Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 5, 1898

Mr. Powell to Mr. Sherman.

Legation of the United States,
Port-au-Prince, Haiti, September 24, 1897.

No. 35.]

Sir: I call the attention of the Department to a law recently enacted by the Chamber of Deputies, a copy of which I herein inclose, and which is to take effect October 1, 1897.

The provisions of this law create an invidious distinction between native and foreign merchants, as well as between native and foreign clerks, which is in direct conflict with the rights of citizens under the treaty (art. 5, treaty with Haiti, p. 551) made between the Governments, as cited in the Metzger case, dispatch No. 19, August 31, 1897.

It is intended to enforce this law rigidly. Those of our citizens that are in business and have large capital invested have asked the protection of the Government, and to protest against its enforcement. They do not and have not objected to paying this tax, providing the native merchant pays the same, nor have they objected to paying a tax slightly in excess of that required of the native merchant to conduct their business. They were aware that the Government needed money, and stood ready in this way to give the required assistance.

The present enactment makes this tax excessive, and virtually drives them out of business, without any compensating feature. Before taking action in reference to this law, will the Department favor me with instruction on the following:

1. Can this Government enact a law that is in conflict with treaty rights?

2. If this right be granted to them, to what extent are we to submit?

3. To what extent shall this protest be made?

4. Such further information as the Department deems necessary.

I also inclose copy of law giving the rates of taxes the native merchant is required to pay; no tax is required from native clerks.

I have, etc.,

W. F. Powell.

[Inclosure 1 in No. 35.]

the house of commons.

Considering that it is essential to augment by all equitable means the revenues of the communes so as to permit the communal councils to meet the necessities of the administration;

Considering that practice shows the impossibility of preventing foreigners from exercising commerce but under title of consignee’s merchants;

Considering on the other part that it is urgent to facilitate the collection of communal taxes by a more rapid procedure than that which has been exercised up to this time;

Using the initiative which the constitution gives, has proposed, and the legislative corps has rendered the following law:

Article 1. From the 1st of October, 1897, the communal councils shall collect, in the manner established by the communal decrees, a distinct tax of dues for passports:

First. On all tickets for passage delivered by the steamship agents and for each person under 12 years:

	Gourdes.
First. For a voyage out of America	3.00
Second. For a voyage in the Antilles	1.50
Third. For a voyage out of the Antilles, but in America	2.00
On all tickets delivered in a foreign country for Haiti:
First. Each person over 12 years coming from the Antilles	1.50
Second. Each person over 12 years coming from the American continent	2.00
Third. Each person over 12 years coming from the countries	2.00

Art. 2. The agencies established in Haiti are responsible for the payment of the tax. They shall collect them in Haiti, and have them collected by their officers in foreign countries.

Art. 3. From and after October 1, 1897, foreign merchants established in Haiti shall pay license taxes as follows:

	Gourdes.
First. Those who do an exportation or banking trade:
Commune of first class	400
Commune of second class	300
Commune of third class	250
Commune of fourth class	200
Commune of fifth class	150
Commune of sixth class	100
Second. Those who do an importation or banking trade:
Commune of first class	500
Commune of second class	400
Commune of third class	300
Commune of fourth class	250
Commune of fifth class	200
Commune of sixth class	150
Third. Those who do an importation trade only:
Commune of first class	300
Commune of second class	250
Commune of third class	200
Commune of fourth class	150
Commune of fifth class	100
Commune of sixth class	60
Fourth. Those who do not import, but purchase on the place, and do a wholesale trade:
Commune of first class	150
Commune of second class	100
Commune of third class	80
Commune of fourth class	60
Fifth. Foreign haberdashers:
Commune of first class	100
Commune of second class	80
Commune of third class	50
Commune of fourth class	40
Commune of fifth class	30
Sixth. Inn and restaurant keepers	80
Seventh. Coffeehouses	80
Eight. Those who keep a coffeehouse or restaurant	140
Ninth. Those who exercise any other kind of commerce expecting that of peddler and traveling merchants, formally forbidden to foreigners	50
Tenth. Coachmen for private carriages	10
Eleventh. Traveling clerks in the town where they land	150
Twelfth. Manufacturers, establishments, and works, not foreseen by the law, owned by foreigners and by Haitians	100

Thirteenth. Machines worked by steam or compressed air or any other system for the use of manufactures, establishments, etc., shall pay—

	Gourdes.
Of 1 to 5 horsepower	20
Of 5 to 10 horsepower	30
Of 10 to 20 horsepower	40
Over 20 horsepower	100

	Gourdes.
Fourteenth. The employees of fabrics, telephones, submarine telegraphs, and all other societies of transmission	50

Art. 4. The license granted to a foreigner to exercise any commerce or industry shall henceforth be indefinitely valid without there being any need of renewing it each year. Nevertheless the chief of state may revoke the license at any period in case of nonpayment of tax, of smuggling, or of political acts on the part of the foreigner.

* * * * * * *

Article 1. The laws of October 24 and 30, 1876, on the administration of direct taxes, assessment of tenant, and license taxes are prolonged for the exercise 1897–98, with the following modification bearing on the tariff annexed to that of October 30, 1876.

The quota of license of foreigners employed as clerks or any other service of merchants, tradesmen, manufacturers, or artisans, either natives or foreigners, is modified as follows:

	Gourdes.
First Class	75
Second Class	60
Third Class	50
Fourth Class	40
Fifth Class	35
Sixth class	30

Art. 2. The secretaries of state for finance and of commerce and of the interior are charged in that which concerns them with the execution of the present law.

* * * * * * *

Art. 5. Article 18 of the law of 1876 on taxes shall he applied in its form and tenor. However, the communal magistrates have the faculty of requesting the justice of peace, and, in his place, the communal police, assisted by two witnesses, to closing up of any establishment, foreigner or Haitian, who shall not have paid his license within the lawful delay.

A minute of the procedure shall be drawn up on the spot.

Art. 6. In the forty-eight hours of the operation the proprietor of the said establishment shall give a citation to the receiver of the commune before the court of the justice of peace of the section, who shall decide.

Art. 7. If the merchant is found guilty, the judge shall maintain the closing and condemn the proprietor, as is said in article 18 of the law of 1876 on direct taxes.

Art. 8. If the citation is not made within the forty-eight hours, the justice of peace, by the simple presentation of the communal receiver of the minute mentioned in article 5, shall maintain the closing of the establishment and condemn the dilatory, as it has just been said.

The judgments obtained against the contributors are not susceptible to opposition and shall be executed without delay and immediately.

[Inclosure 2 in No. 35.]

Haitian clerks pay no license tax.

Consignees, Haitians, pay as follows:

	Gourdes.
First class	150
Second class	125
Third class	100
Fourth class	75

Haitians, merchants, importers:

First class	60
Second class	50
Third class	40
Fourth class	30
Fifth class	20
Sixth class	15

Art. 18. Licenses should be taken out each year, from the 1st of October to the 15th of November at the latest.

Every person liable to pay a license, who shall not have taken out a license five days after the delay fixed shall, on being denounced by the communal receiver, be condemned by the justice of peace to a fine of 50 cents for each day of delay and 10 per cent of the amount of the license that they should have taken.

The fine, as well as the amount of the license and the expenses incurred, if not paid forty-eight hours after condemnation, seized by office by the justice of the peace on the goods, products, furniture, and whatsoever effects belonging to the delinquent. The objects thus seized shall be, with short delay, sold at public auction up to the value of the amount to be collected without prejudice to article 36 of the penal code touching arrestation.