Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-11-18

Some eNtellSQn OF the ndlloIidl Udiih
f ing law to the Philippines islands vii
be recommended by the Philippine com
$ tons will be required, however, in the
+ law in order to make 1T of any use IL
these islands. Branch banks must bt
!, permitted, both in the United States anc
} at various points in the Orient. Opposl-
ton to branch banks in the United
States can easily be avoided by provid-
}, ing that only the business of foreign
exchange shall be done by branches
|, within the United States.
| The system of issuing notes will also
have to be modified, If any notes are tc
, be issued. United States bonds are not
yet quoted on the stock exchange OF
J, Manila. Even If they were quoted at
. American prices, no banker here would
like to put his money in securities pay
;. ing less than per cent, when he can
loan it directly at 10 per cent or more.
IL some system is sanctioned by con-
4 gress under which notes can be issued
d when secured by certain percentage of
cash, issues may take place to the
amount required by the needs of a
growing country. The commission is
not likely to recommend that small
banks be permitted to issue notes or to
i establish branches. They will rely up
on abundant capital, responsible conf
Dental managers, large investors, and
thorough supervision of the banking
/ system to prevent the petty failures
which might occur if banks were per-
i mitted to be esta biished with small cap
ital. There are several projects for
/ American banks which have their
\ agencies here, but they are unable to
| accomplish anything at present beyond
looking over the ground, because of the
limitations imposed by the Spooner law
and the conservative policy pursued by
| the Philippine commission in the alb
sence of legislation by congress.
| The subject of granting franchises to
corporations to develop the great nat
urai resources of the Philippines and to
open routes from the provinces to the
ocean will be carefully considered by
the commission. Applications for fran
/ chises for railroads. mining privileges
and the cutting of timber. have come to
the commission in great numbers. in
spite of the limitations of the Spooner
law prohibiting the granting of valu-
able franchise for q longer term than
one year. Among the projects which
have been proposed are large internal
tional bank and company for develop
ing the whole southern part of the great
island of Palawan. The promoter of the
latter project claims grant for the sul
tan of Sulu giving them the right of OPP
Grafton of the crown lands for fifty
years. Offers have been received to
build railroads in various parts of Luz
ION and other islands, but the promot
ers desire, in some cases. a small guar
antee of interest on the bonds from the
government. The existing railroad
from Manila to Degupan was built un-
der guarantee of s per cent by the
Spanish government to the bondholders
but with the agreement that S per cent
Of the gross earnings should be treated
as net earnings in calculating the deficit
in the amount required for interest pay
ments.
Most of the promoters who have sub
mitted plans to the commission express
their willingness to give the strongest
pledges that the rights of the natives
shall be respected, both as to land and
personally, and that forest lands grant
ed by any concession should be main
tanned in good condition. Propositions
of this kind have been made by the big
company, which CLAIMS the concession
in Palawan. 1t is probable that the
commission in framing it's report to
congress will suggest that this and
some other limitations be attached by
law to all franchises. The right of visit
alton and inspection of banks, the right
to tax capital and profits and the COM
plete supremacy of the civil government
s.co tIn h nt, arra
likely to be proposed. The concession
claimed in Palawan is extensive enough |
in territory to establish a little govern
ment under the operating company 1t
is the declared purpose of the claim
ants. however, to survey native claims
and to protect them They disclaim any
desire to exercise the powers of govern
ment, and they have even suggested
that the insular government establish
officials for the express purpose of pro-
tecting native rights, as is done in some
colonies by the British government.
This suggestion may be worth consider
ing in more places than one, and it's an
would undoubtedly have a
good effect upon the natives. both as an
earnest of the good purpose of the Unit
ed States and as an encouragement to
assert their legal rights
The question of recognizing grants \
which were claimed under Spanish law
will probably not be decided until the
attitude of congress on the subject is
known, and uniform conditions can
be secured, but in all cases thus far
persons claiming privileges under
Spanish law have been very concilia-
tory toward the authorities of the
United States. There was not under
Spanish authority the same security
FOR vested rights and the sanctitiy of
contracts as there is under Anglo
Saxon government, even against the
government itself. This fact and the ,
that the officers of the
United States are acting under the
broadcast powers may make it easier
% deal with special privileges granted
oy Spanish law than would be the case
lnder similar conditions in on Anglo ,
Saxon country.
The commission recognizes the fact
hat the granting of franchises must be
ledged about with all the conditions
necessary to prevent abuse and to re-
serve the power of interference in
'ase of need. They may desire to test
lere some of the latest theories of tax !.
Ition and to try some of the expert
nents in public ownership which are
making Roadway in Great Britain and :.
Germany and especially in Australia
nd New Zealand. The commissioner I
eel that there would be benefits in Z