New-York tribune., 1901-07-29
PORTO RICO PROSPERS.
I STEADY IMPROVEMENT SINCE GENERAL
MILES LANDED.
AMERICAN CAPITAL AND ENERGY STILL
NEEDED-FRANCHIsEs ON THE ISLAND.


San Juan p L. July 23-Events have already
proved that the tax law drawn up by the iesis-
lators of this island Will provide ample means for
the islands requirements, This indicates that
Porto RIee IS prosperous than it was a couple
of wears ago. The island may now cast aside the
Congressional apron strings and strike out indie
! pendently Steady Improvement has been made
! ence the dav General Miles landed at Guanica
three years ago. The people are in better physical
condition and work with more spirit Plantations
! that went unworked for long time are beginning
10 show signs of prosperity. There is more ship
ping in the harbors and the signs generally indi-
cate better conditions.
j AMERICAN CAPITAL MISSING
/ Nevertheless. scarcely an instance can be cited
where any considerable amount of American capi-
tai has been invested In Porto Rican enterprises
Numerous promoters ard capitalists have visited
the island have declared this or that invest
ment would bring good returns. and then have
gone away. never to be heard from again Ihere
are several explanations for this Eut the chlet
cause apparently is the Policy of the Executive
Council in neglectng to OFFER Inducements to capt.
tai from outside. Porto Rico needs an influx OF
American blood and capital; but the insCiar gov
ernment has not succeeded in attracting either ON
the contrary, almost every enterprise ior "hlch
captal is used remains abortve because of the
policy of the Executive Council in the matter of
franchises.
In Porto Rico the term franchise" means, in
addition the common significance of the word.
a license or a right to do almost anything which
may be mentioned in Il business waJ-from build
ing much needed pier trolley or an electric
lighting plant TO using the waters OF a ten-foot
creek which may happen to through ones
private property. For undertaking of this sort
the Executive Council demands royalty not at
all in conformity with existing conditions And
the petitioner has to fight f(7 what he gets.
Apart from this royalty demand. there is no
reason whatever why every town in the island
should have its electric plants. its ice factories
and trolleys. every port its piers and docks
THE FRENCH RAILWAY.
Manager Charpent!er of the French Railway
Company. who Balls for New-York to-day on the
steamer Ponce. due there July & takes with him
the recently granted franchise to be submitted TO
President Mckinley for his signature. He will
then proceed to Paris TO confer with the directors
of the company. The franchise, which has been
hanging fire for two years. Is considered the most
reasonable yet granted by the Council Under
the Spanish regime the company paid sub
sidy of per cent of the capital invested in every
kilometre of road completed and in operation.
Much pressure brought TO bear to induce the
Executive Council 10 continue the franchise with
out the customary royalty, and the company was
finally successful although conditions which
compel the company to complete forty miles of
road within eight years This the company is pre-
pared to do hoping sell out to American rail-
way interests before the expiration of that pc
F H Dexter. an American attorney. sails the
telephone company empowering it to connect
the local systems of San Juan. Ponce and Maya
gpez by long distance line For this right the tee-
phone company. according 20 the terms of it's IL
cense, is to pay the insuar government 2 royaIty
2lg per cent its gross receipts in addition to
taxation Mr.. Dexter has also authority from the
% oi % I ~ ,,5t, an - tb o it,. hs,iit
tions American capital will be reluctant 10 assist
either enterprise.
ONLY ONE FRANCHISE SOUGHT
When the Executive Council came into being
for
ckises OF various sorts. To-day there
cept that of the Porto Rico Steamship Company to
rebuild its pier The only franchises Of Importance
that have been granted for a railway issued
TO General Roy Stone. which is seeking capi-
tai; trolley line in Ponce. issued DE Ford &
Co. which is under construction. and water
power rights Ramon Valdez. who is seeking
capital Perhaps mention should be made of
franchise for a wharf Ponce granted De Ford
4 CO. which has failed TO secure capital because OF
the heavy royalty.
water power the Rio Plata Comerio. He
has found trouble In raising the necessary capital
Spanish rule he would have had TO pay no royalty
Spanish authorities considering that the Isolated
sidered under the Spanish regime upon the theory
senor Valdez was more than two years in getting
his Franchise Il October ls he applied TO the
ington and considerable lobbying he secured tile
GNn n land in Zee 7! to paS @ f3 R dnn 6e e o h
a royalty OF per cent gross earnings
HANDICAP ON ENTERPRISE.
Originally De Ford & Co. applied for the right
to build an electric tramway and pier Ponce
Terms were offered that acceptable to certain
Boston capitalists and twice the required amount
subscribed. Then the Executive Council took
hold and refused issue a combined franchise
demanding a royalty for each of the two enter
prises. Such burdens were attached that the pier
project was rejected. The council for instance
proposed to dictate TO the company the rates
which it should charge for dockage and these
rates We're TO be subject to chahge AT the Will of
the council This frightened off the Boston capt.
charge brought against the council Is that
no fxed rule has been adopted In determining roy
be investors desire the adoption of uniform rate
aoi eae irte op'iIsh iieht I9iloWed
ecutive Council is accused Of trying to get into
the treasury all the money 1t can. without looking
sufficiently to the future and without fairly con-
nR 5as OF and s I'd sar hr Pops
Rico on the road to development.
Recently plantation owner who desired to pur-
chase some barren land adjacent to his own asked
the council for the privilege of using the waters
tion: but as he could not afford to pay the per
on the other hand TO the Giuanca ISnd Com
pany has been granted the right to reclaim gov
Guanca No royalty was required-simply the
payment OF 5000 for the right for all time 1t is
freely suggested that some powerful influence must
have been brought to bear.
troll the largest sugar estate in the island located
near Guayama. recently applied for the right to
small estates adjacent to. theirs, 50 that cane
could be brought to me mills IN an hour instead
though dozens OF small planters would be benefted
by the introduction of modern transportation
methods.
NEW TR4NSPACIFiC STEAMSHIP LINE.
Salt Lake. Utah, July 2s-''The Herald" to-
day says that the San Pedro road is not to stop
the San Pedro Harbor. BY the time the last
spike shall have been driven, fleet of ocean