Mr. Adee to Lord Gough .

No. 151.]

My Lord: I have the honor to inclose herewith copy of a letter of the 8th instant from the Acting Secretary of the Treasury, in relation to the action of the Canadian authorities in levying a tax of $1 on American vessels entering and clearing from a Canadian port.

It is hoped that Her Britannic Majesty’s Government will see its way to promptly equalize the charges on American vessels entering and clearing from Canadian ports with the entrance and clearance fees imposed on Canadian shipping in ports of the Dominion, to the end that the President may not have to issue the proclamation which this discrimination against United States shipping calls for.

I have, etc.,

Alvey A. Adee,
Acting Secretary.
[Inclosure in No. 151.]

Mr. Wike to Mr. Olney .

Sir: Referring to your letter of the 29th ultimo, inclosing copy of a dispatch from the consul-general at Ottawa, dated June 22, in regard to the charges imposed upon American and foreign vessels entering [Page 708] and clearing at Canadian ports, I have the honor to invite notice to the concluding statement in that dispatch:

It therefore appears that American vessels are required to pay $1 for entering and clearing from a Canadian port, from which British vessels and those of the countries mentioned above are relieved.

Section 14 of the act approved June 26, 1884, as amended by section 11 of the act of June 10, 1886, reads:

That in lieu of the tax on tonnage of thirty cents per ton per annum imposed prior to July first, eighteen hundred and eighty-four, a duty of three cents per ton, not to exceed in the aggregate fifteen cents per ton in any one year, is hereby imposed at each entry on all vessels which shall be entered in any port of the United States from any foreign port or place in North America, Central America, the West India Islands, the Bahama Islands, the Bermuda Islands, or the Coast of South America bordering on the Caribbean Sea, or the Sandwich Islands, or Newfoundland; and a duty of six cents per ton, not to exceed thirty cents per ton per annum, is hereby imposed at each entry upon all vessels which shall be entered in the United States from any other foreign ports, not, however, to include vessels in distress or not engaged in trade: Provided, That the President of the United States shall suspend the collection of so much of the duty herein imposed on vessels entered from any foreign port as may be in excess of the tonnage and light-house dues, or other equivalent tax or taxes imposed in said port on American vessels by the Government of the foreign country in which such port is situated, and shall, upon the passage of this act, and from time to time thereafter, as often as it may become necessary by reason of changes in the laws of the foreign countries above mentioned, indicate by proclamation the ports to which such suspension shall apply, and the rate or rates of tonnage duty, if any, to be collected under such suspension: Provided further, That such proclamation shall exclude from the benefits of the suspension herein authorized the vessels of any foreign country in whose ports the fees or dues of any kind or nature imposed on vessels of the United States or the import or export duties on their cargoes are in excess of the fees, dues, or duties imposed on the vessels of the country in which such port is situated, or on the cargoes of such vessels; and sections forty-two hundred and twenty-three and forty-two hundred and twenty-four and so much of section forty-two hundred and nineteen of the Revised Statutes as conflicts with this section are hereby repealed.

Pursuant to this statute, the President, from time to time, has issued proclamations exempting from tonnage taxes British vessels, together with those of certain other nationalities, entering the United States from Aspinwall and Panama, the Province of Ontario, the islands of Montserrat, Guadeloupe, Tobago, Trinidad, and Grenada, the ports of San Juan and Mayaguez in Puerto Rico, Greytown, Bocas del Toro, all ports of the German Empire, all ports in Europe of the Netherlands, and certain ports in the Dutch East Indies.

The statute quoted provides that the Presidents proclamation shall, exclude from the benefits of the suspension therein authorized “the vessels of any foreign country in whose ports the fees or dues of any kind or nature imposed on vessels of the United States are in excess of the fees, dues, or duties imposed on the vessels of the country in which such port is situated.”

The consul-general at Ottawa states that the fees or dues for entry and clearance imposed on vessels of the United States in Canadian ports are in excess of the fees or dues imposed on British vessels, and it appears to this Department that until the Dominion Government imposes no higher charges on American than on British vessels, the vessels of Great Britain should be excluded from the benefits of the suspension authorized by section 14 of the act approved June 26, 1884, as amended by section 11 of the act of June 19, 1886.

The Commissioner of Navigation states that this discrimination against American vessels appears to have been in operation for some years, to the considerable disadvantage of American vessels on the Great Lakes.

S. Wike,
Acting Secretary.