Keith to Arthur Morrell, July 1, 1884

Mr. Keith to Mr. Morrell.

Sir: Allow me to bring to your notice a great piece of injustice which has been committed by the Government of this Republic, in order that, should you think fit, you may bring the matter before your Government.

According to a decree duly passed by Congress and sanctioned by the executive power, Limon, on the Atlantic coast, was declared a free port, together with a certain zone within given boundaries, for the space of ten years, counting from the 10th of August, 1883, as may be seen from the decree to that effect duly published in the official gazette of this Republic, dated the 23d May, 1883. Since the 10th August last year, in conformity with the decree, said port and zone have been free, but on the 19th of this month, without any previous notice or warning, the Congress have thought fit to pass a decree derogating completely this franchise, which decree has been duly sanctioned by the executive power and published in the official gazette of 21st instant.

The Government has already commenced to collect duties on goods that have arrived or are arriving, although they may have been ordered months ago, in accordance with the decree which establishes the freedom or exemption from customs duties for ten years.

Within the last year a new industry has very much increased in the free zone, and that is the planting and cultivation of bananas by persons of all nationalities, who have made their calculations upon a free port. At the present time from 25,000 to 30,000 bunches a month are exported to New York, which amount is daily increasing, and several projects were on foot for augmenting this business with foreign capital, which was being subscribed for in Boston and New Orleans on the basis of a free port.

Having a contract for the development of the Atlantic division of the Costa Rica Railroad for five years, any change of this kind being made is extremely prejudicial to my interests, not only increasing very considerably the working expenses of the railroad, owing to my having to pay a higher price for labor, but also tending to diminish instead of augment the receipts of banana freights, upon which I had based my calculations, owing to further planting consequent on the decree declaring the port and zone free.

I may mention that the principal merchants in Limon, together with myself, are American citizens, as you are aware, and I think should be entitled to some protection from such an arbitrary act and want of good faith on the part of the Government of one country and the citizens of all others.

Two of the principal merchants of Limon are at present abroad making purchases of merchandise, in the full faith of a free port for ten years> and know nothing of the change just made, and will doubtless come into conflict with this Government, on their arrival here, when duties are exacted. Having very large interests at stake in this country, I am extremely unwilling to come into conflict with the Government, or even to do anything prejudicial to its interests in any way; hut certainly I think that this is a matter that should be inquired into by the different Governments, in the interests of their citizens residents here who may have been misled into entering into business in Limon under the veil of a free port.

Trusting you will give the matter your best attention,

I am, &c.,