it continues
to be made would greatly injure, if not entirely destroy, the carrying
trade now existing between the United States and Mexico. the
communication of Mr. Bayard is accompanied by certain letters addressed
by prominent merchants in New York, confirming the complaint of Messrs.
Alexandre, in one of which Maitland, Phelps &> Co. write “We have
received instructions to ship goods to Vera Cruz by the Spanish steamer
on account of the reduction of 2 per cent. in the duties on goods
imported into Mexico on that line.”
Another letter, from Marquardt & Co. to Messrs. Alexandre, says, “We
have positive orders from our correspondents in Mexico to ship by the
steamers of the new Spanish line;” and then proceeds to give extracts
from two letters, of two several firms of Vera Cruz, both of which
direct all shipments to them to be made by the Spanish line, because
such shipments are entitled to a rebate of 2 per cent. on duties of
imporations.
Your excellency will therefore perceive that whether or not the
discrimination is intended to be made by the Mexican Government in favor
of this Spanish line of steamers, practically it is made, and the
Spanish line enjoys the benefit of it as much as if it were directed by
law or were stipulated in the contract of last August.
Your excellency can not fail to perceive the unfriendly character of such
discrimination, which strikes directly a most damaging blow at the
American carrying trade to Mexico, and shippers, as well as all other
practical men, will not be the less aggrieved by it, whether this
discrimination is inimically designed or not. By the provisions of the
shipping acts of 1884 and 1886 marked favors have been given to Mexico
at the promptings of neighborhood. For instance, all vessels bringing
goods from Mexican ports, under whatever Hag, are entitled to a
considerable reduction of tonnage dues in our own ports. If the
impression were made upon the Government and people of the United States
that any act had been done by the Government of Mexico which would
greatly injure the carrying trade of the United States with your
country, and which should inevitably exclude the United States from
sharing in the enlarged intercourse which our legislation created, it
would be a serious calamity; for such a conviction could not fail to
affect injuriously the opportunities which are continually presenting
themselves for the development of our neighborly relations [Page 680] with Mexico. Your excellency’s
long residence in the United States enables you to realize vividly how
much public opinion affects legislation there, and how difficult it is
to dispel impressions when once made, even though they are wholly
erroneous.
Trussing, therefore, that your excellency will give me all the
information you have upon this question, in order that it may be
speedily transmitted to my Government, and that the impressions of
shippers and other business men touching this discrimination alleged by
Messrs. Alexandre to be made may be dispelled, I beg to renew to your
excellency, etc.,
