The San Francisco call., 1899-09-08
GRAVE SCANDAL
MAY RESULT
Gen. BrOOke'S Actions
Criticized.
Special Dispatch to The Call.

CALL HEADQUARTERS, VEL
LINGTON HOTEL, WASHINGTON,
Sept. 7.-Considerable comment has
been aroused here as a result of the
failure of General Brooke to impose a
tax upon railroads in Cuba and to car
ry out the departments instructions
relative to the imposition of a land tax,
and it is feared that another scandal
may result Except for a small tax for
passengers and freight, both of which
are paid by the people and not by the
railroads, 1 learned to-day that the
corporations are not assessed one cent
for the protection they receive from the
Government. Not only do the roads
pay no taxes, but they charge exorbi-
tant passenger and freight rates. Most
of the travel varies from more than 6
cents to nearly Is cents per mile. Gen
eral Brooke himself has called the at
tertion Of the department to the ad-
visibility of reducing the tariff to
uniform rate which will enable the peo-
pie of the island to freely use the
roads The result of the imposition of
such a high tariff and the exemption
of the roads from taxation is that the
railroads are paying dividends of 10
and 20 per cent, and information re-
ceived here shows that one of the roads
is paying a dividend of 3 and per
cent month. In an official report to
the War Department General Lee thus
describes the railroads in the provinces
under his command:
There is a railroad from Reg
la across the harbor from Havana to
Bejucal, then in a westerly direction
by Guines to Matanzas; and still an
other from the city of Havana SOUTH
then west by San Antonio de Los Banos
to Guanjay, in the province OF Plnar
del Rio; and yet another which also
runs in a southern direction from Ha-
vana by Buira de Melena. then west
wardly to Pinar del Rio City. This is
known as the Western Railroad. and.
as far as I know is an independent or
ganizatiOn.
owned principally by Englishmen. In
addition to these railroads, there is also
one running from Havana some eight
miles to Mariana, and from that city
north few miles to the ocean.
There are in all 1850 miles of track
age on the island, not including subur-
ban and plantation roads Englishmen
and Spaniards are largely interested in
railroad stock | understand the Van
derbilts have made ARRANGEMENTS for
the purchase of a railroad in the prov
ince of Santiago de Cuba, but whether
the deal has finally been consummated
is not known here
"It has been estimated that by the I'M
position of a moderate tax on railroads
the internal revenue derived from the
island will be increased by at least
quarter of a million dollars. So far as
is known here. General Brooke has
taken no action contemplating any tax
upon the roads beyond the ticket and
freight taxes which are paid by pas
senger or shipper.
instructions were sent to General
Brooke some months ago to impose a
land tax, but up to this time, so far
as is known by the department, he has
not carried them out. 1t is possible
that he has been so busily engaged that
he has not been able to get at this
matter, or he may have taken action
and not Informed the department. In
any event, the authorities would like
to know just what General Brooke has
done in this connection"