The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-04-12
TAXATION IN PUERTO RICO.
REPORT OF THE MODE UNDER THE
<oLD SPANISH REGIME.
Made by Special Comrsissioner Car
roll and Presented to the Presi-
dent i'm October shows That Moth

special Dispatch TO the Post-Intelligencer
WASHINGTON, April 1.-THE present
discussion regarding methods Of raising
revenues for Puerto Rico lends especial
interest 10 a statement regarding the svs-
tenn OF taxation enforced under Spanish
rule. made by DR.. Henry X Carroll. special
commissioner, who was sent to Puerto Rico
In 1899. the statement forms part OF his
report which was presented to the presl-
dent ON October 6, 1899 IT Is as follows:
Customs duties we're levied both on I'm
ports and exports. There was also a spc-
ciai tax or the loading and unloading Of
freight the embarkation and disemblrNa-
ton OF passengers, and transi,ory dues Of
~ per cent, on duties on imports. Tsa rev
enues from these sources. as has alrcady
appeared, constituted by far the largest
Item OF the receipts OF the insuicr treasury.
There was system of direct taxation.
resting On the basis OF income and not on
valuation. The territorial tax. yielding
$4,000 To the insular treasury effected
urban and suburban property: the indus
trial and commercial yielding seu,pDo 10
the insular treasury, including all kinds OF
manufactures and industries, eli trlnehes
Of the mercantile and banking business
and all occupations.
The Industrial and commercial tax
was divided according 10 the population
of cities and towns. classified according
TO character of business and graded ac-
cording TO amount OF business There
were six divisions on the basis of popula-
tion san Juan, Ponce and Mayagneg con-
stituted the first division: towns with Gus
tom houses Of the first class the second:
towns with more than u 600 inhahifants
the third the other three divisions being
GRADED down from ~ 600 to 1000 and less
Ihen there were five classes OF tariff
Inc hrst. with eight grades. included mer-
chants. wholesale and retail: the second
importers and exporters, money lenders
transportation. sala ries Of officials OF
banks railroads and other comnantcz:
the third, the manufacture Of sugar rum
machinery, chemicals. chocolate ice etc
the fourth, the professions and occupa-
ions and the NTH patents, or new shops
factories, etc. which had TO pay a spe-
ciai installation tax. Merchants in the
first lass of the tariff would nay 1880
pesos IN San Juan. Ponce or Mayagues:
1untas, Bayamon, etc; 50 in Coamo, Ca
muy etc; 80 in Aibonito. Barranuuitas
etc. and 81 in Dorado Santa Isabella
etc. Merchants. Wholesale or wholesale
ana retail dealers in various lines of
wares, on commission on their own ac-
count paid according to the first grade;
retail shops hotels and restaurants ac-
cording to the second: pharmacies. shoe
provision and other retail stores were In
the third; STATIONERY shops in the fourth
NTH; cafes for the sale of soda waters
etc. In the sixth; boarding houses in the
seventh, and shops for the sale OF native
flowers In the eighth.
The second tariff embraced salaries
wages commisisons and the like. Gov
ernorS or directors OF banks. railroad
companies, etc, paid 8 Per cent. Of their
wages or salaries. contractors 6 per cent
of the amount OF their contracts banks
10 per cent, OF their profits, importers
and exporters receiving and rernittlng
buying and selling. shipping and conduct
ing banking corporations, paid s7o0 In the
cities of the first division. Provincial and
municipal officers were not required to
pay tax on their salaries But no kind
Of business seems 10 have escaped the
sharp eve of the state experts. Public
baths, balls and concerts: periodicals. in
clud,ng daily papers. lnundries, funeral
agencies. gymnasiums, livery stables all
kinds of industries. even the manufactur
OF artificial feet were taxed Black
smiths paid, according to the town in
which their business was conducted from
" TO pesos; architects from 20 to 6: dem
lists ana pharmacists the same. ply.
s.cians and surgeons. Is 10 u: nurses and
mtdwives, Is TO b veterinarians. Is to <.
BARRIERS. s to 2: lawyers. registers Of prop
ertp and notaries, Is 10 rs. while carpen-
tiers, milhners and dressmakers profess
sors Of music. languages, painters. etc.
paid according 10 their class and grade.
Among the exceptions may, be noted
washerwomen. BARRIERS without shops.
clerks in commercial houses and similar
classes Day laborers we're assessed
the basis Of one-third the value Of half
According to the law. some classes Of
business and occupations are sgremiabie
and some are not. a particular class is
called a gremio The lawyers, for exam
Pile would form one (class) tho doctors
another the merchants another, and 80
on The custom WAS for the state to an
composing the various gremios tclasses)
would meet, each gremio fclasSD by Itself.
and apIortion the amount among It's
members on the basis % the tariff
THE territorial tax was levied on the
income Of real estate. both urban and
rural. II yielded nearly twice a. much
MS the tax on commerce and Industry.
The valuation was made IN each munich
pal district by "a commission o. three.
with three subcomrnissioners for zach
class % IN. the three subCOmmts-
sf. ran
largest the medium and the smallest
class Of taxpayers. These commission.
the councilnaen. with three times as
many taxpayers elected 10 equal parts
hy the three classes Of taNpaycrs. In
valuing the income of farm the com
rnlssi0ners would * certain price for
the respective products Sugar. for cN-
ample was estimated az g a quintRi (Gs9Ae
Tor expenses. coffee. al 81. snd 4 was
allowed FOR exgt rHee. ON urhan proper
~ - per cent discount wss allow ed. OF
pasture lands 30 per cent
'.An taxes were payable quarterly. The
amount a~Eessed for the benefit q tbs
state was pet cent on both urban and
nlclpalny varied according 20 its ucgde.
bat waA generally Z or - ger cent The
complaint was quite general thAt those
who had much property, and ouEnf q
have paia large suns escaped with small
uevrrrrts Methods 81 evasion not uh-
known IN other countries scsEa 20 have
bribery ~ officials 4 German resident
~ an interior district told tne commits
r.ousr how he got bis annual TAX reduced
b, bribery i~a rf.inE tre trick from older
reaidents U ls charged that speularls
were favored By thF state ~ the OK
uenar ~ the natives. Mr, Andres trongsE.
q merchant 81 many years standing i1
san Juan but or American citizen, ir-
formed he commissioner that span
iard vha rented farm hsd agreed 90
nay the tax 90 o.. which. while hr had g,
was only 81 a year The farm after
wards came into Crusas p1ssessiln, ard
the tax was raised from ~ to $50 AZ 90
ne TAX 90 commerce. he satd that for
urriF 49, paid FsfG a year 90 che state ae
an importer az she first class and moo
to thr municipality. making = $50 IS FeAF.
Ne then placed himself IN she aelHaA
class and paid &&-l to- the state. res3sing
ths municipality demand for iis llta per
PROM this brl@l review - the systems
~ taxatinn lt wisl bs seen thar n the laws
rad tepn fsifhsuliv administered no peg
4sr ana NO article Hr form % property
could aavs escaped his or 10 share - ne
t.esFIc burden. The direct taNez would
seem 20 have b~en extremely onef9as.
m. earnings u merchants, maulf&ct1r-
erF ana other producers were subject 20
IA tax q ls1s per cent az more. according