New-York tribune., 1869-03-08
PANAMA.
THE ILLEGAL TAX QUEsTIoN-LETTER FROM
THE CONSUL OF THE UNITED STATES TO THE
PRESIDENT OF PANAMA.

THE ILLEGAL TAX QUESTION-bEITEK FROM
THE CONSUL OF THE UNITED STATES TO THE
PRESIDENT OF PANAMA.
The Consul of the United States has adj
ressed the following letter to President Correoso:
UNITED STATES CONSULATE, PANAMA. Feb. 1s, 1869.
GENERAL B. CoRREoso PRESIDENT ofhe Sorere0n state
GENERAL: beg leave to submit to your consideration
contents OF letter received by me few moments since
from David NJ. COrwine. esq, Agent OF the Pacific Mail
Steamship Company relative to tax sought to be I'M
posed by the Government Of the State OF Panama upon
live stock buock and hogs sent off TO the steamers Of
the Company he represents for consumption OF passen
The equity OF this tax is likely TO become matter OF
dispute, and tho payment Of the same as am informed
by the parties in interest, will be resisted ON other
grounds aside FROM but In connection WITH those set
forth in the communication have the honor TO inclose
III the controversy upon the point now made imminent
which the rights of American citizens resident upon
the sthmus will be freely discussed, and the subject
matter OF treaties between the respective Governments
Of the United States Of America aud the United States OF
Colombia, with the peculiar relations of the Sovereign
state OF Panama toward the confederation, OF whch she
is integral part, we'll toward the Government Of
the United states acntey anayzed 1t simportant that
the premises be carefully considered and well understood
by those who IN whatever capacity represent the inter-
est of either party, with power TO advise or control
To this end / have sought personal interviews with
yOu IN the hope that nice dscernment OF all the ques-
tons involved might be eliminated IN conversation be-
with profound respect for the opinions Of your Excel
lency, doubtless well considered and adroty elaborated
that have done the honor TO express IN this be-
half at recent interviews, hesitate in this CORE
spondence to urge argument to induce you TO change
your mndi nor poes IL become me III my present ocla
relations toward my own Government 10 assume pre-
rogatiye that might be disputed.
My predecessors ana cojleagnes IN ONCE nave ex;
hausted II 70 me- the analysis Of both law and
comfy In the frequent converse Of yexed question that
in divers forms, has opposed tho progress OF my fellow
citizens in enterprise and commerce upon this Isthmus
so fruitful in resources ! am , satisfied IN my my
matey govern in human progress, upon this Isthmus
and Throughout the world, protecting the rights
s S must from % "e the views You have e2,
pressed upon tho immediate question in hand as wen as
the general policy Of Panama toward American oitizens
resident here, and toward the great interests OF non
resident American citizens represented here feel that
IL is due you TO inform you OF my Intention not only 10
advise those who deem my counsel valuable TO protest
against the action OF your Government but 10 lend my
influence IN person at the seat OF Government 70 nave
their protests carefully considered by tho Executive and
Tias I shall advise the Pacific Mail Steamship Com
pany protest against the payment OF what they ana
consider unjust tax-m point OF fact an export duty
imposed upon live cattle aud hogs shipped from this port
to he consumed on the high seas .
shall advise all persons directly or indirectly injured
by this injustice and outrage upon their rights lndVldu
ally and collectively, 10 protest. Nor shal permit my
counsel or advice to be controlled D any quloDe as 70
immediate prospective ownershpln INC hve STOCK tus
shipped, any small points in contracts for delivery
MY ana my GyTe nnon bSooS b ag apd general T n
cples confined only by the instructions gwen me by my
chief the Hon Secretary OF state, heretofore submitted
TO you and published TO the world.
Regarding the made rs good test case lny0ly,
ing all the questions OF extraordlnaTy taxatioh sa
proceed forthwith to the City OF Washington ana present
the the Secretary Of state with interceiOn TO
induce him, the Executive ana Congress asseoieG, 10
intervene promptly for the rights OF American ellZens
jeopardzed by the action OF the local authorities
Uf Panama, unless, lndeeu, as from WhdL you
have communicated to me 10 the premises l can
scarce permit myself to hope, you Should lpllle-
dae after the receipt OF @ a nI M GO % e S and IL 6 70
be- vain for TO urge, tnat as matter OF pOllcy IN
finance your legislature may err err N dSing HsI n M
undsputed tax to its Government OF upward OF SlOOO
per annum Mexico elsewhere because OF those en-
barrassments in onerous and eXtraordnaIy taAation
And this must TO some extent result however the present
controversy may terminate.
These considerations are not now pertinent. Suffice II
that close note, concise asa grayamah VIII pear WIN
with tender interest the rise and progress OF the younger
sister. The delicate and friendly relations tnsI
hUT 6nt Ghs' has set an Example 10 the world In my
consular capacity, or us an ,1s hdlvI1asI DearinS
now heretofore, by the principles OF justice Ga ana ~
courtesy that the spirit or my Instructions Bu t
meanest citizen OF my land who may wander TO yonr
shores as well MS OF those OF the powerful corporations
stnntiai honor 70 the Isthmus they have spanned. -
With considerations Of the highest respect fof your TX
patriotism and trusting that mere differences OF opinion
taxation or finance may never nterse m IN or vc G
obedient servant, THOMAS KILBr smith, U.s. CONSUL
MR. coRwIyE TO THE UNITED STATES CONSUL.
AGENCY PACIFIC MAIL STEAMSHIP G0MPAHHh{
sm Tho Government Of this has since the lst of
the present demanded tax per neea on az W %
stock OHSSk @ Sna by and crew dur
ipv the voyage San Francisco Priorto that time no
such demand was ever, to my knowledge, made upon
cns1r n uniust and illegal for the following reasons:
Frst It is in direct violation OF Art u OF tine e1lsuhR
contract between the United states OF Colombia ana INC
Panama Railroad Company celeDrateu III bo9o1a' OH
Julv 1867, which reads AS follows: .
passsugers money, merchandise, Op1ects anu eeCts VI
l Kinds destined for inerOceanlc transit over inc ran
road while they remain III the Warehouse hhu uoPVse VI
thr COMPANY It's possession are exempt lOnl uues
and tnxes national municipal OF the state, or OF any
other description. In like manner the vessels Whlo may
enter the ports at the termni OF the railroad s Wei as
their officers, and their agents shall pe efep r
from e payment OF tunnage dues or OF any other TAX or
contribution whatever on account OF service applied d.
rectly TO the interOceanic transit - - ,,
fhe steamers OF this Company or course are employed
I'm carving passengers to CalllOrhIa who cono Iou
nota beyond the Atlantic terminus or the lnteroceanc
Iroad we must sabsist them and all live STOCK we pun
on board for such purpose must heosssay 10 CVnsu
red IA ON account Of service applied directly to the inter-
oceanic transit . ,,. A.. .r o,nor, du,v os tho live
,ock o mt on board will not again be landed within the
rv ~ this Republic, and therefore cannot be levied
NJ this mort which has been declared free.
nnnt of the State OF Panama since about the begin
Ming OF tho year 1854 has received from TINS agency
monthly voluntary contribution OF slOO III lieu of al
land the like from the agency at Aspin.
wall since November, 1861 ana having aTeauy received
nis Voluntary contribution for the months Of January
aud February OF this year. you VIII perceive Dy tho l
scd copies Of the receipts can have no claim upon us
@ The lay during said mouths even supposing the State
has q right to levy said tar. . ILL.,. Ar, 49,. 4, ou
Tonsderng that the attempt 10 collect the tax II per-
In NAV prove greatly detrimental 10 the interests
p, Ills Company bring the matter To your attention IN
~ hone that YOU will kindly represent 1t IN such ght
" ,ha Presdent OF the state 40 " convince him OF tue
Ii, 10 ,y of the tax have the honor TO be very re-
spe,''"'' d. NJ CoRwINE, Agent p. NJ. s. s. Comp.
ST. THOMAS.
.ooyn eAIR OP THE IsIAND--MOVE-