Evening star., 1941-05-18
Closer L. S. Ties Seen Periled
By New Puerto Rican Regime
Sudden Change in Outlook Is the Result of 1910
Elections and Not Because of Americas
Island Defense Plans
By Everen B. WHSon.

a pound, instead of the cents or more
which they pay at the present time.
The only losers under this plan would
be the farmers in continental United
States, who would be deprived of the
islands heavy purchases.
Gov Guy J. SWope vetoed the bill
with the explanation that it was con-
trary to public policy, probably with an
eye to possible disapproval on the part
of Congress.
Another bill, known as the land law
of Puerto Rico, is intended to eliminate
American operators of sugar fruit and
tobacco farms. Passed by the Legislature
and approved by the Governor, this bill
sets up Land Authority which. is en-
powered TO condemn and take possess
sion of all lands owned by any corpora
tions, partnerships, trusts or other "juri-
dical persons" exempting only lands
that are owned by individuals.
Parcels May Be Sold.
Having gained title to the land, the
Authority is authorized to sell 1t in
parcels not exceeding 100 acres to in
dividual farmers or to lease it in farms
of any size to other individuals.
A maximum of 100000 acres might be
taken over under this plan, provided
sufficient funds were made available by
the Federal Government. The value of
the lands will be determined by the
courts. after the Authority takes possess
sion of the farms.
While the Legislature. was preparing
this bill, the subject of land distribu-
ton was under official discussion in San
Juan, the islands capital. Rexford Guy
TugWell, former brain-truster, had been
commissioned by Secretary of Interior
IckeS to hold hearings in Puerto Rico on
the advisability of breaking up large
farms under a law passed by Congress
in 1900. At these hearings, representa-
tives of the sugar companies testified
that any plan of breaking up efficient
large farms into small units would be dis
astrous. They insisted that such move
would result in less employment, lower
wages, reduced tax collections by the in
sular government, decline in yields of
oOSdL pei dCIC, dIlu cCOIlOiillC
chaos. They charged also that the huge
expenditures needed from the Federal
Treasury to put the program into effect
would benefit only few thousand new
land owners, at best, whereas the great
number of unemployed, aggregating 200,-
900 or more, would in no ayFbeneht
from the program, and the island as a.
whole would lose heavily. $. aA-s p
Wage Drop Claim Denied.
Advocates of the plan disputed the
claim that wages or yields would drop
drastically and based their approval of
the plan on the grounds that the land
would 60 back into the hands of Puerto
Ricans
Business leaders also have attacked the
new land law on two grounds. First,
they charge it is un-American to take
property from one private owner, by the
process of condemnation, merely for the
purpose of selling the land to another
private owner for the same purpose, even
though Federal funds are used to effect
the transfer. Second, they claim that
the law, in effect, is semi confiscatory,
because there is no assurance that the
Land Authority or the insular treasury
will have enough money to pay the full
price set on the land by the courts after
the Authority has taken possession.
With the passage of the new land law,
the principal problem before the Tugwell
commission is to make report on the
amount of Federal funds needed to put
the law into effect. Unofficial estimates
indicate that from S5O,O00,00O to $75,000-
900 will be needed to carry out the land
program.
With the single exception of coffee.
which has sunk to secondary Importance,
every one of Puerto Ricos industries
was developed mainly with continental
capital.
The Populares now plan to replace
American capital with whatever local
funds are available, plus large loans
from the United States Treasury. In
asmuch as the Federal Government al
ready has spent or lent more than
$200,0O0,000 in the Territory since the
beginning of the New Deal excluding
the defense appropriations which are