File No. 812.512/1197

Consul Simpich to the Secretary of State

No. 508

Sir: I have the honor to report that there are in this District many foreign-owned mines; that from August 1914 to November 1915, owners of many of these mines paid accruing taxes to the then de facto authorities, to wit, the Maytorena-Villa element. For obvious reasons they could not refuse so to pay.

Now comes the Carranza régime, and through its local collector declares that tax payments made as described to the Maytorena-Villa faction cannot be considered as a legal payment of taxes; that [Page 720] taxes so paid to the Villa or Maytorena authorities must now be paid again, to the present de facto Government otherwise titles to mining property involved will revert to the Republic of Mexico. I have seen no formal printed decree to this effect, but such is the information given out at the office of the tax collector at Nogales.

It is thought the Department may have received similar information from other states in Mexico; and it is inferred that instructions will soon be given consuls that they may properly advise interested Americans.

I have [etc.]

Frederick Simpich