Evening star., 1925-01-11
Truth About Porto Rico -
Half Hidden, Says Ex-Speaker

| loan; and most OF this uncollected
| taxes is now being litigated in the
| courts, without possibility of fore
| telling results.
Sugar Source of Taxation.
Most of the opposition made by
sugar corporations to pay certain
taxes, upon advice of their counsel.
Is due to the fact that sugar has been
practically the only source of sub
stantial taxation in Porto Rico. and
| that the taxes were in many cases
| unconstitutional.
The taxpaying capacity of Porto
| Rico is unknown and the Government
! has not made the slightest effort to
ascertain 1t. Sugar being the sole
native staple that has a good market.
| the only way found to meet the high
/ expenses of the Government has been
to overburden the sugar Industry.
| Evidence Of this statement NAV be
| established by the fact that there is
scarcely any factory which has
working capital of its own, all be-
| ing compelled to borrow money wear
| ly at rates of 8 and more per cent.
The sugar stock is under par value
from 20 to 80 per cent. The sole
| mention OF reforms in the sugar tariff
falls down to so or less per cent below
| par.
The result of this tax burdenine
upon sugar is suffered by the labor
ers, who see themselves paid unrea-
sonable wages, without hopes of any
| betterment, becaus the corporations
| allege that the profits of the business
do not allow so. For the last four
years most of the sugar corporations
have paid no dividends; and in no case
| to my knowledge has a dividend been
| paid over 10 per cent in those four
years. 1t may be that there Is some
company or another that may make
a better showing, but my statement
means a fair average and perhaps
more.
The whole economic life of Porto
Rico is fictitious and liable to be
| ruined at any moment if the present
system continues in force. Admitting
| that we are a part of the United
States and should participate in the
fiscal burdens of our citizensh we
live entirely upon the generosity of
the United States. Income, which
| should be federal, is turned into our
treasury in the following amounts:
1924.
customs ........--.-.-... 81 ,165, 600
U. S. internal revenue S21,7s0
income tax. 2,517, 051
That is more than one-half Of our
total revenues.
Profits Below Tarfn.
Besides, the tariff today as it is is
| the only reason why we can produce
| sugar. Sugar profits in Porto Rico
are somewhat less than the tariff.
With free sugar, or even a reduced
| tariff. the industry would fall into
pieces and the island would be totally
ruined.
When the conditions are such IL is
a gross fault to characterize our pub
Lie finances as sound and our situa-
tion as favorable.
On the other hand, it is claimed by
| labor leaders that the corporations
make enormous profits, that larger
taxes should be paid, that they de-
fraud the treasury by refusing to
comply with the tax laws and that
the workingmen are exploited and
oppressed by the large landlords. 1t
is unquestionable that the laborers
are in a most deplorable condition. If
such condition is forced upon them
by the greediness Of corporations it
should be clearly established and
promptly stopped.
am not discr editing anybody: on
the contrary, would like to see every
| body get his share of credit for this
state of things. I simply want some
direct action taken by Congress that
would produce a report upon which
| to base proper legislation to develop
| the immense possibilities that we
| have in Porto Rico for turning the
| island into an industrial country that
would secure enough production to
sustain its 100000 souls in a state
! of living conditions worthy of their
American citizenship. e