No. 32.] MILITARY TAX. Mr. Broadhead to Mr. Gresham. LEGATION OF THE UNITED STATES, Berne, March 12, 1894. (Received March 26.) SIR: I have the honor to inform you that several complaints have been made to me by persons formerly citizens of the Swiss Confederacy, but now naturalized citizens of the United States, who have come to this country for business or pleasure, on account of the exaction from them of the military tax which has accrued during their absence, and while they were resident citizens of the United States. The last case which has been presented to me is that of a former Swiss subject who emigrated to the United States in 1886, where he became duly naturalized. At the time he left Switzerland he was not in arrears for any military exemption tax, nor for any military duty, due up to that time. He returned to Switzerland a short time ago to visit relatives. At once, upon his arrival, he was required by the Swiss authorities to pay the military exemption tax for the seven years during which he had been in America. This is wrong and unjust; the requirement was made of him under an order of the police and military departments of the canton of St. Gall, a copy of which (translated) is inclosed herewith, and by which it appears that the federal military department has decided that "Swiss citizens, returning from the United States, if they can not prove that they have served in the army there, or paid military tax there during their stay, shall be required to pay the military tax in Switzerland for and during ten years last past." This departmental decision was approved by the Federal Council on December 19, 1893. This was intended to include Swiss citizens who have been naturalized in the United States, as in the case above referred to, because the Swiss Government does not recognize the right of a Swiss subject by naturalization to absolve himself from any of the obligations due by him under the Swiss laws and because the order is claimed to be made under the provisions of the treaty of November 25, 1850, and to the military tax provided for by that treaty, which requires a commutation tax from citizens of the United States (native or naturalized) residing or established in Switzerland; I say native or naturalized because the treaty makes no distinction. The language of the treaty is as follows: ART. 1. The citizens of one of the two countries, residing or established in the other, shall be free from personal military service, but they shall be liable to the pecuniary or material contribution which may be required by way of compensation from citizens of the country where they reside who are exempt from that said service. It will be observed that the treaty refers to citizens in general, which would embrace both native-born and naturalized citizens, and the pecnniary or material contribution which may be exacted is unlimited as to time or amount. We have, as I am informed, no such thing as a military exemption tax in the United States, or in any of the States, because the citizens are not required to perform military service, as in the manning of forts and arsenals, and the exercise of military discipline except in time of insurrection or invasion, or when temporarily called upon to execute the laws. With Switzerland the case is entirely different, because here it is thought necessary to keep up a regular army composed of citizens of all classes; so that this military exemption tax works in favor of one of the contracting parties only, and that provision of the treaty ought to be abolished. We are estopped from disputing the right of the Swiss Government to exact to the fullest extent the amount fixed by competent legislation from all American citizens residing or established here, for the construction of this clause of the treaty claimed by the Swiss Government has been conceded by the State Department to be substantially correct. In the dispatch of June 19, 1891, from Secretary Fish to this legation, it is stated: Its design (treaty) was simply to relieve the United States citizens from the obligation of personal military service, leaving them subject to any military contribution which may be exacted by way of commutation or otherwise from Swiss citizens who are exempted from personal military service, whether by reason of physical disability or for any other cause. The Swiss law of June 28, 1878, referred to in the order from the police and military department, provides as follows: Foreigners established in Switzerland are likewise subject to this tax, unless they are exempt therefrom in virtue of international treaties, or that they belong to a state in which the Swiss are neither liable to military service nor to the payment of any equivalent tax in money. It so happens that we have no law now in existence providing for a military tax. If it were otherwise, a native-born citizen of the United States residing in Switzerland would be worse off under the treaty than he would be without it, for without the treaty he would neither be subject to military service nor to the payment of a military tax. Since the treaty of 1850 with the Republic of Switzerland treaties have been concluded between Switzerland and Germany, Austria, Belgium, France, Great Britain, Italy, Holland, and Russia, expressly exempting their citizens from personal military service or from any tax in lieu thereof, and this is doubtless the reason why the order of the Swiss military department above referred to was confined to citizens of the United States. This matter has heretofore been brought to the attention of the Department of State, particularly by my predecessor, Mr. Winchester, in 1886. I respectfully ask the Department for permission to negotiate with the authorities of the Swiss Confederation with the view of securing an amendment to the provisions of the treaty of November 25, 1850, in respect to the subject referred to in this communication. I am, etc., JAMES O. BROADHEAD. [Inclosure in No. 32.-Translation.] Official circular of the police and military departments of the Canton St. Gall to the war commission, the district commanders and all section chiefs, concerning military tax of Swiss citizens in the United States of North America. With official circular of March 13, 1893, we have to inform you that, in accordance with article 2, section 1, of the treaty between Switzerland and the United States, of November 25, 1850, and article 2, lit. c., of the federal law concerning military taxes of the 28th June, 1878, the federal military department has decided: "Swiss citizens living in the United States can not be taxed here (i. e. in Switzerland) during their absence, but Swiss citizens returning from the United States, if they can not prove that they have served in the Army there or paid military tax there during their stay, shall be required to pay the military tax in Switzerland for and during the ten years last past.' This department decision was made a law by the Bundesrath on December 19, 1893. We therefore instruct the district commanders to keep record of such Swiss cit izens living in the United States as are in 1894 still of military age, and book against same the military taxes for the last ten years. The bill for such taxes is not to be sent to them, only the remark "In the United States," and if possible their domicile there is to be added in the tax book. Such a record should be kept in that district where the party in question has the nearest relations, or where he, in case of a visit, would be most likely to go, or in his former town of residence. St. Gall, January 19, 1894. For the police and military department. Dr. E. SCHERRER, Regierungsrath. No. 43.] Mr. Gresham to Mr. Broadhead. DEPARTMENT OF STATE, SIR: I have received your No. 32, of the 12th instant, in which you request permission to negotiate with the Swiss Government with a view of amending the provision of the treaty of 1850 making "citizens of one of the two countries, residing or established in the other, free from personal military service, but liable to the pecuniary or material contributions which may be required by way of compensation from citizens of the country where they reside, who are exempted from the said service." You mention that several complaints have been made to you by persons formerly citizens of the Swiss Federation, but now naturalized citizens of the United States, who, having gone to Switzerland for business or pleasure, have been subjected to the contributions provided for in the treaty. These contributions are exacted though the party, at the time of leaving Switzerland, was not in arrears for any military tax or duty. You call attention to the fact that, under the language of the treaty above quoted, even native citizens of the United States might be subjected to the payment of the military tax but for the fact that the Swiss law exempts from that tax foreigners whose countries do not impose a similar tax upon Swiss citizens there resident. The Swiss Government, as you observe, does not recognize the right of a Swiss subject to absolve himself by naturalization from any of the obligations due by him under Swiss law. While I am of opinion that the article of the treaty above referred to should undoubtedly be amended, yet it occurs to me that, in view of the fact that Switzerland does not recognize the foreign naturalization of her citizens, it may be necessary to have (if it can be secured) a specific agreement on the subject of naturalization. You mention that since the treaty of 1850 treaties have been concluded between Switzerland and a number of other countries expressly exempting the citizens of those countries from personal military service, or from any tax in lieu thereof, and this you say is doubtless the reason why the order of the Swiss military department requiring the imposition of the tax above referred to was confined to citizens of the United States. If you can conveniently do so, I should be glad if you would send to the Department a copy of one or more of such treaties concluded by Switzerland with other countries upon this subject as you think would furnish the best guide or basis for the negotiation of such an amendment to our treaty as you propose. I am, etc., W. Q. GRESHAM. No. 39.] Mr. Broadhead to Mr. Gresham. LEGATION OF THE UNITED STATES, Berne, April 20, 1894. (Received May 4.) SIR: Your dispatch No. 43, of the date of March 29, 1894, having reference to change of treaty with Switzerland on the subject of military tax, has been received. In compliance with your request to send to the Department a copy of one or more of the treaties on that subject concluded by Switzerland with other countries, I inclose herewith a copy of article 5 of the treaty between Great Britain and Switzerland, signed on the 6th of September, 1855, and ratified at Berne on the 6th of March, 1856. This treaty is very liberal in its provisions toward citizens of either country residing or doing business in the other, and the fifth section or article covers the whole ground in regard to military service and a commutation tax, and in a very satisfactory manner. I give the English translation, as contained in the compilations of English treaties, which is no doubt in the library of the Department of State. The original, which is in French, is somewhat different from the English translation in this, that the words "for military on a march" follow immediately after the words "with the exception of lodging and supplies," instead of being placed at the end of the article, as in the English translation; this makes the original much plainer in its meaning than the English translation; they are, however, substantially the same, the only exceptions from military requisitions of any kind being for military on a march according to the custom of the country, and demandable alike from citizens and foreigners. Not having as yet been able to procure copies of treaties with other powers, I send only a copy of the treaty with Great Britain. I have, etc., JAMES O. BROADHEAD. [Inclosure in No. 39.] The treaty between Great Britain and Switzerland of the 6th of September provides as follows: ART. 5. The subjects or the citizens of either of the two contracting parties in the territories of the other shall be exempted from all compulsory military service whatever, whether in the army, navy, or national guard or militia. They shall also be exempted from all contributions, whether pecuniary or in kind, imposed as a compensation for personal service, as well as from military requisitions, with the exception of lodging and supplies, according to the custom of the country, and demandable alike from citizens and foreigners for the military on a march. Ratified on March 6, 1856, at Berne. No. 49.] Mr. Broadhead to Mr. Gresham. LEGATION OF THE UNITED STATES, Berne, July 27, 1894. (Received August 6.) SIR: I have the honor to inform you that the Federal Council has passed a resolution, which is herewith inclosed, that modifies very materially the rules in regard to commutation tax imposed upon persons who are natives of Switzerland, but who have become naturalized in the United States; still it is not by any means all that could be desired on the subject. I am, etc., JAMES O. BROADHEAD. [Inclosure in No. 49.] MILITARY TAX. The Federal Council has adopted the following resolution concerning the military tax of Swiss citizens in America and of Americans in Switzerland: 1. Swiss citizens who are residing in the United States of America or who have returned from the States are to be registered in the tax roll, from the 1st of May, 1894, and are liable to military tax, unless they can prove that they have to pay a similar tax in the United States. The tax is, as far as possible, to be collected year by year. This conclusion is not retrospective; a tax for the year 1893, and for previous years, is not further to be collected. 2. Citizens of the United States of America residing in Switzerland are, until further order, delivered from the military tax; the deliverance from the tax will cease at all events if Swiss citizens in the United States are liable to such a tax in money. This conclusion also is not retrospective; taxes collected for the year 1893 and for previous years will not be refunded. 3. The resolution of the Federal Council of 20th of February (1st of March), 1880, is to be considered as abolished from the 1st of May, 1894. Mr. Adee to Mr. Broadhead. No. 57.] DEPARTMENT OF STATE, SIR: I have received your No. 49, of July 27, 1894, concerning the Swiss military tax. It is accompanied by a copy of the resolution of the Federal Council saying that from May 1, 1894, Swiss citizens residents of the United States or who have returned to Switzerland from this country, remain liable to the payment of the military tax unless they can furnish evidence that such a tax is collected from them in the United States. Concerning American citizens domiciled in Switzerland, it appears that they are relieved from paying that tax in Switzerland, so long as their Government does not exact anything of the kind from Swiss citizens residing in the United States. This action is not retroactive, however, and taxes collected for 1893 and previous years will not be refunded. The Department's instruction, No. 45, of May 29 last, will have apprised you of its efforts to ascertain whether the laws of the several States of the Union impose any military tax upon citizens of the Swiss Confederation residing therein, or the nature of such taxes as may be generally exacted of them equally with our own citizens. I inclose a memorandum showing the character of the replies from forty-two States, leaving only Wisconsin and Texas to be heard from, and the governors thereof have been again addressed upon the subject. It is apparent from the evidence now furnished that the States of this Union do not impose compulsory military service, except in cases of extraordinary emergencies, nor compel the payment of any equivalent tax in money. All militia service is voluntary, and is sup ported from the general fund of the State treasury. The modification of the rule by the Swiss Federal Council which your No. 49 reports may be regarded as satisfactory so far as concerns American citizens sojourning in Switzerland, and in case you find it necessary to make any communication to the Swiss authorities upon the subject, the material herewith transmitted will be found ample. Upon the receipt of replies from the States of Wisconsin and Texas the purport thereof will be sent to you. I am, etc., ALVEY A. ADEE, Not printed. |