No. 634.
Mr. Bayard to Mr. de
Muruaga.
Washington, February 5, 1887.
Sir: Referring to your esteemed note of the 4th ultimo, relative to the collection of tonnage dues at the rate of 6 cents per ton from the master of the Spanish steamer Hernan Cortes at the port of New Orleans, [Page 1025] La., December 22, 1886, I have now the honor to communicate to you the substance of the opinion of the honorable the Secretary of the Treasury, to whom the question was referred by me on the 12th ultimo, and who has obtained a full report of the facts in the case from the collector of customs at New Orleans.
It appears therefrom that the Hernan Cortes belonged to the E. Pi. Co. Line, plying between Spain and the United States via West Indian ports; that on the voyage in question she was cleared from Barcelona November 7, last, proceeded to the United States via ports in Spain, Cuba, and Porto Rico, and that the cargo was all discharged at West Indian ports, from which she came in ballast to New Orleans. The collector states that there was no doubt from the declaration of the master that the voyage of the vessel was actually between Spain and the United States, and that the case was similar to those of the Spanish steam-ships Buena Ventura and Alicia, referred to in your note.
Section 14 of the act of June 26, 1884, as amended by section 11 of the act of June 19, 1886, imposes a duty of 6 cents per ton at each entry upon all vessels which shall be entered in the United States from any foreign port, except any foreign port or place in North America, Central America, the West Indian Islands, etc., from which ports the rates on vessels are less than 6 cents per ton. The question is, whether the vessel entered within the meaning of the statute from a foreign port other than one of the excepted ports, as mentioned above.
It has been hitherto held by the commissioner of navigation, whose decision in such cases is final, under the statute applicable, that when the voyage to the United States actually commenced at a European port, and one of the excepted ports is visited by the vessel, such visit constitutes merely an incident in the voyage from Europe, and that entry must be made as from a European port. Such decision was rendered on the case of the British steamship Cella, from Shields, England, via Halifax, which was charged with tonnage dues at the rate of 6 cents per ton.
Other similar decisions have been and are believed to be in accordance with the statute, and that any other course would afford opportunities for evasion of the law. The ruling is applicable not only to Spanish vessels but to British and all other foreign vessels, and also to vessels from the United States. If the vessel, instead of being one of a line plying between Spain and the United States via certain foreign ports, had traded directly between a West Indian port and the United States the lower rate of tax only would have been levied.
There appears to be a misunderstanding on your part in regard to the grounds for the action taken in the case of the Hernan Cortes when you state that the reason of the collector at New Orleans for imposing on said steamer the tax of 6 cents per ton, rests upon the same erroneous interpretation that was the basis for exacting a similar tax from the steamships San Francisco, Buenaventura, and Alicia, and that the collector disregarded the conditions of the modus vivendi’as agreed to between the United States and Spain, when insisting that Spanish vessels can enjoy the privilege of assimilation to the American flag only when they come direct from ports of the islands of Cuba and Porto Rico, and not at all when they come from other Spanish or foreign ports.
The stipulation upon the subject by the United States was simply that the foreign discriminating dues of tonnage and imports within the United States should be suspended and discontinued so far as respects Spanish vessels or produce, manufactures, on merchandise imported in [Page 1026] them into the United States from Spain or her possessions, or from any foreign country. A proclamation was issued in accordance with this, and since the date thereof no discrimination has been made in contravention of such agreement. Should such discrimination be made at any time, immediate measures will be taken by the Treasury Department, on information from you, to remedy the irregularity.
The conditions of the modus Vivendi have, however, no bearing upon the present question, the action taken not depending in any respect upon the nationality of the vessel, but entirely upon the character of the voyage and of the entry of the vessel.
I avail, etc.,