The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-03-01
NEW LEGISLATION
FOR PHILIPPINES
Bill Is introduced Authorizing
Bonds and Providing for
Railroads.

/ WASHINGTON, D.. c., Feb. 29.-
Representative Cooper, of Wisconsin,
introduced a bill today amending the
act providing a civil form Of govern
ment for the Philippines. The bill was
prepared by Secretary Taft. It's first
provision is that all bonds issued by
the government of the Philippines shall
be exempt from taxation. Five per
cent bondssto the amount of $10,000,000
are authorized for public improvements
in the Philippines. These bonds are
to be approved by the president and
secretary OF war, and are to be used
to provide for port and harbor works,
roads, bridges, provincial and munich
pal schools. courts and penal institu-
ton. Five per cent municipal bonds
also are authorized to carry on mu-
nicipal improvements, such bonded in
debtedness Of any municipality not to
exceed 10 per cent of the assessed valu-
alton of property in such municipality.
The immigration laws of the United
States in force in the islands shall be
administered by the Philippine govern
ment. The provision guaranteeing
earnings on railway capital to be in
vested in the islands, which is re-
garded as one of the important steps
towards advancing the civil conditions
in the islands, is:
Railroad Provision.
THAT the government of the Philip
pine islands is hereby authorized to
aid in the construction, maintenance
and operation of railroads in the Phil
ippine islands, either by guaranteeing
certain number of bonds to be issued
MI IF OF fry, d<, 10 1ea
invested in the construction and equip
ment of the said railroads, under proper
restriction, to be enacted by the Philip
pine commission or any succeeding
legislature of the islands; to Sc
cure the actual use in said con-
struction of the money to be
realized from said bonds or by a legis-
lative guarantee of said government of
the Philippine islands,; that the capital
actually invested in the construction
and equipment of said railroads shall
yield net income not to exceed 4
per cent per annum, provided that the
amount of capital to which said guar
antee shall apply shall be fixed and
set forth in the act of guarantee and
that this same act shall apply sufficient
rules and governmental supervisiOn,for
ascertaining clearly the capital actually
invested in such railroads and the in
come actually received on the capital
so invested: provided further, that the
annual pecuniary liability Of the gov
eminent of the Philippine islands UNI
der this section shall never exceed 3d.
100000 in United States money, and
provided further, that said guarantee
in bond or investment shall not be valid
unless approved by the president Of
the United States and the secretary of
war;"
Measure of Necessity.
Secretary Taft was impelled to ask
congress for authority to issue bonds
by reason of the fact that the current
receipts of the islands have been fall
ing off lately, the loss last month be-
ing 100000, and either important i'm
provements must cease or some part
of their cost be placed upon posterity.
1t is believed that the proposed issue
will be 1890 per cent bonds and
that, like the Philippine certificates
issued as basis for the currency, they
will be receivable in the United States
as security for deposits of public
money and national bank circulation.
But as the bonds, unlike the certifi-
Gates, which run only a year, will be
long term investments, it. is estimated
that they will command a much higher
price in the market. This issue, if
authorized, will have nothing to do
with the proposition to authorize the
Philippine government to guarantee 4
per cent interest on railroad invest
ments in the islands.