File No. 812.512/302.
Consul Miller to the Secretary of State.
Tampico, June 27, 1914.
Local authorities have been ordered to strictly enforce decree for collection oil production tax Mexican gold or in United States currency at rate of two for one. Most companies have paid, but some have not as they regard it unjust to arbitrarily enforce rate of exchange of two for one when prevailing rate about three for one. Orders have been received not to allow ships to be dispatched if production tax is not paid and same rules probably will be applied in cases of bar dues. Companies do not complain of amount of production [Page 744] tax which is rate provided by law under Madero administration instead of seventy-five cents rate by decree of General Huerta. They feel that it is unjust for authorities not to accept Constitutionalist currency or at least accept New York exchange at prevailing rate. Total of bar dues and production tax under present administration is seventy cents Mexico or thirty-five cents American currency. Under preceding administration was one dollar and twenty-five cents or about forty-two cents American currency but present procedure of fixing exchange rate is regarded as arbitrary and illegal and companies believe instead of ships being detained on account of non-payment of such Charges pending decision legality of same that some method should be adopted which will permit shipments to continue and at same time protect interests of both Government and shippers.