Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-09-15
BY COL. FREDERICK PALMER.

BY Radid to The Star.
HAVANA, September 15.-There Is a
siege in Cuba between two other camps
with views as widely separated as those
between the deposed army officers at
the Hotel National and Batistas
soldiers.
The weapons on one side are the
students ideals, and on the other, dol
lars and cents. The voice of facts from
the clerks in the treasury department
rises in a disturbing static for the
Martins ears.
Cuban, American and other foreign
business men have not entered into a
general strike, but their enforced
obedience to the law Of supply and de-
mand is having that effect.
President Grau San Martin may is
sue DEGREES, and the factions opposing
him may issue manifestoeS and arm,
but these things do not make people
buy. even In Cuba, and unless they buy
there Is no business and no taxes.
In the last "a hours the new govern
ment's worst worry has not been about
any effort to overthrow it: but whether
the American Oil companies and other
American and foreign concerns would
decide that they are not warranted in
paying taxes to government which
may be declared illegal.
Pay Under Protest.
The oil companies decided to pay
the sums due this month. but under
written reservation and protest. This
payment represents only an additional
tax of IL cents gallon levied by de-
cree of the De CeSpedeS government
when operating under the constitution
of 1901. The constitution was framed
under American advice in the first
American occupation and does not per-
NIT the levying Of taxes by presidential
decree.
In other words, the companies are
legally imposed, even If the present
government should be recognized. The
remainder of the total tax of 10 cents
gallon already has been paid in
advance against loans of the Chase
National Bank, which former Presi-
dent Machado had to meet to pre-
serve the credit of his government.
Part Of the sum was paid direct to
the Chase National Bank of New York
Another part covered the refund of
back taxes which were declared Illegal
by the Cuban Supreme Court under
Machado.
Oil Tax Totals 100000.
The total from the oil companies
this month amounts to about 100000
and this, with what the treasury has
in hand. assures payment to Batista S
soldiers as well as most of the other
government employees for September
The sales of gasoline SO far this month
are about one-half of the very low
month of June.
There are other details which. al
though not so colorful as the pictures
around Batistas headquarters, the
Hotel National or the presidential pai-
ace, are significant. Many business
men think they might as we'll incline
to the factions against the Grau San
Martin government. which rests on
arms, and leave the event to economic
destiny.
Since the Workers Committee sent
out notice to all customers taking the
service Of the Compania Guiana de
Electricidad, a subsidiary OF Electric
Bond & Share. which supplies the en-
tire island with electric light and
power, not to pay further bills, about
so per cent have refused payment. The
new unions of employees refuse to shut
off the current of those who do no:
pay. The company finds that the
prospect Of continuance of the present
attitude means eventually insuficiency
of funds for operation, especially as
the municipalities and the national
government also are refusing to pay.
May Stop Trolleys.
The only alternative is to cut the
wages of employees and discharge those
who are unnecessary while still serv-
ing the municipalities, SO that the
streets will not be in darkness in any
case Street car operation also might
cease and people would have to walk.
About IS per cent of the sugar CEN
trails have now signed the agreements
required by workers committees and so
per cent of their outputs is effected.