Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-09-15
The Counsel for the Havana Finance
Commission Talks.
The TAX SYSTEM EXAMINED
Municipal Autonomy Throughout
the Island Desirable.
GENERAL LUDLOW'S WORK


finance commission. Colonel Nordase. au-
ditor of Havana. ard his assistant. J. n.
Gomez, These three men are here at the
instance of General Ludlow 10 investigate
the system of municipal accounts in this
city and to formulate system for Havana.
If successful. the system they recommend
will probably be adopted throughout the
island Colonel Nordase is a member of
the Havana finance commission, the func-
ton of which is to examine the peculiar
fiscal system now in vogue in that city and
to recommend to General Ludlow certain
necessary changes. These men talked in
terestingly of Cuban affairs. Captain
Smith, in speaking of the many curious
conditions still prevailing on the Island,
said:
The Tax System Examined.
The Havana finance commission has
made thorough examination Of this tax
system in vogue. The general system in
Cuba. which has been carried over from
the old Spanish regime, is sui generis. The
assessment of al the real estate in the
cities Of Cuba is made in the office of the
insular secretary OF the treasury. ana the
percentage of the taxes which the cities
may levy on this assessed valuation is &C.
termined by a decree OF the governor gen
eral These assessments are made not upon
y,
but the rental value, a feature which,
by the way, appeals very strongly TO many
American lawyers and political economists.
The city authorities are thus powerlcss to
increase their revenue in time OF any
emergency except by applying to outside
authorities. The most important special
investigation made was into the loan of
S,GD9.HW by the Spanish bank of the Is
land of Cuba to the city of Havana il 1889.
This investigation went back to 1859, when
the city first began borrowing money for
the purpose OF building the i1uedu"t known
as the Canal d'albaar, which supplies the
city with water There was Il succession
of mortgages. which were consolidated into
one in 1879, for little over S.:,c0ooO0.
This was increased TO s1.J0o,JD0 i'll 1889,
and the Canal dalbear was inSnei.
The fact that the city is unable at any
time to increase its income by an increase
in the assessments or in the rate of taxa
ton has forced it invariably to borrow
money when any extraordinary expense
ike this became necessary, and Will perhaps
force it to borrow enough more in the
immediate future to pay off this and
other mortgage and its floating indebted
ness as we'll as to obtain the funds which
are needed badly for improved systems of
sewers pavements and public works. This
old system of taxation has led to a feature
in the mortgages which is seldom, if ever.
found in the United States, viz, the bonds
issued under them are Tedeemable annually
in certain stated amount by lot, which
amounts increase every year as the city is
purpose because of the decrease of interest
charges which such redemption occasions.
This is their substitute for the modern sink
ing fund system. Under a modern system
Havana could easily carry a loan of $40,-
GOO, 600.
Municipal Autonomy.
''The most immediate need of the city of
Havana in financial matters is a sufficient
autonomy to enable it to adapt its rate of
taxation and consequently it's revenue to
the varying needs of the city from year to
year. 1t is very gratifying to see in the
newspapers that the administra ton con-
templates as first step toward Cuban au-
tonomy the Inauguration of municipal au-
tonomy throughout the island. Such
method, whether administered by officers
chosen by popular vote under the super
vision of the American authorities, or by
officers appointed by the American authori-
ties, Is of primary Importance 1t might
possibly do away with the present Syste m
of apportioning the insular funds received
from the post office and custom house de-
partments among the various muncipali-
ties, and leave just so much more for what
might be characterized as national i'm
provements, such as a system of rural po-
lice. country highways, the improvement
of harbors and Notifications.
The political situation in Cuba seems
to be very generally understood here in the
north. There are Spanards and Cubans,
the old autonomists who are now usually
annexationists. and the free Cuba-at-any-
arisen lately, which will attempt to draw
it's recruits from all these sources. Its aim
is to complete autonomy of Cuba with an
offensive and defensive alliance with the
United States, but without any treaties
with any other nation, and with complete
autonomy in all local affairs A very able
Cuban, who is in sympathy with this
movement explained that Cuba should be
absolutely independent except in case of
war in which either it or the United States
is engaged: then they shall be allies for
all purposes 1t seems as If Cuba would
get very much more out of such an ar
rangement as this than she could give, and
might possibly embrol the United States in
for egn complications in which she would
be of comparatively little assistance, ex-
cept as a strategical point, which could be
occupied without fighting for it.
The Judicial System.
I'm the course of the work In which 1
have been engaged 1 have been thrown into
contact with the judicial system of the
island While the Spanish codes are adj
mirably constructed in many respects, like
every system Of law their real value de-
ponds entirely upon the method Of their
administration, and especially in the courts
of first resort. 1t is said that under the
old regime it was merely a question which
party in litigation had the longest purse
and the strongest pull. Inc same code has
been retained with very little amendment.
to me at present is the abolition Of the
incommunicado system by which formerly
a man when arrested on a serious charge
could be kept in solitary confinement for
an indefinite period without opportunity
to communicate with any of his friends or
with counsel This term Of solitary con-
finement is now limited to tWenty-four
hours. Practically all the old judges of
the courts of the first instance are retained.
Under the old system this power could be
used by such a judge, whose duty it was
to make a preliminary investigation into
the guilt or innocence of the accused, as a
powerful engine to force him into signing
such a statement the judge for personal
or political reasons might desire; and l
have heard it said that the system has been
so used since the American authorities have
taken control Here is an instance CT the
way this system practically works, which
has occurred since January 1: Employees of
various departments, both Americans and
Cubans, have on several occasions been
sent before these judges of first resort
under charges of peculation in the course
of their employment
These charges seemed to the American
heads of departments who presented them
to be backed by conclusive evidence of
guilt. In every case the accused has been
discharged at the preliminary examination.
If the accused persons were not of both
races this might be explained race pref
udice, but, as a matter of fact, the only
possible explanation seems to be that such
have been so common In the