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is not a question of political power, but as the difference of opinions merely relates to the legal view taken of the case, the matter seems to be a very proper one for submission to court of arbitration in order that the two Governments may reach an agreemen' without in any way sacrificing their dignity.

It may the more confidently be assumed that the United States Government will not hesitate to accept this proposition, since it has always made more earnest efforts than have other powers to pave the way for the acceptance of the doctrine, on a liberal scale, of the settlement of international disputes by arbitration, and since the states of Europe are just now seriously considering the question of bringing this doctrine nearer to its practical realization.

In having the honor, Mr. Secretary of State, to bring these considerations of my Government (in pursuance of instructions received) to your notice, I avail myself of this additional occasion to renew to you the assurance of my most distinguished consideration.

No. 277.]

Mr. Hay to Baron von Riedenau.

RIEDL.

DEPARTMENT OF STATE, Washington, June 11, 1899. SIR: I have the honor to acknowledge the receipt of your note of April 28 last, in relation to the claim for indemnity preferred by the Austro-Hungarian Government in behalf of its subjects who were involved in the unfortunate strike at Lattimer and Hazleton.

I have not failed to give to the arguments adduced and to the proposition of arbitration made in said note the most careful consideration, due to the importance of the subject, and especially due to the feeling of traditional friendship which has ever existed between the two Governments and which it is the earnest desire of the President further to maintain and strengthen. If upon consideration of the arguments contained in said note I could find any sufficient grounds for modification or reversal of the decision heretofore reached by the United States Government, I should not hesitate to do so, but without pausing to review said arguments in detail and to point out what I believe to be grounds of error, in statements of fact or in the application thereto of principles of law, I may be permitted to say that I have found nothing to alter the conviction of the Government of the United States that the case is not one for diplomatic intervention.

The parties have a resort to the courts for the recovery of damages any have been unlawfully occasioned, and this remedy has no tever been invoked.

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This Government is convinced that said strikers were engaged in acts of lawlessness and that any injuries inflicted were sustained by them in resisting the lawful efforts of the local authorities to keep the peace.

While the Government of the United States has been a conspicuous advocate of the principle of arbitration, where properly applicable, it is not believed that it applies in a case which, on the facts and on principles of public law, seems to this Government to be without foundation in justice. The maintenance of internal law and order is of sovereign concern to the Government of the United States; and while,

out of consideration for the Government of His Imperial and Royal Majesty, this Government would be pleased to defer much to His Majesty's wishes and feelings, I regret that it is unable to do so in this case by consenting to the arbitration of a claim which, in any form, is believed to be inadmissible.

Accept, etc.,

JOHN HAY.

Mr. Hengelmuller to Mr. Hay.

IMPERIAL AND ROYAL AUSTRO-HUNGARIAN LEGATION,
Bar Harbor, August 10, 1899.

MR. SECRETARY OF STATE: I have the honor to acknowledge the receipt of your note of June 11, 1899, No. 277, relative to the case of the Austrian and Hungarian subjects who were killed or injured on the occasion of the strike near Lattimer, in September, 1897, of the workmen employed in the Pennsylvania coal mines, and to inform you that its contents have been brought to the notice of my Government.

As regards the statements made in said note, it only remains for the Imperial and Royal Government to express its regret that the negotiations held in this matter have not resulted in a compromise between the standpoint taken by it and that taken by the Federal Government, and that the latter has not accepted our proposition to refer the existing difference to a court of arbitration for decision.

1 avail myself, etc.,

HENGELMULLER.

DUTY IN AUSTRIA ON SALT IN WHICH MEATS ARE PACKED.

Mr. Hay to Mr. Tower.

No. 199.]

DEPARTMENT OF STATE, Washington, January 25, 1899.

SIR: I inclose for your information copy of a letter from the Secretary of Agriculture relative to the complaint of the Cudahy Packing Company, of South Omaha, Nebr., that the Austrian Government is enforcing a new ministerial decree which exacts the payment of duty on the salt in which meats are packed in addition to the duty collected on the meats themselves.

You are instructed to investigate the matter promptly and to report the result to the Department.

I am, etc.,

[Inclosure.]

JOHN HAY.

Mr. Wilson to Mr. Hay.

DEPARTMENT OF AGRICULTURE,

Washington, January 17, 1899.

SIR: I have the honor to inclose for your information copy of a letter just received from the Cudahy Packing Company, South Omaha,

Nebr., stating that the Austrian Government is enforcing a new ministerial decree exacting the payment of duty on the salt in which meats from the United States are packed in addition to the duty collected on the meats themselves.

I invite your attention to this in order that, if you deem it advisable, you may make proper representations to the Austrian Government for relief from this burdensome requirement.

I have, etc.,

JAMES WILSON,

Secretary.

[Subinclosure.]

The Cudahy Packing Company to Mr. Wilson.

SOUTH OMAHA, NEBR., January 10, 1899. DEAR SIR: Our agent in Trieste, Mr. Silvio Liebman, writes us under date of December 23 as follows:

Yesterday a new ministerial law came into force here, enacting the payment of duty also on the salt in which all meats and fat backs coming from the United States are packed, and this for the protection of the Hungarian trade in these products. Previous to this it was allowed to remove the salt in the dock warehouses and pay duty only on the fat backs, etc., but now duty must be paid on the goods and the salt as they arrive. This will naturally make a difference of about 2/ per 100 kilos for buyers, and is, hence, an impediment to business with your country in these products. It would therefore be important and in the interest of business to ship all meats with as little salt as possible during the winter months; and I shall thank you to give your careful attention to this important matter.

Our agent also writes that he thinks that friendly pressure might be brought to bear by our Government upon the Austrian authorities, through the Austrian minister at Washington, to induce the Austrian Government to abolish this exaction, and to permit the goods to be entered as heretofore.

Yours, respectfully,

THE CUDAHY PACKING CO.,
GEORGE MARPLES.

No. 126.]

Mr. Herdliska to Mr. Hay.

UNITED STATES LEGATION,
Vienna, February 15, 1899.

SIR: I have the honor to acknowledge the receipt of your dispatch to Mr. Tower, No. 199, of the 25th of January, 1899, inclosing for the information of this legation a "copy of a letter from the Secretary of Agriculture relative to the complaint of the Cudahy Packing Company of South Omaha, Nebr., that the Austrian Government is enforcing a new ministerial decree which exacts the payment of duty on the salt in which meats are packed in addition to the duty collected on the meats themselves."

In obedience to the instruction contained in this dispatch, "to investigate the matter promptly and to report the result to the Department," I have this day, after having previously had a conference upon the subject with the Count Welsersheimb, first assistant sec

retary of the ministry of foreign affairs, at which I was assured that the matter would be promptly investigated, addressed to the Count Goluchowski, Imperial and Royal minister of foreign affairs, a note, a copy of which is respectfully submitted herewith, in which, after having set forth the complaint made by the Cudahy Packing Company to the Secretary of Agriculture, I have submitted that, "as the pork packers of America consider this decree a hardship, amounting almost to a prohibition of the import into Austria-Hungary of American meats," I respectfully request that your excellency may cause this matter to be investigated, to the end that this unjust exaction may be abolished and American meats be permitted to enter the Austro-Hungarian Empire under the conditions heretofore existing.

As soon as a reply is received from the Austro-Hungarian Government upon this subject I shall at once communicate the same to the Department.

I have, etc.,

CHARLES V. HERDLISKA,

Chargé d'Affaires ad Interim.

[Inclosure.]

Mr. Herdliska to Count Goluchowski.

UNITED STATES LEGATION,
Vienna, February 15, 1899.

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YOUR EXCELLENCY: A complaint has been made to the Department of State at Washington, through the Secretary of Agriculture, by the Cudahy Packing Company of South Omaha, Nebr., to the effect that new ministerial decree is being enforced by the Imperial and Royal customs authorities at Trieste which exacts the payment of duty on the salt in which the meats from the United States are packed, in addition to the duty collected on the meats themselves.

It is the practice of American pork packers to pack the meats intended for export in a large quantity of salt in order the better to preserve them during transit.

This salt is a coarse mixture of saltpeter and sea salt, and is termed "Conservierungssalz." It is packed around each piece of meat separately and also between the layers of meat, which is contained in strong cases, the weight of a packed case being about 250 kilograms.

In the process of transportation the salt which has been thus placed around and between the meat becomes shaken to the bottom and sides of the cases.

Now, what these American meat shippers above referred to complain of is that the Imperial and Royal customs officers gather up this loose salt which falls out when the cases are opened and charge duty upon it, the same as if it were meat.

Heretofore, the complainants state, it has been the practice of the Imperial and Royal customs officials to disregard this superfluous packing salt and duty has been levied only on the meat itself; but now these officials levy the duty not only on the meat, but also on this worthless salt, treating it as if it were meat.

As the pork packers of the United States of America consider this decree a hardship, amounting almost to a prohibition of the import into Austria-Hungary of American meats, I respectfully request that

your excellency may cause the matter to be investigated to the end that this unjust exaction may be abolished and American meats be permitted to enter the Austro-Hungarian Empire under the conditions heretofore existing.

I avail myself, etc.,

CHARLES V. HERDLISKA,

Chargé d'Affaires ad Interim.

No. 9.]

Mr. Hay to Mr. Harris.

DEPARTMENT OF STATE,
Washington, April 13, 1899.

SIR: Referring to the Department's instruction to your predecessor, No. 199, of the 25th of January last, relative to the report that the Austrian Government is enforcing a new ministerial decree which exacts the payment of duty on the salt in which meats are packed, and also with regard to Mr. Herdliska's note of February 15 last, bringing the complaint of the Cudahy Packing Company of South Omaha to the attention of the Austro-Hungarian foreign office, I inclose for your information copy of a letter from the Secretary of Agriculture, in which that officer states that it appears that the Austrian authorities are multiplying the obstructions to the entry of our products into that country.

You will observe that Mr. Wilson, in view of the facts above stated, expresses the opinion that it might be well if our legation at Vienna were instructed to intimate in a diplomatic way that there is a growing impression that the products of this country are discriminated against in Austria, and that if these discriminations continue our Government may, much against its wishes, find it necessary to apply more stringent regulations and more rigid inspection to goods imported from Austria-Hungary.

In this connection I inclose for your information copy of the act of Congress' approved March 1, 1899, which authorizes the Department of Agriculture to make inspection of imported goods in certain cases.

In case an unfavorable reply shall be made to Mr. Herdliska's note, you may express in reply, in discreet terms, the hope entertained by this Government that no action will be taken by the Austro-Hungarian authorities which would tend to provoke a response in the execution of the provisions of the act of Congress above referred to.

I am, etc.,

[Inclosure.]

Mr. Wilson to Mr. Hay.

JOHN HAY.

DEPARTMENT OF AGRICULTURE,
Washington, March 20, 1899.

SIR: I have the honor to acknowledge, with thanks, the receipt of your letter of the 14th instant, inclosing for my information copy of

1 Not printed.

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