Davis Brothers and others to John A. Logan, June 2, 1883

Davis Brothers and others to Mr. Logan.

Dear Sir: In answer to your communication of May 21, we will endeavor to explain more clearly to you the cause of the claim made by ourselves and others in Lima and Callao.

Since the occupation of Lima by the Chilian forces we have continued in almost every respect as before under Peruvian authority. Almost every retail merchant here imports merchandise from abroad, for which they formerly paid an industrial tax or patente, as importadores, which tax was divided into five classes and permitted small importers to continue their business by payment of an amount in proportion to same. This custom was respected by the Chilian authorities both for the past and present years. These authorities named the customary committee to classify all industrial pursuits, and we have all paid the tax in conformity with their classification to carry on our usual business during the present year; that is, to import goods from foreign countries and sell them in this market, with the only difference that instead of styling us importadores they now call us almaceneros. After having paid this tax in advance for this year, the decree in question was issued which forbids us to continue our business as before unless we pay a further tax as “importers,” which they divide into two classes, one to pay $500 and the other $2,000.

We hold that as we have already paid our industrial tax for this year, according to classification made by the Chilian authorities, and in virtue of that payment we have the right to continue our customary business for the time for which we have already paid, without any further payment on our part. And, further, that as the Chilian authorities have themselves continued Peruvian law and custom, we have the right to continue our business in future years by payment of an industrial tax in conformity with the amount of our business, so that whether they style us importadores or almaceneros, we should be divided into five classes as formerly, so that each firm will pay what is fair and just.

The Chilian authorities have continued to make use of the Peruvian tariff valuations for importations of merchandise, augmenting the duty from 25 to 50 per cent. ad valorem, which causes us to pay on some articles 300 per cent. on cost price, and on an average 120 per cent. on the cost of the goods, thus making it very difficult for us to continue our business, and if we now have to pay an additional exorbitant and arbitrary industrial tax it will add further embarrassments to our already difficult position.

We therefore claim that in right and justice we ought to be allowed to continue our business for the present year without any further payment of industrial tax, and in future that we shall be taxed according to the amount of business done by each firm.

In procuring this we beg your kind assistance, and with great respect we remain, & c.,