The times., 1899-06-27

The Assistant Secretary of War has is
sued orders directing the discharge OF the
Insular Commission to take effect July
J. The Commission will be compelled 10
abandon its work before 1t is finished, and
already notices have been sent to the en-
ployes stating that owing TO the lack OF
funds to carry on the work their services
will no longer be required. This action
las been contemplated for several weeks
and the Commission has been making
strenuous efforts to complete its work be-
fore the end of the fiscal year 1t is
claimed by the War Department officials
that the fund from which the Commission 5
expenses have been paid cannot be used
after July l, and that no provision was
made by Congress for the use of the regu-
lar War Department funds for the Commis-
sion's investigations.
Members of the Commission are not at
all pleased with the action of the Assist
ant Secretary of War. They say that it
was impossible to finish their work in the
time given them, and that there is not
even sufficient time in which TO close up
their routine work. They are greatly oe-
cupied in the consideration of applications
for franchises in Porto Rico, and since
making their official report the Commission
has been preparing code of laws for the
island. The investigation of applications
for franchises has been suddenly inter-
rupted by the order disbanding the Com
mission. and much of its work will remain
only half done.
ho
mission is the application of the Porto
Rico Railroad Company, represented in
this country by Charles C. Beaman, Ed
ward Lauterbach, and Herbert R. Linn
burger. The members of the lnsuiar
Commission, MessTs. Robert p. Kennedy,
c. W. Watkins, and H. G. Curtis, granted
the company's lawyers final hearing Sat
urday, and report will be presented to
the War Department On the subject in
few days. The concession of the Porto
Rico Railroad Company was granted in
1887
The most important provision Of the con-
cession is the one guaranteeing s per cent
on the cost of construction for every sec
tion on fixed price, the average price be-
ing at the rate of about SIS. coo per kilo-
meter or S2S,000 per mile. 1t is this pro-
vision that is now before the Insular Com
mission. The railroad has been nearly
completed, but there remains unpaid by
the company a considerable amount of
the Spanish guarantee.
The company was unable to finish the
construction within the time specified,
and the Spanish Government ceased to pay
the guaranty. The company now desires
to resume the construction CT the road
and claims that the United States should
assume the obligation CT the Spanish Gov
ernment and pay guaranty On the con-
struction of the remainder OF the road
Whether CT not the United States is OBJ
ligated to the payment OF a guaranty
made by Spain in Porto Rico is the ques-
tion involved in the matter now before
the Commission. Ine company claims that
| the guaranty is on fair and reasonable
| figure. based on a sum which is really
much lower than the actual cost OF con-
struction. Their brief, filed with The
Commission. says:
1t has never been claimed that the
! charter rights Of the company have in an;
way been forfeited. The most that car
be claimed is that by the failure to COM
| plete the lines within the specified time
/ there exists ground for declaring forfeit
| ure. Furthermore, the Spanish Govern
/ ment continued to pay the guaranty unit
the middle CT 1897. Since that time tht
! existence of the status OF the company
| has been recognized in various ways; by
! the report and recommendations OF Gen,
| oral Henry to the War Department: BY
the inclusion of the amount of guarant,
in the budget of the island for the com
! ing year; by the Government itself claim
| ing privileges granted to it and its off
ciais by the concession. which privilege
were uniformly accorded by the company
such as the free carriage OF officials. etc.
etc.
| For all Of the ahoye reasons n is 70
| spectfully submitted: That there is n,
ground for any forfeiture whatsoever
that if any ground for such forfeiture eve
| existed. 1t has been repeatedly and fnaIl,
| waived by the Government and cannot b
| taken advantage of