Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-29
BROWN AND PARTY
SAIL FROM PANAMA
Commission Made Study OF
Canal Zone Republics
Financial Condition.

Having completed an investigation
looking toward reorganization of the
governmental machinery of Panama,
of Efficiency, and staff of assistants
sailed from the Canal Zone yesterday
aboard the steamer Ancon, bound for
the United States. The party is ex-
pected to reach its destination May 6.
The party, which includes Mr.,
Brown, Herbert H. Rapp, Archie l..
Peterson, James v. Bennett and Paul
l.. Rapp, went to Panama about two
months ago to balance the budget of
the Panamanian government and out
line administrative procedure for the
government Offices.
| New Office Is Recommended.
| During their stay in Panama they
have made study of the government
organization and financial condition
and have presented to President Flo
rencio H. AroSemena a report which
outlines a plan for the financial re-
| Mobilization of the country. Their re-
| port contains detailed recommendations
not only for general reorganization
of the Offices but for special improve
mentS in methods of work, all looking
toward curtailment of routine expendi-
lures
Chief of their recommendations is
one for establishment of the Office of
controller general. They also have made
suggestions looking to change in the
whole revenue system, proposing the
! gradual reduction of import duties with
| the gradual increase of property taxes
and the introduction slowly of an in
come tax. The commission felt that
this change, besides being of paramount
benefit to the mass of Panamanians
who are now in their opinion more or
| less exploited by favored few, would
have the additional merit of eliminating
the friction which exists between the
people of Panama and their neighbors,
| the employees of the Canal Zone, on
account of the benefits which the latter
derive from the United States commits
saries. The commission feels that re-
| duction in import duties would tend to
put the Panamanian merchants on the
same free trade basis as the commits
saries and eliminate the complaint that
| commissary materials are bootlegged
into Panama.
Bank Urged Investigation.
This investigation was undertaken by
| the Panamanian government at the re-
| quest of the National City Bank of
New York, the vice president of which,
George E. Roberts, formerly director of
the mint, engaged Mr.. Brown to do the
work. Having loaned Panama $4,000
900 last year, the National City Bark
is naturally interested In the solvency
of the government Mr.. Brown and his
assistants were granted leave of abb
sence by President Coolidge, and the
then President-elect Hoover, and have
| made the Investigation on the same
terms for which they work for the
United States Government.
Mr.. Roberts has been in Panama with
Mr. Brown and has contributed to the
report an economic section in which he
discusses the resources of Panama. MIR.
Roberts and Mr.. and Mrs. Brown have
been widely entertained during their
stay In Panama. by officials of the
Panamanian government and of the
Canal Zone. On April 7, Mr. and Mrs
Brown were hosts at dinner ard
dance at the Union Club in honor OF
the governor of the Canal Zone, Col
Harry Burgess. and Mrs. Burgess.