Evening star., 1925-01-04
PORTO RICO CONDITIONS CRITICS.
WRONG, OFFICIAL HERE ASSERTS
Resident Commissioner Gives Full Statement of
Financial and Industrial Situation to
PrOUe Claims.

the hands of the treasurer of Porto
Rico amounting to $s,124, ,92414. The
| budget Is prepared for two years
Just as the value of exports from the
| island may vary, due to prices, as
| they have f1uctuated in the recent
| past from $150.00O, 900 in 1920 to s72,-
100000 in 1922. so the estimated taxes
| may vary in q lesser degree.
Exports Estimate High.
I'm the allegations as to the diff
culties of the treasury of Porto Rico
great Importance was attached to the
fact that it was necessary for the
treasurer to obtain a short-time bank
loan of 100000 to meet authorized
expenditures in the fiscal year 1924
This was due entirely to the fact that
the actual collections of revenues
were less by approximately this
amount than the treasury had esti-
mated. That such an occurrence Is
possible would appear from the great
variation in the value of exports from
Porto Rico, as already pointed out.
The reflex of this variation on the
revenues of Porto Rico is well Illus
trated by this fact.
I'm 1920 our exports were esti-
mated at s150.0o0.0oO. The income
tax collected in Porto Rico based on
those returns was s4,163,000. In the
following year the exports fell to
100000. and the income tax coll
lected In the corresponding year fell
to S2,444, 900, a variation of s1,7Oo, ,0oO
in a year. This, however, was not al
together. or even the principal, cause
of the falling off of the revenues In
the fiscal year 1924.
There were uncollected property
taxes on June 80. 1924, of S75O,oo0
~f
decision. OF the income tax, $685.
1915 was pending collection at the
end of the fiscal year, partly on ap-
peal before the board of review and
partly in litigation. The total delin-
quent and unpaid taxes at the end
OF the fiscal year amounted to $4,000
600, much of this being in litigation
Had the law of Porto Rico clearly
required the payment of assessed
taxes under protest the necessity ot
the S2,000,000 loan would not have
arisen.
Sinking Fund $1,:oO,Ooo.
The sinking funds in the hands OF
the treasurer at the end of the veal
amounted to slightly over $1,000, 900
1t has also been pointed out BY
some critics under the impression
that 1t indicated an unsatisfactory
economic condition that the balance
| of trade against the island for the
fiscal year 1924 was slightly more
than Sl,000,000, whereas for a mum.
| Der of years the balance of trade ir
favor of the island had been con-
siderable, varying in recent year.
from approximately 100000 tc
| $4,000, 900.
"Of course. this is of no sisnif.
cance, and normally the balance o.
trade must be in favor of Porto Rico
An effort is being made by the islanc
government to carry out a plan o.
public works which has been undeI
| contemplation for many years. Thi!
| required the sale of bonds abroad
| and the purchase with the proceeds
of supplies to be imported into
| Porto Rico.
Sugar Mills Prosper.
| 'Similarly. the sugar mills anc
other industrial properties are pros
| the present prices, which are mate
rally lower than the war-tim,
prices, to make the necessary exten
sions and repairs to their plants
LAS the result of this, there wa.
| imported into Porto Rico in the fis
| cal year 19241in excess of s1,7oe,00t
| In lumber and wood manufacture.
| ana SZ, fUV,UOO III IRON ana steel man
ufactures over the preceding fisca
year. The importations of machinery
and vehicles was an increase of 81
| 100000 over the preceding fsca
year.
THE fact, therefore, that the bal
ance of trade for a particular fisca
year was against the island only be-
cause of confidence in its economi,
condition and in preparation for in
| creased development and production.
II might say in conclusion thai
with an administrator on the scene
such as Gov. Towner the maladminis
| tration of affairs would be almost i'm
possible. Not only has he proven wise
| and energetic, but he has probably
| done more than any other governor tc
| cement the cordial relations existing
! between the Porto Ricans and ths
| mainland. But the supervisory con
! troll is not vested wholly in the gov
ernor. The Bureau of Insular Affair.
| of the War Department is in constan
and direct daily communication will
| tie island. Gen. Frank Mcintyre, TIL.
| chief of that bureau. is UNIVERSAL,
| recognized as an authority on insula1
affairs and territorial administration
He has been connected with that worl
1 without intermtssion ever since tn,
| American insular possessions wer,
| acquired, and he has carefully scruti
|