Mr. Hill to Mr.
McCormick.
Department of State,
Washington, July 28,
1902.
No. 57.]
Sir: The Sterling Remedy Company, of Kramer,
Ind., as will appear from inclosed copies of communications from that
company and their agent at Vienna, Mr. Kris, allege and complain as
follows:
That their trade-mark “Cascarets” has been registered in Austria and
Hungary, and that they have made formal and due application through
their said agent to obtain the necessary permit for importing
“Cascarets” into Austria and Hungary, but that such permit is withheld
upon the ground that the importation of American specialties for
medicinal purposes to be sold in packages at retail is forbidden, the
regulation of the ministry of the interior, dated December 17, 1894, (R.
G. Bl. No. 239,) restricting the granting of such permits to cases in
which those specialties have been prepared in accordance with the
pharmacopoeias of European states.
You are instructed to present this case to the Imperial Government,
requesting an investigation and the ultimate abandonment of a course
which appears to discriminate unjustly against an American export and to
be inconsistent with the most-favored-nation provisions of the treaty of
commerce and navigation concluded August 27, 1829, between the United
States and Austria-Hungary.
In preparing this case for presentation you will avail yourself of so
much of the material furnished in the inclosures as you may find
appropriate for the purpose, and you may, in our discretion, consult
with Mr. Kris, the company’s agent, in respect to the matter.
I am, etc.,
David J. Hill,
Acting Secretary.
[Inclosure.]
Sterling Remedy
Company to Hon. C. B
Landis, M. C.
Kramer, Ind., July 1, 1902.
Sir: In developing our foreign business we
have encountered a difficulty in Austria and Hungary which seems to
look like a direct discrimination against the United States. We have
been negotiating for nearly a year with Mr. Kris, the manager of the
Alte K. K. Feldapotheke, the best-known drug house in Vienna, with
reference to introducing our goods in that Empire. The first
suggestion to enter the territory referred to came from the other
side. We have made efforts to meet every requirement and condition
affecting the importation of our goods into those countries.
Our application for registering the trade-mark “Cascarets” in Austria
and Hungary was filed first of all, and such trade-marks have been
registered there.
We also prepared a formula showing contents of “Cascarets,” properly
sworn to and legalized by the general consulate at Chicago, and made
application through our agent, Mr. Kris, to obtain the necessary
permit for importing “Cascarets” into Austria and Hungary. To-day we
are receipt of a letter from our agent, which I have translated and
inclose you a copy, together with clippinga referred to in the
communication. Said clipping is necessarily printed in German, and
the paragraph marked thereon authorizes the importation of
preparations made in European States, which, if strictly construed,
would be a very marked discrimination against the
[Page 38]
United States and probably inconsistent
with the favored-nation treaty undoubtedly in existence between the
two countries.
We have already spent considerable time, work, and money in preparing
for the sale of our goods in this territory, and we do not feel that
we ought to abandon the enterprise on account of a ruling which
certainly can not be based on equitable international
principles.
You will notice Mr. Kris’s suggestion to have our Department of State
interpellate the Austrian embassy regarding this subject, and it
occurred to Mr. Kramer and myself that you might be willing and able
to take this matter up for us, as being one of great importance to
the proprietary interests of America. We do not think this question
has ever been brought to adjudication. If the condition which
reveals itself in our negotiations is to be maintained, then the
importation into Austria of any chemical goods put up in packages
ready for retailing is prohibited as far as America is concerned,
whereas all European countries have at least a chance to secure
admission of their products.
Will you please advise whether you can take any action personally in
this matter and see the Secretary of State with reference to it, or
be kind enough to give us the correct advice in the premises?
* * * * * * *
Very truly, etc.,
Sterling Remedy
Company,
A. B.
Schanz, Secretary.
[Subinclosure.—Translation.]
Mr. Kris to the
Sterling Remedy
Company.
Honored Sirs: Last week I spent the
forenoon of every day in the sanitary department in connection with
this matter, and herewith communicate to you the result of our
consultations.
The importation of American specialities for medicinal purposes to be
sold in packages at retail is forbidden under the rulings of the
department. The United States are specifically excluded. In answer
to my remark addressed to the sanitary referee, that the United
States were supposed to be on earth, he pointed out to me that he
was compelled to adhere strictly to the letter of the law. I am of
the opinion that the clause referred to must be an oversight of our
authorities, and inclose herewith a clippinga of our medicinal tax
schedule for your information. I have been compelled to withdraw our
application in the form in which it was filed, and on Wednesday,
June 18, shall call on the American consul here, and call his
attention to this question. The importation by prescription—i.e.,
through the medical profession, A. B. S.—could be accomplished, but
this method would be inadequate for a large commercial enterprise
like this. I have no doubt but that, with your assistance, I shall
be able to secure the right of retailing your goods, and beg you,
immediately upon receipt of this letter, to have your proper
authorities interpellate the Austrian embassy regarding this
subject. It certainly can not be the case that you Americans are
allowed to import our articles put up for the retail trade while the
reverse privilege is denied us. Regarding my audience with the
American consul-general, I shall report to you within a few days. I
hope you will not hesitate in taking the necessary steps, as the
sale in our country of this article is certain to be an extensive
one, but these legal formalities must be gone through.
Respectfully,
