New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-16
AMEND PHILIPPINE BILL.
SOME RADICAL CH1NGEG
Proriding Safeguards against
Fraudulent FinaRGiCung.
rFnoM THE TRIBUNE nrsEAr.1


Washington. Dec. 15.-Radical amendments
will be made in the Philippine Public Improve
ment bill before the vote Is taken in the Senate
tomorrow. all the amendments having for their
purpose the guarding of the PHILIPPINES from
extravagant financial or treuduIent methods
and the promotion In the archipeIlco az eco
nomic and businessiike administration. Ire
scrutiny TO which this measure has been sub
jected In the last few days had as already told
I'm these dispatches. caused serious question ss
to the wisdom of the legislation and this NOM
ing Republican Senators were discussing the
advtsaoility OF voting to strike out Section 4.
which authorizes the Philippine government 10
guarantee, on the common or preferred stock
or bonds of a Philippine railroad an income Of
per cent for thirty years. and another section
which authorizes Philippine municipalities to
issue bonds TO pay for public improvements.
such bonds to aggregate not more than S5.OO0.-
OOO and bear interest at AZ per cent.
Secretary Taft returned to Washington this
morning. and. learning that this measure in
which he is greatly Interested. was in danger.
went almost Immediately TO the Capitol and
there conferred with the Senate leaders most
of the day As a result of his visit Senator
Spooner offered amendment restricting the
purposes for which municipalities may issue
bonds to the erection of primary schools and
the construction of sewers and drainage sys-
bonds
where local taxation is inadequate to meet these
necessary expenses a further result of Mr.
Taft's visit was the Tedrafting of Section T.
authorizing the Philippine government to guar
antee the per cent on railroad Investments The
redrafted section will be offered a substitute
for the existing section tomorrow. The
section places many restrictions the guar
antees authorized. and eliminates the danger OF
fraudulent financering, whereby the income OF
the railroad might be devoted to the payment OF
fictitious dividends while the interest on the
bonds for which the Philippine government had
become responsible, was defauIted and the gov
ernment held responsible for the amount As
drawn the bill made sucn fraudulent fnancier-
ing possible. Senator Lodge, chairman Of the
Philippine Committee, will accept the pro-
posed amendments. and in the opinion OF the
Senate leaders, the remodeued bill will so far
overcome the objections OF many Republican
Senators as to make possible its enactment.
which would otherwise have been impossible
THE DEBATE IN THE SENATE.
When the bill was taken up to-day Mr.. Stewart
spoke in support of the railroad bond provision.
saying that no other agent was equal TO rail-
roads a $ a civilizer of savages.
Mr.. McCumber opposed the bond provision.
and offered an amendment striking II out he
thought the tins had passed for guaranteeing
any private enterprise for interior improvement.
MI Hepburn addressed himself 10 the existing
law affecting mining locations in the Philip
pines and offered amendment providing IN
effect. for a return to the American method Of
location. instead of the Spanish method adopted
in the present law
Mir. Lodge said the idea in adopting the span
ish s-stem of location in the Philippines had
been to avoid disturbance of existing conditions
there
Mr.. McComas also opposed a change of cOndt-
tfons existing in the Philippine archipelago He
called attention the fact that no official rec
ommendation for change had been made. and
said that the silence Of the officials should con-
troll.
Mr. Kearns also opposed a change, saying:
As an American prospectOr. and in behalf OF
the American prospectOrs. take issue with the
Senator from Idaho" He not only wanted the
system of limiting ownership by the surface
area retained in the Philippines. but would have
it transplanted TO the United States, so that the
miners and prospectors would know from ths
beginning what their property rights are He
had engaged in many mining suits. and ex-
pressed the opinion that mining litigation is q
mere matter of fnancial endurance IN most
cases.
Mr. Hevburn declared tnat the surface systsA
had been adopted 10 suit the plans of those who
want to locate vast areas and shut out the pros
pectors.
Without taking action on Mr.. Heyburn's
amendment the Senate passed to consideration
Of an amendment suggested bv Mr. Newiands
as a substitute for the railroad bond provision
The substitute reduces the rate of interest on
the bonds 20 =. per cent, and provides that they
shall be guaranteed b. the government of the
United states. The amendment also provides a
method of taxing the proceeds oS the railroads
in the islands Mt Newlands COntended that its
adoption would materially assist IN financing
the roads.
Mr. McComas criticised the amendment a
form of paternalisn. He presented substitute
for Section =. empowering the Philippine Com
mission To amend the tariff laws of the islands
Mr. Lodge Indicated "a Willingness TO accept the
amendment behalf Of the Philippine Commit
tee but Mr.. Platt. of Connecticut criticised il as
authority to the Philippine government TO mod
ify the tariff for part of the United states
Alessrs. Lodge and McComas replied that the
amendment requires the approval of the Amer
lean Congress I" the proposed modification, but
Mr.. Platt renewed his opposition, and sad II
Congress could delegate its power 20 the fAiiip-
pine Commission it could delegate II 20 the
judges of Alaska
MIr syooner said that under the Constitution
Congress cannot delegate 70 another bcdy ire
Ioyger Of taxation given 70 IT, but he was rot
prepared 10 say whether the amendment "ou'd
within that prohibition
Mr. CulbersoE offered "a substitUtS tcr ts
bond provision of the bill an amendment grant
ing : tghO hectares t.lUO0 4Cresl OF the Philip
pine public lands for every mile OF railroad con-
structed in the islands.
Mr. BAILEY proposed amendment giving thO
PhIItDDine government authority TO regulate the
charges of the roads to which 1t proposed TO eN-
tend aid.
provision authorizing Philippine municipalities
to contract indebtedness 10 promote 10, al i'm
provenlents. pointing out the possibility OF an