The sun., 1899-05-25
THE BLUEFIELDs INCIDENT.
The Nicaraguan Demand of Double Taxes
for American Renidenta.

The Nicaraguan Demand of Double Taxes
for American Residents.
To THE EDITOR OF THE sUN-Sir. The de-
parture OF the Vixen for Bluefelds, to look
after the interests OF our citizens resident there
gives assurance that our Government is alive
to the Importance OF the issue involved in the
reported action OF the Ncaraguan Government
Nothing could bo more preposterous than its
demand that American merchants at Bluehelds
who some time ago paid the duties on their i'm
portations to the revolutionary General who
was then In possession Of the pool should now
pay them over again to the constitutional au-
thorities. who have put down the rebellion and
reRained possession.
The foundation OF oil taxation is protection
The State imposes taxes and duties upon indl-
viduas. whether natives or resident foreigners.
as the price Of their protection: and whenever
Government becomes unable TO afford pro-
lection II has no longer any claim to the price
OF that protection. There is no better settled
principle In international law than that foreign
residents must recognize the de Jdcto Govern
ment. and that duties paid by them to II are a
full discharge OF their obligation. and cannot
be again demanded by tine Government which
may eventually be determined the de jure Gov
ernment.
Foreigners paying duties to an invader are Of
course not liable to pay them second time when
he is expelled or withdrawn. Halls international
Law y. 4so, note.
In our civil war the Confederate Government
collected custom duties in all the ports Of the
South In its possession. After the war at
tempts were made in some instances by United
states officials to collect them again. but an in
vestigation OF the subject convinced the law
officers OF the Government that such q demand
was untenable. and it was abandoned.
In 1873 Secretary Fish stated the law very
clearly In the case Of British subject against
Mexico. Great Britain at that time having no
diplomatic representative in that country. In
a letter to our Minister. OF Feb. II. he said:
"Itransmit copy ofa note of yesterday addressed
to this department by slr Edward Thornton, her
Britannia Majesty's Envoy Extraordinary and Min.
lister Penipotentiary accredited to this Government
requesting that you may be authorized to use your
good Offices toward preventing the exaction by the
Mexican Government Of duties goods imported
by Messrs. Kelly. at Mazatlan, which duties had
been previously paid to insurgents there. You will
take that course accordingly 1t is difficult to un.
derstand upon what ground OF equity public law
such duties can be claimed The obligation of ODE.
dience to Government at Q particular place in
country may be regarded suspended, at least,
whom its authority is usurped. and is due to the
usurpers IL they choose to exercise It, To require
repayment Of duties in such is tantamount to
the eIaction Of penalty on the misfortune. IL 1t
may be 80 called. of remaining and carrying busi-
ness In port where the authority of the Govern
mont had been annulled. The principle
that duties once paid in part OF the terri
tory Of the country in possession of an enemy are
not liable again to be paid when the enemy s eI-
PEELED or withdraws solemnly decided by the
Supreme Court of the United States IN the case of
Rice (4th Wheaton. p. 2<6). Since the close of the
civil war in this country suits have been brought
against importers for duties merchandise paid to
insureent authorities. Those suits, however, have
dtsnon thaNp ol.hy
been Influenced by the judgment Of the Supreme
Court adverted to-"
In the case OF Rice. referred to by Mr. Fish.
| suit had been brought by the United States
| for duties paid on merchandise imported at
Castine. Me-. to the British authorities after
| the town had been captured and while 1t was
held by them in 1914. That was a public war
| between two sovereigns. but the principle is
| the same In civil wars: the duties are to be
| paid to the party in power. the de Jdcto Gov
ernment. that can protect or punish the i'm
porter; and, once paid. they cannot again be
demanded 1t is not to be supposed that our
Government. having conceded this point In
| our own civil war. will now allow the Govern
ment OF Nicaragua to impose a burden upon
| American citizens unauthorized by interna-
| tional law and which the United States re-
fused to impose upon insurgents against its
own country.
1t Is reported that one OF the grounds upon
which the Nicaraguan Government demands
this payment is that the proceeds are TO be ex-
| pended in paying the expenses incurred in
putting down the rebellion. II this be so. then
1t 10 In contravention OF the treaty OF 1857.
Article 1X. section 2. which provides that our
citizens resident In Nicaragua shall be ex-
empted from all contributions OF war. mill
tary exactions. forced loans" &c.
In 1888 the Nicaraguan Government at
tempted to exact forced loan from American
merchants. In that case Secretary Gresham
held that it was a violation of the treaty He
wrote to our Minister:
at is theSefore forced loan in time Of war within
| the clear intent of the treaty. You will report
whether the collection OF the forced loan in ques.
ton has been effected from any citizens of the
United States in Nicaragua II It has, you will make
due protest, and ask that the amounts so collected
be refunded"
The Minister subsequently reported that the
| matter had been settled to the satisfaction of
| all concerned. and the incident was closed
1t Is now stated that the American merchants
| have paid over these duties to the British Con-
| su-General. to be held by him pending the
| settlement OF the question by the two Govern
ments. II this be true. 1t is unfortunate that
| circumstances obliged them to pursue such
| course. With the Detroit and Vixen In Mica
| raguan waters. our Government will be I'm a
position to demand the prompt settlement Of a
| question that should never have been raised,
and to enforce a more enlightened view OF the
rights Of American citizens resident than the
| Government Of Nicaragua now seems to enter
| tain. ]. 8. TUCKER
WASHINGTON. May "a.
/