Evening star., 1904-03-17
PHILIPPINE RAILWAYS
SECRETARY TAFT BEFORE HOUSE
INsULAR AFFAIRS COMMITTEE.
New York Capitalists Will Invest if
Guaranteed by the Government
Certain Income ~

0ScTctdry IdIt continued Ills ulSCuSSIOn oI
Philippine matters today before the House
committee on insular affairs. The Cooper
bill amending the civil government act was
the basis of discussion.
In addition to the provisions In this bill,
Secretary Taft suggested an amendment to
the coinage law, so as to authorize the
Philippine treasury to issue silver certifi-
Gates in denominations Of 2, 5. 1O 20, so, 100,
500 and 1000 pesos. instead of denomina-
tions of from 2 to 10 pesos The silver cer-
tifcates were very popular In the Philip
pines, he said. The Secretary advocated
the repeal of the tonnage tax On vessels ar
riving at Manila, to encourage the landing
of large steamers from San Francisco,
Hong Kong and Singapore. The present
system imposes a tax on the capacity Of
the steamer instead of the amount of
freight. and the expense acts as a discrimi-
nation against large steamers. This tax Is
now six cents ton.
Another suggestion. which Secretary Taft
said he supposed would meet with some OBJ
lection, was to change the title of civil
governor to governor general" The
present title he said. was all right when it
was adopted-when there was military
governor in the islands. Since the passing
of the military governor there had been
established thirty-eight governors of prov
inces. the civil governor was. in reality,
the governor general and 1t would be
WELL he said. to make this title official.
The Railway Question.
Taking up the railroad feature Of the
Cooper bill. which guarantees 4 per cent
on an investment of s40,OOO,0o0 in railroads
in the islands, the Secretary said that when
the Americans took possession Of the
islands there was one railroad in the
Island of I1uzon. 12O miles In length. This
road was built In most substantial man
ner, with large stations and useless ap-
paratus. A large amount of money was
uselessly expended in this way. The road
was built by English capital, and the Span
ish government guaranteed per cent on an
investment Of 100000.
The insurgents destroyed bridges and roll
ing stock. The government ran the road
for a year and then turned it over to the
company. Since then the company has filed
a claim. first. for rent and occupation, Sec
ond for the guarantee OF s per cent and
third, for damages. This claim is pending
now, but it's validity has not been recog-
Iized. The commission has granted two
franchises, one for thirty-feur miles from a
point just north of Manila. to the north
ward. and one of seventeen miles from
Manila to the foothills to the eastward.
Two Roads Suggested.
Secretary Taft said Secretary Root had
been greatly interested in securing the in
vestment of American capital in Philippine
railroads. He consulted Sir William Van
Horne of the Canadian Pacific. who ie
building railroads in Cuba and has had
experience Of this nature in the tropics.
Mr. Van Horne suggested two engineers to
make an original Investigation and the re-
suit of this work Is given In 9. report which
Secretary Taft submitted to the committee.
A trunk line was suggested in the north OF
the island of Luzon and also a line In the
southern end.
The projected road in the south of the
island Secretary Taft believed would pay
from the beginning. The total mileage need
ed. he said. would be between 100 and 800
miles. and the cost about $500. mile and
that $25, 100000 or $30.00O.O00 would cover
the total cost. A per cent burden on the
Philippine treasury on this investment
would be about $1.000.O0O a year and the
Secretary believed that could be paid with
out hardship.
,rhe complications OF the English COM
pany was one Of the difficulties In the prob
lem.
Secretary Taft said he had talked to the
president of the English company and he
believed 1T would sell out 1t desired, how
ever to sell to certain London banking
house. This the secretary objected to.
Attitude of New York Capitalists.
Tho Secretary said he visited New York
last week and had been assured by capi-
talists there that they would go into the
enterprise II the government would insure
certain income on the Investment
Reviewing the history of railroad building
said that In many Instances the government
had built these roads. II Congress wanted
to build these roads he said. the commits
sion undoubtedly would undertake 1t. His
policy. on account of complications such
an liability to employees. etc.
Secretary Taft will continue his discus
sion Monday morning.