Minister Dawson to the Secretary of State.

No. 250.]

Sir: Referring to the subject of my No. 229, of March 7, 1906, the collection of the sugar production tax, I have the honor to report that on the 14th instant the supreme court rendered a decision in the case of the Dominican Government v. W. L. Bass. I have not yet been able to obtain a copy of the court’s opinion, although one will be given me as soon as possible.

I am informed that the decision is completely adverse to Mr. Bass, dismissing as unfounded his contention that the decree of December [Page 616]18, 1903, and the contract of the same date under which $10,500 was paid this Government, constitute in law a prohibition against placing any tax on sugar for twenty years from that date. The practical effect of the decision is to make Mr. Bass immediately responsible for a tax of 10 cents per hundred pounds for all sugars manufactured by him during the last two years. He will also be liable for the same tax on all sugar manufactured from the present time until August 1st, the date on which the sugar duties are abolished by the recent law.

By the next mail I will forward a copy and translation of the decision.

I have, etc.,

T. C. Dawson.