New-York tribune., 1901-05-06
FINANCES OF PORTO RICO.
THE SATISFACTORY WORKING OF THE
NEW REVENUE LAw-OPPOsITIoN
TO IT PRACTICALLY ENDED.
San Juan. Porto Rtnn Al,

II
,sveuue law enacted by the recent Legislative As
ssrbly OF Porto Rico, and commonly called the
aolander act The revenue bill was introduced in
me legislature fortnight after the organization
u TIC body. and was under consideration a,,r,rs
,our-ffrhs OF the session ana N this troe No rrsc
,cal suggestion was made by any responsible IN
,srest in Porto Rico that WIS not carefully cor
sldcred and II feasible incorporated into the
measure. The bil passed the Executive Council
by q vote OF 10 and the House Of Delegates by
. good ma ajorty and received the signature ~ +bs
Governor. After the bin had become law and
the legislature had adjourned 4 public meeting
vas held In san Juan at the instigation OF the
imposition political party. The meeting was held
m he theatre al san Juan by not more than eight
hundred persons almost exclusively OF the landed
and moneyed interests in the city. Fiery sDeeches
we're made. general denunoiation was INDUCED IN
and committee Of protest was appointed TO visit
Washington. committee is called a .'cornuis-
sion in Spanish II is perfectly true and capable
of demonstration. that not per cent OF the rer
sons who attended the meeting had ever read the
Hollander bill or knew anything Of il except from
hearsay ano, turthe-, that not 10 per cent Of the
persons present would now hesitate 10 admit that
their opposition then unreasonable and had
now disappeared The meeting in short was moth
ng in the world but the alarmed lament Of the
wealthy class. hitherto untaxed skilfully fornented
BY political partisanship and individual ualcon-
tents
The revenue act consists Of a property tax
series or excise taxes and an inheritance tax
Practically no objection has been made TO 1he in
heritance tax, which IS framed in accordance with
the soundest principles OF modern finance and OF
practical acrninislratiOn, and is decided i'm
movement upon the system in force during the
Spanish regime and abolished by the military gov
eminent. The properly tax has been the prime
point Of attack. criticism having IL turn assailed
the rate. the plan Of assessment and the manner
OF collection. The rate Of taxation IS one-half of
per cent for insular purposes and a maximum OF
one-haf of ! per cent Tor municipal purposes; the
maximum direct tax upon property in Porto Rico
being thus i per cent-less. probably than exists
n any similar community in the United States or.
indeed. in any European country. Instead Of be-
ing employed instrument OF political and
individual oppression, was formerly the prac-
tice the assessment Of property Under the new
law has been made on the highest plane OF eff
ciency and integrity. TIE Supervisor OF Assess
ment is a man OF the highest ability. who speaks
Spanish. enjoying the confidence both OF the Porto
Ricsns and OF the Americans. under whose super
vision the first insular election occurred. and who
was seriously considered as Z proper person be
elevated the insular judiciary. For assessment
purposes the island divided into twenty-five
main divisions and two hundred districts. OF the
division assessors one-haf were Americans. and
OF the district assessors practically al were Porto
Ricans. In making these appointments the prin-
c!pe OF responsibility was introduced and the great
est care employed in selection. Appointments were
made largely from of the two political parties
OF the island, simply because the other party
because the failure OF the revenue act had become
a virtual element in the programme Of that party.
THE PROPERTY ASSESSMENT.
Results have fully justified the expectations
tertained as 10 the success Of the assessment
Property 10 the amount OF Seo.OoO.OoO has been
assessed. and some seventy thousand schedules
have been returned. Despite the most cordial in
wits tion and readest facility afforded 20 all
able persons TO enter their protests, not dozen
complaints Of improper conduct on the part OF
assessment officials have been received; and not
enc Of these when subjected 10 prompt and care
fl Investigation, has been sustained
Fnding no encouragement in opposition TO the
rate Of taxation and dislodged from attack upon
the assessment criticism is now directed against
an INCIDENT OF the property tax namely the pro-
vision that property sold Tor delinquent taxes can
las argument WlI never De advanced n forlO
Rico, for the simple reason that il would be re-
the property Of all delinquent taxpayers was liable
10 immediate sale for unpaid taxes, without any
period whatever for redemption. The new revenue
provides only for a six months period for
redemption but contains the remarkable provision
that no property shall be sold for delinquent taxes
Until the written consent Of the Treasurer SHAH
period OF redemption has been fixed al six months,
rather than for a loI.geT period simply because
trast n existing conditions a longer period would
Il is the boast Of the treasury department Of the
island that since the introduction Of civil govern
internal revenue have increased remarkably. there
has been moi one cornqulsory sale OF property for
reason for supposing that this practice which has
become the firmly established policy Of the ad-
mnistrstOn, will be changed under the new law
The act establishing civil government in Porto
internal revenue laws Of the United States TO
Rorto Rico Upon the representation OF Treasurer
% revise the laws relating 10 taxation in Porto
revenue laws Of the United States in order to
permit Il adopt internal revenue system OF
rs suita bic its peculiar conditions. This
taxes are IMPOSED upon alcoholic LIQUORS tobacco,
proprietary medicines playing
oleomarsarfne and matches. consumed in or i'm
adopted are about one-half OF those prevailing in
the United States. being taxed 80 cents a gal
lon, cigarettes 81 a thousand. and cigars 81 50
THE TAX ON RUN
The tax or rum has been the item most violently
sssailed. as would naturally be expected from the
fact that it Is produced by the wealthy sugar in
teresis, whom this committee chiefly represented.
Il was said that the production would be curtailed,
or even abandoned. and that an important industry
OF the island wo aid be ruined But no pretended
argument could be ridiculous Rum In Porto
Rico. unlike whiskey in the United States, is by
product OF sugar making, and not an Independent
Industry Il was already subject 10 an appreciaoie
taxation-s0 cents a gallon in san Juan-and the
new system has simply been 20 increase this tax
moderately and 70 maintain II unforIniy throggn- &
is aole 10 stand high taxation al the present unle
.s-alions with the United states reptesent Pc
Lcsl bounty enjoyed by other economic class
t6Sn anywheTe else IN the world The sugar es-
sles have suffered only TO the extent OF rua saaes
chases by the retailers. At the present time the
chase of rum from the distilleries throughout the
island actively proceeding The certified returns
report an esTFsTes prodnction Of 81 24s gallons OF
rum n lsh. cOntrasted with sl,So gaons IA
small by onethird and mat The excise taxes s;,,3 on
% % about S5oeeeo. with a minimum burden upon the
eeonomic interests OF the island, anG with no aP-