Mr. Blaine to Count von Arco-Valley.
Washington, May 26, 1890.
My Dear Count Arco: Your note of the 1st instant in relation to the imposition of tonnage dues on vessels coming from German ports by indirect voyages to the United States has been duly considered and has formed the subject of correspondence with my colleague of the Treasury.
Your complaint relates particularly to the tax imposed on certain vessels of the North German Lloyd’s entering at the port of New York from Bremen, via Southampton, Havre, or other intermediate ports. It is believed that the question to which your note relates has been made the subject of a suit in the courts, which has not yet been decided.
Without reference, however, to that fact, it is proper for me to say that the decision of the commissioner of navigation which it is sought to reverse does not seem to have been altogether correctly apprehended.
It is not understood that the commissioner of navigation has decided [Page 320] that exemption from tonnage dues shall be accorded only to such German vessels as sail directly from German ports to ports in the United States. On the contrary, it is stated that no absolute rule of decision has been adopted, but that all the circumstances attending deviations to other countries in voyages beginning in German ports and ending in ports of the United States are considered and action taken in accordance with the facts in each case.
A misunderstanding as to the effect of the circular of the Treasury appears to have arisen from a verbal departure in that document from the language employed in the proclamation. The proclamation provides for a suspension of tonnage dues “upon vessels entered in the ports of the United States from any of the ports of the Empire of Germany.” The circular ordered the suspension of the collection of dues on vessels entered in ports of the United States “direct” from German ports. This was ordered as a matter of course. The cases of vessels not coming directly to the United States were reserved for consideration, and when deviations have been occasioned by distress or an intention to aid other vessels in distress, or analogous cases, exemption from the tax has been granted. While the word “direct” is not found in the proclamation, it is not understood to have been the purpose either of the law or of the proclamation to allow vessels trading with England, France, or other foreign countries to enter free of duty merely because they sail originally from ports in Germany.
I am, etc.,