File No. 812.512/299.
[Untitled]
Referring my telegram June 25 relative demands local customs authorities that bar dues be paid in Mexican gold or in United [Page 743] States gold at two for one. Have to advise the Department that the bar dues is not a Government tax but a railway rate payable in Mexican currency established in 1910 while Pablo Macedo was simultaneously president of Aguila Company and National Railways, thus discriminating against then prospective but how actual shippers from Tampico, practically all of whom are American companies, favor of Aguila Company, British, which was then preparing to and now ships through submarine lines at Tuxpam free of all dues and Charges, Aguila Company thus now has advantage gained by that action of sixteen per cent, on gross price received from oil at well in market of world. It was also arranged for collection this railway bar due by Tampico customhouse; authorities believed to have no right to raise rate bar due even indirect manner as proceeds do not belong to Government but to National Railways for reimbursement cost of harbor work and upkeep of harbor under contract and all railway rates are by law fixed by railway management and approved by railway commission. Authorities will probably refuse to dispatch more ships unless bar dues have been paid in manner demanded.