The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1914-02-12
new GOVERNOR
FINDS ISLAND
FINANCES BAD
Financial, Commercial and In
dustrial Conditions of Porto
Rico Poor
BIG DEFICIT PILING UP,
STATES GOV. YAGER
Sugar Industry in Bad Way, and
Panic Facing People, He
Maintains

SAN JUAN, Porto Rico, Feb. H.
Arthur Wager, the new governor OF
Porto Rico, has drawn a rather dark
picture OF financial. commercial and
industrial conditions in that island in
his frst message 20 the tnstfar fegis-
lafure, which convened here yester-
day. II was a surprise TO those who
have believed that the island was
never more prosperous He suggested
the immediate appointment OF a
legislative committee TO study the
situation and discover where econ
cmies can be made.
Gov. Yager's message reveals. incl
dentally, that the native legislators
have put the insular government in
the attitude OF dealing in some very
uncertain financial futures and OF
cumming into debt on the strength OF
their guesses.
The governor prefaces his message
with the statement that II was his
fortune ito come 10 the island at a
difficult and trying time. when both
economical and financial problems o.
the FIRST magnitude present them
selves for immediate solution" Then,
personally assuming all responsibility
Or his acts, he adds; Il have come
60 Porto Rico without any instrnc-
lions whatever az 10 the policies that
may pursue. have been sent here
60 follow my own judgment and con.
Science as TO what is best. and up 10
the present moment | am not ham
pered by instructions from any out
aide source whatsoever"
OF the monetary conditions in
Porto Rico, Gov. Wager says.
THE financial conditions or the Is
land treasury | have found to be so
serious that 10 this subject / invite
the utmost force OF your attention,
He then proceeds 10 tell how last year
when the total revenues Of the gov
eminent were $4,000, 900. the treasury
levied new forms Of taxation 10 bring
the annual income up TO $6,000,OOO this
year. Former Gov. Cotton estimated
that the new income would be $6,oS2,-
500. The legislature Immediately ap-
propriated for all purposes an amount
slightly in excess OF $7.000.000. and
when the present governor reached
the island the various departments
had arranged their expenditures upon
this basis. This was bad enough. and
implied deficit OF about S1.0O0,0Oo
by the end OF the year; but the new
taxes have proved disappointing, and
up to the present time they have
shown no possibility OF yielding the
revenue that was expected OF them.
According TO the estimates or the
treasurer, now made in the light or
the first six months OF actual expe-
rience, they win not produce more
than 100000 OF increased revenues,
and the decline in customs receipts,
caused by the reductions in the tariff
schedules, will most likely absorb one
half OF this. So that IL now appears
that the revenues OF the island will
exceed those OF last year by only
about 100000. while the expenditures,
II carried out upon the basis upon
which they were started. Will exceed
those OF last year by $2.50o,000
Immediately upon the arrival Of
the governor the heads OF the various
departments were called together and
Ill of them did what they could I'M
mediately TO remedy this serious con-
dition OF affairs. Expenditures were
stopped wherever they could be
btopped, building operations and Inn
provements upon roads and bridges
were held up. and every effort was
made to remedy the financial situe-
sjon until the Legislature should
meet"
Continuingr Wager says:
"As TO commerce and industry |
found that the island was suffering