File No. 763.72111/54

The Secretary of the Treasury (McAdoo) to the Secretary of State

Sir: I have the honor to state that this Department is in receipt of the following telegram dated the 19th instant from the collector of customs at San Francisco, California:

Have just learned that John Rothschild and Company on Tuesday August 11 bought 500 tons sack coal from Western Fuel Company and arranged with one Simon Reimer and the German Consul to deliver this coal to cruiser Leipzig at sea, one half of which was loaded on lighters. They engaged tugboat man to deliver the coal and agreed to pay for his services $5,000. Plan ultimately fell through and this same coal is now being delivered to steamer Mazatlan. Mazatlan is under German flag and am informed that she will apply for change to Mexican registry. According to my information Mazatlan will clear for Mexico and deliver this coal to German cruiser either at sea or Mexican coast. Will verify information in my possession and if found correct will refuse clearance to Mazatlan. Wire instructions.

It appears from previous telegrams from the collector that on the 18th instant the Leipzig departed from San Francisco after having been permitted to take on only enough coal, etc., to carry her to German Samoa.

I will thank you to advise me whether or not the collector of customs shall be instructed to refuse clearance to the Mazatlan if he shall find correct the information he has communicated in the telegram quoted above.

Your early advice is requested in order that the collector may be properly instructed by wire.

Respectfully,

W. G. Mcadoo

Secretary