Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-02-08
The Sugar and Tobacco Interests in
the Philippines.
MESSAGE FROM ACTING EXECUTIVE
Governor Taft Tessifies Regarding
the Lands of the Friars.
A BANKING LAW NEEDED

Taft today reverted to his testimony of
yesterday for the purpose of introducing
a cablegram he had received from Acting
Governor Wright urging a reduction in the
tariff on Philippine articles imported into
the United States from the Philippines. He
said this cablegram was in response to an
inquiry from himself as to the effect of a
reduction of 90 per cent. The reply of Act
ing Governor Wright is as follows:
Manila, February 4.
The public session Of sugar and tobac-
co interests favor a reduction of 75 per
cent at least. A reduction of 30 per cent
leaves tariff almost prohibitive. Sugar
price now very low; European market very
dull on account of overproduction and low
price Beet sugar planters here have lost
heavily by carabaos, machinery and other
wise. Sugar cultivation in a bad condition.
Memorials received from sugar growers
association of Negros and Panay. ask for
free trade for this reason. Think reduc-
tion of 10 per cent on sugar and tobacco
would be a measure of relief and have cX-
celent political effect
Holdings of the Friars.
Senator Rawlns questioned Governor
Taft concerning the holdings of the frars.
The governor said he thought the general
opinion as to the wealth and holdings OF
the friars had been greatly exaggerated.
He did not believe, for instance, that they
had three-fourths of the property owned
in the cities. That, however the religious
orders have ready cash was true as was
evidenced by the fact that they make loans.
He instanced case in which the friars
had advanced money to promote corner
in hemp which had afterward failed be-
cause of irregularities on the part of the
manager.
Governor Taft said that the Philippine
government is desirous of purchasing the
Manila property held by the friars and
that it would also be desirable to secure
their holdings of agricultural lands.
A Banking Law Needed.
In connection with the loaning of money
by the friars Senator Lodge asked about
the necessity for a banking law, and the
witness replied that such a law is badly
needed. There are now, he said, two Eng
lish banks, in addition to the Spanish
Filipino bank, the latter being controlled
largely by the church and being the only
bank of issue. He said there had been
some grants of land to the church orders,
but that as a rule they had acquired their
holdings by purchase.
1.-The charge has been made,'' he said
that much of their land has come to
them by death-bed conveyances, but this
charge is not borne out by a tracing Of the
title. The truth is that the friars have
the best titles In the islands and even
where there have been irregularities the
statute of limitations would protect the
title
He said that according to the charges
one method of extending the holdings of
the orders had been by extending their ir-
rigation systems over adjoining lands.
something after our own method Of
watering stock?'' said Senator Proctor, re-
ferring to irrigation encroachments. SEN
ator Proctor also asked where the friars
had secured money with which to pur-
chase their lands, and this inquiry led
Governor Taft to say that the fees for
marriages, funerals, christenings etc had
been so high as to be complained of. These
charges for marriages had, he said, led
many couples to live together illicitly, but
that in most cases the obligations thus
taken were observed.
High Interest Rates.
Again referring to the financial inter-
ests of the Philippine archipelago Cover
nor Taft said that interest rates are as
high as from 20 to 40 per cent, and that
it Is very necessary that there should be
authority for granting franchises to finan-
cial concerns, which would reduce the in
terest charges. AS to the coinage, Cover
nor Taft said that it is desirable that the
gold dollar should be established as a ba-
sis. He also advocated token coin,
which should be exchangeable for gold
and the parity assured by the United
States. This, he said, is the plan Of the
commission and he believed it wise. This
plan embraced the coinage OF a Philip
pine peso, and the circulation of this COIN
he thought, should be confined to the is
lands He thought that unless the COM
mission was authorized to make good the
token money there would be trouble, as it
must be borne in mind that the Philippine
administration is not so strong as that Of
established nation.
Referring to the suggestion that United
States money should be adopted, Gov Taft
said If this were done 1t would have the
effect of increasing the value Of the peso
to the extent of 50 per cent, and this would
unsettle transactions. This plan also would
have the effect Of raising the price of
wages and disturbing business relations.
Appeal to the Supreme Court.
Taking up another point of adminstra-
ton, Gov Taft advocated the right of ap-
peal in certain cases to the Supreme Court
of the United States, especially such cases
as would involve the relationship of church
lands to the government. This he thought
necessary because of the probability of
prejudice on the part of local courts.
He urged the granting of power to the
commission to give franchises for steam
and electric railways and light plants, and
also made an argument for authority to
create bonded debt Of 81, coo GOO for local
improvements In Manila 1t is, he said
especially desirable that there should be
electric lines in that country because Of the
mate. He thought no franchise should be
perpetual. He would also have a wider
margin given in the matter of cutting tim
Der. There is magnificent timber through
the islands, he said, and 1t would be bene-
fetal to the forests to take much of 1t out
The quantity which can be taken out now
by one concern is limited to 100000 cubic
feet. He suggested that there had been
some public sensitiveness on this point be-
cause of the interests there Of the Philip
pine Lumber and Development Campany.
In reply to Senator Cu1berson, Gov Taft
said that he would not advocate grants of
land that could be used for speculative
purposes but he felt that 1t would be neces-
sary to allow persons to acquire large
bodies of land in order to secure the tievel-
ment Of the country. The conditions there
are. he said entirely different from what
they are In the United States, and it would
be found that the people would not be so
prompt in taking advantage Of homestead
law as in the United States
Adjourned until Monday.