The times., 1899-07-21

Government should DO Likewise.
Baron E. D. Erlanger. of London. one of
the financial leaders of Europe and who
owns, incidentally, the principal railroad
line in Porto Rico, was in Washington yes
terday on business connected with his in
| sular railway. He is desirous of having
the American Government agree to sub
sidize the Porto Rico Railway, of which he
is proprietor, in the same manner that it
was favored by the Spanish Government.
According to a statement made to re-
porter for The Times. when seen at the
Arlington Hotel last night, the baron seeks
to have this Government pay him an an
nual guaranty of about $4,000, probably
trifie more. The matter has been placed
| before the Government through the British
Charge d'Affaires. Reginald Tower. and re-
| ferred to the War Department. Baron Err
| langer called there yesterday and was in
formed that the subject had been referred
to Attorney General Griggs for ccnsidera-
tion. and that the Governments action
would be based upon his decision. He re-
turned TO the hotel and during the evening
held another conference with the British
| Charge d'Ahaires
The Porto Rico Railway is practically
the only line in the island. 1t parallels
the coast on the north. east. and west
sides, but only in places. as some sections
are under construction at the present time
! Three sections of the line, aggregating
about 100 miles. are finished and in opera
| tion. and fifty-fiye miles remain unfinished
| work has been suspended on the unfinished
sections, the baron asserts. to await the
/ outcome of the subsidy matter. One of the
/ completed sections is on the west end of
| the island and extends from Aguadilla
| through Mayaguez to San German The
! section OF the railroad on the south coast
begins at Ponce and extends through Diaz
to Coema, while the third portion starts at
| San Juan, the capital, and continues over
| land, running through Caguas TO Guayama.
| Two sections of the road. namely those be-
tween San German and Ponce and Coama
and Guayama are unfinished, although
| work has been commenced.
Baron Erlanger stated that when he
! sought TO build the railroad a franchise
was secured from the Spanish Govern
ment, substituting the road by fixing a car
tain amount of interest to be paid on a
| hhed cost of construction per mile The
/ cost aggregated about S30.GCe for each mile
The Spanish Government agreed, Baron
1 Eildnger salu, 10 pay guaranty of S per
/ cent OF the cost provided per cent of the
cost per mile were not realized out OF the
! investment. 1t was with this understand
/ ing. he maintains, that he built the sys
| TEN. He argues that without a Govern
/ nlent guarantee the road would not paw. on
/ account of the small amount of traffic on
] the island. Work was progressing on the
I uncompleted sections when the war with
Spain began. but was suspended soon after
ward 1t was not desired to complete the
road and run the risk Of receiving no sub
sidy.
When the Treaty of Paris was signed.
ceding Porto Rico to the United States il
: appears that the American Government
was bound TO recognize the public and pri-
/ vate agreements made by the Spanish Gov
/ ernment in Cuba regarding franchises, and
/ this being so, the Baron argues that the
! American Government should be willing
/ TO pay the same guaranty granted by the
| Spanish Government. 1t was this line of
reasoning that led to the application for
| continuance of the original franchise
| Baron Erlanger will leave for New York
/ today. and expects to sail for London on
/ July 20.
| The personality of the financier is in
! teresting. He comes from the well-knoyn
/ Erlanger family of Europe, whose name Is
/ almost synonymous with that of the Roth
schiIds, financially speaking 1t is not
/ generally known that three of the impor-
! tant links of the Southern Railway in this
country are partly owned by the Erlang-
ers. Some years ago they acquired con-
| trolling interests by purchase in the Ala
bama Great Southern Railroad which con-
meets Chattanooga with Meridian. Missis-
| sippi, the Yicksburg and Meridian Rail-
road which joins those two places, and the
Nicksburg, Shreveport and Pacific Rail
1
| Shreveport. They then leased the Cincin-
natl Southern Railroad. which extends
| from Chattanooga TO Cincinnati. and built
| the New Orleans and Northwestern which
afterward became part of the we'll known
| Queen and Crescent line. The Southern
| Railway now controls the Cincinnati South
ern and owns the Alabama Great South
ern lines, while the other three roads are
| largely owned by the Erlangers Baron
| Erlanger is a genial foreigner and spIen-
did conversationalist. He has Travelled
extensively and visited America frequently
He has been to Porto Rico and is thorough
| ly conversant with conditions. social and
Industrial as they existed in the island
prior to the war. In his opinion one OF the
greatest possibilities of the Islands future
is the development OF its fruit, sugar. and
coffee trade.
The orange grows there naturally ne
said last night, and the Porto Rican ba-
mana is as fine as those grown in Jamaica
and which are largely Imported into this
country. The Porto Rican orange is
sweeter than those raised in Florida and
the crops are not subject TO frost. as in
the latter State. Fine grape fruit is like
wise grown. Before the war Porto Rico
had free trade with Spain l understand
that under the present arrangement the
Porto Ricans are deprived of free inter-
course with their former mother country.
while they have deived no advantage in
return ! think that with free trade be-
tween America and Porto Rico almost all.
if not all. of the fruit and products raised
there for shipment will find their way
to the American markets. Then the isl
and Will develop and this trade will have
some value. / do not see how anything
but free trade can be granted, in view of
the fact that Porto Rico is now consid-
cred part Of your country. To deprive
the island of this blessing would be like
shutting the products of one of your
| States from another State"