File No. 812.512/17.

Vice Consul Simpich to the Secretary of State.

Sir: I have the honor to report that the Constitutionalist party, now in power in northern Sonora, is demanding and collecting taxes payable on mines and other property in this consular district. Since Americans doing business in northern Sonora, largely organized as various Mexican corporations, have no other recourse, they are complying [Page 731] with the demand of the Constitutionalists and are paying their taxes to the State officials now in power. In consequence much speculation occurs as to whether or not such taxes may have to be paid again, to the Federal authorities, should the present Constitutionalist government in Sonora fail. I am informed that in a previous revolution certain mining taxes which were duly paid, under circumstances similar to the present, were later collected a second time, and paid into the Federal Treasury.

An official circular, demanding payment of certain taxes to State of Sonora officials, is enclosed herewith, in the form of a free translation.

I have [etc.]

Frederick Simpich
.
[Inclosure—Translation.]

Circular demanding payment of certain taxes to State officials of Sonora.

The Acting Secretary of State, in a telegram dated March 29, 1913, instructs this Prefecture as follows:

Hermosillo, March 29, 1918.

Prefect of the District,
Cananea, Sonora:

By order of the Governor I recommend to you that you make known in an efficacious manner to all mine owners, of that district that they must call at the office of the Tax Collector, Municipal Treasurer, and Fiscal Agencies, respectively, to pay the taxes corresponding to the third four months of the fiscal year, that is, March, April, May and June, for which a term of eight days grace is allowed; warning them that if they do not comply herewith they shall suffer the consequent penalties. Until they receive their provisional receipt equivalent to the revenue stamps, they may receive payment (receipts for taxes paid) by means of certificates of deposit which shall be issued by said offices, and which shall, at the opportune time, be attached to the formal receipts.

You are especially recommended to promptly comply with this order.

The Acting Secretary [of State],
F. Rosado.

Which I for my part promulgate for the guidance of those interested.

Carlos N. Durazo,
The Acting Prefect
.