New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-12-11
MISGOvERNED CUBA.
COLLAPSE OF SPANISH ADMINISTRATION
THE NEW TAXATION scHEME-METHODs Oh
FARMING OUT PUBLIC EXPERIMENTATION.
IsHING RUMoRS FROM Madrid

AMERICAN INTERESTS MENAcED
lFRoM 4 STAFF CORRESPONDENT OF THg rRrBuyE.,
Havana. Dec 5.-Cuba is q commercial denana.
ency of the United States and its Industrial revv.,
has been powerfully promoted by the Recinroci,v
policy; but it remains under the most corrunt
and incapable administration on the face Of IN.
EARTH and is at the mercy of European Stat.
which is reduced by financial extremties TO the
verge of bankruptcy When the Mckinley aat
was introduced in Congress in 1890 Spain ,ro.
posed new tariff for its West Indian Coloni..
by which the determinations against America,
exports were increased fully 30 per cent. IN.
Reciprocity policy forestaled that tariff and mn.
vided an equitable basis for commercial unio,
The Spanish Government was compelled to mall.
concessions to the United States by which III.
| revenues of the islands were reduced As soon
as the treaty was in operation, a new scheme sf
internal taxation was brought forward by which
deficiencies of revenue might be made good.
This scheme, when II was unfolded few month.
ago. at once excited violent opposition and sullen
discomfort. Every commercial body and plant.
ers' union protested against it, The tobacco fac.
tories were closed. and the workmen thrown ont
Of employment. The retail merchants of Havana
who are recruited almost wholly from the Spanish
class. closed their shops and refused to transact
business. The press vehemently attacked the
new taxation scheme. and pubic meetings were
held at which the course of the Spanish Ministry
was denounced in unmeasured terms. There were
so many and such alarming signs Of public dis.
approval that the tax proposals were withdrawn.
Subsequently the scheme was again brought for.
ward, and finally a compromise was effected with
the tobacco manufacturers and the sugar planters
The new schedules, while les burdensome than
the original proposals, are very serious additions
to the general tax levy.
The compromise which the tobacco manufac.
turers have accepted involves an additional tax
Of 80 per cent upon their product when exported
They were willing to accede to ii because they
thought that at least one-half Of il would be paid
by foreign consumers Of superior grades Of cigars.
while the remaining half would be light burden
for them to carry in comparison with the tax.
alton originally proposed Moreover. they would
be relieved from inquisitoral method of inspec-
ton which formed most obnoxious feature Of
the first scheme Instead Of having a Govern
ment inspector in the factory. prying at all times
into the secrets of their business. they have under
the revised scheme, what is equivalent to an ex.
port tax. The manufacturers are satisfied that
they have made the best arrangements that were
practicable with the Government: but the planters
are thoroughly disconnected with the new tax
levies. which will not only increase their bur
dens. but also seriously embarrass them in dis
posing of their leaf which has large sale abroad
The sugar planters have also obtained conces-
sions which have diminished the excessive bur-
dens of the original scheme. They are exempted
from an inquistorial method of inspection Of
their plantations and sugar works, and the addi-
tional rate of taxation has been materially d.
,;,;.l aI A, tax
tually prohibited by the Reciprocity convention,
it was necessary TO disguise it artfcialy under
some other FORM The expeGient of warehouse
tax has apparently been adopted, and will be en-
forced this year. The crude sugar, when it has
been made at the factories, is taken to the ware
houses at the nearest port. When it is withdrawn
from storage in order 20 be shipped warehouse
tax is to be levied. As very small proportion Of
the 900 900 tons Of produced in the ISLANDS
is consumed at home, nearly the entire crop will
virtually be liable 10 this warehouse tax AS over
90 per cent of the product is exported the United
States this levy will practically be an export tax
although it is technically known by another name
As the proposed tax is described TO me by SONS
of the bes-informed men of the island I have nc
hesitation in pronouncing it an export tax to all
intents and purposes. ! am wholly at loss to un
the Reciprocity negotiations
These taAes to which i have been referring are
increased burdens upon production Another i'm
position which has been raised by the new schedule
is the cciula, and il virtually affects every tan
rayrr on the island. The ccdula is certificate
which every man is required to obtain once year,
ard which is ordinarily carried about in the pocket
in order that it may he produced whenever it is
called for Ii is an official declaration OF nation
aity. BIRTH occupation and residence, and Is con-
stanty used III the transaction of business. The
cost of a codula has varied from II cents to $50
n year. and has been assessed with reference,
mainly. 10 house rent and income. Under the new
schedules the officials are empowered to increase
the cost very much at their discretion. am told
that the expense Of a cednla for taxpayer having
an income of &. 600 will b. 500. The burden vii
fall upon every taxpayer, and will be at least
double what ii has been.
Increased taxation is accompanied by an indie
fensibl policy cf farming out these sources OF rev.
cnue Not long ago match tax was levied In the
form of a onc-cent stamp upon every box contain
ing / 90 matches This tax has been farmed out 70
syndicate for a fixed sum paid into the Treasury;
hut the receipts have very largely exceeded the
estimates. and nave enriched those who secured
the privilege Of collecting the tax. The direct
taxes err farmcd ont III the same way Inc TOW
eminent has announced that the collection oil tne
cedua taN will be disposed of in this way upon
the payment of s950,Ooo by syndicate Prom.
ncrt Cubans have informed me that with the m
creased charges for crduas this tax nav yield AZ
much as 81 OOo. OOO although only - per cont OF
il will be- received by the State.
The Spanish Government il currently rrppir"
20 have sold the pr vcge Of collecting the customs
rev"nues TO Spanish ana F~nch "twN, I, 4
dicatc for a period of three years Mautid ~
patches in the Havana press sigte thai thr w.
has been contaminated for the sum IF rl',N-~
an Indication tina, the spanish GatFi>iu ~
ducel t. the extremity Of iasmine oYsnt !. ~
oil collecting the chief revenues ~ \the insine-s
colonies. IL will b. a couf,~~ionA Wet Indian
that II can no LONGER he dsl-I aud ,.noraliIed
istcr the custom hou~'- Y,cd upon to admin.
taluul4 hath aNp a L.. trad. If fls