The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-12
PORTO RICAN BUDGET
TAXES AND EXPENSES CUT DOWN BY
GOVERNOR GENERAL HENRY.
Customs Receipts for the Current Year
Estimated at $3,132, OOO-The
Franchise Question.

SAN JUAN DE PUERTO RICO, Jan. II.
The first great blessing that has come to
Porto Rico since the American occupation
has been the reduction of taxes and gov
eminent expenses. The budget for the year
1899 has just been approved by General
Henry This covers the expenses of what is
called the 'insular government" The fol-
lowing sums which would have been in
cluded in the budget of the Spanish gov
eminent have been stricken out: General
obligations S49S, 500; clergy, $197, 945; war, ST.
252, 377; marine 1922, 66S The total of the
obligations that ceased to exist and which
are deducted from the amount of the budget
is 81, 1872 The difference that had been
expended without the realized economies
herewith detailed equals ST. ,427. The cal
culated budget for 1899 is formed of the
following items: General obligations, $19,-
$50; state obligations, $3O4 1896; justice de-
partment $2O1 ,452; finance department, $780,
6l0; interior department, $766, $50. The Gus
toms for the coming year were estimated
to be S3,132,9O0 This sum is to be reduced
by the amount usually raised by the duty
on wheat flour and which has been taken
off by General Henry equal to 900. This
leaves a net revenue from the customs
houses of 81 ,632, SEQ. There will remain,
therefore, an excess of 81. 170,623.
1t should be understood that the above
figures for the estimated budget for the
year embrace only the necessary expenses
for the payment of salaries and other fixed
charges. If this amount cannot be paid
from the proceeds of the customs then it
must be raised by other methods of taxa
ton. General Henry has asked OF WASH
ington the right to apply the customs re-
ceipts to the expenses of the government.
If this should be permitted all government
expenses could be paid and many improve
mentS carried on. At the present time
there are many taxes collected that are
great hindrance to commerce, and If the
customs receipts could be used these might
be done away with. Merchants doing bus
mess in Porto Rico pay almost a prohibit
tive tax. No one can engage in the bank
ing or importing business without paying
to the government a tax of about $500
pesos per annum. Then there are con-
sumption taxes imposed upon every article
imported for consumption. Those should all
be done away with, as they hinder trade
and prevent the trade from America from
entering here.
Many Americans have come here for the
purpose of establishing trade with Porto
Rico. and representatives Of capital have
visited the island for the purpose of securing
franchises for the building of public inn
proVements. They have received a check
by the recent order of the War Depart
ment which prohibits any town in Porto
Rico from granting any franchise for public
Improvements without referring the appI-
cant to the military. government. These
latter must refer the applicant TO the sec
rotary of war before the same may be
granted The effect of this order is to tie
the hands of the military government and
to practically put a stop to any improve
ments upon the part of the municipalities.
The ruling of the War Department with
the delay in reducing the tariff upon articles
between the United States and Porto Rico,
will delay the development OF the country.
There are very good opportunities here for
the investment of capital. but so long as
these matters are uncertain capital will not
be invested in the trade or development of
the country. When this order came Gen.
Henry regarded it as an advantage to the
holders of Spanish franchises, and there
fore promptly made order reVokinS all
of the latter. His idea was to place all
upon an equality He had hardly signed the
latter order. however. before the legal
questions involved presented themselves,
and he decided to rescind his order. A ser-
Gus question was raised, and one that might
have been decided against the general in
favor of the holders of the old Spanish con-
ceSsiOuS.