File No. 812.512/137.
Chargé O’Shaughnessy to the Secretary of State.
Mexico City, December 6, 1913.
638. The Spanish Minister, the Dean of the Diplomatic Corps, has received a telegram signed by the Spanish Consul, Mazatlan, and the entire Consular Corps including the United States Consul, stating that Governor, Sinaloa, issued decree November 29 last assessing five per cent, tax on value of rural and urban real estate, chattel and personal property throughout the whole State under penalty of confiscation without preliminary legal valuation of property, this being utterly unconstitutional, if this tax is not paid on or before the eighth instant. These funds are to pay troopers defending Government. Commercial and banking firms of Mazatlan have already loaned the Government one hundred and fifteen thousand pesos and it is claimed that inasmuch as the Government only controls port of Mazatlan the commerce of that city will be the only one to meet this extraordinary tax. Poverty is raging in that city, many commercial and industrial institutions and two local banks have closed doors. Protest is signed as above stated with the request that matter be referred to President for assistance. German and English Ministers have telegraphed their subjects that international law expects them to pay the same taxes levied on Mexicans even though extraordinary or seemingly unjustifiable. French Minister has protested against forced loans and has referred matter to his Government. Secretary of the Treasury states he has no jurisdiction in matter and Minister of Government has telegraphed Governor of Sinaloa to be cautious and adhere strictly to law. I have expressed the opinion that tax might be impertinent and unjustifiable especially the confiscation sanction as no one can be deprived of his property without due process of law. The matter is of great importance because if the Government of Sinaloa insists upon it the Central Government can not do much as the question of taxation is legally within the sovereign rights of all independent Mexican States. I have the honor to request instructions in the premises.