New-York tribune., 1900-04-23
PORTO RICAN FRANCHISES.
APPLICATIONS TO GO TO GOVERNOR
ALLEN-EFFECT OF AMENDMENTS
[BY TELEGRAPH TO THE rR1BuNE.l

Washington. April 22.-The numerous applications
for franchises in Porto Rico, together with all the
correspondence and other documents relating there
to file in the War Department will be imme-
diatey referred to Governor Allen for his tnforma-
ton Those papers understood to be somewhat
vouminous being the accumulations OF eighteen
months, during which period they have been in
state of suspended official animation, to the great
disgust and veXation of the applicants and other
persons interested, Since the occupation of Porto
Rico by the military authorities of the United
States no such applications have been granted.
On December % 1885, President Mckinley issued an
order forbidding the granting of any franchises,
concession for any public work without the
authorization of the Secretary of War and subse
quently, IN accordance with opinion of the Attor-
ney-Genera! to the effect that no such franchise
could be granted until Congress by appropriate leg
islation should authorize. the policy of non-acton
confirmed. This, however, did not stop the
inflow of applications. which found a resting place
in official pigeon holes.
In two cases. however certain public works have
been authorized under licenses revocabe at any
time by the Secretary of War. One of these was
for the building of wooden wharf in the harbor
of San Juan by a steamship company. The license
contains clause under which the Government of
Porto Rico may acquire title to the wharf pay
ment of its value. the valuation be determined
by a board, but in no case 10 exceed the cost of
construction. The other license was a sawmi
and woodworking plant being built vacant
lot in San Juan which the property of the
United States by virtue of the CeSSiOn from SPAIN
There such mill in San Juan when the
license granted. and it believed that the
building of would be of benefit to the Govern
ment well as to the people of the municipality
The granting of three other revocable licenses
recommended by Governor Davis. One for
the extension and Improvement of a tramway and
for changing the motive power to electricity. The
Tamway constructed many years ago under
Spanish authority. A second permit a sugar
manufacturing company to lay a railway track
along the margin of a public highway bring cane
to its mill. American capital amounting to more
than 81 coo 900 invested in the enterprise. The
third license recommended for water power
company, the privilege to be sold by auction
MANY PROJECTS FOR RAILROADS
Under Spanish rule some grants of public quasi
public franchises made and confirmed-among
them half dozen railroad projects. The most i'm
portant Of these for belt railroad around
the island. the coast, be about $50 miles
long. Four separate parts of the road with total
length of 1872 miles built before the war began
Spain guaranteed per cent interest on the esti-
mated cost of the road, to be paid the mileage
was constructed. The total cost estimated at
100000 pesos. Until the began Spain paid the
interest, whole in part on the mileage that
had been built. The company, which had not COM
piled with the terms of the concession in respect
to the time of completion and had thereby laid it
self liable the forfeiture of charter has not
built additional mileage for several years. but
is claiming that the United States Government
interest guaranteed by Spain, although il has int
mated a willingness TO accept per cent in lieu of
per cent. Another Spanish charter, under which
a tramway seven miles long is operated, has about
forty years The road is owned and
operated by an American company. There Is
other tramway, four miles long, operated under a
Spanish charter Two other railroad charters were
granted and confirmed before the United States
took possession of the island Nothing
done under of them. and the other road.
teeOk X n1atr so IA ed bV
the hurricane of last year that It Will have be
rebuilt.
Since the American occupation five six other
railroad projects have sprung into existence and
surveyors and engineers have been In the field for
some months exploring and surveying different
routes and making estimates of probable cost. Con-
siderable sums of money have thus been expended,
and the several inchoate corporations said
have been quite successful in securing rights of
way and other privileges If all the projects should
be carried out and the railroads built, the island
OF Porto Rico would be better supplied with that
Of transportation than any State IN the
Union. 1t is probable. however, that If the fran
chise provisions adopted by the House Committee
on Insuar Affairs yesterday should become a law.
a number of the projects would be abandoned
postponed until more favorable season.
MAY SPOIL PLANS OF SPECTATORS
Some of those provisions will also be likely
certain projects said to be foot IN the United
States to gobble the plantations and other real
estate in Porto Rico. which heavily mortgaged,
and the owners of which may be unable
liquidate their Indebtedness when the mortgages
mature the heavy interest payments prior to
that time fall
The Government has already felt compelled to
interfere and suspend the foreclosure of
cages The suspension will terminate on June 29,
if not The total amount of the mortgages
is in the neighborhood of 2S0O00f0 pesos, and the
total estimated valuation of all the plantation
farms and other real estate Porto Rico in 1897
a year before the cane fields and the extensive
ion hV
millions of pesos-amounted TO 100000 pesos. The
total mortgage Indebtedness therefore amounted
TO S6 per cent of the total -axable valuation The
rate OF interest varies from 7 per cent to 20 per
average rate, according to the estimate of General
pounded yearly-sometimes every six months. nfs.
Comparatively little interest has been paid on the
mortgage Indebtedness in the last eighteen months
none whatever since January o. 1889 so that
more than 100000 pesos. at the lowest estimate. is
1t is understood that large proportion aof the
total indebtedness is held by capitalists in the
acquire titles, corporations, to a corresponding
proportion of the coffee sugar and tobacco lands
| wages are low and the lands exceedingly fertile
and productive and holding out aIluring pros
OF course these gains would have been create for
time, at least If the Porto Rican Tariff bill could
have been defeated and free trade established
tween the United States and Porto Rico at the
outset, but with restrictions the granting of
corporate rights and privileges in the island 1t
believed that the honest gains of SPECTATORS who
went in on the ground floor" would far exceed the
dreams OF avarice a man who good deal
Of sugar land in the island remarked after the
in dav He W wa in pnsnn nat 5 va vane a mad doubled
of the ground floor proposition. But the scheme
plantat ttons into great corporation preserve may
fal or success the proposed franchise provisions
that mo corporation shall be authorized to co9
duct the business of buying selling real estate
hold real estate except such as may be
reasonably necessary TO enable It to carry out the