New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-21
TAX COLLECTION IN CUBA.
CONTROVERSY OVER THE SPANISH
BANK BECOMES ACUTE.
AMERICAN AUTHORITIES ON THE ISLAND
OPPOSED TO THE PROPOSED AR
RANGEAfENT-AN UGLY MUDDLE.
GBT CABLE TO THE TRIBUSE.l

GBT CABLE TO THE TRIBUSE.l
Havana, Jan. 20.-An acute stage has been
reached in the Spanish Bank tax collection case.
All the American uthorites-Generals Brooke,
Lee. Ludlow and Bliss-are known to be op-
posed TO the plan. The uneasiness has been
partially quieted by the assurance that the policy
cannot be made effective until General Brooke
officially promulgates the order that taxes, pres
ent and past, are to be paid to the Spanish
Bank Nevertheless. the agitation for a definite
declaration Of the United States grows in ve-
hemence. The remonstrances OF the American
officials to Washington are urgent. The state
ment is made to-day that neither General
Brooke nor General Ludlow has been officially
informed that the War Department had closed
the arrangement for tax collection with the
bank, and they will assume the contrary until
otherwise instructed Vice president Jover of
the bank, who conducted the negotiations in
Washington, is due here tomorrow. He is ex-
pected TO produce the authority. and this will
bring about a direct issue Though the bank
has blanks prepared for the period between
July 1, 1898. and January 1. 1899. SO far as
known no attempt has yet been made at col
lection. The officials have been awaiting Mr..
lovers return to Havana.
Property-owners and business men who have
been preparing petitions to General Brooke
against the enforcement OF the back taxes and
against the employment OF the bank are anxious
to present these documents. They are held off
by a promise that no decree regarding tax col
lection will be promulgated until they have been
heard. The recommendation Of the military
authorities is that the arrangement with the
bank be revoked and the United States estab-
llsh It's own fiscal system. copy OF the
agreement said TO have been entered into be-
tween the Secretary OF War and the Spanish
Bank was pubshd to-day, but the publication
was not official Foreign business houses which
had sought to avoid the controversy declared
that they would not pay back taxes. They still
doubt the clause which provides penalty II
the taxes for the last six months of 1898 are not
paid by the end Of February.
The privilege which the bank held from the
Spanish Government Of selling stamped paper is
not involved in the controversy. because under
American control stamped paper has been abol-
ished. The tax collection has nothing to do
with the legal proceedings which have been
commenced to test the responsibility OF the
Spanish Bank for the billetes or paper currency
which was issued by direction Of the Spanish
Government during the insurrection. This
action was foreseen, and when the issue was
ordered the bank sought to protect itself from
liability and was thought to have done so sue
cessfuy Twenty million dollars Of this money,
called "Weylers scrip" known TO have been
issued. and a larger amount was suspected.
Originally 100000 in gold was held in the
bank as a redemption fund Afterward $6.000.-
900 in silver was substituted and 10 per cent
Of the customs duties was exacted in billetes.
This was said to nave been cancelled when paid
In During the blockade Blanco took all Of the
silver reserve away from the bank. The billetes
have a nominal quotation Of FIVE cents on dol
lar. Spectators have bought bushels Of them,
and they are for sale as curiosities.
The Cubans are demanding that the bank be
compelled to repay the alleged msappropria-
ton of municipal and school funds during Wey-
ler's time.
The mudde is an ugly one and is growing
worse. General Ludlow's Finance Commission
has subpenaed members Of the former Autono-
mist Cabinet to give information regarding the
finances during their period of office. One
member is charged with having his overdue
taxes rebated without any consideration.
The school-teachers and college instructors
are TO hold a conference soon to prepare a
scheme of education. Their first concern is to
get their pay.
The railroad employees at Cardenas have
struck for the restoration of their wages to
the amounts paid before the war. They also
want their pay In gold
At Cabarien near Gomez's camp. the coun-
try people are being assisted to return to their
farms.
In Pinar del Rio General Davis has prohibited
cock fighting.