702.60 h 11/16

The Secretary of State to the Yugoslav Chargé ( Stanoyevitch )

Sir: The attention of the Department has been called to certain acts of Mr. Savic, the Consul General of the Kingdom of the Serbs, Croats, and Slovenes in New York City, which constitute an improper use of his official position and which are causing definite financial loss to American business interests. It appears that the Consul General has served notice upon certain steamship companies, ticket agencies, and foreign exchange dealers advertising in the “Narodni List”, a Croatian newspaper owned and published in New York by Mr. Frank Zotti, an American citizen, that unless they withdraw their advertisements from the paper immediately, visas and passports will be denied to persons making use of their services. Through the exercise of such coercive measures by the Consul General, it appears that Mr. Zotti, as well as the advertisers in the “Narodni List” are being seriously inconvenienced in the lawful pursuit of their business.

[Page 950]

As an instance of this practice it is stated that the General Passenger Manager of the Cunard Line has recently been notified by the Consul General that unless he withdraws immediately all advertisements from the “Narodni List” as well as other newspapers published by Mr. Zotti the Consul General will refuse to grant passports or visas to any persons intending to take passage upon Cunard Line vessels. Among other concerns and individuals advertising in the “Narodni List” who, it appears, have been warned by the Consul General or his agents to withdraw their advertisements are the following:

  • The International Mercantile Marine Company,
  • The Slovoaic Immigrant Bank,
  • Alexander Advertising Agency,
  • Emil Kiss,
  • John Marsich,
  • Morris Engel,
  • Monchilovich Brothers.

It is further alleged that the Consul General, by similar measures, has endeavored to compel Mr. Zotti to sell the “Narodni List” to him at a reduced price and that during the negotiations for the proposed sale, the Consul General’s agent, Mr. Petrovich, stated that if the purchase price set by Mr. Zotti were agreed upon, a commission of $50,000 would have to be paid to him by Mr. Zotti, half of which was to go to the Consul General.

The charges relative to the measures taken by the Consul General against the concerns advertising in the “Narodni List” are supported by documentary evidence as well as by investigation, and it seems clear that his actions constitute an improper use of his official position. It is also probable that they are in violation of the laws of this country, and the Department understands that legal proceedings are contemplated against him in the courts.

Under the circumstances it is possible that your Government may desire to relieve Mr. Savic of his position as Consul General. Should such action not be taken, this Government will be under the necessity of considering what steps should properly be taken in the matter.

Accept [etc.]

Charles E. Hughes