New-York tribune., 1900-04-22
GUARDING FRANCHISES.
THE HOUSE TNSULAR AFFAIRS COMMIT
TEE AMENDS THE SENATE PORTO
RICAN RESOLUTION.
rBr TELEGRAPH TO TIE tribune J

+he House Committee on Insular Affairs to-day
mas interesting and lively as well as important
T was held TO consider the joint resolution au-
,hortzing the temporary performance Of civil
7uries bv Army officers in Porto Rico pending
The appointment and qualification Of the civil
,-7cers provided for by the Porto Rican act ap-
7roveG April -. and two amendments proposed
tnsrero-one by Chairman Cooper and the other
bv Nj Crumpacker. Of Indiana. MIR. Cooper's
amendment was as follows
That all franchises. privileges or concessions
mentioned II Section b OF said act shall be
approved by the President OF the United States
arG nc such franchise, privilege or concession
shau be operative untl 1t shall have been so
approved
Alr Crumpacker's amendment reads:
That all charters of private corporations shall
rrovi6e that the same shall be subject TO amend
r7enr. alteration or repeal shall forbid the issue
Of stocks or bonds. except IN exchange for actual
cash or property AZ a fair valuation equal in
amount the par value Of the stock or bonds
issued. shall forbid the declaring of stock or
bond dividends and. n the case Of public service
corporations. shall provide for the effective reg
,,ls-5-r Of the charges thereof and for the pur-
chase or taking by the public authorities Of their
--~rn4rrv al fair valuation. No corporation
sbsr he authorized TO conduct the business of
tuvr1E and selling real estate. Of issuing cur
rency or Of engaging in agriculture. or permit
ted - hold or own real estate, except such
may he reasonably necessary TO enable ii TO
carry oIr the purposes tor which Il was created
Banking corporations. however. may be author
tied loan funds upon real estate security. and
= purchase real estate when necessary for the
collection Of loans. but they shall dispose of all
-eal estate so obtained within five years after
receiving the title. Corporations other than
sbose 7--anizec n Porto Rico and doing business
Seeren shall be bound by che provisions Of this
secr.0n as tar as they are applicable.
The amendments provoked an animated dis
oussion before the votes were taken by which
The amendments were both adopted-the former
unanimously and the latter by vote Of to >.
IT.
Republicans. and Jones va). Maddox. Will
iams Ill). and Carmack Democrats voted in
rhe Affirmative. and Messrs- Crumpacker. Can
non Payne. Hitr and Loud in the negative
DISCUSSION OF THE AMENDMENTS,
The negative votes. il was explained, were
cast On account Of the belief that the amend
rnenrs Z adopted would so retard the passage
OF The Joint resolution as 10 carry its adoption
bevon6 May I. and thereby cause enbarrass-
rent II the administration Of civil affairs in
Porto Rico. But opposition also developed
other grounds. One or two members who did
not favor throwing. al this time. additional
safeguards around the granting OF franchises
II The island. argued. among other things. that
persons who should seek and obtain them and
invest their money would incur great risk Of
losing and also that the risk incurred would
b. fer The public benefit as well as for private
noc 10 be hedged about by onerous or unreason-
able restrictions. while others expressed the
opinion mat there would be no danger Of the
grantees abusing the privileges secured by
them
while the members who advocated the amend
ulenrs did not contend that the privileges would
be abused or that the persons who obtained the
franchises would not incur some risk, as do the
persons who invest their capital IL any new en-
1srpr.se they did insist with much emphasis
that il was the duty Of Congress To impose such
reasonable restrictions as We're proposed both
fo- The protection Of investors and The safety
and benefit of the Porto R!ca,ss themselves.
They also pointed out the fact that whether
the franchises should turn out 20 be valuable
or rot, there was at present and for some time
% come would be q lively scramble TO obtain
them, and n default OF suitable action by Con-
gress II was not wholly improbable. TO say the
least that wildcat corporations would be or
ganized whose irresponsible promoters would
D. likely 70 hoodwink and fleece unsuspecting
and uniformed investors both in Porto Rico
and the United States.
N The course of the discussion letter was
read which a member Of the committee had re-
Gently received from a prominent corporation
manager II the United States, saying that he
enc others Interested with him We're preparing
% make heavy investments in mortgages OH
plantations and other real property in Porto
Rico. These mortgages bear high rate Of in
terest. and many of them cover property which
The owners might be unable 10 retain, bur even
in thar event the investment would be an eX-
ceeGincly profitable one. The letter did not con-
vey direct invitation 10 its recipient 10 invest
any money IN the enterprise. but il might have
been construed as suggesting something Of the
sort.
One of the arguments employed by the advO-
Gates Of the amendments was the editorial en-
titled Franchises in Porto Rico" published in
Tie Tribune Of last Thursday which read
The debate. and is said To have produced cOnsid-
erahle effect on the minds Of those who heard il
ONE PROVISION LOST.
The advocates Of the amendments. however.
were rot able 10 carry one provision which some
of them earnestly desired to incorporate-that
requiring the payment Of compensation for fran
ch.ses fer The benefit OF the Porto Rican treas
my The failure 10 90 so may perhaps explain
M Crumpacker's vote against the amendment
he proposed
The powers granted by the amendment 10 reg
ulste franchises are extensive and plenary. and
the concurrent exercise Of all Of them by the
Executive Council. with the approval Of the
Governor and the President Of the United States
wtL enable the Council 70 require the payment OF
suitable compensation for the corporate privi-
leges granted whenever that body may deem il
desirable and eXpedient 70 do
The Cooper amendment simply restores the
provision 0f the original Porto Rican bill which
Was stricken out by the Senate or motion Of
ny Money. u Mississippi, after brief discus
son which did not touch the real merits Of the
case Il IS not believed. therefore that tht
amendment VIII provoke serious opposition in
Lae Senate Conr1itree on Pacific Islands and
t9rlo Rico CT IN the Senate Mr. Foraker. tn