Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-09-12
MUST STRA|GHTEN
CUBAN FINANCES
American Representative May Be
Sent to Administer Customs
and Meet Obligations.

Havana, Sept. 10.-Cuba is facing the
most trying period of her career as an
Independent nation. Unless all signs fail.
there will be fiscal Intervention here
before October I. From inside official
sources It Is learned that the United
States authorities. under the personal
adrice and direction of President Taft.
have practically determined to place an
American representative in charge of tn
customs and to man-handle the stagger-
ing finances of the island republic.
The most conservative of Cuban bust.
ness men know Of this and approve the
program. feeling that the fiscal inter.
vcntion Is necessary to ward off politica!
Intervention, military occupation and
annexation to the United States.
President Gomez and his advisers are
opposed to interference of any sort, but
are powerless in the face of the present
conditions. The climax has come in this
way:
Under the MagOon administration, while
| the United States had control of the is
land, contracts were let for the sewering
of the city of Havana. These contracts
involved the expenditure of Sl6,OOO,0OO. 1t
was agreed that 10 per cent of the Gus
toms receipts should be set aside to meet
this exclusively. This agreement has not
been kept.
| MONEY SPENT AND WORK DONE.
The sl6OCO,OOO has already been spent and
| the sewerage work is but half done Gov
ernor Magoon himself, set the precedent
| for diverting the sewerage funds by sane
tioning the payment of war claims and
| obligations out of the sewerage contra t
| reserve.
President Gomez has advocated the is
suancc Of additional bonds to meet the
sewer contractors claims, but this pro-
| gram has been protested at Washington
with the result that President Taft and
Secretary of State Knox have vetoed the
proposal and now plan to appoint a fiscal
agent who will collect the Cuban customs
and set aside Onc-tenth as agreed to meet
the sewerage obligations. Just who the
appontee will be Is a matter of much
inside speculation here It may be that a
Cuban banking house will be chosen and.
again a United States army officer may
be placed in charge In the latter event,
Captain Frank Mccoy will probably be
| chosen.
The air is electric with unrest here in
| island.
CREDITORS CLAMOR FOR PAY.
The recent troubles over the Reilly
claim and Its payment has but served to
bring to the surface the fact that there
are many similar claims to that of the
Cienfuegos water works and that Cuba
cannot pay them Conservative estima ties
place the amount due American con
tractors at sl3.5Oo.000. all overdue. and the
creditors clamoring for their pay. Wash
ington has been so numerously besieged
that the fiscal Intervention has beer
practically determined upon.
The basic trouble with Cuba and hei
financial stress lies with the officeholdni
class entirely. There are $1,000 government
Iemployes In Cuba, n vast majority o.
whom are merely pensioners with few
duties and fewer responsibilities.
Practically all the money raised b.
taxes and customs duties goes to pay
Ing salaries to superiluous officials an,
to keeping up the military and the civil
armies.
A bill was introduced in the Senate for
bidding the letting of contracts for eitne
national or municipal work except to con
tractors who are Cuban citizens. This bill
is the outcome of the recent collection o
the claim Of Hugh ]. Reilly. an Amer
lean, against the government of Cuba
; for $4,000. representing the final settle
: ment of the Cienfuegos water works con
tract.
The bill also provides that in case an
foreigners are apparent sub-contractor
interested in such contracts they shall b
compelled to sign an agreement renounc
ing all rights to the protection of the di
plomatic representatives of their coun
tries The latter provision is likely t
provoke serious diplomatic remonstranct