The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-01-30
REGENERATION OF HAVANA.
LUDLOW NOW WORKING ON PLANS
TO MAKE 1T 4 NEW CITY.

Money in ImprOvements-City For
merly Lost Much Through the Ex-
pense of Tax COIlectiOn-PIans to
Increase Revenue.
Correspondence of the Associated Press.)
Havana, Jan. 24,-Maj. Gen. Ludlow has
on his table several projects for under
ground sewerage, street paving, and up
TO date school system and Improvements
of lesser importance.
He has had pressed on his attention a
series of brilliant suggestions of how to
create an ideal city The only obstacle is
money. million is nothing; something
between ten and twenty millions is want
ed, and Gen. Ludlow is turning over in
his mind the best way of asking Washing
ton, through Maj. Gen. Brooke, for leave
to bond the city, so that the next genera
ton, as well as this one, may have an op-
portunity to pay for the renaissance.
Ernest Lees Conant, chairman of the
financial inquiry commission deputed by
Gen. Ludlow to go into the finances of
the city, has prepared memoranda on the
subject From among an orderly arrange
ment of many dry facts the following par
agraphs are extracted:
Havana's Bonded Debt.
THE debt of the city of Havana Oct
81, 1893, according to a statement signed
by the alcalde and comptroller was as fol-
lows:
Loan of April %, 1859, 5O-year per cent.
bonds (mortgagee Spanish Bank of the Is
land of Cuba) s6.72,OOO.
Loan of Oct 10, 1892, 5O-year 6 per cent
Railways and Regla Warehouses) 81, ,SS2, 900.
Notes SIS. .SSO94.
FLOATING debt for salaries, materials in
terest and sinking fund, 50, 45O,O647S. To-
tai, $12.O76 s95.72.
"At the close of the year the floating
debt was still greater and the total debt
was about $12,5OO,OOO.
"The mortgage to the Spanish Bank for
the loan of 1889 is a document of 15S printed
pages, including the index. 1t recites that
in 1877 the city borrowed from the Spanish
Bank sum of money which, together
with interest amounted in 1889 to 49, IT,
653.25; that the city was in arrears for inter
est and sinking fund and that lawsuits
had been in progress to compel the city to
pay; that the city also desired funds to
complete the waterworks and for other
| purposes, and il was agreed that the city
| should issue S6500,000 6 per cent. 50-year
btW Is to take up the debts and finish the
water works, the expense of which was es-
imated at $l,S50,000, and that the balance
of the loan, which was taken at 90. be
turned over to the city for general pur-
uyns a further rarotrieian a
the loan might be increased to $1,000, 900,
and this was done"
The WaterwOrIs MOrtgaged.
1.-The city mortgaged the canal De Vento,
the aqueduct Ferdinand VII, the Chris-
tina slaughter house, the Tacon and Colon
markets. with all their revenues, and fifty
houses which 1t owns in various parts of
the city. The canal De Vento alone is es-
tmated at $500O,000
"The $1,000 900 loan," continued Mr.. Co
nant, has been reduced by the operations
of a sinking fund to S6721, 900. The mort
gage of 1891 for $3. 100000, now reduced to
81. .SS2 900, has the same property as Sc
curity. The arrears of interest and sink
ing fund on the two loans is $343, 800, which
figures as part of the floating debt
The floating debt arises from the fail
ure to pay any salaries, contractors, or for
materials during practically the whole of
1893, and for some debts of preceding
years, The floating debt is, prima faeie,
a valid obligation of the municipality and
should be funded. But before making a
new Loan Mr.. Conant says, for paying
these debts, a court of claims should be
formed before which all the municipalities
creditors should prove their claims"
The Debt Not Excessive.
Mr.. Conant then argues: For a city of
the size and wealth of Havana a debt of
S12500,000 is not excessive. Under a stable
government it Is probable that its gem
eral credit is stiA sufficient to float an
additional loan. How large such a loan
could be made, l am not prepared to say
without much further study. The repre-
sentatives of Dady & Co., express their
willingness to take pay for their sewerage
and paving scheme say $12, 500 900, in gem
eral city bonds, which would of course be
Junior TO the bonds already issued. and
they say that they have already made ar
rangements with financiers in New York
to dispose of these bonds as fast as re-
celved. This project alone would double
the present city debt and add more than
| oue-third 10 its present annual expense"
Sources of Revenue.
The revenue of the city is derived en-
tirely from licenses and indirect taxation
Real estate is not directly taxed and the
municipality does not directly receive any
thing from real estate.
The island imposes among other taxes
a tax of twelve per cent. on the estimated
rental of ali houses in the city and colIn-
try, and it pays to the city of Havana 18
per cent of the amount thus collected on
rents within the city limits. The island
also levies a tax on industry, commerce
and professions and II pays to the city
of Havana 25 per cent. Of all such taxes
collected within the city limits.
The other sources of city revenues
which are directly collected by the rnuni-
cipality are the rent of houses owned by
the municipality, revenue Of the water
works, slaughter house and market, taxes
on meat coke and wood, licenses on fac
tories and businesses of all kinds and vari-
Gus minor licenses. The total estimated
revenue for lS97-9S is slightly in excess of
81 coo. The tax on meat amounted to
$G63 900.
Small Receipts Per Capita.
"These receipts" says Mr.. Conant
amount to between $S and $40 a head on a
population estimated between 100000 and
$4,000 In American cities 30 per cent. or
more Of the revenues is derived from a di
rect tax on the assessed value of real es-
tate. including vacant property. In New
york the revenue is about s2S Der head