Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-09
PH|[|PP|NESHA|L
C0C0NUT OIL TAX
Quezon and Paroles Jubi.
liant Over Supreme Court
Decision.
BY JAMES G. WINGO.


President Manuel Quezon, in Paris,
and Resident Commissioner Quintin
Paroles, in Washington, are jubilant
over the Supreme Court decision last
week which enables the United States
to continue collecting 100000
month for the Philippines
The money Is derived from a proc
essing tax of cents a pound on
Philippine coconut oil.
In upholding the legality of the
tax the Supreme Court pointed out
that the Philippines occupy a de-
pendent status in relation to the Fed
eral Government, thereby giving Con-
eress greater power to legislate for the
welfare OF the islands than 1t would
have in the case of a State.
No excise tax collection has been
paid to the Philippines, as provided
by the revenue act Of 1884, but on
March 81. 1887, the United States
Treasury held as separate fund for
the Philippines s46,s3o,3 s1.21, the to-
tai accumulation of taxes paid by
United States professors of coconut
oil.
Congress Must Vote Fund.
Although Congress must appropri-
ate that amount before the Philippine
Commonwealth can collect, no difn-
Guilty is anticipated in that direction.
The estimated regular income Of the
Philippine government for the current
fiscal year is less than $4,000, 900.
One-fourth Of that amount has been
appropriated for national defense.
Necessarily other activities of the
Commonwealth have been curtailed in
order that a new army may be organ
lied and maintained.
Most needy among the activities OF
the commonwealth are education and
health. There has never been a time
when there were enough teachers and
schools in the Philippines, but the need
for such is more urgent now than ever
before. For 1887 more money was
appropriated for national defense than
public education.
Talk Of School Crisis.
Next month Philippine public
schools will again open for a new
school year, and in the last six weeks
the people have been talking about
the school crisis. In Manila alone it
is feared that 5000 elementary school
graduates will not be admitted into
high schools because of the lack of
facilities 1t is expected that public
education will benefit most from the
tremendous excise tax Windfall
In 1887 public health was allotted
only 81, 600, 900. This Is far from being
sufficient for the needs of country OF
$4,000, 900 people, who are continuous
ly beset by tropical and Oriental
diseases.
Outside OF the eradication of pesti-
lential diseases, one Of the most ap-
parent improvements of the Philip
pines during the American regime is
the increase Of the average Filipino's
stature. At the turn Of the century
the height of the average man in the
Philippine Scouts, part of the United
States Army. was feet IL inches. At
present it is feet inches, an increase
Of 5 inches in a period of little over
three decades.
Health Not to Suffer.
Americans in the Philippines are
80 eager to see this progress in Fill
Pine health maintained that they
feared that the relatively expensive
national defense program Of the Com
monwealth would cripple the work
they began However, with S2,000,-
900 falling into the Philippine treas
ury every month, 1t is believed that
the health Of the Filipinos will not
suffer.
How this tremendous windfau will
AFFECT Philippine attitude toward in
dependence remains to be seen. Pres
ident Quezon has objected vigorously
to the Scent excise tax, but also
has expressed qualification over the
favorable decision OF the Supreme
Court.
In his objection he regarded the
tax as a violation Of the spirit OF
the McDufle- Tydings independence
act. However, his actions after the
Supreme Court decision and the happy
statements of inferior oficials indi-
cate that the windfall would be sum-
Gent to soothe ruined Filipino feel
ings. After all, the Philippine gov
eminent may find the coconut oil tax
a blessing, for there is no apparent
means by which it can obtain $24,-
100000 annually without almost dou-
bling the present taxes, which An
impoverished people already consider
pretty heavy.