The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1903-05-18
PAY FOR
FRANCHISE
Porto Ricans in
Line With
Plan.
Large Percentage OF
Gross Receipts to
Government.
Harlan Explains Benefits Arising
From the New Order OF
Affairs in Island.

When the American troops land
ed in Porto Rico few public utilities |
were in operation in the island.
Among them was dummy rail-
road" six or seven miles long, connee-
ting San Juan with its suburb, San
Truce. 1t was built on the side of a
public highway and it's diminutive To-
comotives were incased in freight cars.
1t had a time table and once in awhile
lived up to it but it soon became
saving among the Americans that this
dummy was the slowest thing in the
tropics. s@a
On the San Antonio bridge there is
switch track where the train going out,
according to the time table, waits FOR
the incoming train to pass. Once on
this bridge the passengers have to stay
aboard until the train moves in one
direction or the other. The British con-
sui on one occasion. having been held
prisoner on the bridge Longer than
usual, asserted with a sigh that ne had
spent six years in Porto Rico apd that
two years of that time had been passed
on the San Antonio bridge.
| The Notwithstanding power under
the constitution of the island is lodged
in the executive council. James S.
Harlan,s as encouragement, was the
chairman of the committee on fran
chises, concessions and privileges. and
it was largely through his efforts that
the principle of compensation was SO
firmly fixed in the island.
| PUBLIC RIGHTS WE'RE PRE-
/ SERVED.
ssThe change of sovereignty" said
Mr.. Harlan, in discussing the franchise
question, did not interrupt the opera
Ition of local municipal laws. President
mckinley, recognizing the danger OF
improvident and possibly of corrupt ac-
ton during the period of confusion and
Excitement attending the military oc-
lcupation, wisely entered an order on
December %, 1898, forbidding the grant
ling of any public franchises except up
ION the special authority of the secretary
lof war. The secretary Of war, with
equal wisdom, limited his approval 10
a few cases and even in such cases
took precautions to preserve the public
rights intact. The result was that when
the civil government was organized ii
not only found itself in possession of
. practically all public rights and privi-
lleges but found capitalists ready to
take them up upon such terms as
might be agreed upon as reasonable.
'"The most interesting work had &c
do in Porto Rico was in the consider
iation of applications for franchises thai
were presented to my committee and In
the preparation Of franchise ordinances
for the consideration of the COMMITTEES
and the subsequent considerati ton of the
executive council The conditions be-
fore the committee were almost ideal
for the development of the theory OF
reasonable compensation for every pub
lie grant of public property or of
public franchise When the applicant
for a franchise insisted, as was otter
the case for the first few months, thai
he could not afford to pay a royalty
or a percentage into the insular treas
ury we replied that if his enterprise
: could not afford to pay some compen-
sation it was not a safe enterprise II
, which to hazard his capital. When ne
asserted that he was willing to take
the risk we told him that we did not
wish any unsuccessful or dead enter
prises in the island and would not per
nit it.
: HAD TO PAY FOR ELECTRICITY
AN electric plant was recently au
thorized in Ponce, a town of less thar
= 80 900 people It is required to pay
= per cent OF its gross receipts into TIT
Treasury. A street railway connecting
the plaza of Ponce with the wharve
in the harbor, only three miles loni
and passing for the larger part of tn
distance through unsettled fields o
: sugar cane. pays per cent on its gros
- receipts. A general telephone compa
nv, recently organized to acquire tn
present local exchange, to construc
Others and also to operate long-distanc
lines throughout the island. made II
~ first application early in 1902. Some
ms from personal experience knew
, the value of telephone franchises an