I find no books in the legation treating this subject, therefore I hesitate to affirm that, "according to international principles," Austria is inhibited from levying an income tax on Mr. Braem. I shipped some books on international law, but they are not yet at my command. As this is to be perhaps what is sometimes called a "leading case," I deem it best to take the advice of the Department. The seeming effect of the law is to tax Americans, and not Germans, Italians, etc., for I assume these Governments impose taxes on incomes realized in their several jurisdictions. It would also seem that if a foreigner imports money into Austria arising from sales of property or produced otherwise than as named in the law it is not taxable. To my mind it is unjust to compel an American to pay a tax if he pend of his income here, but not if he spends of his principal. Awaiting your instructions, I have, etc., ADDISON C. HARRIS. [Inclosure 1 in No. 6.] Mr. Braem to Mr. Harris. VIENNA, May 8, 1899. SIR: I beg to lay before you the following case and to ask your assistance in the matter. Having two married daughters in Austria, it pleases me to reside here more or less, and instead of living in a hotel have an apartment. The Austrian Government last year notified me to make a return for income tax, which I declined telling them. I had no money invested in this country, nor did I derive any income from it in any way, form, or shape. This year they sent a document filled up by themselves for the return that I declined to make, and gave me until the 25th instant to appeal from it. I answered them that I was not liable, that I lived in an apartment as being more convenient, and that every year I have passed three months in America and often five out of the country. I have now been served with still another paper for this year. Under the circumstances I claim I am not liable to any tax here, and that my going home once a year releases me from more than a year clause," and I ask your excellency's assistance in this to me provoking incident. Believe me, etc., H. M. BRAEM. [Inclosure 2 with No. 6.] Translation of section 2 of paragraph 153 of the income-tax law of Austria as it relates to foreigners. (a) Those persons who are not subjects of the kingdoms and lands represented in the Austrian Reichsrath are subjected to the provisions of the income tax if they live within the territory in which this law is · FR 99- -4 in force, for the purpose of gain, or if they make this territory their domicile for a period longer than one year, as follows: (1) From the incomes which they acquire within the kingdoms and lands represented in the Austrian Reichsrath; or (2) From the incomes which they import into these kingdoms and lands. (b) Incomes are, however, exempted from this tax when they are derived from countries outside the administration of this law if the said incomes are already subjected to an income or like tax in the countries from which they are derived. (c) Besides the cases enumerated in division (a) foreigners are subjected to the provisions of the income tax as follows: If they are the owners of real estate, or of mortgages on domestic real estate, or of properties bound to the kingdoms and lands represented in the Reichsrath, by entail or other legal provisions, or if they are engaged in business enterprises or occupations of profit, or are participants in such occupation or enterprise, or, if they are the recipients of incomes in compensations and pensions from the Austrian treasury, from the incomes which they acquire from these sources. The ownership of stocks, shares, and like certificates of value is not to be considered as participation in an enterprise in the sense of the foregoing. Further, undivided inheritances are subjected to the provisions of the income tax according to paragraph 229 of this law. EXEMPTIONS. The following foreigners are exempted from the payment of the income tax: Paragraph 154, section 3. The diplomatic representatives accredited to the Imperial and Royal court and consuls of foreign nations who are not Austrian subjects, as also the clerks and servants, in so far as they are foreigners, employed by such representatives and consuls, as follows: Upon all the incomes which they do not acquire from the sources enumerated in division B of section 2 of paragraph 153. Section 4. Those persons who are entitled to exemption from the provisions of the income tax in pursuance of treaties or by virtue of international principles. Mr. Hay to Mr. Harris. No. 17.] DEPARTMENT OF STATE, Washington, May 31, 1899. SIR: I have to acknowledge the receipt of your dispatch No. 6, of the 9th instant, relative to the liability of Mr. H. M. Braem to income tax under the laws of Austria. In reply I have to inform you that the matter is one which should be tested in the courts of that country. In its present aspect, at least, the case is not one for diplomatic intervention. I am, etc., JOHN HAY. No. 22.] RECEPTION OF ADMIRAL DEWEY AT TRIESTE. Mr. Harris to Mr. Hay. UNITED STATES LEGATION, SIR: While at Port Said Admiral George Dewey telegraphed to the American consul at Trieste, Mr. F. W. Hossfeld, that he would arrive there about July 19. The consul informed me promptly. The legation advised the minister of foreign affairs, Count Golnchowski, that the United States flagship Olympia, bearing Admiral Dewey, would arrive at Trieste, as already stated; at the same time it was made known that it was not thought the Admiral desired more than the usual ceremonies and salutes. I invited the American consuls in Austria-Hungary to come to Trieste and with me greet the Admiral upon his arrival. The consul at Prague, Mr. Donzelmann, could not go on account of illness; the consul at Budapest, Mr. Chester, was called elsewhere; the others came. Mr. Herdliska, the secretary, accompanied me from Vienna, and Lieutenant Commander Beehler, naval attaché, bringing with him Congressman George E. Foss, of Chicago, member of the Committee on Naval Affairs of the House of Representatives. Mr. Herdliska, on our arrival, secured permission and raised the American flag over our hotel (Hotel de la Ville), which, the Admiral said, gave him and the officers great surprise and delight as they came into port on the morning of the 20th. Admiral Spann, of the Austro-Hungarian navy, was at Trieste during Wednesday to receive Admiral Dewey, and expressed regret that he could not remain longer, but business imperatively required him to leave for Vienna on Wednesday evening. On Friday evening the legation entertained Admiral Dewey, Captain Lamberton, the officers of the United States flagship, and the consuls present. And on the next evening Admiral Dewey entertained the minister, secretary, naval attaché, consuls, and Congressman Foss on board the ship. The Admiral is in good health. His purpose is not to leave the ship until he arrives in America, perhaps about the 1st of October SIR: I inclose for your information copy of a letter from the Acting Secretary of the Navy, transmitting a copy of a communication received from the Navy Department from Admiral George Dewey in regard to his visit with the flagship Olympia to Trieste. The Department has read the letter with gratification, and you may take a convenient occasion to mention to the foreign office the gratification with which this Government learned of the cordial reception given to the Admiral at Trieste. I am, etc., ALVEY A. ADEE, [Inclosure.] Mr. Allen to Mr. Hay. NAYY DEPARTMENT, Washington, August 16, 1899. SIR: I have the honor to forward herewith for the information of the State Department a copy of a letter received from Admiral George Dewey in regard to his visit with the flagship Olympia at Trieste. Very respectfully, Admiral Dewey to the Secretary of the Navy. UNITED STATES FLAGSHIP OLYMPIA, Trieste, Austria, August 1, 1899. SIR: Leaving Trieste to-day, I desire to bring to the attention of the Department the uniform courtesy and kindly feeling shown not only to me, but to the ship and its whole personnel as representing our country, by the officials and people of Trieste and Austria. The Austrian minister of marine arrived from Vienna to welcome us officially, and remained several days awaiting us, but was obliged by his duties to return before our arrival. The naval, military, and civil officials stationed here have been most cordial. The people also have exhibited a most friendly feeling toward our nation, and have visited the ship in large numbers. It is estimated that 40,000 people attended the funeral of Rask, an electrician, who died in the hospital, and they showed many marks of sympathy. Naval Constructor Capps, who visited the dockyard at Pola, was shown every courtesy there, and also at the naval and private shipyards of Trieste. I have, etc., GEORGE DEWEY, Admiral, U. S. Navy, Commander in Chief. PASSPORT OF WILLIAM TRAUBER-REFUSAL OF VISA BY AUSTRIAN CONSUL AT BRAILA, ROUMANIA. No. 33.] Mr. Adee to Mr. Harris. DEPARTMENT OF STATE, SIR: I inclose for your information a copy of a dispatch from the United States consul at Athens, Greece, No. 36, of July 17, 1899, relative to the conduct of the Austrian consul at Braila, Roumania, in relation to a passport issued by Mr. McGinley, in the absence of the United States minister from Athens. The facts are sufficiently narrated in this dispatch, showing the action of the consul, who, it is alleged, declared the passport to be a forgery and the holder thereof, Mr. William Trauber, a swindler. He intimates that the consul threatened to tear up his passport as being false. The reported action of the Austrian consul is of so extraordinary a character as to need no argument in remonstrance, and it is believed that it will only be necessary to submit the facts in order to convince the Imperial and Royal Government that the consul gravely exceeded his powers in declaring a regularly issued passport of this Government to be a forgery. In this connection you are referred to a dispatch from your predecessor, No. 93, of August 23, 1894, relative to the validity of passports. (See Foreign Relations, 1894, pages 36 and 46.) One of the points ceded by the Austrian Government reads as follows: First. It is conceded that the passport of the citizen of either Government, native or naturalized, not bearing upon its face the insignia of its own invalidity, can not be called in question by the municipal district and inferior officers of the Government, but that such paper is prima facie evidence of the facts therein stated and must be respected as such. If the subordinate officers of the Government have suspicion of the fraudulent character of the paper presented, they report the fraud or irregularity alleged to some tribunal, if any, having competent authority under the rules of international law to determine the same. It is desired that you bring these facts to the attention of the Austrian Government in order that it may issue such instructions to its consul at Braila as will prevent a recurrence of such action on his part. I am, etc., ALVEY A. ADEE, Acting Secretary. [Inclosure.] No. 36.] Mr. McGinley to Mr. Cridler. CONSULATE OF THE UNITED STATES, SIR: I have the honor to advise you that on June 10, 1899, I issued a passport to William Trauber, a naturalized citizen of the United States residing temporarily in Roumania, taking in his old passport, No. 59, issued by the legation at Athens two years ago, and which I forwarded to the Department with my last quartery returns. On July 5, 1899, the following telegram was received at this consulate: MCGINLEY, American Consul, Athens: BRAILA, July 4, 1899. Austrian consul, Braila, refuses recognizing your passport. Considers false document. Please take steps. Thanks. WILLIAM TRAUBER. On July 6, 1899, I stated the case verbally to the chargé d'affaires of the Austrian legation, Athens, showing him the telegram. He kindly informed me that his legation had no control over the consuls in Roumania, but that he would telegraph the consul at Braila that the passports issued by the United States consul at Athens were good. I then wired Mr. Trauber as follows: WILLIAM TRAUBER, Braila: ATHENS, July 6, 1899. Austrian legation wires consul at Braila that my passports are good. ticulars immediately. Write par MCGINLEY. |